Modernisation measures that can be passed on to tenants

Modernisation measures are, in principle, building measures that significantly improve the quality of the home or lead to higher energy efficiency. Under § 555b BGB (German Civil Code), these are the following structural changes:

• energy-efficiency modernisations that sustainably save final energy (e.g. improved thermal insulation)
• energy-efficiency modernisations that sustainably protect the climate and/or save fossil fuels (e.g. a modern heating system)
• modernisations that sustainably reduce water consumption
• building measures that sustainably increase the utility value of the rented property (e.g. high-quality flooring)
• building measures that permanently improve general living conditions
• building measures that create new living space

Building measures that merely preserve the contractually agreed condition, on the other hand, are repair or maintenance measures under § 555a BGB. The costs of such building measures cannot be passed on to the rent.

If the landlord carries out modernisation measures that improve the quality of the home or lead to sustainable savings of (final) energy, he may pass on a maximum of eight percent of the costs to the rent under § 559 BGB.

Example:

The modernisation costs amount to 6,000 euros. By law, the annual rent may now be increased by eight percent of this amount – in this case by 480 euros. This means the monthly rent increase may be no more than 40 euros.

However, the law excludes certain modernisation measures from a rent increase. These include:

1. modernisations that save non-renewable energy
2. modernisations that create new living space

If such modernisation measures are carried out, the costs may not be passed on to the rent.

Maintenance measures may not be used to justify a rent increase either. There are well-known landlord tricks by which landlords also try to circumvent the rent brake (Mietpreisbremse) by means of alleged modernisations.

What the landlord's announcement must look like

Before carrying out modernisation measures, the landlord has to observe a number of requirements. Under § 555c para. 1 BGB, he must:

1. announce the modernisation measures in writing at least three months before the work begins. This obligation only lapses if the impact on the tenant is minor and the rent increase is insignificant.
2. inform the tenant about the planned measures, their scope, start and duration, and the expected rent increase.

If you did not receive the modernisation announcement in the proper form and/or on time, you can try to fend off the rent increase.

The modernisation goes ahead: what you need to do

If the modernisation announcement was received in the proper form and on time, you as a tenant must tolerate the building work. However, the tenant can object to the modernisation measures. This is possible if the work would constitute an unjustifiable hardship for them, their family or other members of their household. Modernisation announcements often point out this possibility of a hardship objection.

Possible hardship objections to modernisation measures:

• advanced age of the tenant
• illness of the tenant
• toilet cannot be used
• bathroom cannot be used
• or similar reasons

Hardship cases always require the legitimate interests of the landlord to be weighed, as well as the interests of other tenants in the building concerned. The concerns of energy saving and climate protection are also taken into account.

It is also possible to invoke financial hardship if the rent increase would overburden the tenant financially. Courts usually accept such cases if the rent amounts to 30–40% of the net household income. However, each case must always be decided on its own merits.

As a tenant, you should submit your personal hardship ground to the landlord in writing by the end of the month following the month of the announcement.

Example:

Your landlord informs you by letter in mid-March about upcoming modernisation measures to your bathroom. You want to object to the measures on grounds of personal hardship, since the bathroom would be unusable for you during that time. Your letter with the written objection, stating the reason, must reach the landlord by the end of April at the latest.

\u200b