Yes, as a tenant you can reject a rent increase, but there are some important points you should bear in mind. Refusing a rent increase can have different consequences, depending on whether the rent increase is legal or not.
Here are the key aspects:
1. check the legality of the rent increase
Before you reject a rent increase, it is important to check whether it meets the legal requirements. Rent increases are highly regulated in Germany and landlords must adhere to clear guidelines. A rent increase is only legal under the following conditions:
- Rent increase up to the local comparative rent: A rent increase is permitted if it does not exceed the local comparative rent. The landlord must refer to the rent index for the region or to comparable apartments. In addition, the rent may not increase by more than 20 percent within three years (in some areas even only 15 percent).
- Form and deadline: The rent increase must be in writing and clearly justified, e.g. by referring to the rent index. The tenant has an approval period of two months within which to accept or reject the increase.
- Modernization rent increase: After modernization work, the landlord can pass on up to 8 percent of the modernization costs to the rent. Strict regulations also apply here and the landlord must provide a detailed description of the work and costs.
2. reject rent increase – what happens then?
If you refuse a rent increase, there are various scenarios:
- If the rent increase is unlawful: If the landlord violates the legal requirements, e.g. by demanding an increase that is too high or by not properly justifying the rent increase, you can reject it without any problems. The landlord then has no legal basis to enforce the increase.
- If the rent increase is legal: If the rent increase meets the legal requirements and you reject it, the landlord can sue for approval. The court will then examine whether the increase is justified. If you lose the case, you will not only have to pay the rent increase, but also bear the costs of the proceedings.
- Landlord’s right of termination: If you reject a lawful rent increase and do not pay the increased rent after two months, the landlord can give you notice. However, the landlord’s right of termination is limited in this case, as you can reject the rent increase until the expiry of the approval period or until the court decision, without the landlord being allowed to terminate the contract immediately.
3rd alternative: Negotiate
Instead of rejecting the rent increase immediately, you could also try to negotiate with the landlord. In some cases, the tenant and landlord can agree on a smaller rent increase or a gradual increase.
4. right of objection to modernization rent increase
In the case of modernization rent increases, you may have the option of lodging an objection if the new rent would represent an unreasonable hardship for you. This would be the case if you are unable to pay the rent due to your income or other personal circumstances.
Conclusion:
You can refuse a rent increase, but it is important to check the legality of the rent increase. If the rent increase complies with the legal requirements and you reject it, the landlord can sue for approval or, as a last resort, terminate the tenancy.