Index-linked rent

With an index-linked rent (Indexmiete) in Germany, rent increases are tied to the consumer price index of the Federal Statistical Office.

How it works:

• An index clause is agreed in the tenancy agreement
• If the consumer price index rises, the rent may rise proportionally
• Increase only once a year, in writing with a calculation

Example: basic rent €800. Consumer price index rises by 4% → new rent: €832 (+€32/month).

Advantages for tenants:

✅ No surprise rent-index appraisals
✅ Transparent, predictable increases
✅ Modernisation surcharge excluded

Disadvantages (became clear in 2022/23):

❌ With high inflation, the rent rises sharply (2022: +8%!)
❌ Inflation-driven rent increases feel unfair
❌ No cap as with the rent brake (Mietpreisbremse)