The Mietpreisbremse (German rent cap) limits how much rent you may charge when re-letting a flat – and it applies expressly in Düsseldorf as well. Following its extension at the federal level, it remains in force until the end of 2029, governed in North Rhine-Westphalia (NRW) by the Mieterschutzverordnung NRW (NRW Tenant Protection Ordinance). For owners this is no cause for concern, but it is a good reason to look closely: those who know the rules of the game let their property on a sound legal footing, avoid claims for repayment and nevertheless achieve a fair, market-appropriate rent. This guide sets out the key points in plain, factual terms.
What the Rent Cap Regulates – and Whom It Applies To
The Mietpreisbremse (rent cap) is governed by Sections 556d to 556g of the Bürgerliches Gesetzbuch (BGB – the German Civil Code). Its essence is quickly explained: in an area with a strained housing market, the rent at the start of a new tenancy may exceed the ortsübliche Vergleichsmiete (the local reference rent customary for comparable accommodation) by no more than 10 per cent (Section 556d (1) BGB).
It is important to note what the rule does not cover: it applies only to new lettings and re-lettings, that is, on the conclusion of a new tenancy agreement. Existing, ongoing tenancies are not affected – rent increases within a running contract are subject to their own rules (the Kappungsgrenze, i.e. the statutory ceiling on rent increases, and the ortsübliche Vergleichsmiete, the local reference rent). In addition, the rent cap applies exclusively to residential accommodation, not to commercial premises.
A further decisive point: the cap takes effect only where the relevant federal state has designated an area as a strained housing market by ordinance. Without such a state ordinance there is no rent cap.
Does the Rent Cap Apply in Düsseldorf and NRW?
Yes. For North Rhine-Westphalia (NRW), the authoritative basis is the Mieterschutzverordnung NRW (MietSchVO NRW – NRW Tenant Protection Ordinance) of 28 January 2025, which came into force on 1 March 2025. It designates the areas with a strained housing market in which the rent cap, the reduced Kappungsgrenze (ceiling on rent increases) and the extended notice-protection period apply.
Düsseldorf is expressly covered by this ordinance. With the 2025 revision, the state significantly extended the catalogue of areas – from 18 to 57 towns and municipalities, including neighbouring municipalities such as Ratingen and Meerbusch.
For landlords in Düsseldorf this means, in concrete terms: when re-letting your flat, the 10-per-cent ceiling above the ortsübliche Vergleichsmiete (local reference rent) applies. The validity of the rent cap under state law is – in step with federal law – set to run until the end of 2029.
Extension Until 2029: The Current Position
The federal basis for the rent cap was originally time-limited and would have expired at the end of 2025. That did not happen: the Bundestag (the federal parliament) adopted the extension on 26 June 2025, the Bundesrat (the federal council representing the states) gave its consent on 11 July 2025, and the law entered into force on 23 July 2025.
The federal states may therefore continue to designate areas with a strained housing market by ordinance – under Section 556d (2) BGB, until 31 December 2029 at the latest. Nationwide, the rent cap currently applies in just under 500 municipalities.
In practical terms this means: the rent cap is not a phase-out model but will remain a fixed framework for every re-letting in Düsseldorf for years to come. Anyone planning for the long term should factor this in.
The Most Important Exceptions for Landlords
The law provides for clearly defined exceptions in which the 10-per-cent ceiling does not apply, or applies only in part. Three are particularly relevant in practice:
- New build (Section 556f BGB): Flats first used and let after 1 October 2014 are exempt from the rent cap. This exception relates to the first letting; on later re-lettings the cap may in principle apply again.
- Comprehensive modernisation (Section 556f BGB): If a flat is let again for the first time following comprehensive modernisation, it is likewise exempt. "Comprehensive" is a high threshold – the outlay must come roughly close to that of a new build; mere cosmetic repairs or individual measures are not sufficient.
- Higher previous rent (Section 556e BGB): If the permissible previous rent already exceeded the 10-per-cent ceiling, you may apply that lawful previous rent in the new contract as well. You are therefore not necessarily required to reduce it to the level of "reference rent plus 10 per cent".
Permissible modernisation works carried out after the conclusion of the previous tenancy agreement can also raise the permissible starting figure. Which exception applies in a given case depends on the specific history of the property and the contract – here a careful examination pays off before the rent is set.
The Duty to Disclose: What You Must Reveal When Concluding the Contract
Anyone wishing to rely on an exception must be transparent. With the most recent reform, the landlord's duty to provide information under Section 556g BGB was tightened: if you rely on a ground for exception – such as a higher previous rent or a prior modernisation – you must in principle inform the tenant of this unprompted and in text form before they submit their contractual declaration (Section 556g (1a) BGB). Text form means, for example, a letter or an email; the spoken word is not sufficient.
If this advance disclosure is omitted, you may under certain circumstances be unable to rely on the exception later, or only after a delay. Irrespective of this, the tenant may under Section 556g (3) BGB request information about the facts that are decisive for the permissible level of rent.
The practical advice: document the basis of your rent calculation – previous rent, modernisation works, year of construction and first letting – properly, and communicate the relevant points in writing in good time. This creates clarity and protects against later disputes.
The Tenant's Objection and the 30-Month Time Limit
A breach of the rent cap does not automatically lead to repayments. The tenant can reclaim rent paid in excess only if they object to the breach (Section 556g (2) BGB). The objection must make it apparent that the agreed rent is being challenged as too high – for reasons of proof it is customary to make it in writing.
Since the 2019 reform the scope has been clearly regulated:
- If the tenant objects to the breach within the first 30 months of the start of the tenancy, they can reclaim the rent overpaid since the beginning of the tenancy.
- If they object more than 30 months after the start of the tenancy, or if the tenancy has already ended, they can reclaim overpaid amounts only for the period after the objection was received.
For landlords this is a twofold argument for diligence from the outset: a rent correctly determined from the start not only rules out claims for repayment, but also the effort and risk of a later dispute.
The Local Reference Rent: The Decisive Point of Reference
Everything hinges on the ortsübliche Vergleichsmiete (local reference rent) – it is the benchmark on which the 10-per-cent ceiling builds (Section 558 (2) BGB). It is determined from the rents customarily paid for comparable accommodation in terms of type, size, fittings, condition and location.
In practice, this is established above all by reference to the local Mietspiegel (the official rent index) and to comparable flats. Anyone who properly derives the correct comparison value for the specific flat has the foundation for a rent that is both legally sound and fair – not calculated too low, but within the permissible range.
This is precisely where the real work lies. Location, year of construction, details of the fittings and the condition of the flat all need to be classified correctly, so that the figure applied is robust. A well-founded assessment of the ortsübliche Vergleichsmiete (local reference rent) for your property is the best insurance against later objections.
