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Karlsruhe (dpa) - The Federal Court of Justice (BGH) is deciding today in a pilot procedure whether tenants are entitled to compensation for government breakdowns when the rental price brake started.

Since June 2015, the state governments have been able to designate “areas with tight housing markets”.

The principle there is that when new tenants move in, landlords may add a maximum of ten percent to the local comparative rent.

The rental price brake regulations must contain a justification.

In a number of federal states, however, this was not taken so seriously.

The courts have therefore overturned the original regulations.

The tenants who trusted it suffer the damage.

They now have to live permanently with their excessive rent.

A legal service provider wants to help those affected to obtain compensation and has sued the state of Hesse on behalf of two tenants from Frankfurt in the sample case.

(Az. III ZR 25/20)

© dpa-infocom, dpa: 210127-99-195159 / 2

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Announcement by the BGH

Judgment of the Frankfurt Higher Regional Court of February 13, 2020

Judgment of the LG Frankfurt from March 25, 2019

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BGH judgment on the Hessian ordinance of July 17, 2019

Conny GmbH in January 2020 about the procedure

BVerfG ruling on the rent control of July 18, 2019

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Rent brake in the law, § 556d BGB

Info sheet from the Berlin tenants' association on the rent brake

Overview of the tenants' association with designated areas

Topic page of the Ministry of Justice on tenant protection

Tenants' Association on the dispute