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Landlord in Munich fined for charging below average rent

Landlord in Munich fined for charging below average rent

German news. Landlord fined for charging too little rent. Local tax authorities in Munich, fined landlord thousands of euros for charging his tenants rent that was deemed “too low”. The man owns several properties located in the central district of Sendling in Munich.

According to the 2022 rental index for the German city, the average monthly rent is 20.93 euros per square meter. The landlord known as Thaddäus Spegel, charges a maximum of 13.50 euros per square meter. An amount that the city authorities decided was too small, and asked Spegel to pay 41,445 euros in tax to the Finanzamt.

Speaking to German broadcaster  ZDF  , Spegel said: “I feel that I have been treated absolutely unfairly.” He added that he felt the local authorities were punishing him for being a “proper landlord”. The law in Germany requires landlords to charge tenants a minimum of 66% of average local rents. The outcome of the Munich Finanzamt case against Spegel will depend on whether he made tax deductions on his properties.

Very high rents

Munich is one of the most expensive city in Germany, and landlords often demand disproportionately high rents compared to city wages, meaning housing is becoming increasingly unaffordable for many working people.

Rent on the urban outskirts are also rising, With more and more people moving from German cities to the suburbs. In 2021, the municipality of Karlsfeld, located just 12 kilometers from the center of Munich, turned out to be the most expensive suburb in Germany. Also featured in the top 10 most expensive areas are: Germering, Dachau and Erding.

According to recent studies, landlords in Germany are increasingly circumventing rent control laws by offering short-term contracts for furnished apartments. Offering such leases means that landlords can regularly increase rents between tenancies. While undermining the bargaining power of tenants due to the precarious and short-term nature of their contracts.

Read also: List of six things you must do as a local in Germany
5 important documents you need to live and work in Germany

Source: t-online