Rent increase up to the comparative rent: the basics
Under § 558 BGB, the landlord can ask the tenant to consent to a higher rent until the local comparative rent (ortsübliche Vergleichsmiete) is reached. The local comparative rent is derived from the usual rents agreed or changed for comparable flats in your municipality over the last 6 years. It is usually listed in the rent index (Mietspiegel).
The increase does not happen on its own: the tenant has to consent. The tenant owes consent if the requirements of § 558 BGB are met. If the tenant does not consent, the landlord can sue for consent.
- Applies to privately financed housing. Commercial property, rent-controlled housing (social housing, WBS) and student or care homes are not covered.
- Ruled out if a graduated or index-linked rent is agreed, or if the lease excludes increases.
- Increases for modernisation (§ 559 BGB) and operating costs (§ 560 BGB) are a separate route and do not count here.
Two limits apply at the same time
The new rent may neither exceed the local comparative rent nor the capping limit (Kappungsgrenze). The capping limit restricts the increase within 3 years to 20%. In municipalities designated by a state ordinance it is 15% (§ 558 (3) BGB). Such an ordinance applies for a maximum of 5 years.
The lower of the two limits always applies. CIRO rounds it down to the cent so the upper limit is never exceeded through rounding.
Upper limit = lower of (rent 3 years ago × 1.20 or 1.15) and (comparative rent per m² × living area)
The capping limit refers to the rent 3 years ago, not the current rent. This is the most common calculation error.
Worked example
A 70 m² flat currently costs €850 net cold. Three years ago the rent was €800. The local comparative rent is €13.00 per m², the capping limit is 20%.
- Upper limit from capping: €800 × 1.20 = €960.
- Limit from the comparative rent: €13.00 × 70 m² = €910.
- The lower limit is the comparative rent: €910.
- Possible increase: €910 − €850 = €60 per month, which is 7.06%.
With a 15% capping limit and a comparative rent of €13.50, the upper limit would be €800 × 1.15 = €920. Anyone who uses the current rent instead (€850 × 1.15 = €977.50) gets it wrong.
Deadlines: waiting period, consent and effective date
Several deadlines build on each other. The month of receipt does not count, and the day of receipt does not matter, only the month.
- One-year waiting period: the request may reach the tenant no earlier than 1 year after the last increase (§ 558 (1) sentence 2 BGB). If it arrives earlier, it is invalid according to the prevailing view.
- 15 months: at the time the new rent is to apply, the rent must have been unchanged for 15 months (§ 558 (1) sentence 1 BGB).
- Consent period: the tenant has until the end of the second month after receipt (§ 558b (2) BGB). If the period ends on a Saturday, Sunday or public holiday, it runs until the next working day (§ 193 BGB).
- Effective date: if the tenant consents, the new rent applies from the start of the third month after receipt (§ 558b (1) BGB).
- Deadline for legal action: if the tenant does not consent, the landlord can sue for consent within 3 further months (§ 558b (2) sentence 2 BGB).
- Special termination right: after a request for an increase, the tenant may terminate extraordinarily (§ 561 BGB).
If the 15 months end in the middle of a month, CIRO sets the date to the next first of the month. Whether the increase already applies on the exact day the 15 months end has not been conclusively settled. The later date is valid in any case.
Form and justification
The request needs text form, for example a letter or an email with a readable statement. It must also be justified (§ 558a BGB). Without a justification the request is invalid.
- The municipality’s rent index. If a qualified rent index contains information for the flat, you must state it in the letter, even if you rely on a different justification.
- Information from a rent database.
- An expert opinion by a publicly appointed and sworn expert.
- At least three comparable flats with their rents.
This calculator does not create an increase letter. In CIRO you set up the rent increase with its justification directly on the tenancy.
Common mistakes
- Capping limit calculated on the current rent instead of the rent 3 years ago.
- Date of the letter entered as the last increase instead of the effective date. What counts is the day from which the higher rent applied.
- Letter sent too early: it has to arrive after the waiting period, not be sent.
- Warm rent instead of net cold rent compared with the rent index.
- 15% overlooked: if your municipality is listed in the state ordinance, the lower capping limit applies.
Special cases
- Tenancy shorter than 3 years: the initial rent counts as the rent 3 years ago.
- Modernisation in the last 3 years: increases under § 559 BGB are disregarded for the capping limit. Exactly how they are included is disputed. Have the calculation checked in that case.
- Inclusive or partly inclusive rent: comparing it with a net rent index requires an adjustment. The calculator is then not exact.
- Ordinance expiring or newly in force: the state ordinance is decisive. Have the individual case checked if the capping limit is about to change.