Displays Data on Urban Renters in Cities of North Rhine-Westphalia
In a bid to combat the rising issue of rent gouging in German metropolises and cities in North Rhine-Westphalia (NRW), the Left Party has launched the "Rent Gouging App" (Mietwucherapp) in November 2024. This innovative tool allows households to check if they are paying excessively high rents and take action if necessary.
The app, initially available for nine German metropolises, has now expanded to include the NRW cities of Bochum, Bonn, Cologne, and Münster. Thousands of tenants have reported suspected rent gouging through the app, with about 5,000 households reporting rents averaging 59% above the local rent index, paying on average €242 too much per month. This suggests a widespread issue in major cities such as Berlin and the newly included NRW cities.
Under German law, rent gouging (Mietwucher) is illegal. Landlords charging excessively above the local rent index can face legal consequences, including rent reductions and potential penalties. When a tenant files a complaint using the app, authorities are obliged to investigate. If rent gouging is confirmed, landlords may be required to reduce rents and could be subject to fines. However, many tenants hesitate to report due to fear of landlord retaliation.
Caren Lay, The Left's housing politician, has voiced concern over the millions of euros tenants are paying in overpriced rents every month. To address this, the Left is advocating for the facilitated application of paragraph 5 of the Economic Criminal Code to impose fines for rent gouging more easily in the Bundestag.
The "Rent Gouging App" is not just a reporting tool; it serves as a means to protect tenants in highly competitive housing markets from exploitation while enforcing rental standards under German tenancy laws. The total monthly overpayment for these 5,000 households is up to 1.2 million euros, and the annual overpayment is almost 15 million euros.
In Frankfurt am Main, over 1,000 cases have been processed, and 330,000 euros have been refunded to tenants since 2020. The app has been used by 135,000 users who have voluntarily entered their data. As the app continues to grow in usage and coverage, it represents a significant step forward in tenant advocacy and ensuring fair housing in Germany.
The "Rent Gouging App" has been instrumental in uncovering potential cases of rent gouging in various German cities, with around 5,000 households in the newly included NRW cities and Berlin reporting rents averaging 59% above the local rent index, indicating a widespread issue in the finance sector. To combat this, the Left Party is advocating for stricter penalties in the finance industry for landlords found guilty of rent gouging, proposing the facilitated application of paragraph 5 of the Economic Criminal Code in the Bundestag. Furthermore, the app, initially focusing on nine cities, has expanded to include more, serving as a valuable tool for the real-estate industry in protecting tenants from exploitation and enforcing rental standards under German tenancy laws.
