Berlin short‑term rentals push newcomers into overpriced rooms

Berlin's housing market is experiencing a severe crisis, particularly affecting newcomers and international students. Landlords are increasingly exploiting loopholes in rental laws, primarily by offering furnished rooms on short-term leases at exorbitant prices. This practice circumvents Germany's rent cap and allows landlords to maximize profits by dividing apartments into numerous small, temporary units.

The Exploitation of Newcomers

Many young people arriving in Berlin, often for studies or work, find themselves in precarious housing situations. They frequently book rooms through online platforms, only to discover substandard living conditions and inflated rents.

Misha's Story: A Divided Apartment

Misha, a young Russian man who came to Berlin to study and escape political conditions in his home country, lives in an apartment in the Neukölln district. What was once a four-room apartment has been subdivided with drywall partitions into eight smaller rooms, each rented separately for no longer than one year.

• Current Living Situation: Misha's room is the smallest, measuring 5.76 square meters, for which he pays €600 per month. This equates to approximately €100 per square meter, a stark contrast to typical Berlin rents.
• Previous Experience: His first room in Berlin, booked through an online platform, was in a former storefront. He described it as tiny, dirty, lacking ventilation, and smelling of old grease. He paid €730 a month for this room, an amount he noted would cover a comfortable apartment and living expenses for an entire month in Russia.

The Transformation of a Community

Björn, a former tenant in Misha's building, lived there for over four years until 2024. He recalled a strong sense of community, with neighbors sharing food and babysitting. The building was a typical Berlin apartment house with permanent leases. However, after long-term tenants moved out, landlords began dividing vacant apartments into furnished short-term rentals.

• Impact on Community: The once spacious and bright rooms were subdivided, destroying the original charm and sense of community.
• District Intervention: The building is located in a neighborhood preservation area where altering floor plans is prohibited. Residents reported these changes to district authorities, who eventually intervened to stop further subdivisions.

Legal Battles and Activism

The district authorities are now challenging landlords who engage in these practices. District Councilor Jan Böhme from the Green Party is actively working to combat the proliferation of furnished short-term rentals in neighborhood preservation areas.

• Misha's Case: The district has ordered Misha's landlord to stop offering rooms on temporary contracts, hoping to set a legal precedent. The administrative court is expected to rule on this matter.
• Noor and Saife Atala's Fight: Brothers Noor and Saife Atala, from Finland, faced similar issues. They rented two rooms in a building where the landlord could enter their apartment without notice. Their one-year contract was not extended, forcing them to find new housing.
  • New Apartment: They found another apartment through an online platform, also with temporary contracts. They pay €800 each for a three-room, 110-square-meter apartment shared with a third roommate.
  • Landlord Deception: Their contract falsely stated they were in Berlin temporarily for an exchange semester, a common tactic used by landlords to justify short-term leases.
  • Legal Victory: After discovering their landlord had provided falsified lease agreements, they sought legal help. Their lawyer successfully had an eviction lawsuit withdrawn and found that their rent could be reduced by over €700 based on Berlin's rent index. This victory offers them stability and hope.

The Business Model of Short-Term Rentals

Landlords are drawn to this model because Germany's rent cap does not apply to short-term rentals, allowing them to charge significantly higher prices. Social media "financial advisors" actively promote strategies to triple income by converting apartments into multi-tenant, short-term furnished units.

• High Profits: Landlords can charge €40-€45 per square meter, compared to typical rents of €7 per square meter in existing buildings.
• Industry Defense: Jan Haza, co-founder of Wonderflats, a platform for furnished short-term rentals, argues that there is a legitimate need for such housing, especially for skilled workers who require flexibility before committing to long-term leases. He acknowledges issues with poor-quality apartments but opposes a complete ban, advocating for minimum standards instead.

Extreme Exploitation: Beds for Rent

Some landlords take exploitation even further by renting out individual beds instead of rooms. Sahil, an Indian student in Berlin, experienced this firsthand.

• Sahil's Experience: He paid €450 for a bed in a small room, sharing an apartment with nine other people. He described unsanitary conditions, pest infestations, and aggressive demands for cash rent.
• Targeting Indian Students: Sahil noted that many Indian students are exploited due to their unfamiliarity with German laws. He observed that entire buildings were populated exclusively by Indian students, suggesting a systemic issue.
• WhatsApp Groups: Housing is often brokered through large WhatsApp groups within the Indian community, where rooms and beds are advertised at inflated prices.
• Subletting Abuse: Sahil encountered situations where individuals sublet rooms from student housing organizations at significantly higher rates than they paid, despite rules against profiting from subletting.
• Finding Stability: Sahil eventually found an affordable attic room outside the city limits through a friend, paying €370 a month with an open-ended lease, providing him much-needed relief.

Regulatory Response

Since April, furnished short-term rentals in neighborhood preservation areas require approval from district authorities. Berlin hopes this new rule will curb the proliferation of temporary room rentals, which accounted for nearly half of all housing listings in 2025.

The stories of Misha, Noor, Saife, and Sahil highlight the severe challenges faced by newcomers in Berlin's housing market. While legal battles and new regulations offer some hope, the struggle for affordable and stable housing continues for many.