Munich plans digital monitor to curb excessive rents

Munich plans to introduce a digital rent monitor that will automatically scan publicly available online listings for unusually high rents, BR reported. Landlords could then be warned about “potentially unlawful rent demands.” The city council is due to decide on the plan on September 24.

The project is initially scheduled to run until December 31, 2028, after which its effectiveness will be evaluated. Mayor Dominik Krause of the Greens said the city wanted to use every available option to slow the rise in rents.

Krause said landlords were not always aware that the rent they were demanding might be unlawful. They often adopted the rent suggested by an online property platform, he said, even though those amounts were frequently too high.

The city cannot intervene in private rental agreements, and prosecuting excessive rents is difficult because the legal requirements for imposing fines are demanding. In particular, it is difficult even in Munich to prove that landlords exploited a shortage of comparable housing.

The city has therefore joined other municipalities in calling for changes to federal law, without success so far. Simone Burger, the Social Democrats’ housing policy spokesperson, said people searching for apartments on major platforms had to ask whether the advertised rents were still legal. Her parliamentary group supports the rent monitor.

Munich has operated a rent advice service since 1981, handling around 25,000 consultations each year.