Rent control 2026: What property managers specifically need to consider

Problem: Anyone re-letting a property in an area subject to the rent control (Mietpreisbremse) who fails to fulfill the pre-contractual disclosure obligation loses the right to all exceptions for two years, and tenants can reclaim excess rent retrospectively for up to 30 months.

Cause: The most common cause of violations is not a lack of legal knowledge, but the absence of a system that highlights obligations at the right moment.

Hypothesis: A structured approval process that triggers and documents the disclosure pursuant to Section 556g (1a) BGB before the contract is signed significantly reduces this procedural risk.

What applies to the rent control in 2026?

Direct answer: The rent control (Section 556d BGB) applies until December 31, 2029 (Federal Act of July 23, 2025). In areas with a tight housing market, the net cold rent for new leases may not exceed the local comparative rent by more than 10 percent. Exceptions (Sections 556e, 556f BGB) require pre-contractual disclosure by the landlord in text form before the tenant signs the contract (Section 556g (1a) BGB).

Three exceptions and why they only apply with proper disclosure

The law recognizes three exceptional cases. The decisive factor: they only apply if the landlord informed the tenant in text form before signing the contract.

2.1 Section 556e BGB: Previous tenant exception. If the rent last paid by the previous tenant was already higher than the rent permitted under the rent control, the landlord may set this previous rent as the new rent. However, the exception only applies if the landlord informed the new tenant of the amount of the previous rent in text form before signing the contract.

2.2 Section 556f BGB: New builds and comprehensive modernization. Apartments that are rented for the first time after October 1, 2014, are exempt from the rent control. The same applies to apartments that are rented out for the first time after a comprehensive modernization. Here, too, pre-contractual disclosure in text form is a prerequisite.

2.3 Section 556g (1a) BGB: The disclosure obligation as an access prerequisite. All exceptions require that the landlord informs the tenant about the respective exception in text form before signing the contract. It must be verifiable that this disclosure was received before the tenant's signature.

Penalty for failure: If the pre-contractual disclosure is missing, the exception is blocked for two years. The tenant can reclaim excess rent retrospectively for up to 30 months (Section 556g (3) BGB). This is not a trivial risk: with an excess rent of 100 euros per month, 30 months add up to a potential claim of 3,000 euros per tenant party.

Specific legal questions, particularly regarding the calculation of the rent index in specific cases, are best clarified by property managers with a specialized attorney or their professional association (VDIV, IVD).

Current status: Extension until December 31, 2029

The Federal Act of July 23, 2025 extends the rent control until December 31, 2029. Previously, it applied until the end of 2025. The extension signals that the legislature and the federal government regard the instrument as a permanent market regulation.

In its ruling VIII ZR 16/23 of December 18, 2024, the Federal Court of Justice once again confirmed the constitutionality of the rent control. Lawsuits against the regulation based on the basic right to property (Art. 14 GG) were unsuccessful. Property managers can assume that the instrument will remain in place in the coming years.

For day-to-day operations, this means: internal processes for re-letting must incorporate the requirements of the rent control on a permanent basis, not as a temporary solution.

The 10 percent rule: calculation and example

In an area subject to rent control, the net cold rent for new leases may exceed the local comparative rent by a maximum of 10 percent. The calculation is based on the local rent index (Mietspiegel) according to Section 558c BGB.

Calculation example: The local comparative rent according to the rent index is €12.00/m². The maximum permitted rent under the rent control results from €12.00 × 1.10 = €13.20/m². A net cold rent of €13.50/m² would be impermissible in this case, provided no exception applies.

The local comparative rent is not a fixed number, but a rent index value that results from the location, size, year of construction, and fixtures of the apartment. A lump-sum estimate is not sufficient.

Approval process instead of case-by-case knowledge. The most common cause of violations is not a lack of legal knowledge, but the absence of a system that makes the obligations visible at the right moment. A structured approval process before creating the lease contract can significantly reduce this risk.

Check rent control status and comparative rent before every contract. First check whether the rent control currently applies in the specific municipality, and determine the local comparative rent from the current rent index. State ordinances can expire or be renewed, which is why this check belongs at the beginning of every new tenancy process.

