In the course of a renting relationship the right is granted to a landlord to a rent increase, what makes the rent for it possible to a general price increase to adapt. In accordance with "§ 557 exp. the Contracting Parties in the current renting relationship a rent increase can agree upon 1 BGB. If an agreement does not come off, a notice is legally impossible for the purpose of the rent increase. A rent increase can be required by landlord side only considering the laws.

One differentiates, according to the kind of the rent; Whether it acts with the agreed upon rent around an index rent, graduated rent, or over a rent on basis of the local comparative rent - and in the further one after the the subject of the rent; a dwelling or a trade real estate.

The substantial difference regarding a rent increase is that with dwelling the possibilities of a temporal stipulation of a time limit are strongly limited. Dwelling can be quit then only for important reason, trade real estates in principle in addition, for the purpose of the rent increase. The protection regulations for dwelling are by far stricter.

The rent increase up to the local comparative rent

Is regulated the rent increase up to the local comparative rent in "§"§ the 558 to 558 e BGB. A condition for this form rent increase is that the past rent existed in the time, in which the rent increase was to occur at least 15 months invariably ("§ 558 exp. 1 BGB). Rent increases because of modernizations or because of risen additional expenses remain thereby out of consideration.

With each rent increase must be first clarified whether the Formalien was kept (esp. text form and reason, "§ 558a exp. 1 BGB) and whether a rent increase is impossible in the concrete case. "§ it regulates 557 exp. 3 that in accordance with rent increase "§"§ the 558 to 560 can be required, as far as not the increase is impossible by agreement or results the exclusion from the circumstances.

If in the lease a graduated rent ("§ 557a BGB) or index rent ("§ 557b BGB) were agreed upon, other one rent increase is not possible (exception: s. "§ 557 b) exp. 2 BGB).

According to the laws the landlord can demand the agreement for rent increase up to the height of the local comparative rent. That is the rent, which was locally agreed upon for dwellings of comparable kind, size, equipment, condition and situation in the last 4 years. In the rent increase letter the landlord must justify in writing, why he considers the rent demanded by him local:

• it can itself for this on an attached expert opinion
• or to 3 comparable dwellings appoint,
• it can justify a rent increase in addition, with the local rent standard;
• by the rental law reform (1.9.2001) in addition two further reason means came: the qualified rent standards and the renting data base.

Special meaning is attached to a qualified rent standard. The landlord can with existence of a so-called qualified rent standard another reason means select, but must he in the rent increase letter to the data of the qualified rent standard refer. The assumption effect comes to the qualified rent standard after the law that it reflects the local comparative rent ("§ 558 D exp. 3 BGB).

A rent increase may not cross the local comparative rent. That does not mean however that a rent increase up to the local comparative rent is always permissible. A second delimitation often represents the so-called cutting border (max. 20% within 3 years.)

A rent increase is possible only with agreement of the tenant. In order to examine the authorization of the rent increase, one cancellation period is entitled to it: the month, in that the rent increase arrives and the two following months ("§ 558 b). The tenant can in writing quit the renting relationship within this time also with one period of 2 further months. If the tenant quits, then the rent increase steps not ("§ 561 exp. 1 BGB). This special right to give notice applies also with limited leases.

If the tenant does not quit, it is correct in addition, the required increase non or only partly - too, the landlord has afterwards three months time to in-complain the missing agreement of the tenant. Then the court must decide whether the required agreement had to be given for rent increase. The court is not bound with the determination of the local rent to the reason means selected by the landlord.

The rent increase after a modernization

A so-called modernization rent increase can require the landlord when structural changes, which increase the living value or cause a lasting energy conservation.

A formal condition is a written and described computation, as the rent increase builds itself up. The landlord must communicate the rent increase in text form. The explanation is effective only if it contains a cost calculation including necessary explanations ("§ 559b exp. 1 BGB). Lack of the explanation lead to the inefficacy of the explanation; the rent increase explanation can be retrieved however at any time.

A material condition is that as a result of the structural changes a living increase in value or an energy conservation arises or that to circumstances is to due the structural changes, those the landlord not to represent has (e.g. Conversion of town gas to natural gas).

A cutting border does not apply with this form of the rent increase. Differently than with an adjustment to the local rent also an agreement of the tenant is not necessary for the modernization rent increase. The explanation of the landlord is an right-arranging declaration of intention, which leads to the increase of the rent, presupposed the rent increase is legal.

When being present the formal and material conditions the costs of the modernization at a value of 11% per year can be put down ("§ 559 exp. 1 BGB). With modernization costs of 5000,00 "€ the increase of the annual rent amounts to thus 550.00 "€. The monthly rent therefore rises around 45,83 "€ (550.00 "€: 12).

Costs of maintenance and repair may not be put down. As far as the modernization covers also such measures, the costs which are allotted to it are to be taken off from the Gesamkosten. Beispeiel: In place of completely defective simple windows the landlord inserts Doppelfenster. It may surround then only the cost difference between simple and double glazing. Because the repair costs the landlord must carry after the law. National subsidies are to be taken off with computation of the reallocation from modernization costs likewise. Just as little is possible a modernization rent increase, if for example new sound-insulating windows are paid by the neighbouring airport.

The higher rent due to modernization must starting from beginning of the 3. Monthly after the entrance of the rent increase explanation to be paid. If the letter of the landlord arrives thus for example in April, the tenant must pay the higher rent starting from 1 July. This period extends by 6 months, if the landlord before did not communicate to the tenant the prospective rent increase or the actual rent increase in relation to the announcement by more than 10% did not increase themselves ("§ 559b exp. 2 BGB).

The tenant knows also in case of a modernization rent increase the renting relationship at the latest at the 3. Working-day of the monthly, by which to the rent is to be increased, for the expiration of the monthly after the next to quit. If the tenant quits, the rent increase for the remaining Mietzeit does not step ("§ 561 exp. 1 BGB).

Increase for public-promoted dwellings

Completely different regulations apply during a rent increase to publicly promoted dwellings (S. in addition in particular "§ 10 law fixing residential use - WoBindG). Here the principle of the costinduced rent (computation of the square meter rent on the basis of a calculation of production costs) applies.

Meaning during the valuation

The possibilities of a renting adjustment determine independently of the applied valuation procedure the value of a real estate. Correspond they to the traffic-usual are seized it in the real estate property interest rate. If they deviate from it, then the effects are to be proven dependent on the temporal stipulation of a time limit of a deviation in the context of a productive value procedure to consider or as anticipated payment during the derivation real estate property interest.

with questions for the classification of a rent increase during the valuation

Articles in category "Rent increase"

We found here 12 articles.

Related Websites

We found here 4 related websites.

• ORHT - 2006 Rent Increase Guideline
  An explanation of the guideline amount for 2006, and what it means to landlords and tenants.


• ORHT - Rent increases
  Sub-topics covered include maximum rent, the rent increase guideline, a rent increase above the guideline, and notices and applications.


• Rent Control-San Francisco
  The annual rent increase can be imposed only on the tenant's "anniversary date." Annual increases can be "banked" by the landlord and imposed in later years ...


• Shelter: Rent increases
  If you don't agree to a rent increase your landlord may only be able to increase ... There may be a limit to how often your landlord can increase the rent. ...