The graduated and index-linked rental agreement - what must be contractually fixed

Graduated tenancy agreement - rent increase according to plan

Graduated rents are contractually anticipated, staggered rent increases. The agreement of a graduated rent must always be in writing.

It is indispensable that the respective increases are stated in the rental agreement in terms of amount, i.e. the amount of the increase ("increases by €50") or the increased amount ("increases to €650") can be stated. Percentage statements ("increases by 10%") are not permissible, however.

First increase only effective after one year

It is possible to agree on a graduated rent for a limited period of time. The respective graduated rent increase comes into effect automatically and does not require a declaration. The agreed rent must remain unchanged for at least one year - the first increase may also only take effect after one year.

However, despite an agreed graduated rent, rent adjustments are possible after increases in operating costs - but not after modernisation measures or to the local comparative rent.

Index-linked tenancy - the rent rises with inflation

Index-linked rents are contractually anticipated rent increases. The rent increases according to the price index for the standard of living of all private households in Germany. It must be in writing and can be agreed for a limited period.

Rent increase requires declaration in text form

• In contrast to the graduated rent, an increase of the index-linked rent requires a declaration in text form.

• The declaration must state the index change that has occurred in relation to the conclusion of the contract or to the last increase. In addition, the requested rent or increase must be calculated and quantified. Rent adjustments after increases in operating costs are possible. However, not after modernisation measures or to the local comparative rent.

• The increased rent is due for the tenant from the first of the month after next after receipt of the declaration.