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German Realtors Demand Rent Control Reforms to Protect Refugees from Exploitation

A moral crisis unfolds as landlords exploit legal gaps to charge refugees sky-high rents. Will Berlin’s lawmakers finally close this loophole before 2026? Refugees pay over €20 per square meter—double the norm—while realtors profit from a system even investors call unjust.

The image shows an old advertisement for a hotel in Germany, featuring a picture of a building with...
The image shows an old advertisement for a hotel in Germany, featuring a picture of a building with text written on it. The building is a two-story structure with a red roof and white walls, and a large window on the second floor. The text on the advertisement is written in a bold font and is surrounded by a decorative border.

German Realtors Demand Rent Control Reforms to Protect Refugees from Exploitation

The Ring Deutscher Makler (RDM) Berlin-Brandenburg is pushing for urgent changes to Germany’s rent control laws. The association wants to stop landlords, or realtors, from charging excessively high rents for refugee housing. Current rules allow some properties to bypass local rent limits, leaving refugees vulnerable to exploitation by unscrupulous realtors.

A small group of property owners has been converting empty buildings into refugee accommodations. These realtors then charge rents exceeding €20 per square metre—far above standard rates. Because these leases fall under commercial tenancy law, they avoid the usual rent controls.

The RDM’s chairman, Markus Gruhn, has called the practice morally indefensible. He argues that just because something is legal does not make it right. Major investors, including insurance firms, pension funds, and banks, have already refused to buy properties with such inflated rents. To fix the problem, the RDM proposes amending Sections 549 and 556d of the German Civil Code (BGB). This would force refugee housing to follow local rent benchmarks. The association has also published a detailed proposal, available as a PDF, outlining the necessary legal changes. Gruhn is also urging the Berlin Senate to limit new refugee housing contracts to five years. He warns against signing long-term deals that could lock in high costs. So far, however, the RDM’s calls for reform have not led to any official policy changes before the 2026 deadline.

The RDM’s proposals aim to close a legal loophole that lets realtors overcharge for refugee housing. If adopted, the reforms would bring these properties under the same rent controls as other residential buildings. For now, the association continues to pressure lawmakers to act before more long-term contracts are signed.

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