Rising Rents and Rent Usury: A Growing Concern for Tenants

In several cities, evidence suggests rents are excessively high, and instances of rent usury are emerging. While landlords have historically faced limited repercussions, this may be changing as authorities and tenant advocates push for stricter enforcement and penalties.

The Scale of the Problem: Berlin as a Case Study

Recent figures from the Berlin Senate’s rent control office reveal a concerning trend. Between April and December 2025, 339 rental contracts were reviewed, and in a staggering 94 percent of cases (320 contracts), authorities suspected the rent was unlawfully high . This information was reported by Sandra Obermeyer, director of the state-owned Safe Living Institute, to the Urban Development Committee of the Berlin House of Representatives.

What Constitutes an Unlawful Rent Increase?

An unlawful rent increase occurs when a landlord raises rent in a way that violates state, local, or federal law. These laws are designed to protect tenants from unfair practices, including discrimination, retaliation, or increases exceeding rent control limits . Common scenarios that can lead to unlawful increases include:

• Raising rent as a form of discrimination against a protected class (race, color, religion, sex, national origin, familial status, or disability).
• Retaliating against a tenant for exercising their legal rights, such as reporting code violations.
• Increasing rent during the lease term without a provision allowing it.
• Charging more than permitted under rent control or rent stabilization laws.
• Providing insufficient notice before an increase.
• Raising rent more frequently than legally allowed.

Loopholes and Lack of Enforcement

Despite rent control laws, some landlords attempt to circumvent regulations. In Washington, D.C., for example, real estate agents have reportedly advised landlords on strategies to bypass rent control, exploiting weak oversight from the Department of Housing and Community Development (DHCD) . One tactic involves significantly increasing rent in vacated units, potentially pricing out lower-income tenants.

Legal Consequences for Landlords

Unauthorized rent increases can lead to significant legal consequences for landlords. These can include fines, penalties, and even criminal charges . Landlords may also face civil liability and be required to refund overcharged rent to tenants. Tenants have the right to sue landlords for overcharging if rental laws have been violated .

Tenant Rights and Recourse

Tenants who believe they are being overcharged or subjected to an unlawful rent increase have several options:

• Gather Evidence: Collect lease agreements, rent receipts, and any communication with the landlord.
• Seek Legal Advice: Consult with a lawyer specializing in landlord-tenant law.
• File a Complaint: Report the issue to the relevant housing authority or rent control board.
• Consider Legal Action: If necessary, file a lawsuit to recover overcharged rent and seek damages.

Looking Ahead

As concerns about rising rents and rent usury grow, there is increasing pressure on politicians and housing authorities to strengthen enforcement of rent control laws and impose stricter sanctions on landlords who violate them. While reforming tenancy law remains a complex issue, cities like Berlin and Frankfurt are already taking steps to combat excessive rents and protect tenants’ rights.