Rent increase

Immobilienab 9 J.

In Germany your landlord may only raise the rent under strict conditions: at most up to the local comparative rent, a cap of 20% in 3 years (15% in tight markets), and only with justification.

A rent increase (Mieterhöhung) in Germany is subject to strict legal requirements (§558 BGB).

The 4 requirements:

• Cap: max. 20% increase in 3 years (in 627 cities with a tight market: only 15%)
• Local comparative rent: the new rent may not exceed the rent index
• Waiting period: at least 15 months since the last increase
• Justification: rent index, 3 comparable flats, an expert report or a rent database

Modernisation surcharge (§559 BGB):

• 8% of modernisation costs can be passed on per year
• Cap: max. €3/m² increase (for rents below €7: max. €2/m²)
• Heating replacement (since 2024): 10% can be passed on if subsidised, but max. €0.50/m²/month
• Watch out: the cap does NOT apply to modernisation surcharges – the landlord can get around the 20%/15% limit this way

Your options:

• 2 months to consider after receipt
• Check for formal errors (30–40% of all increases are formally flawed!)
• Not agreeing = NO risk of termination
• Get a tenants' association involved (€50–100/year membership)

Did you know? The reduced 15% cap (instead of 20%) applies in 627 towns and municipalities in 13 federal states. Bavaria recently extended it to 285 municipalities – the largest single extension by a state.

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