Using Rent Cap: Tenants' Rights in Germany
Many tenants in Germany only notice a rent increase when the rent cap applies: landlords may increase rent by only up to 20% within three years (in many cities 15%). As an existing tenant, you have the right to check an increase, object and, if necessary, challenge it in writing. This article explains step by step how to calculate the rent cap, which deadlines apply and which documents you should collect. We provide template formulations, explain which court is responsible and link to official legal texts and authorities so you can enforce your rights in Germany. We also explain when a rent reduction is possible, how to document defects and where to find official forms and template letters.
What is the rent cap?
The rent cap limits how much rent may be increased within a certain period. Legal bases can be found in the German Civil Code (BGB) on tenancy regulations.[1]
In most cases, the rent cap limits increases within a three-year period.
When does the rent cap apply?
The cap applies when the landlord increases the rent compared with the last agreed amount and the increases within the relevant period are added together. Exceptions exist for modernization or graduated rent agreements.
How to check and challenge a rent increase
- Determine the base: note the last contractually agreed rent and all increases over the past three years.
- Check deadlines: the rent cap usually refers to three years; act within the set deadlines.
- Collect evidence: rental contracts, receipts, increase notices and photos as proof.[2]
- Send a written objection or template letter to the landlord and request confirmation of receipt.
- If necessary, file a claim at the competent local court if an amicable agreement is not possible.[3]
Reply in writing and keep an eye on deadlines.
Example: template letter to the landlord
Use a short, clear letter: date, address, reference to the rent increase, calculation according to the rent cap and a request for written confirmation. Example: "I hereby object to the increase dated XX.XX.XXXX because the rent cap is exceeded." Keep proof of postage.
FAQ
- What can I do if my landlord exceeds the rent cap?
- Check the increase, document evidence, object in writing and, if necessary, consider legal action at the local court.
- How far back can an increase be calculated?
- Generally, increases within the last three years are relevant; special rules apply in case of modernization.
- Which deadlines are important?
- Observe the deadline for objections and the deadlines for court proceedings.
How-To
- Record the rent previously paid and all increase dates.
- Calculate the cumulative increase within three years.
- Draft a written objection or use a template form.
- Contact a legal advice centre or the local court if unsure.
- If necessary, file a claim and submit your evidence to the court.
Help and Support
- [1] Gesetze-im-Internet: BGB §§ 535–580a
- [2] Gesetze-im-Internet: ZPO
- [3] Bundesgerichtshof – Decisions
