What is the local comparable rent based on?

Rent increase to local comparative rent

The following requirements must be observed:

• Formal requirements, the Capthe Annual blocking period and the non-exceedance of the customary local Comparable rent.

• If advance payments for operating costs or a flat rate for operating costs have been agreed, the net cold rent is increased.

• The Tenant must agree to the rent increase. If he or she does not do so, an action may be brought to obtain consent. Consent may also be given if the tenant pays the increased rent several times without reservation. The increase must be justified. This means that it must be shown that the previous rent does not correspond to the comparable rent customary in the locality.

Justify a rent increase with:

• rent index

• Rent database

• Expert opinion

• Rents of at least three comparable dwellings

Rent index: when is a rent increase justifiable?

The Mietspiegel is an "overview of the local comparative rent, insofar as the overview has been drawn up or recognised jointly by the municipality or by representatives of the interests of landlords and tenants." A rent index can be drawn up for the area of one municipality, for several municipalities or for parts of municipalities. There are Tabular and regression rent rolls, simple and qualified representative lists of rents.

the representative list of rents must fulfil the following criteria:

• It must be have been properly drawn up and valid at the time of the rent increase valid valid at the time of the rent increase.

• It must be be comparable be comparable with regard to the size of the flat and the tenancy agreement (type of rent, i.e. gross, partially inclusive or net rent).

• In the case of a Table rent index the upper limit of the table may be exhausted. However, exceeding the table values is only permissible if a corresponding expert opinion is available. If the table does not make any statement about a comparable flat, it cannot justify the rent increase.

• If no current rent index is available, the rent index of a comparable municipality may be used.

The qualified representative list of rents

A qualified rent index is..

• drawn up according to recognised principles.

• recognised by the municipality or the representatives of landlords' and tenants' interests.

• updated after two years by sampling or price index.

• updated every four years.

When declaring a rent increase, the landlord must state that a qualified rent index is available. This is because it has a higher probative value than a simple rent index.

What can be done if there is no current rent index?

You can also use the Rent index of a comparable municipality can be used. The comparability depends on the respective municipality structures, especially on the size of the municipality. For example, the rent index of a large city cannot be applied to a small municipality. Alternatively, the justification options can be used.

Expert opinion

An expert's report can only be issued by an publicly appointed and sworn expert be drawn up. The costs are borne by the landlord. It must be comprehensible and coherent and not older than two years. In addition, it must take into account at least three comparable flats be based on empirical knowledge and determine the local comparative rent on the basis of data.

Comparative flats

The Comparative flats must have the same rent structure and legal characteristics and be located in the same municipality. The flats may also come from the same landlord's portfolio and/or be located in the same residential building.

The price per square metre or the total rent as well as the area of the comparable flat must be stated. The comparative flats must be described exactly so that the tenant can easily find them. The expert opinion should not be older than two years. A complete copy of the expert opinion should be attached to the request for an increase.

Formal requirements for the declaration of increase

• Consent of the tenant.

• Reasonable justification for the increase.

• The Cap: Rent may be increased by a maximum of 20 per cent within three years. Exceptions are areas in which the state government has determined that the sufficient supply of the population with rented housing on reasonable terms is particularly endangered - in these cases, rents may only be increased by 15%.

• The Annual lock-up period: The earliest increase is permitted is one year after the last rent increase. The period begins with the conclusion of the contract or the effective date of the last rent increase. It is important to note that the tenant may not receive the rent increase letter until after the one-year period. If the tenant receives the letter before then, it can be treated as if it had not been sent.