> why not increase the price to the point where 90% of contenders lose interest
Because that's illegal, even without the rent cap in Berlin.
Because that's illegal, even without the rent cap in Berlin.
https://www.gesetze-im-internet.de/bgb/__556d.html
It's illegal here to demand a rent more than 10% higher than the "ortsübliche Vergleichsmiete", which is approximately the local rent averaged over the last 6 years (exactly defined in §558)
More generally, you cannot simply ask for astronomical prices for anything in Germany just because you know that people are in a position where they have to pay them, that's "Wucher" (racketeering) and against public decency, which is generally illegal according to §138.
Another one is vague and based on the "Mietspiegel", which lists appropriate rents according to quality and location.
If the rent exceeds this by too much, you can sue for "Mietwucher" (rent usury).