Termination after Rent Increase: Step Rent in Germany

If you are a tenant in Germany facing a rent increase and consider terminating the lease, it is important to know how step rent works and what rights you have. This text explains in plain language when termination is possible, which deadlines apply and which forms and proofs you need. We cover practical steps to check before sending a termination and how to get help in time if uncertain. The aim is that you as a tenant can make an informed decision whether termination, objection or advice is the right response.

What is step rent?

With step rent, landlord and tenant agree in the lease on regular, specifically defined rent increases at certain intervals. Unlike a unilateral rent increase under § 558 BGB, the increases are contractually fixed and therefore only possible within the agreed schedule ^[1].

Tenant termination after a rent increase

In principle, a tenant can terminate their lease even if step rent is agreed. Crucial are the contractual termination periods and whether the rent increase was formally correct and legally effective. If an increase is defective or not properly announced, termination combined with legal review can be sensible ^[1].

Deadlines and formal requirements

The statutory notice periods for tenants are governed by § 573c BGB; as a rule the period is three months if the contract does not state otherwise ^[1]. A termination must be in writing and signed by the tenant. Also note that proof of delivery is important in disputes.

• Written notice period: generally three months.
• Form: the termination must be signed and delivered to the landlord.
• Evidence: collect documents of the rent increase and payment records.

When is immediate termination worthwhile?

Immediate termination without respecting the notice period is only possible in exceptional cases, e.g. severe defects making the apartment uninhabitable. A rent increase due to step rent generally does not justify immediate termination unless there is a contract breach.

Practical steps before terminating

1. Carefully check the lease for the step rent clause and mark dates and amounts.
2. Gather all relevant documents: lease, rent increase notice and payment receipts.
3. Contact the landlord in writing and request an explanation of the increase.
4. If unresolved, seek advice from the competent local court or legal counsel.

Forms and official templates

There are no nationwide mandatory forms for terminations, but model terminations and templates from the Federal Ministry of Justice or courts can be useful. A proper termination letter should include name, address, lease details, termination date and signature. If you seek an amicable solution, a short dated letter proposing handover dates can help ^[3].

Judicial jurisdiction

Tenancy disputes are usually heard in the competent local court (rental courts) in the first instance; for higher disputes the regional court may be competent; national precedents are published by the Federal Court of Justice ^[2][4]. Before filing a claim check deadlines and send a final written request to the landlord.

FAQ

Can I terminate immediately if rent increases under step rent?

No, immediate termination is only possible for severe breaches or intolerable conditions; step rent alone rarely justifies immediate termination.

Does step rent require a special announcement?

Step rent increases are set out in the contract; an additional announcement can nevertheless be useful to avoid misunderstandings.

Who do I contact in disputes over the rent increase?

Contact the competent local court for tenancy matters or seek independent legal advice.

How-To

1. Check your lease clause on step rent and mark dates and amounts.
2. Collect all relevant documents: lease, rent increase notice and receipts.
3. Write to the landlord requesting clarification or agreement within a deadline.
4. If no agreement is reached, contact the local court or obtain legal advice.
5. If terminating, prepare a written termination, sign it and secure proof of delivery.

Help and Support / Resources

• Federal Ministry of Justice – Forms and guidance
• Gesetze im Internet – BGB and relevant sections
• Federal Court of Justice – Rental law rulings

1. [1] Gesetze im Internet – Bürgerliches Gesetzbuch (BGB)
2. [2] Bundesgerichtshof – Jurisdiction and decisions
3. [3] Federal Ministry of Justice – Templates and guidance
4. [4] Federal Court of Justice – Important tenancy rulings