Garage owner in Pritzwalk: Rent increases to a shocking 480 euros!

Garage owner in Pritzwalk: Rent increases to a shocking 480 euros!

In Pritzwalk, where neighbors often exchange ideas over the garden fence, a recent decision by the housing association is causing a stir. Karl-Heinz Prill, who has lived on Schönhagener Strasse with his wife Karola since 1985, is one of many garage owners who now have to dig deeper into their pockets. Until now, he only paid 40 euros a year for his self-built double garage, which he built during his time as a roofer in the GDR. Now the annual rent is increased to 480 euros, which adds up to 40 euros a month, and most residents are wondering how this is legally possible.

Emma Haberecht, department head of the housing association, provides clarification. She explains: “This is not a rent increase.” Until a few months ago, garage owners had a special regulation based on old GDR contracts. With the entry into force of the Law of Obligations Adjustment Act However, this regulation was ended in 2015. This also resulted in the claim to the old lease agreements, which were legally terminated on May 31, 2023.

The change: from lease to rent

The Law of Obligations Adjustment Act regulates the lifespan of contractual agreements that were concluded in the GDR before reunification. The affected garages, including Prill's, are now owned by the housing association. Until recently, garage owners not only had to pay rent, but were also responsible for repairs and had to pay property taxes. Many of these garages are in poor condition, which has affected the overall appearance of the residential complex.

After the old contracts have been terminated, the former tenants can now act as tenants. Attorney Jens Kübler explains that this step should not be viewed as a rent increase. Rather, garage owners would now have the opportunity to continue using their garages with legal protection.

The legal background

What does all this mean in detail? The Law of Obligations Adjustment Act came into force on January 1, 1995 and regulates the continued validity and termination of old contracts from the GDR. Users who have leased land are often faced with uncertainty regarding the protection of their agreements. From October 4, 2015, landowners can generally terminate the old contracts without any further justification. However, those who were over 60 years old on October 3, 1990 enjoy special protection against dismissal.

The complex legal framework means that many garage owners may need to seek legal advice. Attorney Sabrina Bauroth emphasizes the importance of a legal review to avoid costly mistakes and to understand what claims you may still have.

The change from leases to rental agreements does not only affect Pritzwalk, but is a widespread phenomenon in the new federal states, where numerous contracts from the GDR era have to be reorganized. Garage owners should keep a close eye on developments and, if necessary, obtain information early on in order to start the new rental period well prepared.