BERLIN (dpa-AFX) - German tenancy law needs to be reformed, according to two of the most important landlords in Germany. The current legal regulations have negative consequences for the rental market and new construction, complained the head of the Dax group Vonovia, Rolf Buch, and the CEO of the largest municipal landlord Saga from Hamburg, Thomas Krebs, in the "Süddeutsche Zeitung" (Saturday).

The question is "who needs protection and low rents and who pays too little compared to their ability to pay", said Buch. "The rental market must be regulated, nobody wants London conditions." However, things cannot continue as they are now - especially in view of the housing crisis. Only part of the market needs to be protected: "In the case of affordable apartments, it is necessary that they remain affordable," said Buch. "The kind of apartments that tradesmen, streetcar drivers or firefighters can afford. Expensive apartments don't need protection."

Saga boss Krebs argued in favor of changing the rules for publicly demanded apartments: "We should ask tenants to provide voluntary information about their income and the number of residents after five years." This would prevent demanded and therefore affordable apartments from being permanently occupied, even if the requirements no longer exist. If this is the case, "the rent should be adjusted".

In the meantime, the large number of government interventions are having a negative impact on the market, said Buch. In Berlin, for example, the rent freeze has "led to a legal and an illegal black market": the number of sublet or mobile apartments has risen rapidly and landlords often no longer have access to their own affordable apartments, especially in good locations. "Unfortunately, we have to take note of this and it annoys me," said Krebs.

With almost 550,000 apartments in Germany, Sweden and Austria, Vonovia is the largest private landlord in Europe. In this country alone, the Dax-listed group owns almost 490,000 apartments. Saga most recently had almost 140,000 apartments in Hamburg./als/DP/he