> For the complete documentation index, see [llms.txt](https://help.immodio.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.immodio.app/en-start/guides-group/tenancies/create-a-tenancy-agreement/rent-adjustment/comparative-rent.md).

# Comparative rent

<figure><img src="/files/h8fGZ4abHpwgwXapmPtl" alt=""><figcaption></figcaption></figure>

If neither a graduated nor an indexed lease agreement is concluded, the rent can be adjusted to the local comparative rent in accordance with Section 558 of the German Civil Code. The following aspects must be taken into account:

#### Deadline

According to § 558 BGB, you as a landlord may only demand a rent increase according to the **local comparative rent** if legally stipulated deadlines are observed. According to Section 558 (1) of the German Civil Code (BGB), a rent increase may take effect at the earliest **15 months after the last rent increase** (or the start of the lease in the case of new letting).

To increase the rent, a written rent increase request is required. You may only request a rent increase if the rent has remained unchanged for **at least twelve months** since the last rent increase (one-year blocking period). If the tenant receives the rent increase request before the end of the one-year blocking period, it is invalid.

Rent increases due to modernisation (§ 559 BGB) or operating cost adjustments (§ 560 BGB) do not affect this blocking period. After receipt of the rent increase request, the tenant is entitled to a statutory reflection period until the end of the second calendar month after receipt. The increased rent will then only be due at the beginning of the third month after receipt of the request for an increase.

Together, the blocking period and the reflection period mean that the increased rent is owed at the earliest **15 months after the last rent change**.

<details>

<summary><strong>Example</strong></summary>

The rent was last increased on May 1, 2026\*\*. The one-year lock-up period therefore begins on **1 May 2026**. A new rent increase request may therefore be received by the tenant **no earlier than May 1, 2027**. If the rent increase request is received on **1 May 2027**, the tenant's statutory reflection period ends at the end of **30 June 2027**. If the tenant agrees, the increased rent is to be paid **from 1 July 2027**.

</details>

#### Capping limit

The **capping limit** (§ 558 para. 3 BGB) is a legal regulation to limit rent increases. The rent may not increase by more than **20%** within three years. In areas with a tight housing market, this limit may be lowered to **15%** by ordinance.

#### Obligation to state reasons

The landlord must justify the rent increase in text form. This can be done by:

* **Rent index:** Reference to a simple or qualified rent index (§§ 558c, 558d BGB). The justification by the rent index is the rule in larger cities. Since July 2022, all cities and municipalities with more than 50,000 inhabitants have been legally obliged to compile a rent index as part of the rent index reform.
* **Rent database:** Information from a rental database maintained by the municipality or private institutions (§ 558e BGB).
* **Expert report:** Expert opinion of a publicly appointed and sworn expert.
* **Comparative apartments:** Naming of three comparable apartments in terms of size, location, equipment and condition.

#### Tenant's consent

In order for an increase to take effect, the tenant's consent is required. This consent can be given or refused until the end of the second month after receipt of the rent increase request. However, the tenant does not automatically have to agree to a rent increase, but may first check whether the request for an increase is formally correct and justified in terms of content. Without the tenant's consent, the increase does not take effect by itself, but the landlord may have to enforce it in court (§ 558b BGB).

{% hint style="info" %}
Immodio supports you in creating a rent increase according to the local comparative rent (OVM). Under Templates you will find a suitable letter to your tenants in Immodio.
{% endhint %}

#### Other legal notices

<details>

<summary><strong>Rent increase after modernization measures</strong></summary>

A rent increase due to modernization measures is possible according to **§ 559 BGB** if these measures increase the value of the home, save energy sustainably or improve living conditions. In this case, the landlord can pass on 8% of the modernisation costs attributable to the apartment annually to the rent.

**Requirements for rent increase:**

1. **Obligation to give notice:**\
   The landlord must give written notice of the modernisation measures at least three months before the start (§ 555c BGB). This announcement must include the type, scope and expected duration of the measures as well as the expected rent increase.
2. **Calculation of costs:**\
   The costs allocated to the apartment must be proportional to the entire property. The proportion of repair and maintenance costs must be deducted from the apportionable modernisation costs. The same applies to state subsidies, subsidies and interest subsidies. There is one exception to this rule: If the modernization costs per residential unit do not exceed 10,000 euros, the landlord can deduct a flat rate of 30% of the costs without having to prove the exact division into modernization and maintenance costs.
3. **Maximum limit for rent increase:**\
   The rent may increase by a maximum of 3 euros per square metre if the initial rent is above 7 euros per square metre; if the initial rent is less than 7 euros per square metre, the increase is limited to 2 euros per square metre.

**Examples of apportionable measures:**

* Installation of a new heating system or energy-efficient façade insulation.
* Renewal of windows or doors to improve energy efficiency.
* Addition of a balcony or installation of an elevator.

</details>

<details>

<summary><strong>Advantages of comparative rent</strong></summary>

* **Illustration of market development:** The rent reflects the respective rental market.
* **Individual adjustment:** No fixed commitment to previously agreed scales or the consumer price index.
* **Reallocation of modernisation measures possible:** Additional increases due to modernisation (§ 559 BGB) can be claimed.
* **Reference to rent brake:** The increase remains linked to the local comparative rent, which offers legal certainty.

</details>

<details>

<summary><strong>Disadvantages of comparative rent</strong></summary>

* **Elaborate justification:** Requires rent index, excerpt from rent database, three comparable apartments or an expert report.
* **Tenant consent:** The tenant must actively agree to the rent increase, which can trigger conflicts. This consent is not necessary for graduated and indexed leases.
* **Capping limit:** Increase is limited to a maximum of 20% (or 15% in regions with a tight housing market) within three years (§ 558 para. 3 BGB).
* **Regular administrative expenses:** Every increase must be justified and enforced again. It is not automatic, as is the case with graduated rents.

</details>