However, investments in holdings and new construction made as a result of these challenges should not be at the expense of tenants and must be socially responsible. This is why Deutsche Wohnen will focus on the capabilities of each individual in future: we want to relieve our tenants of any anxiety that they might lose their flat due to renovation measures or future increases in rent.
The company has set down its mindset and a range of measures in its declaration ‘Our promise to our tenants’.
Further background to our tenant promise can be found in the interview with our Chief Executive Officer in Der Tagesspiegel.
Questions and answers
Our promise is only applicable to tenants whose rent we increase in the future. This states that we commit to:
- Limiting increases in the gross rent (including bills) following modernisation to ensure that our tenants pay a maximum of 30% of a household’s net income.
- Limiting future rent rises in line with the rent index so that a household with a needs-oriented living space only has to spend a maximum of 30% of its net income on net rent (excluding bills) – even if the rent index would permit further rises.
No. The rules apply exclusively to future rent rises. They do not apply retrospectively and will have no impact on current rent levels.
- Only once for each notice of rent increase and if the tenant wishes. No regular checks on income are subsequently carried out.
- The tenant must submit current proof of income, e.g. payslip, pension entitlement certificate, unemployment benefit, BAföG student grant or similar.
The capping of the scope to increase rent following modernisation and rent index adjustments will of course apply to all tenants of Deutsche Wohnen from 1 July 2019.
The ‘needs-oriented’ living space – i.e. the size of the apartment – must be in proportion with the size of the household. (Please see article 27, paragraph 4, of the Housing Construction Promotion Act (WoFG) in conjunction with the Implementing Provision on the Establishment of House Sizes by the SenStadtWohn dated 17 April 2018.)