When implementing the heating law
Tenants’ association warns of high rent increases
05/19/2023 1:46 p.m
If the Heating Act comes into force as currently planned, this could become a problem for many tenants. According to current law, owners are allowed to pass on the costs of the conversion to the rent. The legislature must urgently rule this out, the German Tenants’ Association demands.
The German Tenants’ Association (DMB) warns that the heating law for the replacement of old oil and gas heating systems could overburden tenants. According to Melanie Weber-Moritz, federal director of the tenants’ association, “according to the current status” there would be high rent increases. According to current law, landlords can pass on the costs of the heating conversion to the rent and permanently increase them by eight percent of the investment costs incurred – while complying with caps of two to three euros per square meter, according to the tenants’ association.
The objection of economic hardship, which tenants can usually raise in the event of rent increases, does not apply in this case because the landlords are legally obliged to modernize under the Building Energy Act.
Possible federal subsidies for the heating renovation would not be used because landlords would have to deduct them from the apportionable costs. “Renters currently have no chance to defend themselves against rent increases that overwhelm them economically,” criticized Weber-Moritz.
“Abolish the possibility of rent increases”
“The legislative process must therefore be accompanied by tenancy law reforms in order to make the law socially acceptable,” she added. The DMB demands that the possibility of increasing the rent after replacing the heating system should be abolished. The rapid energetic refurbishment of the building is extremely important, but must not lead to a financial overload for the tenants. The tenants’ association called for at least a reduction in the rent increase levy to four percent of the costs and a cap at a maximum of 1.50 euros per square meter.
According to the draft of the law passed by the Federal Cabinet, from 2024 every newly installed heating system should be operated with 65 percent renewable energy. This should apply to all owners under 80 years of age. Existing oil and gas heaters can continue to be operated, broken heaters can be repaired. This is how the farewell to gas and oil heating should be heralded. Funding programs and other hardship rules are planned, but not specifically included in the draft.