Rent increase up to the local comparative rent

In short: During an existing tenancy, a landlord in Germany cannot simply raise the rent at will. Without a special agreement, they can only ask the tenant to agree to an increase up to the local comparative rent.

In more detail: The request must be made in text form and must give reasons. Waiting periods apply, as does an upper limit on the increase within three years, known as the cap limit. The details depend on the contract and the location.

In detail

• Local comparative rent: This means the rent usually paid in the municipality for comparable flats in terms of type, size, fittings, condition and location.
• Reasons: Common justifications are a rent index, an expert report, a rent database or at least three comparable flats.
• Waiting period: The rent must have been unchanged for at least 15 months before it rises. A request can be made at the earliest one year after the last increase.
• Cap limit: Within three years the rent may rise by at most 20 per cent this way, and often by only 15 per cent in areas with a tight housing market.
• Time to consider: Tenants have until the end of the second calendar month after receipt to check and agree. The higher rent then applies from the third month.
• No consent: If the tenant does not agree, the landlord can sue for consent within a statutory deadline. Simply paying less or demanding more unilaterally is not part of the process.
• Special right of termination: After a request for an increase, the tenant may terminate the tenancy early if they do not want to bear the new rent.
• Other routes: Graduated rent, index-linked rent and the modernisation levy follow their own rules (mietspiegel-und-mietpreisbremse, modernisierungsumlage-grundlagen).
• Have it checked: Whether a request is correct in form and content is a case-by-case question. Tenants’ associations and legal advice services can help.