This represents a significant penalty for a Munich real estate owner: the city levied a 170,000 euro fine for breaching what is known as a waiver declaration. The case concerns a residential building with eleven apartments in Sendling. According to the Left / The Party faction in the city council, the property is located on Lindenschmitstraße.
High-profile decision in Munich over tenant rights violations
Waiver declarations regarding the exercise of pre-emptive purchase rights are used when owners wish to avoid the municipality purchasing a property during a sale. In exchange for the city waiving its right of first refusal, owners commit to renting the property in accordance with the interests of the tenants. These obligations typically include refusing to perform luxury modernizations or adhering to established rent limits and housing allocation rules.
In this specific case, an audit by the Social Department revealed that obligations regarding the reporting of tenant changes were not met. When entering into new contracts, the owner failed to present the lease agreements themselves or provide evidence that the tenants’ incomes fell within the limits prescribed by the Munich Model housing program. Lord Mayor Dieter Reiter emphasized that this is a concrete measure for tenant protection that the city can implement independently.
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