Rent Cap in Germany: Tenant Rights

Many tenants in Germany receive a rent increase and wonder whether the rent cap (Kappungsgrenze) applies to existing tenants and how they can contest such an increase. This guide explains in plain language what the rent cap means, which deadlines you must observe and which evidence is useful to check an unlawful increase. You will learn which legal bases in the BGB are relevant^[1], when exceptions apply and how proceedings before the local court work^[2] if an agreement with the landlord is not possible. The text shows concrete steps, wording aids for objections and tips on file numbers and documents so that you as a tenant can enforce your rights in Germany more securely.

What is the rent cap?

The rent cap limits how much rent may be increased within a given period. In many regions the rent may not rise by more than 20 percent within three years; in some tight housing markets the limit is 15 percent. The basis is found in the BGB; specific paragraphs regulate when landlords may enforce an increase and which deadlines apply^[1].

When does it apply to existing tenants?

Existing tenants are generally protected as long as the formal requirements for a rent increase are not met. Crucial are the date of the last rent increase, the level of the previous rent and whether special exceptions like modernization costs apply. Note that modernization charges and contractual agreements can change the application of the rent cap.

Key points

• Check the date of the last rent increase (rent) and note amounts and notices.
• Observe the 3-year period (deadline): increases within this period are aggregated.
• Collect evidence and correspondence as evidence: letters, emails, statements and photos.
• Check exceptions such as modernization measures (repair) and document the extent.

How to contest a rent increase

If you consider a rent increase unlawful, follow these steps: First check the calculation and compare with previous increases. Draft a written statement with evidence and send it by registered mail or another method that provides proof to the landlord. If the landlord does not respond or the matter is not resolved, you can file a lawsuit at the competent local court; the procedure is governed by the Code of Civil Procedure (ZPO)^[2]. In many cases early legal advice or a mediation body helps.

FAQ

Does the rent cap apply to agreed graduated rents (staffel rent)?

For graduated rent agreements, the agreed step amounts generally take precedence, so the rent cap may not always apply.

What can I do if the landlord charges modernization costs?

Modernization charges must be examined separately; check scope, notification and calculation and collect evidence.

Which court is responsible if I sue?

For tenancy disputes the local court (Amtsgericht) is competent in the first instance; in higher instances the regional court and ultimately the Federal Court of Justice (BGH) for appeals^[3][4].

How-To

1. Review the rent increase in writing and note all relevant data (date, amount, reference to the last increase).
2. Gather evidence: correspondence, photos, old leases and statements.
3. Draft a formal statement and send it to the landlord with proof of delivery.
4. If no agreement is reached, prepare court documents and file them at the local court (observe ZPO).

Help and Support / Resources

• Find information on the BGB and tenancy law at Gesetze im Internet.
• Find procedural information about the Code of Civil Procedure and filing at the official justice sites.
• Find information on courts and jurisdictions at your state justice portal.

1. [1] § 558 BGB – Gesetze im Internet
2. [2] Zivilprozessordnung (ZPO) – Gesetze im Internet
3. [3] Justizportal – Information on Courts
4. [4] Federal Court of Justice (BGH) – Decisions and Information