Yes, as a landlord you can increase the rent, but there are strict legal requirements that you must observe. Tenant protection is very strong in Germany, which is why you are only allowed to increase the rent under certain conditions and within a regulated framework. Here are the most important points:
1. rent increase up to the local comparative rent
You can increase the rent up to the local comparative rent. The following rules apply:
- Reference to the rent index: The rent increase must be justified by the rent index of the city or municipality. Alternatively, you can refer to comparative apartments or an expert opinion.
- Rent cap: Rents may not rise by more than 20 percent within three years, in some cities with tight housing markets only by 15 percent (e.g. Munich or Berlin).
- Blocking period: After a new rental agreement, you must wait at least 12 months before you can increase the rent for the first time. After that, the blocking period of 15 months after the last rent increase applies.
2. rent increase after modernization
If you carry out modernization measures, you can increase the rent to allocate the costs of the modernization. The following rules apply:
- 8 percent rule: You are allowed to allocate 8 percent of the modernization costs to the annual rent. This means, for example, that if you have spent 10,000 euros on modernization, you can increase the annual rent by 800 euros.
- Energy savings or improved living value: The modernization measures must improve the living value or lead to energy savings (e.g. new windows, insulation, modern heating systems).
- Notice period: You must announce the modernization measure and the resulting rent increase in writing 3 months in advance.
3. rent increase according to graduated rental agreement
If a graduated rent has been agreed in the tenancy agreement, you can increase the rent at fixed intervals. This means that the rent increase has already been stipulated in the contract. Important here:
- Each increase must be at least one year apart.
- The increase must be stated in the contract in euro amounts and not as a percentage.
4. rent increase according to index-linked rental agreement
With an index-linked tenancy agreement, the rent is linked to the consumer price index, which measures inflation. If prices rise, you can increase the rent accordingly. The following conditions also apply here:
- The rent can be adjusted after one year at the earliest.
- The increase must be linked to the rise in the price index.
5 Form and deadlines for rent increases
- Written announcement: The rent increase must be in writing and clearly justified. You must quote the rent index or the comparative apartments to make the rent increase comprehensible.
- Approval period: The tenant has two months after the announcement of the rent increase to approve the increase.
6. consent of the tenant
- The tenant must agree to the increase. If he does not agree within the deadline, you can sue the tenant for consent. The court will then check whether the rent increase is lawful.
7. blocking period for rent control
In regions with the rent freeze, the rent for new tenancies may not be more than 10 percent above the local comparative rent. However, the above rules continue to apply to rent increases during an ongoing tenancy.
Conclusion:
Yes, you can increase the rent, but only under strict conditions. The rent increase must comply with the legal requirements, particularly with regard to the local comparative rent, the rent cap and any blocking periods. To be on the safe side legally, you should always make the rent increase in writing and with a clear justification (e.g. rent index or modernization measure).