> 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/miete.md). # Rent This page explains how to record the rent correctly in the rental agreement assistant and which factors you should consider when setting the rent.
### General This step shows an overview of the individual rent items. The total rent is calculated automatically. If a garden, garage or parking space is stored in the unit, that item is adopted in the list automatically. If these items are already included in the net base rent, an amount of €0 can be entered here. These items are shown automatically if a corresponding entry exists in the unit under features. The "Add item" button lets you add further rent items, for example an additional parking space or ancillary rooms. Discounts on the rent can also be recorded at this point. *** ### Garage, parking space and garden as separate rent items If the **features** **"garage"**, **"parking space"** or **"garden"** are stored in a [**unit**](/en/anleitung/immobilien/einheit/ausstattung-einheit.md#features), Immodio adopts them automatically as separate rent items.
For each item you can record an individual name and the associated amount. The amounts are shown separately, included in the total rent and adopted as separate items in the rental agreement. {% hint style="info" %} If a parking space or garage is let with the property, it is advisable to specify that item more precisely (for example parking space no. 12). {% endhint %} If the rent for a garage, parking space or garden is already included in the net base rent, you can enter an amount of **€0** for that item. *** ### Pro rata rent when the tenancy starts during a month If the tenancy does not start at the beginning of a month (for example on 1 March) but during a month (for example on 15 March), Immodio automatically calculates the pro rata rent due for the first month. Only the period from the start of the tenancy to the end of the month is taken into account. * The amount calculated is then **stated in the rental agreement**, so that the tenant can see what rent is payable in the first month. It is advisable to point out the pro rata rent for the first month to the tenant before the contract is signed. * By default Immodio calculates the pro rata rent **pro rata temporis**. This means the rent is calculated proportionally by day. {% hint style="info" %} The pro rata first monthly rent is calculated as follows: Monthly rent = (total rent / number of days in the month) × days between the start of the tenancy and the end of the month {% endhint %}
Example of a pro rata temporis split * If the tenancy starts on 1 March, the tenant pays the full monthly rent for March. * If the tenancy starts on 16 March, by contrast, the rent is only calculated for the period from 16/03 to 31/03. March has 31 days. With a monthly rent of €1,000, the pro rata calculation is as follows: * €1,000 / 31 × 18 days = €580.65 In March the tenant therefore pays a pro rata rent of €580.65. From 1 April the full monthly rent of €1,000 is due.
*** ### Considerations when setting the rent Setting the right rent for a property is one of the central challenges for landlords. Various factors such as return requirements, the competitive situation and statutory requirements affect how the rent is set. Striking a balance between a competitive rent and maximising income is crucial.
Risks of setting the rent too high * **Longer vacancies**: A rent that is too high can delay letting. Potential tenants are put off, which leads to longer periods of vacancy. These phases without rent payments result in a loss of rental income * **Frequent changes of tenant**: If the rent is perceived as too high, this can lead to more frequent changes of tenant.
Risks of setting the rent too low * **Loss of additional income**: A rent that is too low means landlords forgo income that could be used to cover their running costs or to invest in the property. This can have a negative effect on the long-term profitability of the letting. * **Reduced value when selling the property**: A permanently low rent can have a negative effect on the sale price of the property. Buyers often use current rental income to assess the profitability of the investment. A low rent can therefore reduce the market value of the property.
*** ### How to go about setting the rent When setting a rent for a new letting, the **rent index** is usually the central point of reference. It provides information on the **local comparative rent**, that is, the rent that is customary for comparable apartments in the area (Section 558 (2) BGB). * Since July 2022, all towns and municipalities with more than 50,000 inhabitants have been legally obliged to produce a rent index as part of the rent index reform. If no rent index exists, a local comparative rent can be determined as follows: * **Rent database:** information from a rent database maintained by the municipality or by private institutions * **Comparable apartments:** by searching letting platforms * **Expert opinion:** commissioning a suitable expert (costly and therefore not recommended) {% hint style="warning" %} When setting the rent, always observe the applicable statutory requirements. In particular, exceeding the rent control limit (where it applies in your region) is only permissible in exceptional cases and has to be justified before the rental agreement is concluded. {% endhint %} *** ### Statutory requirements ### Rent control (Sections 556d to 556g BGB) This statutory rule limits the level of rent when existing apartments are re-let. In these cases the rent charged may be no more than 10% above the local comparative rent. **Where it applies** * Rent control does not apply nationwide, only in regions with a strained housing market that have been designated accordingly by the state governments. You can check whether your region is affected here in Immodio. * Rent control may **not** apply in the following cases**:** **a) Temporary letting ("temporary living")**: You are letting residential space intended for temporary use only (for example holiday apartments). **b) Furnished residential space:** If you let an apartment furnished, you can charge a furnishing surcharge for it. This surcharge does not have to be shown separately and can be included in the total rent. **Exceptions** There are, however, important **exceptions to rent control** that you as a landlord should know about and take into account when setting the rent. As a landlord, where you exceed the rent control limit you are legally obliged to rely on one of the following exceptions **before the contract is concluded** (Section 556g BGB) and to notify the tenant of it in text form: 1. **Continuing the previous tenant's rent**\ If you already agreed a rent with the previous tenant that was above the local comparative rent plus 10%, you may **keep** that level when re-letting. A further increase beyond that amount is not permitted when concluding the contract, however. The condition is that the excessive rent was **not agreed within the last year before the tenancy ended**. Under Section 556e (1) sentence 2 BGB, such short-term rent increases are disregarded when determining the permissible rent. 2. **Modernisation**\ If you modernised during the ongoing tenancy but did not assert the possible rent increase, or if you carry out modernisation between the previous tenant moving out and the new letting, you may apply the **increase resulting from the modernisation** in addition to the local comparative rent plus 10%. The same rules apply as for rent increases in an existing tenancy under Section 559 BGB. 3. **New builds**\ Rent control does **not apply to new builds** that were first used and let **after 1 October 2014**. 4. **Extensive modernisation**\ Also exempt are apartments that are let again for the first time **after extensive modernisation**. Such modernisation exists where the measures amount to **more than one third of the cost of a comparable new build**. {% hint style="warning" %} The information about a permissible excess over the rent control limit has to be given to the tenant in text form *before* the rental agreement is concluded (Section 556g (1a) BGB). Subsequent notification can only take effect if it is made up completely and correctly in text form. From that point a two-year period begins, after which you may rely on the exception again (Section 556g (1a) sentence 2 BGB). {% endhint %}
Excessive rent under Section 5 of the German Economic Offences Act (WiStrG) Exceeding the local comparative rent by more than 20% can constitute **excessive rent under Section 5 of the German Economic Offences Act (WiStrG)**.
Rent profiteering under Section 291 of the German Criminal Code (StGB) If the rent is **more than 50% above the local comparative rent**, this can fulfil the **criminal offence of rent profiteering under Section 291 of the German Criminal Code (StGB)**. In such cases the new rent is invalid and can be challenged legally.