Termination after Rent Increase: Tenants in Germany

Many tenants face the question of whether termination after a rent increase is possible and how to draft a legally sound notice. In Germany, tenants are subject to special rules for index and graduated rents: deadlines, formal requirements and the review of whether the increase is effective. This text explains in plain language when a tenant can terminate, which deadlines must be observed and how a termination letter should be structured. I also show which official forms and authorities are relevant and how to document evidence. Practical examples help choose wording that can withstand scrutiny in local court and with the landlord.^[1]

What applies to rent increases and termination?

A rent increase does not automatically allow you to terminate immediately. First, it must be checked whether the increase is formally correct: was the rent increase declared in writing, were statutory deadlines observed and is the correct legal basis applied (e.g. index rent or graduated rent)? If in doubt, a formal review is worthwhile, because an ineffective declaration does not change your tenancy.

Form and deadlines

Key points for tenants:

• Check ordinary termination period: usually three months for open-ended residential tenancies.
• Keep the written form: the letter must bear your signature.
• For index or graduated rents, observe the contractually agreed dates.
• Check special deadlines for extraordinary termination for serious reasons.

Termination letter: structure and template

For a legally secure termination letter, include the following details:

• Sender and recipient (full names and addresses)
• Date and a clear termination statement mentioning the contract purpose (e.g. "I hereby terminate the rental agreement for the apartment ...")
• Termination date or end date
• Signature and, if applicable, notes on handover appointments

Example (short form):

"I hereby terminate the rental agreement for the apartment [address] with effect from [date]. Please confirm receipt and the termination date in writing."

Send the letter by registered mail with return receipt or hand it over personally against a written acknowledgement, and keep copies.

Lawsuits, local court and next steps

If the landlord demands eviction or the parties disagree, the competent local court (Amtsgericht) is the first instance for tenancy disputes. There, eviction claims and tenancy-related claims are decided.^[2] Before filing a lawsuit, collect evidence: tenancy agreement, rent increase notice, payment receipts and correspondence.

For complex legal questions and important deadlines, it may be advisable to seek legal advice or consider the possibility of rent reduction. Decisions of the Federal Court of Justice can be decisive in disputed individual cases.^[3]

FAQ

Can I terminate due to any rent increase?

No. First check whether the increase is effective. An incorrect or non-compliant rent increase does not automatically entitle you to terminate.

What is the notice period for ordinary termination?

For open-ended residential tenancies, the statutory notice period for tenants is generally three months, unless otherwise agreed in the contract.

Do I have to give reasons in the termination?

No. An ordinary termination does not require a detailed rationale; the termination statement and end date suffice.

How-To

1. Check the rent increase notice for formal errors and deadlines.
2. Draft the termination letter clearly with the end date and sign it.
3. Send the letter by registered mail with return receipt or hand it over against written confirmation.
4. Keep copies, payment receipts and correspondence carefully.
5. Check whether assistance from the local court or legal advice is necessary.

Key takeaways

• A rent increase alone rarely justifies immediate termination.
• Written form and deadlines are central to a valid termination.
• Careful documentation protects your rights in disputes.

Help and Support

• Bürgerliches Gesetzbuch (BGB) – gesetze-im-internet.de
• Amtsgericht und Justizportal – justiz.de
• Bundesgerichtshof (BGH) – bundesgerichtshof.de

1. [1] Bürgerliches Gesetzbuch (BGB) – gesetze-im-internet.de
2. [2] Amtsgericht und Justizportal – justiz.de
3. [3] Bundesgerichtshof (BGH) – bundesgerichtshof.de