Rent increase

Section 557 BGB distinguishes an agreed new rent from statutory increase routes. For an existing home, the main routes are an increase to the local comparative rent under sections 558 et seq. BGB, a contractual graduated or index-linked rent, a modernisation surcharge, and a service-charge adjustment.

Each route has its own conditions, calculation and timeline. A notice should therefore explain one legal basis clearly, or keep legally independent components distinct enough for each to be checked on its own.

Under section 558(2) BGB, the local comparative rent is derived from rents agreed or changed in the municipality, or a comparable municipality, over the preceding six years for comparable homes. Relevant factors are type, size, fixtures, condition and location, including energy-related characteristics.

A new-letting market price, one portal listing or the owner's target does not replace this comparison. The requested new net rent may exceed neither the properly established comparative rent nor the applicable cap.

Common errors concern floor area, construction-age category, location and modernisation standard. The definition in the specific Mietspiegel controls, not an everyday assumption imported from elsewhere. A fitted kitchen, balcony or energy work counts only in the way the local rules specify.

An internal assessment sheet should record the source, evidence and decision for every attribute. Photographs, plans, area calculations, invoices and construction records must be processed only for the purpose and with data minimisation.

Section 558(3) BGB generally limits increases under section 558 to 20 per cent over three years. The limit is 15 per cent only in municipalities designated by a current state regulation. Check the place and date of receipt against the regulation then in force.

The starting point is the rent three years before the intended effective date, taking relevant section-558 increases into account. Increases under sections 559 and 560 are treated separately by the statute. Only the lower figure produced by the comparative rent and the cap may be requested.

Use the same rent basis throughout. Service-charge advances, heating, garages and furniture components must not be silently folded into comparative rent. If contractual or measured floor area differs from the records, establish the legal basis before calculating.

An internal worksheet should show the current net rent, relevant area, current square-metre value, Mietspiegel result, capped amount, requested rent and monthly difference. Make rounding transparent and never use it to exceed a statutory ceiling.

Even a correct request is weak if receipt cannot be proved. Choose delivery according to evidential value, privacy and dispute risk. The evidence should connect the content of the specific notice with receipt by the correct person.

A tracked letter does not always prove its contents, and email alone may not conclusively prove receipt. In a disputed or time-critical case, delivery by a suitable witness who records the contents may be appropriate. High-risk service strategy should be reviewed by a lawyer.

Under section 557a BGB, each rent or increase is agreed in writing as a euro amount. The rent must remain unchanged for at least one year between steps. Increases under sections 558 to 559b BGB are excluded during the graduated-rent term.

Before updating the ledger, check the clause, amount, due date and any limits affecting the initial or later steps. This chapter does not draft a new clause; contract design belongs in the tenancy-agreement chapter.

For qualifying work, section 559 BGB may permit an annual increase equal to 8 per cent of eligible costs. Maintenance shares, third-party funding and apartment allocation must be deducted or credited; statutory caps and hardship objections must also be checked.

The work must generally be announced in due time under section 555c BGB. The later increase must be calculated and explained in text form under section 559b BGB. Current special provisions, including heating-related rules, make individual legal review particularly important.

Under section 561 BGB, a tenant facing an increase under section 558 or 559 may terminate by the end of the second month after receipt, effective at the end of the following second month; a valid termination prevents the increase. A notice must not misleadingly shorten this right.

Rent reductions, price controls, subsidy law, staff housing, furnished or mixed-use premises and pending proceedings can change the calculation or legal route. Even an agreed increase under section 557(1) BGB remains subject to mandatory tenant protection.