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Legality of a rent increase

9 posts in this topic

Posted

Hello,

I own a flat that I am renting out since last year in Berlin.

I just read on scout.de that rents have increased of 8,1% over the last year in the neighborhood. I as well see flats there on scout.de that are far from being as nice as mine with a much higher cold rent.

Do you know if can increase the rent of my tenants arguing a rise of price in the neighborhood?

If so, how should I do? Can I just write a normal letter and ask for the rent increase? And should I do it for the 1st of January or at the anniversary date of the contract?

Thanks you!

Laura

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Posted

In general, no. Rent increases are only justified by a rise in the official Mietspiegel, not a random sampling of ads on Immobilienscout.

You can find out the official average for your neighborhood at this link.

If you're already charging above the average rent for the area, which is probably the case, you'll have to wait until your current tenant moves out. Then you can charge the new tenant whatever the market will bear.

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Posted

Thanks a lot for your very clear replies and advices!

Laura

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Posted

We have a good renter and feel it is worth it and we haven't raised her rent in 7 yrs. although we could. We want to keep her.

I'm sure she feels the very same ;-)

Good tenants are worth a premium for, but 7 years? If rents are static enough where she is, then ok, but if they've increased 30% in that time, then a slight increase (say 15%) would certainly be fair. You have your costs as well!

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Posted

And the cost of moving is so high that a small increase is very unlikely to push anyone out.

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Posted

Himself got burned bad before with a renter who wouldn't pay and were impossible to kick out. It took a year and then he had to renovate the place.

Live and learn.

Our options are always open - we just haven't exercised them yet.

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Posted

Here in Munich there is even a tool for the Mietspiegel which adds and subtracts points for things like whether or not you have an elevator, how nice the kitchen is (there is a specific definition), how the neighborhood is ranked etc. Interestingly the average rents in Munich in 2011 actually went down vs. 2009 -- so maybe FF isn't so crazy for not raising the rent!

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