Rent increase in Germany: what your landlord may demand

What is a rent increase under German law?

A rent increase is your landlord's demand that you pay a higher net cold rent for the same flat. The Bürgerliches Gesetzbuch allows four routes: an increase to the local comparative rent (§ 558 BGB), an increase after modernisation (§ 559 BGB), a graduated rent agreed in the contract (§ 557a BGB) and an index rent agreed in the contract (§ 557b BGB). Any other increase needs your voluntary agreement under § 557 Abs. 1 BGB, and you may refuse it without giving a reason. A higher advance payment for heating or operating costs is not a rent increase; it follows § 560 BGB and your last Nebenkostenabrechnung.

Which types of rent increase exist?

Increase to the local comparative rent (§ 558 BGB)

This is the standard letter. Your landlord may raise the rent to the level usual for comparable flats in your town, the ortsübliche Vergleichsmiete. Three conditions apply. The rent must have been unchanged for 15 months when the new rent takes effect. The increase must stay within the cap (Kappungsgrenze): 20 per cent within three years, or 15 per cent in municipalities the Land has designated as tight housing markets, among them Berlin, Hamburg and Munich. The new rent must not exceed the local comparative rent. The letter must be in text form and give a reason: the Mietspiegel, three comparable flats, a rent database or an expert opinion (§ 558a BGB). A letter with no reason is invalid and does not oblige you to anything.

Increase after modernisation (§ 559 BGB)

If your landlord insulates the building, fits a lift or installs a new heating system, 8 per cent of the modernisation costs per year may be added to the annual rent. Two caps apply within six years: at most 3 euros per square metre, or 2 euros if your rent was below 7 euros per square metre before the works. Maintenance that was due anyway does not count and must be deducted from the costs. The works must be announced in text form three months in advance (§ 555c BGB), and the new rent is due from the start of the third month after the increase letter arrives (§ 559b BGB). Details are in our guide on rent increases after modernisation.

Graduated rent (§ 557a BGB)

A Staffelmiete fixes future rents in the contract. Each step must be stated in euros, and at least twelve months must lie between two steps. While the graduated rent runs, increases under § 558 and § 559 BGB are excluded. Your landlord does not need to write to you; the step applies on the agreed date. The Mietpreisbremse applies to every step (§ 557a Abs. 4 BGB).

Index rent (§ 557b BGB)

An Indexmiete follows the consumer price index published by the Statistisches Bundesamt. The rent must have stood unchanged for at least one year. Your landlord must declare the change in text form, show the index change and name the new amount; the new rent is due from the start of the month after next (§ 557b Abs. 3 BGB). Increases under § 558 BGB are excluded, and modernisation surcharges are only allowed for works the landlord did not choose, such as measures required by law. The Mietpreisbremse applies to the starting rent (§ 557b Abs. 4 BGB).

Key numbers and deadlines

• 15 months: the rent must be unchanged before a § 558 increase takes effect; the letter may be sent one year after the last increase at the earliest.
• 20 or 15 per cent: the Kappungsgrenze over three years (§ 558 Abs. 3 BGB).
• End of the second month: your time to consider a § 558 increase, counted from the month the letter arrives (§ 558b Abs. 2 BGB). A letter received on 10 March gives you until 31 May.
• Start of the third month: the date the new rent is due if you consent, 1 June in the example (§ 558b Abs. 1 BGB).
• Three further months: the period in which the landlord may sue for your consent after your deadline has passed (§ 558b Abs. 2 BGB).
• 8 per cent and 3 euros per square metre: the modernisation limits in § 559 BGB.
• End of the second month, second use: your special right of termination after a § 558 or § 559 demand, effective at the end of the month after next (§ 561 BGB). The increase then never takes effect.
• 10 per cent: the Mietpreisbremse limit above the local comparative rent for new contracts in designated areas (§ 556d BGB).

What do you do after a rent increase letter arrives?

1. Do not sign straight away. Your consent is binding and hard to undo. Paying the new rent without comment can also count as consent.
2. Check the form. The letter must be in text form, name the new rent and give a reason with figures. A § 558 letter that only announces a percentage is invalid.
3. Check the three conditions: 15 months unchanged, within 20 or 15 per cent over three years, and within the Mietspiegel range for your flat's year of construction, size and location. Landlords often choose the top of the range; the flat's features must justify it.
4. Reply in writing before the end of the second month. You may consent in full, consent to the lawful part only, or refuse. If only part of the increase is lawful, consent to that part and say so.
5. Keep paying the current rent on time. Refusing an unlawful increase is not a breach of contract; missing the old rent would be.
6. Get the figures checked if you are unsure. A Mieterverein or a Fachanwalt für Mietrecht reviews the letter; the free rent check tells you whether your rent was lawful from the start.

Frequently asked questions

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