Legal · Glossary

MietpreisbremseRent brake

The rent cap on new leases in tight housing markets

3 min read·Updated December 2024

The Mietpreisbremse is Germany’s rent cap in tight housing markets. In designated zones, it limits the initial rent on a new lease to the local Mietspiegel plus ten percent.

What It Limits

The cap applies to the starting rent when a new tenant moves in, in areas a Bundesland has designated as having a strained housing market. It is currently extended into 2029, and tightening it has been a politically active topic.

Key Points

  • Caps the initial rent on a new lease at Mietspiegel + 10% in designated zones
  • Affects how quickly rental income can grow, so it belongs in any yield assumption
  • Rules and designated zones change over time and vary by Bundesland

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Lesson 3.3 · Benefits and risks for international investors

Risks & considerations

Vacancy, Mietpreisbremse, interest rates and the honest downsides.

Lesson 1.3 · Real estate investing essentials

The German property market

Market size, the big city differences, and where demand actually is.

Lesson 2.5 · How property investment works in Germany

Ongoing ownership

Being a landlord: WEG, Hausgeld, and your duties.

Related Terms

Rental Yield(Mietrendite)

Rental yield measures annual rental income as a percentage of property value. Gross yield uses total rent; net yield subtracts operating expenses and taxes.

Property Management(Hausverwaltung)

Property management (Hausverwaltung) companies handle tenant relations, rent collection, maintenance, and legal compliance. Fees typically 8-15% of rental income.

Vacancy Rate(Leerstandsquote)

Vacancy rate measures the percentage of time your property has no paying tenant. In strong German markets, vacancy is typically 2-5%. Factor this into cashflow calculations.

Planning a purchase?

Buying in Germany adds roughly 7% to 12% on top of the purchase price.

Transfer tax

3.5% to 6.5% of the price, set by the state.

Notary & registry

About 1.5% to 2%, fixed by law (GNotKG).

Agent commission

Usually around 3.57% as the buyer's share.

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Mietpreisbremse (Rent brake) | Financemate Glossary