Identify the exceptional circumstance and provide disclosure before signing. If applicable, identify the exceptional circumstance (Section 556e or Section 556f BGB). Generate the disclosure in text form and verifiably provide it before the tenant signs the lease agreement.

Document the timestamp and link contract approval to it. The timestamp of the delivery must be documented in the system. As a digital foundation, EverReal provides an auditable letting process in which no lease agreement is approved before all mandatory steps have been completed. This includes the disclosure obligation under Section 556g (1a) BGB.

Secure proof in an audit-compliant and data-protection-compliant manner. For subsequent protection, audit-compliant documentation in property management is crucial: only those who can prove that the disclosure was delivered prior to contract signing are on the safe side in the event of a dispute. Since tenant data must be processed in compliance with data protection laws during the re-letting process, we also recommend reading the article on GDPR in property management.

Conclusion

The extension of the rent control until the end of 2029 is a clear signal: the topic will remain permanently on the agenda. Property managers who structure their processes now reduce the risk of clawbacks and exception blocks.

The decisive measure is not a complex study of the law, but an approval process that triggers and documents the disclosure obligation under Section 556g (1a) BGB at the right moment.

Download the Compliance Readiness Buyer's Guide or schedule a demo to see how EverReal structures approval processes for new rentals.

Where does the rent control apply in 2026?

The rent control does not apply automatically nationwide. It is activated by state ordinances for specific areas with a tight housing market. Status as of July 2026:

Berlin

• Status 2026: Applies

• Note: Legal ordinance active

Bavaria

• Status 2026: Applies in 162 municipalities

• Note: Active by state ordinance

Hamburg

• Status 2026: Applies

• Note: Active

NRW

• Status 2026: Applies in parts

• Note: Active by state ordinance

Baden-Württemberg

• Status 2026: Applies

• Note: Active

Hesse

• Status 2026: EXPIRED

• Note: Ordinance expired on Nov 25, 2025, no extension

Other federal states

• Status 2026: Check

• Note: State ordinances vary

Note: As of July 2026. State ordinances can expire or be renewed. Before any application, the current status must be checked with the responsible state ministry.

Legal disclaimer and sources

We do not provide legal advice. Property managers are best advised to clarify individual legal questions with a specialized attorney or their association (VDIV, IVD).

Sources:- Sections 556d, 556e, 556f, 556g (1a) BGB (gesetze-im-internet.de)- BGH VIII ZR 16/23, December 18, 2024 (bundesgerichtshof.de)- Federal Act extending the rent control, July 23, 2025 (bgbl.de)

Q: Does the rent control still apply in my city in 2026?A: That depends on the respective state ordinance. Nationwide, the rent control applies until December 31, 2029 (Federal Act of July 23, 2025), but only in municipalities designated as areas with a tight housing market by an active state ordinance. In Bavaria, for example, it applies in 162 municipalities; in Hesse, the ordinance expired on November 25, 2025, and was not extended. Property managers are best advised to clarify the current status for a specific municipality directly with the responsible state ministry of the respective federal state.

Q: What happens if I forget the disclosure obligation before the contract is signed?A: If disclosure in text form is missing prior to contract signing, no exception under Section 556e or Section 556f BGB applies. The respective exception is blocked for two years. The tenant can reclaim excess rent retrospectively for up to 30 months (Section 556g (3) BGB). It is not sufficient to provide the information later after the tenant has already signed. The time of delivery is decisive and must be documented.

Q: What is Section 556g (1a) BGB and what obligation does it establish?A: Section 556g (1a) BGB stipulates that a landlord who wants to rely on an exception to the rent control must inform the tenant in text form about the circumstances justifying the exception before concluding the lease agreement. Specifically, this means: The disclosure must be provided in writing or electronically (e.g., by email) and must be proven to have been received before the tenant signs. Without this pre-contractual disclosure, the exception cannot be applied, regardless of whether the factual basis for the exception exists.

Q: Which federal states no longer have rent control?A: In Hesse, the rent control ordinance expired on November 25, 2025, and was not extended. Other federal states, such as Saxony or Saarland, have never introduced the rent control by state ordinance. The situation varies and may change. Property managers should always check the current status with the respective state ministry before concluding a new lease without considering the rent control.