Your rights as a tenant in case of rent increase
When is a rent increase invalid in Germany?Notice of changeβAccording to Section 573 Paragraph 1 of the German Civil Code (BGB), the landlord cannot terminate your existing rental contract and offer a new one with increased rent. SaleIf the property is sold, the new owner becomes the tenant's new contractual partner. The new owner must comply with the terms mentioned in the old rental agreement. Thus, the sale itself is not a reason to increase the rent. Death of the family member named as the tenant in the rental contractIf a family member who was the main tenant in the rental contract dies, their spouse, children, or relatives living in the same rental property take over the tenancy. If the spouse or children living in the same rental property don't take over the tenancy, heirs take over the rental agreement. In this case, heirs and landlords have a one-month right of termination. The legal framework around rent increaseAccording to Section 558a of the German Civil Code (BGB), a rent increase is only valid if the landlord gives it in writing (letter, fax, or email). The landlord doesn't have to sign the rent increase letter if it's sent via fax or email. Deadlines for rent increasesThe landlord can only increase the rent after one year of moving into the rental property. Rent increase before that is invalid. The landlord must give the tenant two full months of notice before increasing the rent. This is called a "consideration period." That same applies if you have lived in the rental property for a long time. In this case, the landlord can only increase the rent at the earliest one year after the last increase. The landlord must give you two full months' notice. How often can the landlord increase the rent?There should be a minimum gap of 12 months between the rent increases.
What is the maximum amount by which the rent can be increased?StaffelmieteIn Stafflemiete, the annual rent increase is set when you sign the rental contract. So, neither you nor the landlord can decrease or increase its value. Other rental modelsThere are two limits to rental increase.
The rent increase is limited to whichever limit is lower. Cap on rent increase As per Section 558 Paragraph 3 of the German Civil Code (BGB), the landlord can increase the cold rent by a maximum of 20% within three years. In some cities, this cap is even lower. For example, in Hamburg, this cap is set at 15%. Suppose the rent increase is within the cap limit but higher than the local comparative rent. In this case, the rent increase should be limited to local comparative rent. Similarly, if the rent is within local comparative rent but higher than the cap, the rent increase must be limited to the cap limit. What should you do if the rent increases?You should check the following when you recieve the rent increase letter from your landlord.
If the rent increase exceeds the limits, you should point it out to the landlord in writing. You should mention the maximum rent the landlord is permissible to increase in your letter.
NOTE: A violation of the "rent increase limit" doesn't mean the entire rent increase is invalid. You can only reduce the rent to the permissible amount. If you refuse to agree to the rent increase altogether, you risk being sued by the landlord. In such a case, the court will order you to agree to the rent increase up to the permissible amount - unless the increase is invalid for other reasons. If your landlord disagrees with your calculations, you can get support from a tenant's association or hire a lawyer. If you have legal insurance, hiring a lawyer is the quickest way to resolve the issue. Visualization of the weekWe are happy to announce that we have published two new books to help you navigate German bureaucracy. One book is for students, and the other is for the rest of the professions. The books contain everything you need to know about German healthcare.
Our mission is to give expats access to all the tools and knowledge that the locals have. We want you to thrive in Germany without breaking the bank. This is why we have made this book and many other tools available for free.
New on GermanPedia |