Housing Supplement And Tenants’ Rights : Germany

Dwelling space is a basic human need, which is why in Germany everyone whose income is insufficient to meet the cost of adequate accommodation has a statutory right to a housing supplement. It is paid as a grant towards the rent or as a subsidy towards the cost of home ownership, though subject to income limits. Special provisions apply to particularly low-income households which are also receiving social assistance. At the end of 1995, about 2.6 million households in Germany received housing supplements.

The cost to the federal and state governments, which each bear half of the burden, totaled DM 6.1 billion in 1996. Tenancy law, which is based on freedom of contract, is aimed at establishing a fair balance of interests between landlords and tenants. No tenant need fear unjust and arbitrary eviction or excessive rent increases. A landlord can only give notice to a tenant who has met the requirements of his contract if he can prove “justified interest” (for example if he can show that he needs the accommodation for his own purposes). He may put up the rent provided he does not go beyond what is charged for comparable accommodation in the same area.