FAQ: ‘Milieuschutz’ in Berlin – what tenants need to know

Rising rents, luxury refurbishments and the conversion of rental flats into owner-occupied flats have been transforming many Berlin neighbourhoods for years. To limit the displacement of the established local population, Berlin has designated Milieuschutz areas, officially known as social preservation areas.

But what does Milieuschutz actually mean for tenants? What measures are permitted? What applies to short-term rentals or temporary furnished letting – and what is the difference? And what options do district authorities have to stop displacement?

This FAQ provides an overview of the main regulations and explains the rights, protections and limitations provided by Milieuschutz in Berlin.

Note: This FAQ is based on the Berlin Senate’s administrative guidelines for construction and modernisation measures in Milieuschutz areas, published on 7 April 2026, as well as on publicly available information from the Berliner Mieterverein and the Berlin district authorities.

The FAQs are for general information purposes only and do not replace individual legal advice.

1: What is a social preservation area?

A Milieuschutz area is an urban neighbourhood subject to a social preservation order pursuant to Section 172(1) no. 2 of the German Building Code (Baugesetzbuch = BauGB). The aim is to preserve the composition of the local population and prevent displacement, particularly of lower-income groups, caused by expensive modernisation, flat conversions or changes of use.

In Berlin, the district authorities designate Milieuschutz areas by statutory order. This is based on a prior expert social study demonstrating a structural risk of displacement. Currently there are 82 Milieuschutz areas in Berlin.

Important: Milieuschutz is an urban planning instrument regulated by the BauGB and does not offer individual tenant protection. Individual tenants cannot derive any direct claims against landlords or authorities from it. However, the regulations do provide indirect protection.

2: What are the benefits for tenants in a Milieuschutz area?

Even though Milieuschutz is not a direct tenant protection right, residents benefit in several ways:

Protection against luxury modernisation: The district authorities can refuse expensive alterations – such as underfloor heating, high-end fittings, second bathrooms or conservatories – if these would lead to significant rent increases and thus to the displacement of the existing residents.
Protection against loss of housing: The demolition of residential buildings, the combining of flats, changes to floor plans, or conversion into holiday accommodation are prohibited without the district authority’s approval.
Protection against conversion to owner-occupied flats: Anyone wishing to convert a rental flat into a privately owned flat in a Milieuschutz area requires permission from the district authority. Permission is generally granted only if the owners undertake to sell the property exclusively to the current tenant(s) of the flat within a period of seven years. Only after seven years may the converted flat be sold to third parties. From the date of entry in the land register, purchasers may not give notice of termination due to personal use (‘Eigenbedarfskündigung’) or economic exploitation for a further period of five years. Tenants in Milieuschutz areas are thus protected from termination for personal use for twelve years. Furthermore, they have a right of first refusal (‘Vorkaufsrecht’) to purchase their flat if it has been converted into an owner-occupied flat during their tenancy – meaning that they can take over the original purchaser’s contract.
Municipal right of pre-emption: When a house is sold, the district authority is entitled to step into the purchase agreement between the owners and the purchaser, i.e. to exercise its right of pre-emption. In most cases, the right of pre-emption is exercised in favour of a state-owned housing company or housing cooperative. The purchaser can prevent the district authority from exercising its right of pre-emption by entering into a waiver agreement with the district authority. Under this agreement, the purchaser usually undertakes to comply with the rules governing Milieuschutz for at least 20 years – even if the Milieuschutz regulations later cease to apply.

3: How can I find out if my flat is located in a Milieuschutz area?

The Berliner Mieterverein (BMV) maintains a list with streets and house numbers, listing all buildings in Berlin’s Milieuschutz areas. This list is available on the BMV website. Information is also available from the urban development office of the relevant district authority.

Many district authorities publish maps and overviews of their Milieuschutz areas online. You can also see the areas via the Berlin Geoportal (gdi.berlin.de/viewer).

4: What are landlords and owners of rental properties in Milieuschutz areas generally not permitted to do?

