Objecting to a rent increase

Not every rent increase is lawful – many can be successfully fought off.

Formal requirements for a rent increase in Germany (§558 BGB):

• In writing (email is NOT enough)
• Justification: rent index, comparable flats (3 of them), an expert report or a rent database
• Cap observed: max. 20% increase in 3 years (in tight markets: 15%)
• The new rent does NOT exceed the local comparative rent
• The last increase was at least 15 months ago

Common mistakes that make it invalid:

• Wrong rent index: an outdated index or the flat classified incorrectly
• Cap exceeded: count back 3 years – ALL increases count
• Missing signature: all landlords must sign
• Modernisation measure wrongly included: only 8% of the costs per year can be passed on to the rent (§559 BGB)

How to react correctly:

• Step 1: stay calm – you have 2 months to react
• Step 2: check the increase for formal errors (see above)
• Step 3: check the rent index – is the rent demanded really within range?
• Step 4: if there are errors → object in writing
• Step 5: get a tenants' association involved (annual fee €50–100)

What happens if you don't agree?

• The landlord has to sue within 3 months ("action for consent")
• The court then examines whether it's justified
• NOT agreeing = NOT grounds for termination! You don't risk being given notice