Graduated rent and index-linked rent

In short: With a graduated rent (Staffelmiete), future rent increases are already fixed in the contract. With an index-linked rent (Indexmiete), the rent follows the development of consumer prices.

In more detail: Both models replace the usual increase up to the local comparative rent. They must be agreed explicitly and have their own rules, which tenants should know before signing. What applies in an individual case depends on the exact wording of the contract.

In detail

• Graduated rent: The increases must be agreed in writing and shown as a specific amount or new rent level, not merely as a percentage.
• Minimum interval: With a graduated rent, each step must apply for at least one year before the next one takes effect.
• Predictability: With a graduated rent, tenants know in advance what they will pay in the coming years. Additional increases to the comparative rent are ruled out in the meantime.
• Index-linked rent: The benchmark is the consumer price index for Germany calculated by the Federal Statistical Office. If it rises, the rent may rise; if it falls, the tenant can demand a reduction.
• Declaring an adjustment: A change to an index-linked rent must be declared in text form, stating the change in the index and the new amount. Here too, the rent must have stayed the same for at least one year beforehand.
• Inflation: In times of high inflation, an index-linked rent can rise quickly and significantly. This risk should be considered when planning your budget.
• Rent brake: Where it applies, each step of a graduated rent and the starting rent of an index-linked rent are measured against it (mietspiegel-und-mietpreisbremse).
• Service charges: Both models only concern the net basic rent. Advance payments for running costs are settled separately (nebenkostenabrechnung-prüfen).
• Before signing: Read the clauses carefully and ask a tenants’ association if anything is unclear (mieterhoehung-ortsuebliche-vergleichsmiete).