The German city of Berlin has become the first city in the world to ban short-term rentals of whole apartments through Airbnb.
On the 1st of May, Berlin introduced a new law called “Zweckentfremdungsverbot”, or prohibition of improper use. This law effectively makes the renting out entire flats or houses on websites such as Airbnb, Wimdu and 9Flats illegal. While residents of Berlin can no longer rent houses or apartments from sites like Airbnb, they can still rent out rooms through these websites.
One of the reason why Berlin has introduced a law that restricts the renting out of entire apartments or houses is due to the sharp increase in rent prices. Between 2009 and 2014, rent prices in Berlin has increased by 56 percent. Not helping matter is the fact that Berlin has limited property supply, which contributes to the rising rent prices.
As for enforcement, Berlin has appealed to the “civic spirit” of its residents and asked them to anonymously report any suspected misuse online. Those who are caught renting out apartments or houses coulld be fined up to EUR 100,000 (RM 452,362).
