Rent increase explained

Rent increase in Germany: what your landlord may demand

A rent increase in Germany is only valid if it follows §§ 557 to 561 BGB. For the usual increase to the local comparative rent (§ 558 BGB), your rent may rise by at most 20 per cent in three years, 15 per cent in cities with a tight housing market, and never above the Mietspiegel level. You have until the end of the second month after the letter arrives to respond.

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In short
  • 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.
  • Which types of rent increase exist? This is the standard letter.
  • 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.
  • What do you do after a rent increase letter arrives? Do not sign straight away.

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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

Do I have to agree to a rent increase?

Not automatically. A § 558 increase only takes effect with your consent; if you refuse, the landlord must sue for it within three months, and the court checks the figures. Modernisation, graduated and index increases need no consent, but you can object if the calculation or the form is wrong.

What happens if I ignore the letter?

Silence is not consent. After your deadline the landlord has three months to file a claim for consent (§ 558b Abs. 2 BGB). If the increase is lawful, the court orders consent and you owe the difference back to the original due date plus court costs, so reply in writing instead.

Can my landlord terminate the tenancy because I refused?

No. A refusal is the exercise of a right the law gives you, and a termination needs a legitimate interest under § 573 BGB, such as the landlord's own use. Keep paying the current rent on time and keep every letter.

Can I move out because of the increase?

Yes. After a § 558 or § 559 demand you may terminate by the end of the second month after receipt, with effect at the end of the month after next (§ 561 BGB). The increase does not take effect for the remaining months. This right does not apply to graduated or index steps.

How often may the rent be increased?

Under § 558 BGB the rent must have been unchanged for 15 months, and the total rise is capped at 20 or 15 per cent in three years. A graduated rent may step up once a year at most. An index rent may change after at least one year without change.

Does the Mietpreisbremse protect me against a rent increase?

Indirectly. The brake limits the rent at the start of the tenancy to 10 per cent above the local comparative rent in designated areas (§ 556d BGB), and it applies to each step of a graduated rent and to the starting rent of an index rent. If your starting rent was too high, you can object and lower it; the rent check shows whether this applies to you.

Guides on rent increases
Information on rent increases
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