Berlin authorities contemplate enforcing a ban on leasing fully-furnished flats
In a bid to address escalating rents and prevent displacement of residents, the Berlin Senate is considering a ban on the short-term rental of furnished apartments in certain protected neighborhoods known as Milieuschutzgebiete (social-protection areas). This move follows the lead of Neukölln district, which has already implemented such a ban.
The ban in Neukölln, enforced following a 2023 court ruling, orders landlords to reverse co-living setups and restore original apartment layouts, signaling a strict approach to enforcement. Other districts, including Friedrichshain-Kreuzberg, Neukölln, Charlottenburg-Wilmersdorf, and Pankow, are closely monitoring Neukölln’s approach and exploring similar measures to tackle the shortage of affordable housing caused in part by short-term furnished rentals.
The proposed ban aims to create more transparency in the Berlin rental market by eliminating the practice that allows landlords to artificially inflate rents by not explicitly stating furniture costs. This practice allows landlords to circumvent the local market rate, leading to exorbitant rents, a situation that City Councillor for Construction Jochen Biedermann (Greens) has spoken out against, citing exploitation of loopholes in tenancy law.
If implemented, the ban would apply to an area home to approximately 1.2 million people and would likely impact the short-term rental market in the specified districts. The Senate Building Administration is actively discussing and examining the proposed ban on temporary furnished accommodation. However, the proposal does not explicitly state the timeline for the implementation of the ban.
A ban on furnished apartment rentals could lead to more transparency in the Berlin rental market, reducing the availability of furnished apartments for short-term rental, often popular with tourists or temporary residents. This could potentially ease pressure on the housing market and help to stabilize rents. Landlords who had converted units into furnished short-term rentals may be forced to revert properties, impacting income sources for some but benefiting long-term tenants needing affordable housing.
If adopted at the Senate level, this policy could extend protections and anti-gentrification efforts across Berlin’s Milieuschutzgebiete rather than being limited to individual districts. The initiative remains under consideration but is progressing and likely to have significant effects on housing dynamics in Berlin’s protected areas.
[1] Berliner Morgenpost, "Berlin Senate Considers Ban on Short-Term Rental of Furnished Apartments," 15th April 2023. [2] Tagesspiegel, "Neukölln Bans Temporary Rental of Furnished Apartments in Social-Protection Areas," 1st March 2023.
- The ban in Neukölln, as a result of a 2023 court ruling, requires landlords to undo co-living arrangements and return apartment layouts to their original states, indicating a strict enforcement policy.
- The proposed ban in Berlin aims to enhance transparency in the rental market by ending the practice of not explicitly stating furniture costs, thereby helping to prevent artificially inflated rents.
- If approved, the ban could affect the short-term rental market in districts like Friedrichshain-Kreuzberg, Neukölln, Charlottenburg-Wilmersdorf, and Pankow, potentially easing pressure on the housing market and stabilizing rents.
- The policy of banning furnished apartment rentals, if adopted at the Senate level, could expand protections and anti-gentrification efforts across all Berlin Milieuschutzgebiete (social-protection areas), significantly impacting housing dynamics citywide.
