How Germany implements rent control

An easy way to run a country is to leave all matters to the market.

But the market can get out of hand, just like property prices and rental.

Some people said that it is difficult to regulate rentals.

The Germans have found a solution. It is not perfect, but it is better than letting the market run out of control.

Here are the key elements of the approach taken by Germany.

a) For new rentals, they do not control the rentals.
b) For renewals they protect the existing tenant by regulating the rentals not to exceed 10% above the average rentals for the area.
c) The increase in rental should not exceed 20% over a three year period.
d) Special adjustment can be made for improvement in property, but in practice it is difficult for landlord to justify a large increase.

This approach is fair. It is market based, but does not allow the landlord to increase the rental for existing tenants to an arbitrarily high level.

It seemed to work quite well in practice.

This approach can be adopted for both residential and commercial properties. If it is implemented in Singapore, the rentals for retail space would not have gone up too high, leading to problems in the retail sector.

 

Tan Kin Lian

 

 

Sponsored Content

5 Responses to “How Germany implements rent control”

  • Who run the biggest property?:

    In Singapore, you need to ask who is the biggest property owner?

    The answer will tell you why the system is like that.

    (hint: the biggest property owner is well known for asking, what’s wrong with collecting more money.)

    GD Star Rating
    loading...
  • TruBlu:

    First REGULARISE HDB PRICES N THEN REGULATE THE PRICES N RENTALS
    AS FOR PRIVATE, LET MARKET FORCE$ DICTATE.

    GD Star Rating
    loading...
  • HarderTruths:

    Germany implements rent control because it has private ownership and a free market.

    We don’t. Everything belongs to them and we are to be grateful for the chance to rent from them and only pay them with our life savings.

    GD Star Rating
    loading...
  • We like Germans or Swiss?:

    Institutionalized crony-capitalism is the root evil of our government.

    GD Star Rating
    loading...
  • ganeshsk:

    Just Undo Temasek…. and all will fall in place.

    GD Star Rating
    loading...

Leave a Reply

 characters available

Member Services
Self-SupportMembers Login
Sponsored Advertisement

Search On TR Emeritus
Sponsored Advertisement

Most Recent Comments
  • Haigen-Diaz: Rabble-rouser: Cont’d.. Bertolt Brecht “Would it not be easier in that case for the government to...
  • oxygen: @ genX TO AVOID DOUBT, PLEASE SUPPLY us your Singapore property price index for the last 15 years to show...
  • teh susu: @TruBlu: June 19, 2019 at 9:16 pm (Quote) {yada,yada,yada…PAP GAHmen takes good care of our children! whoa!...
  • Harder Truths: If you want adult slaves you need to make sure the slave children grow up. How is this related to...
  • tan kin lian, what a pea brain: the victor gets to rewrite history. as soon as OPPO alliance topples clown pap, all...
  • tan kin lian, what a pea brain: don’t be so ffffing stupid, tan kin lian. there is no such thing as pure...
  • genX: property market will sustain despite what some doom-sayers claim. more foreign investors like those from HK N...
  • opposition dude: Children may be treated well here but come on, how many nations in the world treat children really...
  • TruBlu: so,GMS,you think MPs or LAWMAKERS should not conduct themselves like mere VILLAGE HEADS WHO.LIKE MY...
  • TruBlu: yada,yada,yada…PAP GAHmen takes good care of our children! whoa! really? LEE AH LONG shud be awarded...
  • oxygen: @ Rabble-rouser ME LIKES YOUR GOBSMACKING EXALT ECONOMIC LECTURE in illuminating easy-to-comprehend format in...
  • Talk Kok LP: But who outside the party selected the communist party to lead the country? Within the communist party,...
  • MarBowling: Great BUT sarcastic comments by GMS! To add to his sarcasm, Think AP Faishal is more like a high class...
  • self style internet mp wannabe: Where to start? Which route to take? Praise Goh for saying and writing stuffs that in...
  • Ocbc bank GLRC kena use: Sg gov should assist us since the mkt is bad now.
  • the good the bad N the ugly: first the good…then the bad…now the ‘ugly’. SG had them...
Announcements
Advertisements
Advertisements
Visitors Statistic
Latest Statistic