Hardly any decision out of Karlsruhe has been as eagerly awaited by the real estate industry as the ruling on the Berlin rent cap. In a decision published on April 15, 2021, the Federal Constitutional Court has now declared the Berlin Rent Cap Act (MietenWoG Bln) null and void because it violates the federal system of competences. The federal government is primarily responsible for tenancy law and has made exhaustive use of its legislative powers. There is no room for unilateral action under state law - in Berlin as elsewhere.
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