Index-Linked Rent (Indexmiete)
Index-linked rent (Indexmiete) in Germany: how does the linkage to the consumer price index work? Advantages and disadvantages for tenants and landlords.
Financial
§ 557b BGB
Also known as: indexed rent, inflation-linked rent, CPI-linked rent
With an index-linked rent agreement (Indexmiete) under German law, the rent level is tied to the Consumer Price Index (VPI) published by the Federal Statistical Office. Rent increases under § 558 BGB are excluded when an index rent agreement is in place, as are rent increases due to modernization. Index-linked rent provides landlords with inflation protection and tenants with transparency. (§ 557b BGB)