The following measures are generally not eligible for approval and are therefore prohibited:

demolition of residential buildings or individual residential units
subdividing or combining flats
unnecessary alterations to the floor plan, such as changing the number of rooms or relocating kitchens
installation of particularly high-quality fittings, such as underfloor heating, fireplaces, elaborate ceiling and wall panelling, high-end parquet flooring, panoramic windows or high-end entrance halls, which could lead to significant rent increases following modernisation measures
installation of a second bathroom or an additional shower (with very limited exceptions)
energy efficiency measures that go beyond the statutory minimum requirements of the German Building Energy Act (Gebäudeenergiegesetz = GEG; soon to be the Gebäudemodernisierunggsgesetz = GModG) and may lead to higher costs for tenants
changes in the use of permanent rental housing, for example conversion to commercial premises or holiday accommodation
other construction measures that set an example and could trigger or reinforce a process of gentrification and displacement in the area

5: Which building measures do not require approval from the district office?

According to the administrative regulations of the Berlin Senate (as of April 2026), the following measures do not require approval:

construction of new buildings, if this does not alter existing dwellings
maintenance measures as defined in Section 555a of the German Civil Code (Bürgerliches Gesetzbuch = BGB), such as necessary repairs and upkeep
changes to fixtures and fittings of flats without altering the building structure, for example the replacement of kitchen units or new floor coverings

Note: Even if a measure does not require approval, this does not automatically mean that it is legally unproblematic under tenancy law. Even a measure that is approved by the district authority in a Milieuschutz area or does not require approval may, under tenancy law, constitute a measure that does not meet the criteria for modernisation and tenants may not be legally required to accept it. If modernisation work is announced (‘Modernisierungsankündigung’), it is advisable to seek legal advice at an early stage. Because this official document triggers important legal deadlines.

6: Which building measures must be approved by the district authority?

In Milieuschutz areas, all building measures that alter the condition or use of residential property are generally subject to approval. In particular, the district authority assesses whether there is a risk of displacement. The following measures are generally eligible for approval:

the initial installation of a standard bathroom (toilet, sink, bathtub or shower, and standard wall tiles)
the first-time installation of a balcony with a floor area of up to 4 square metres in a simple standard design (no special design, no full glazing)
the installation of a lift in buildings with more than four storeys, provided this does not result in disproportionate costs or a disproportionate risk of displacement
necessary alterations to the floor plan to achieve a contemporary minimum standard of living, provided they are limited to the minimum extent required for structural reasons
the insulation of the ceiling below the roof and the basement ceiling, provided that the thermal insulation standards required for federal funding are met
from July 2026 on, replacement of a heating system that is at least 15 years old, particularly if the system meets the requirements of the Building Energy Act (GEG; soon to be GModG),
the installation of photovoltaic systems, provided the electricity generated is fed entirely into the grid or used for tenant electricity schemes (‘Mieterstrom’)
measures to improve accessibility, such as removing thresholds or creating adequate manoeuvring space, particularly in connection with an approved bathroom renovation.

7: What is a change of use – and which uses are prohibited?

A change of use as defined in the Milieuschutz regulations occurs when a flat is no longer used permanently for residential purposes and is thus removed from the regular housing market for local residents. In particular, the following measures are not eligible for approval and are therefore prohibited:

the conversion of residential space into commercial space
permanent letting as holiday accommodation or a commercial short-term rental (e.g. via Airbnb or booking(.)com)
‘Wohnen auf Zeit’ – the temporary (often furnished) letting of residential space pursuant to Section 549 of the German Civil Code (BGB). Owners and commercial providers are increasingly using this model to circumvent tenancy law protections such as rent controls. In Milieuschutz areas, such use is considered an unauthorised change of use – regardless of whether structural alterations have been made or not. Administrative courts have confirmed this legal interpretation (for example VG Berlin, ref. no. 19 K 70/21; OVG Berlin-Brandenburg, ref. no. N 29/24).
any other form of temporary letting that does not fall under the permitted exceptions (see question 8)

The following specifics particularly indicate an unauthorised change of use:

furnished letting
short tenancy periods
standardised reasons for ‘letting for temporary use’
short-term contract periods
additional services such as cleaning or laundry services
tenants are discouraged from registering with the local registration authority

8: Which types of fixed-term tenancies are still permitted?

Under the Berlin Senate’s administrative regulations in force as of April 2026, the following fixed-term tenancies are eligible for approval:

1: Fixed-term tenancy agreements pursuant to Section 575 of the German Civil Code (BGB). These require that one of the three legally recognised reasons for a fixed term is agreed in the tenancy agreement:

future personal use by the landlord after the tenancy period has expired
planned extensive building works that could not reasonably be carried out while the tenancy continues
the permanent subletting to a person employed by the landlord
The relevant reason for the fixed term must be stated in writing at the time the contract is concluded.

