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Tips for landlords: rent increase to the local comparative rent in Hamburg

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The demand for housing in Hamburg grows year by year, while the existing supply of rental apartments and flats—especially in central districts like HafenCity—is extremely limited. Despite legal restrictions such as rent control measures and caps on rent increases, average rents in these prime locations remain high. However, experience shows that not all property owners fully exploit the income potential of their rental properties within the legal framework. Raising rent to the local comparative rent is a proven way to noticeably increase monthly rental income in HafenCity. This article from Engel & Völkers Hamburg explains the restrictions landlords need to observe and how such rent adjustments can be properly implemented.

How does a rent increase to the local comparative rent work in Hamburg?

According to § 558 paragraph 3 of the German Civil Code (BGB), landlords are allowed to increase the rent for a property by up to 20% within three years to adjust it to the local comparative rent. For Hamburg, this limit—known as the cap—was temporarily reduced to 15% until August 31, 2023. The official Hamburg rent index serves as the reference for determining the local comparative rent. This index is updated every two years and calculates the average rent paid over the last six years for apartments comparable in location, size, construction year, and features. If this value exceeds the current rent, an adjustment within the capped percentage is permitted.

For new rental agreements, landlords must wait at least one year after the tenant moves in before announcing a rent increase. Even after a successful adjustment, the rent must remain unchanged for at least one year. Rent increases due to modernization measures are not counted towards the local comparative rent adjustment or the cap. Additionally, if you have agreed on a graduated (step) rent or indexed rent with your tenants, an adjustment to the local comparative rent is no longer possible.

For more information about the current rent index in Hamburg, visit the overview page of Engel & Völkers Hamburg real estate agents.

How can the rent adjustment to the local comparative rent be made in Hamburg HafenCity?

If a rent adjustment to the local comparative rent is to be made, the landlord must always announce it in writing—such as by letter or email—two months after the end of the current month. Every rent increase of this kind must be justified: either by positioning the apartment within the context of the current official Hamburg rent index to provide a concrete comparison value or by referencing three comparable properties whose rents are already set higher at the present time. After receiving this notice, the tenant has two full months to object if they question the legality of the rent increase or to agree to it. In the latter case, informal consent is sufficient, and even silently paying the new rent amount is considered acceptance. If the tenant refuses consent, the landlord can enforce the rent increase through legal channels. A correctly formulated and timely notice thus benefits both parties.

If you rent out your apartment or flat in HafenCity with Engel & Völkers Hamburg, we are happy to assist you in the communication and operational implementation of your rent increase to ensure a smooth and comfortable process!

Trust the experience and expertise of Engel & Völkers Hamburg real estate agents: Our established company has been present in Hamburg, our founding market, for over 40 years and stands for consistently satisfactory premium property transactions. Whether renting or selling, our real estate team helps you realize the sale or rental of your apartment, house, or villa in Hamburg HafenCity quickly and to your full satisfaction. Even for ongoing administrative tasks related to your project—such as rent adjustments to match the local comparative rent—you can always rely on the support of our dedicated, interdisciplinary real estate agents. To learn more about our services, simply fill out our contact form! Your personal contact at Engel & Völkers Hamburg will get in touch with you shortly.

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