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Rent increase: What is the maximum amount allowed?

2023-05-09T11:45:31.033Z

Highlights: Rent increases are capped in most cases. In this way, tenants are protected from rapidly rising rents. We show how high the rent increases may be, and how often they are allowed. In places that suffer from a particularly tight housing market, the federal states are allowed to lower the cap to 15 percent. In the case of graduated leases, future rent increases are determined in advance between the tenant and the landlord. The limit of all graduated rents is the rent brake, i.e. the local comparative rent plus 10 percent.


Rent increases are capped in most cases. In this way, tenants are protected from rapidly rising rents. But what is the maximum amount allowed?


Rent increases are capped in most cases. In this way, tenants are protected from rapidly rising rents. But what is the maximum amount allowed?

Most tenants are familiar with regular rent increases. However, to ensure that rents do not rise too quickly, the legislator has set limits that landlords must adhere to. We show how high the rent increases may be, and how often they are allowed.

Rent increase: What is the maximum amount allowed?

If no rent increases have been agreed in the rental agreement, the following applies: The rent may be increased by a maximum of 20 percent within three years, up to the local comparative rent (cap limit). This is stipulated in the German Civil Code (§ 558 BGB). This does not apply to increases after modernization (see below).
In places that suffer from a particularly tight housing market, the federal states are allowed to lower the cap to 15 percent. On its website, the German Trade Union Confederation (DGB) lists all municipalities in which the reduced cap applies

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When a rent increase is imminent, many people are worried. However, landlords are not allowed to increase the rent arbitrarily.

© AntonioGuillem/Imago

How often can a rent increase be made?

In order to protect tenants from rents rising too quickly, the landlord cannot increase the rent as often as he likes. A rent increase may be announced at the earliest 12 months after moving in or the last rent increase ("annual lock-up period"), which then comes into force after 15 months at the earliest. So if you moved into an apartment on February 1, 2022, and receive a rent increase letter from the landlord on February 2, 2023, you will have to pay the higher rent for the first time from May 2023.

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What applies to graduated rental agreements?

In the case of graduated leases, future rent increases are determined in advance between the tenant and the landlord. The new rent or rent increases must be shown as a monetary amount. Regulations such as "The rent increases by 3 percent every year" are invalid according to § 557a BGB. The limit of all graduated rents is the rent brake, i.e. the local comparative rent plus 10 percent.

In the case of graduated leases, the interval between two rent increases only has to be 12 months. No further increases are permitted during the term of a graduated rent. However, when the season has expired, the landlord can increase the rent again, as is common with other leases.

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What applies to rent increases in index-linked leases?

In the case of index-linked leases, the rent is based on the cost of living. Rent increases can thus be calculated on the basis of the official consumer price index, which is determined by the Federal Statistical Office. Stiftung Warentest provides a corresponding online calculator for index rent increases. However, the rent does not increase automatically, but must be claimed by the landlord. Again, there must be at least 12 months between two rent increases. However, there is no cap limit, as is the case with other leases, for index-linked leases.

Rent increase after modernization

If the landlord wants to increase the rent due to a modernization measure, other rules apply:

  • A maximum of 8 percent of the modernization costs may be allocated to the annual rent.
  • Within six years, the rent increase after modernization may not exceed three euros per square meter (for apartments with a price per square meter of less than 7 euros, a maximum of two euros).
  • For so-called minor measures (such as a new doorbell system), the rent may then increase by a maximum of 5 percent.

Costs for repair measures that serve to maintain the condition must be borne by the landlord himself and may not be passed on to the rent.

Category list image: © AntonioGuillem/Imago

Source: merkur

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