Sale of municipal apartments to international companies: Tenants' association criticizes legally compliant letters

Sale of municipal apartments to international companies: Tenants' association criticizes legally compliant letters

According to a report by www.freipresse.de, there is a trend towards rising rent prices and conflicts over rent increases in Vogtland. The Vogtland Tenants' Association recorded an increase in consultations on the subject of rent increases from 4.5 percent in 2020 to 14.5 percent at the end of September 2023. The new owners of municipal apartments, who are primarily foreign investment companies and are primarily interested in maximizing profits, are particularly problematic. Due to the sale of residential blocks and areas to these corporations, the displacement of old tenants is now also spreading to the Vogtland. This trend has resulted in an increase in conflicts and rent increases.

The effects of these changes are clearly noticeable in the region. Housing demolition since 1990 has led to vacancies, and the sale of public housing and land has led to a shortage of social housing. A main demand of the tenants' association is therefore a stop to the sale of public housing and land as well as the formation of more cooperatives as an alternative.

To analyze the impact on the market, we look at rising rental prices nationwide. According to the real estate portal Immowelt, average rents will have risen in 90 percent of medium-sized German cities in 2022. Rental prices are also showing an upward trend in Plauen, the only medium-sized town in Vogtland.

Current developments show that tenants should be vigilant and check carefully whether a rent increase is justified. An owner's argument based on a rent index or a rent overview is often ineffective because there are no valid rent indexes in the Vogtland district. Naming three comparable apartments and rents is one possibility, but changes to the Civil Code have created high hurdles for landlords.

The effects of rising rent prices and conflicts over rent increases in Vogtland are clearly visible. There is a shortage of social housing, and international investment companies interested in making a profit are purchasing more and more municipal housing. This leads to conflicts and excessive rent demands. To counteract this trend, it is important to stop the sale of public housing and promote alternative solutions such as the formation of cooperatives.

Source: www.freipresse.de