The choice of method also determines the legally permissible cycle of rent increases. In the case of the comparable rent, the landlord must first keep the rent constant for at least twelve months before he can request a rent increase from the tenant. The new claim becomes effective three months after delivery to the tenant. There would be 15 months between the rent increases. If, on the other hand, a modernization has been carried out, owners can demand a rent increase after the work has been completed. Tenants must transfer the amount three months after receiving a corresponding letter of increase.
Local comparative rent
The local comparative rent includes all fees that are to be paid in the municipality or a comparable municipality for living space of a comparable type. For comparability, among other things, the size, equipment and condition play a central role (cf. § 558 Para. 2 Sentence 1 BGB). In the case of an increase within the scope of the local comparative rent, an upper limit for increases applies. According to § 558 BGB, the increased fee may not exceed the local rent for comparable apartments. However, the local comparative rent varies between municipalities. Information on the comparative rent can usually be found in the rent index of a municipality. A rent index is published on the Internet by the municipalities or by organizations such as tenants’ associations and owners’ associations. In the case of an increase to the local comparative rent, the rent may not increase by more than 20 percent within three years (capping limit).
If the adequate supply of rental apartments in a municipality is at risk, the state governments have the option of declaring the local housing market to be tight by means of a statutory ordinance. This is the so-called rental price brake. The cap is then 15 percent within three years.
Not all modernization measures justify a rent increase
If the landlord has had modernization measures carried out within the meaning of § 555b, he can increase the annual rent by eight percent of the costs incurred. However, this does not include any necessary conservation measures. In addition, the monthly rent may not be increased by more than 3 euros per square meter of living space within six years. Jutta Hartmann from the German Tenants’ Association emphasizes that rents that were less than 7 euros per square meter of living space before the increase can only be increased by 2 euros per square meter of living space within the six-year period. Only the proportion of the construction costs that is attributable to the respective apartment may be apportioned. It must be explained individually for each tenant which value-enhancing work forms the basis for the request for a rent increase. As already mentioned, no maintenance measures such as repairs are included.
Form and justification for a rent increase
§ 558a BGB stipulates that a request for a rent increase must be explained to the tenant in text form and must be justified. Hartmann recommends referring to the rent index “or to name three comparable apartments whose rent you are based on”. These regulations should enable tenants to check the increase up to the local comparative rent. In addition to a reference to the rent index, the letter of increase should therefore also refer to other relevant characteristics such as the size of the apartment and the net cold rent. Incorrect or incorrect information in the rent increase notice, such as incorrectly calculated rent amounts or non-existent equipment can lead to the ineffectiveness of the rent increase.
What tenants can do
Tenants can refuse their landlord’s request for a rent increase. Beate Heilmann points out that in the case of a comparative rent increase, tenants will probably be sued for approval and the court will then review the legitimacy of the request for an increase. Jutta Hartman advises tenants to check the rent stated in the letter of increase to ensure that it is customary in the area. If the rent increase is partially justified, tenants should only accept the undisputed part. According to the Tenants’ Association, the actual construction costs and compliance with the cap limit should be checked for modernization rent claims.
M. Wieser / Editor finanzen.net
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