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Rent increase capped: the capping limit

Even if the local comparative rent is higher, the landlord may not raise the rent arbitrarily fast. The capping limit restricts by how much the rent may rise within three years.

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With a rent increase up to the local comparative rent, the rent may rise by no more than 20% within three years (capping limit, § 558 BGB). In areas with a tight housing market, it is even only 15%.
In addition, a one-year blocking period applies: as a rule, at least one year must have passed since the last rent increase. Increases due to modernization follow their own rules and do not count here.

What you should do now

  1. 1

    1. Determine the baseline rent

    Compare the rent from three years ago with the amount now demanded.

  2. 2

    2. Check the capping limit

    Does the increase exceed 20% (or 15% in tight markets) in three years?

  3. 3

    3. Check the blocking period

    Has at least one year passed since the last increase?

  4. 4

    4. Object to an excessive increase

    If the increase exceeds the limit, object in writing to the excess part.

Frequently asked questions

By how much may my rent rise in three years?

With rent increases up to the local comparative rent, by no more than 20% within three years (capping limit, § 558 BGB). In areas with a tight housing market, which the states designate, a lower limit of 15% applies. An increase beyond that is invalid to that extent.

Does the capping limit also apply to modernization?

No. The capping limit concerns rent increases up to the local comparative rent. Rent increases due to modernization follow their own rules and are not counted toward the capping limit. So check carefully what basis an increase relies on, and whether the one-year blocking period is observed.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.