> 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/anleitung/mietverhaltnisse/mietverhaltnis-anlegen/mietanpassung/staffelmiete.md).

# Graduated rent

This page explains how a graduated rent agreement works and which statutory conditions have to be observed.

## Graduated rent

<figure><img src="https://3986577705-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDGfFw4On4r2uLklBZ5ju%2Fuploads%2Fxtxksyfr0ELnOJMMY22K%2Fimage.png?alt=media&#x26;token=75c30dc1-c024-4028-a907-3d45c72e010b" alt=""><figcaption></figcaption></figure>

### General information

In the Immodio rental agreement a **graduated rent can be agreed for a period of up to ten years**. If the graduated arrangement is to apply beyond that period, this has to be regulated individually between the parties, for example through an addendum to the rental agreement.

With a graduated rental agreement the rent is set **when the contract is concluded** for particular periods and in defined increases. This gives both landlords and tenants planning certainty, since future rent adjustments are agreed transparently and bindingly.

{% hint style="warning" %}
**Written form requirement for graduated rents**

In Immodio there is currently **no way** to meet the legally required written form digitally when agreeing a graduated rent (Section 557a BGB). At the end of the rental agreement process we therefore provide you with an additional agreement that has to be printed out and signed by hand by both parties. If the written form is not observed, the agreed rent adjustment (graduated rent) is regarded as not validly agreed.
{% endhint %}

### Particularities of a graduated rent

Unlike classic rental agreements, where rent increases have to match the local comparative rent and be justified formally, rent adjustments with a graduated rent take place **automatically** at the agreed time. The following applies:

* The rent has to remain **unchanged for at least 12 months** (Section 557a (1) BGB).
* During the term, **no further increases** may be made due to modernisation or adjustment to the comparative rent (Section 557a (2) BGB).
* An exception has applied since **1 January 2024**: under Section 559e (3) BGB, landlords can pass on **part of the cost of replacing a heating system** to the rent. Subsidies and a flat rate of 15% have to be deducted. The increase may amount to **no more than €0.50/m²**.

### The rent level with a graduated rent

* In areas where **rent control** applies, the starting rent on a new letting may not be more than 10% above the local comparative rent (Section 556d BGB), including for index-linked rental agreements.
* No **capping limit** generally applies to graduated rental agreements. The local comparative rent is usually not decisive for the stages, so **rent increases above 15% or 20%** are possible within three years.
* You can find out here how to agree rent stages with legal effect in Immodio.

### Advantages and disadvantages of a graduated rent

<details>

<summary>Advantages of a graduated rent</summary>

* **Planning certainty:** With a graduated rental agreement you as the landlord can agree a unilateral waiver of termination (max. 4 years).
* **Time savings:** There is no need to initiate separate rent increase procedures. As a landlord you do not have to justify or announce the rent increase. The tenant is obliged to pay the graduation agreed in the rental agreement.
* **Regular rent increases:** Unlike regular rental agreements, where rent rises are only possible every 15 months, graduated rents allow annual increases (every 12 months).
* **No capping limit:** The rent can rise by more than 20% over a period of three years without being tied to the local comparative rent (subject to **rent control**).
* **Higher rental income:** Because the capping limit does not apply and the increases are fixed, landlords can achieve a higher return, as long as **rent control** is observed.

</details>

<details>

<summary>Disadvantages of a graduated rent</summary>

* **Limited flexibility:** Once agreed, rent stages cannot be adjusted during the tenancy.
* **Risk of misjudgement:** Market changes or unexpected developments can mean that the rents set are not in line with the market over the long term, which leads to lower returns.
* **No passing on of modernisation costs:** Costs for modernisation such as statutory measures (for example replacing a heating system under the GEG) have to be borne by the landlord themselves.
* **Rent control:** In regions with **rent control**, the rent may not be more than 10% above the local comparative rent as a result of the graduation.
* **Risk with back claims:** If the tenant fails to pay the higher rent and is not made aware of it, this could be regarded as tacit agreement. A claim to back payment can then lapse.
* **Deterring potential tenants:** Regular rent rises and the waiver of a right to terminate can be unattractive for tenants, particularly in less sought-after locations.

</details>