Living - Major landlords demand reform of tenancy law
According to two of the most important landlords in Germany, German tenancy law needs to be reformed. The current legal regulations have negative consequences for the rental market and new construction, complained Rolf Buch, CEO of the Dax group Vonovia, and Thomas Krebs, CEO of the largest municipal landlord Saga from Hamburg, in the "Süddeutsche Zeitung" (Saturday).
The question is "who needs protection and low rents and who pays too little compared to their ability to pay", said Buch. "The rental market must be regulated, nobody wants London conditions." However, things cannot continue as they are now - especially in view of the housing crisis. Only part of the market needs to be protected: "In the case of affordable apartments, it is necessary that they remain affordable," said Buch. "The kind of apartments that tradespeople, streetcar drivers or firefighters can afford. Expensive apartments don't need protection."
Saga boss Krebs advocated changing the rules for publicly subsidized apartments: "After five years, we should ask tenants to provide voluntary information about their income and the number of residents." This would prevent subsidized and therefore affordable apartments from being permanently occupied, even if the conditions no longer exist. If this is the case, "the rent should be adjusted".
In the meantime, the large number of state interventions are having negative consequences on the market, said Buch. In Berlin, for example, the rent freeze has "led to a legal and an illegal black market": the number of sublet or furnished apartments has risen rapidly and landlords often no longer have access to their own affordable apartments, especially in good locations. "Unfortunately, we have to take note of this and it annoys me," said Krebs.
With almost 550,000 apartments in Germany, Sweden and Austria, Vonovia is the largest private landlord in Europe. In this country alone, the Dax-listed group owns almost 490,000 apartments. Saga most recently had just under 140,000 apartments in Hamburg.
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- Rolf Buch, CEO of Vonovia, expressed his concern about the impact of German tenancy law on the rental market and new construction in an interview with the "Süddeutsche Zeitung" (Saturday).
- According to Thomas Krebs, CEO of Saga, a major landlord in Hamburg, the rules for publicly subsidized apartments could be changed to prevent affordable apartments from being permanently occupied by tenants who no longer meet the eligibility criteria.
- In an effort to address the housing crisis, Buch suggested that only part of the market needs protection, specifically affordable apartments for workers like tradespeople, streetcar drivers, or firefighters.
- Buch criticized the consequences of state interventions in the rental market, citing Berlin's rent freeze as an example, which has resulted in a black market of sublet and furnished apartments.
- With a large presence in Germany, Vonovia, led by Buch, is the largest private landlord in Europe, owning almost 500,000 apartments in the country, while Saga has just under 140,000 apartments in Hamburg.
Source: www.stern.de
