How to solve the investor-user-dilemma on the German rental housing market

This project outlines how climate protection and rental protection can be reconciled.

  • Project Duration: 08/2019 - 10/2020

In Germany, landlords who renovate a rented flat can refinance the renovation by means of a surcharge on the rent. This mechanism has been the subject of intense debate in the recent past, as some landlords are accused of misusing this levy to drive tenants out of their flats through high rent surcharges.
In terms of climate protection, the mechanism in its current form is unsuitable, as it is not based on a reduction in energy demand or CO₂ emissions, but purely on the investment costs that the landlord has incurred.
This project therefore focuses on how incentives in the rental market can be set so that both landlords and tenants are rewarded for climate-friendly action: The incentives must be set in such a way that a landlord benefits from having a meaningful climate protection measure implemented. At the same time, the incentive for the tenants to save on heating should be maintained and they should be protected from disproportionate rent surcharges.

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