Unsuccessful lawsuit against the misappropriation prohibition law

Since 1 May 2016, the transitional regulation for the "Law on the Prohibition of the Misappropriation of Residential Space", which Berlin's politicians passed two years ago, has expired. This law prohibits the commercial use of residential space as holiday apartments and was already hotly debated in the media in the run-up to its full entry into force. Yesterday it was the subject of a case before the Berlin Administrative Court. Wimdu, an agency for holiday apartments, and the association "Apartmentallianz" filed the suit. The operators of the portals and holiday apartments feel they are being treated unfairly, as flats are also used commercially by doctors, lawyers and tax consultants.

The court's decision was eagerly awaited, as the business with holiday apartments has so far secured the existence of many providers. Now the landlords experienced a defeat yesterday that is likely to have far-reaching consequences, as the ban on holiday apartments in Berlin was thus confirmed and deemed constitutional by the judges. The plaintiffs' impairments were within reasonable limits and were justified, as this would reclaim living space that was urgently needed in Berlin due to the housing shortage. Other businesses, such as doctors or lawyers, would rent the units on a long-term basis, unlike tourists. Thus, the accusation of unequal treatment would not apply.

After the ruling was announced, Wimdu lawyer Péter Vida said "Today is a black day for Berlin." It can be assumed that the ruling will be a signpost for further decisions by the courts and could tend to have an impact on other cities such as Hamburg or Cologne.

We discussed what the law on the misappropriation of residential space is all about with the chairman of the Apartmentalliance in April and summarised it in the previous article.

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