2: Fixed-term subletting of a natural person’s primary residence or secondary residence

However, any other form of fixed-term tenancy is not eligible for approval, regardless of whether it is a main, sublet or temporary tenancy. This includes, in particular, the typical commercial ‘temporary furnished letting’, which is frequently used to circumvent tenancy law protections.

9: Who can I contact if my tenancy is classified as a prohibited short-term rental?

If you suspect that your flat or other flats in the building are being used unlawfully as short-term rentals – for example via Airbnb, Wunderflats or as part of a commercial temporary furnished letting scheme – you can contact the following organisations:

District authority – Town Planning Office / Town Planning Department (‘Bezirksamt – Stadtplanungsamt / Fachbereich Stadtplanung’): Tenants have the right to report possible breaches to the district authority, even if they are not formally involved in the approval process.
online reporting of the unlawful use of residential property (‘Zweckentfremdung’): You can report breaches pursuant to the Berlin Unlawful Use Prohibition Act (Zweckentfremdungsverbotsgesetz), such as unregistered or illegal holiday accommodation, online at service.berlin.de/dienstleistung/326217. Reports can also be made anonymously.
Berlin Tenants’ Association (‘Berliner Mieterverein’): The Berliner Mieterverein offers members legal advice and support, including, where applicable, legal expenses insurance. In some cases, it may be advisable to have repeated fixed-term tenancy agreements reviewed to determine whether they should legally be treated as an open-ended tenancy agreement.

10: What is the right of municipal first refusal (‘Vorkaufsrecht’) – and when can the district authority exercise it?

The district authority’s right of first refusal is regulated in Section 24(1) no. 4 of the German Building Code (Baugesetzbuch = BauGB). It allows the district authority to step into the purchaser’s position in the purchase contract when a plot of land or a residential rental property is sold in a Milieuschutz area. The district authority may acquire the property on the terms agreed between the owner and the purchaser. As a rule, the district authorities exercise the municipal right of first refusal in favour of a state-owned housing company or a cooperative.

Procedure: Upon receipt of the notarised purchase agreement, the district authority has three months to assess whether the right of first refusal should be exercised. The decisive factors are whether the conditions for exercising the right of first refusal are met, whether financing is possible, and whether the sale entails the risk of displacing the local population.

Waiver agreement (‘Abwendungsvereinbarung’): The purchasers can prevent (‘abwenden’) the district authority from exercising its right of first refusal by entering into a waiver agreement with the district authority. In this, they undertake to comply with the district’s conditions for at least 20 years. These include, for example:

no conversion into owner-occupied flats
no unauthorised modernisation measures
no terminations for personal use
no displacement of the tenants

Waiver agreements may also contain provisions between the district authority and the purchaser that go beyond the regulations governing the Milieuschutz area.

Restrictions: The Federal Administrative Court (‘Bundesverwaltungsgericht’) significantly restricted the municipal right of first refusal in a 2021 ruling. According to this ruling, the right of first refusal may no longer be based solely on the presumption that a high purchase price is an indication that the purchaser is planning measures of a speculative nature, thereby promoting the displacement of tenants. This has made it considerably more difficult to exercise the right of first refusal over the past five years. Since then, the right of first refusal can, in principle, only be exercised if the property in question is a dilapidated building or if the conditions of the local development plan are breached.

As a result, local authorities have rarely been able to exercise their right of first refusal. The willingness of purchasers to sign a waiver agreement has also declined since then as the general right of first refusal no longer provides the same legal leverage.

In April 2026, the Federal Building Minister Verena Hubertz (SPD) proposed legislation to amend the German Building Code. Among other things, this contains proposals to strengthen the local authority’s right of first refusal in Milieuschutz areas. It remains to be seen whether the proposal will also receive the approval of the coalition partner (CDU).

Milieuschutz in Berlin: an important tool against displacement

Milieuschutz cannot completely prevent displacement – but it does place important limitations on speculative redevelopment and helps protect affordable housing. In Berlin in particular, this instrument is a key protective mechanism for many tenants against luxury renovations, conversions and the unlawful use of flats.

At the same time, experience shows that Milieuschutz is only effective if local authorities enforce the rules consistently and pursue infringements rigorously. Legal frameworks at the federal level – such as the municipal right of first refusal – also determine how effective the protection actually is.

Tenants should therefore stay informed, seek advice at an early stage and report potential breaches. The Berliner Mieterverein and the relevant district authorities can be important points of contact in this regard.

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Franziska Schulte
20.05.2026