This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 290694. TENLAW: Tenancy Law and Housing Policy in Multi-level Europe National Report for GERMANY Authors: Julia Cornelius and Joanna Rzeznik Team Leader: Prof. Dr. Christoph U. Schmid National Supervisor: Prof. Dr. Christoph U. Schmid Other contributors: BBSR Peer reviewers: Iustin Armaşu, Prof. Dr. Sergio Nasarre Aznar, Dr. Montserrat Simó Solsona, Matteo Villa National Report for Germany Table of Contents 1. Housing situation..................................................................................................................... 3 1.1. General features .......................................................................................................... 3 1.2. Historical evolution of the national housing situation and housing policy ................. 3 1.3. Current situation ........................................................................................................... 7 1.4. Types of housing tenures ............................................................................................ 8 1.5. Other general aspects ............................................................................................... 19 2. Economic, urban and social factors ..................................................................................... 22 2.1. Current situation of the housing market .................................................................... 22 2.2. Issues of price and affordability................................................................................. 24 2.3. Tenancy contracts and investment ........................................................................... 27 2.4. Other economic factors.............................................................................................. 30 2.5. Effects of the current crisis ........................................................................................ 33 2.6. Urban aspects of the housing situation..................................................................... 35 2.7. Social aspects of the housing situation..................................................................... 38 3. Housing policies and related policies ................................................................................... 39 3.1. Introduction ................................................................................................................. 39 3.2. Governmental actors.................................................................................................. 41 3.3. Housing policies ......................................................................................................... 49 3.4. Urban policies............................................................................................................. 50 3.5. Energy policies ........................................................................................................... 53 3.6. Subsidization .............................................................................................................. 55 3.7. Taxation ...................................................................................................................... 61 4. Regulatory types of rental and intermediate tenures .......................................................... 66 4.1. Classifications of different types of regulatory tenures ............................................ 66 4.2. Regulatory types of tenures without a public task.................................................... 68 4.3. Regulatory types of tenures with a public task ......................................................... 73 5. Origins and development of tenancy law............................................................................. 78 6. Tenancy regulation and its context ...................................................................................... 91 6.1. General introduction................................................................................................... 91 6.2. Preparation and negotiation of tenancy contracts.................................................. 103 6.3. Conclusion of tenancy contracts ............................................................................. 112 1 6.4. Contents of tenancy contracts ................................................................................. 120 6.5. Implementation of tenancy contracts ...................................................................... 143 6.6. Termination of tenancy contracts ............................................................................ 162 6.7. Enforcing tenancy contracts .................................................................................... 172 6.8. Tenancy law and procedure “in action”................................................................... 176 7. Effects of EU law and policies on national tenancy policies and law ............................... 184 7.1. EU policies and legislation affecting national housing policies ............................. 184 7.2. EU policies and legislation affection national housing law .................................... 186 7.3. Table of transposition of EU legislation .................................................................. 191 8. Typical national cases (with short solutions) ..................................................................... 201 8.1. Keeping animals....................................................................................................... 201 8.2. Parabolic antenna .................................................................................................... 201 8.3. Double lease ............................................................................................................ 202 8.4. Qualified fixed-term tenancy contract ..................................................................... 202 8.5. Cosmetic repairs ...................................................................................................... 203 8.6. Subletting.................................................................................................................. 203 8.7. Rent increase ........................................................................................................... 204 8.8. Termination because of personal needs................................................................. 205 8.9. Insane tenant............................................................................................................ 205 8.10. Deceased tenant ...................................................................................................... 206 9. Tables .................................................................................................................................. 206 9.1. Literature................................................................................................................... 206 9.2. Cases........................................................................................................................ 224 9.3. Abbreviations............................................................................................................ 239 2 1. Housing situation 1.1. General features 1.2. Historical evolution of the national housing situation and housing policy Please describe the historic evolution of the national housing situation and housing policies briefly. o In particular: Please describe briefly the evolution of the principal types of housing tenures from the 1990s on. Explain the growth and decline of the dif- ferent tenures and the reasons why that happened (e.g. privatization or other policies). The market-based character of the German housing sector has its origins in the era of the Weimar Republic (1918-1933). At that time, the driving principle was to provide good housing at affordable prices, contrary to the capitalist system, where only either the con- stellation “poor and affordable” or “good and expensive” seemed achievable.1 After the Second World War (1939-1945) a shortage of dwellings constituted one of the major problems to be faced by post-war Germany.2 Even though this major problem was com- mon to both West and East Germany, the respective developments in the two German states took different paths. In post-war West Germany, the Federal Republic of Germany (Bundesrepublik Deutsch- land, BRD), there was a shortage of millions of dwellings in the housing market. Given this situation, the housing sector was considered an issue of national importance. What was created in response to this massive shortage was a well-functioning system of social housing, in particular extensive construction of rental dwellings for a broad majority of households and a market-orientated housing supply. This system was characterized by both contribution of private investment as well as high standards of quality. The main task of the housing sector was reconstruction of the ruined housing stock. The target group was the whole society and not the particularly disadvantaged classes. Beyond that, the state regulated the housing market, in particular the distribution of available living space (Wohnungszwangswirtschaft) which was abolished only during the 1960s.3 Local authori- ties, i.e. local housing offices (Wohnungsamt), were empowered to register available dwellings, to decide who may use them, to determine if a termination