Rent increases (Mieterhöhung) are one of the most common disputes between tenants and landlords in Germany. The law sets clear limits, and many increase requests contain errors. As a tenant, you do not have to agree to an unjustified increase.
The rules depend on the type of rent agreed in your contract. For an overview of tenancy law, see tenant law in Germany.
Increase to the Local Comparative Rent
The landlord must justify the increase, usually with:
- the local rent index (Mietspiegel),
- an expert opinion,
- three comparable flats, or
- a rent database.
Limits:
- Waiting period. The rent must have been unchanged for at least 15 months when the increase takes effect. The request can be sent after 12 months.
- Cap (Kappungsgrenze). Within three years, the rent may rise by no more than 20 percent, or 15 percent in areas designated by the federal state, which include most large cities.
- Comparative rent. The new rent may not exceed the local comparative rent.
Your Response
You have until the end of the second month after receiving the request to decide. The increase then applies from the third month.
- Check the calculation, the rent index category and the cap.
- Agree in writing, fully or partly, if the increase is justified.
- Do nothing if it is not. The landlord must then sue for consent within three months.
You also have a special right to terminate the lease if you do not want to pay the increased rent.
Modernisation
After modernisation, such as new windows or insulation, the landlord can increase the annual rent by eight percent of the modernisation costs. The increase is limited to €3 per square metre within six years, or €2 if the rent was below €7 per square metre. Repairs that would have been necessary anyway may not be passed on.
The landlord must announce the modernisation at least three months in advance. In cases of hardship, you can object.
Graduated and Index Rent
- Graduated rent (Staffelmiete). The increases are fixed in the contract. Other increases are excluded.
- Index rent (Indexmiete). The rent follows the consumer price index. The landlord must declare the adjustment in writing, and the rent must have been unchanged for at least a year.
The rent brake also applies to these agreements at the start of the lease. See the rent brake.
Frequently Asked Questions
Can my landlord increase the rent by email?
Text form is enough for the request, so an email can be valid if it contains all required information.
Can I be evicted for refusing an increase?
No. Refusing to agree is not a reason for termination. The landlord must go to court.
Does the increase apply to service charges?
No. Advance payments for service charges are adjusted separately after the annual statement.
