Berlin Is Banning Most Vacation Apartment Rentals

Looking to rent an apartment on your next vacation to Berlin? Starting Sunday, you can basically forget about it. From May 1, Germany’s capital is banning landlords from renting out apartments to short-term visitors, with only a few exceptions permitted.

The penalty for breaking the law is a substantial €100,000 ($113,000) fine — levied on people renting their homes, never on the guests themselves. There will still be some loopholes that allow a few vacation apartments to persist, but it seems that, in Berlin at least, the astronomical rise of Airbnb and other short-stay rental sites is effectively over.

The general lack of apartments in Berlin provoked the law change. Thanks in part to German rent laws that are stricter than most other European countries, short-term rentals are often more profitable for landlords than finding longer-term tenants. In a growing city, that has made good, affordable apartments harder to come by; vacation apartments have taken over large chunks of the most desirable streets, and permanent residents have been frozen out of the market. Estimates vary about the number of permanent vacation apartments in the city, with one recent article pegging it at 14,393 units, out of a total of 1.9 million dwellings in the city.

This has provided a windfall for some landlords (and tenants who sub-let on the sly), but it’s less welcome for the many people searching for their own apartments. Locals’ tolerance of loud, late-partying tourists in their midst has also been wearing thin. Many landlords aren’t pleased with the law change, especially people who rent out apartments short-term in areas that don’t have a problem with party tourism. The Berlin Senate’s ruling nonetheless reflects a general feeling across a city in which homes are getting harder to find: Berliners have had enough and they want their city back.

 

Read more here – http://www.citylab.com/housing/2016/04/airbnb-rentals-berlin-vacation-apartment-law/480381/