With index rents, the rent can skyrocket with inflation, which many people are feeling painfully right now. But not every increase is justified, as a lawyer explains.
High energy prices are already causing problems for many people in Germany and for many there is also the fear of hefty rent increases. Anyone who lives in an apartment with an index rental contract must expect a sharp increase these days – if there was not already mail from the landlord in the box. Index leases are linked to the official consumer price index – which means that the rent increases with the inflation rate.
And it is currently very high: According to the Federal Statistical Office, the expected inflation rate in October was 10.4 percent. For comparison: in 2020 the inflation rate was still 0.5 percent, since then it has been steadily uphill, with one record high chasing the next.
Rents are rising accordingly. In a case of dem star was reported, the rent with reference to the consumer price index should even be increased three times this year, in two other there were eleven months between the increases.
Index rent: Cold rent may only change once a year
Is that legal? It depends, as Rolf Bosse, lawyer and chairman of the tenants’ association in Hamburg, explains. “The cold rent may only be changed once a year, there must be a twelve-month period between the adjustments,” he says. With the monthly prepayments of the operating costs, this may be different. The prerequisite, however, is that an ancillary cost statement is made. He therefore recommends checking every increase carefully and, if in doubt, contacting the local tenants’ association, for example. The landlord must announce an increase a few weeks in advance and break down the increase transparently. However, the tenant’s consent is not required.
“If the rent increase is requested too early, contrary to the statutory deadlines, the tenant should object,” advises Bosse. A simple e-mail is enough for this. The landlord then has to bring out a new rent increase, which takes effect from the 13th month.
Share of index leases has increased
“We’re currently getting a lot of calls for help from index tenants,” says Bosse. With increases of ten percent, it’s no wonder, and the end of the road does not seem to have been reached in view of the further increase in inflation rates. The German Tenants’ Association, to which the tenants’ association in Hamburg also belongs, is calling for a cap on index rents, but there is currently no such cap. And the proportion of index-linked rental contracts is increasing: according to Bosse, it now accounts for around 50 percent of new contracts in Hamburg – if cooperatives and the municipal housing association are disregarded. The situation is likely to be similar in other metropolises with housing shortages.
By the way, the rents are not automatically increased. Landlords are not obliged to make any adjustments. You can also waive the rent increase or not claim the full amount of the inflation rate. “Many landlords limit the increase,” says Bosse. By the way: Theoretically, it can also go the other way: If the consumer price index falls, tenants can insist on a corresponding reduction in their rents. However, since 1991, the bottom line has been that the curve has only gone in one direction: upwards.
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Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
