The city of Berlin has made it illegal for people living there to let entire homes to tourists through Airbnb and other short-stay renters such as Wimdu and 9Flats.
The crack-down is to protect affordable housing as officials in the German capital say the letting boom has been driving up rents.
In the month before the new law came into effect Airbnb listings in the city fell by 40 percent.
Berliners can still rent out individual rooms in their homes.
If found breaking the law – which goes by the name of ‘Zweckentfremdungsverbot’ – they can be fined up to 100,000 euros.
Berlin's crackdown on Airbnb-style holiday apartment industry could see landlords fined up to €100,000 https://t.co/eyEgnaOdZH— Handelsblatt Global (@HandelsblattGE) May 2, 2016
Andreas Geisel, Berlin’s head of urban development, said this was “a necessary and sensible instrument against the housing shortage in Berlin.”
He added: “I am absolutely determined to return such misappropriated apartments