Rent increased by 30% before renovation started

30 posts in this topic

Hi everyone,

I want to share with you the unfortunate details of a misadventure that is happening to me at the moment, and get your opinion about the legal aspect of it.

I received a letter from the agency I am renting my apartment from ( 63m² in Mitte for 710€ warm) around beginning of July informing me that they are planning renovation work in the entire 4 buildings of the street number in which I leave starting from the 10.10.2014. The renovations will last for 6 months and will include (elevator, 2 Fucking balconies, energy saving related stuff, and the list is looooong...).

In the letter, it is clearly started that each tenant will have to bear up to 11% of the annual price of the renovation , and this will increase my monthly rent by 179€, which will take effect even before the renovations START.

Is this even LEGAL ???

 

I would appreciate any help/suggestions.

 

Regards

 

samdann

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Obligatory "Join & consult your local Mietverein" comment.

 

Did the agency letter mention Modernisierungsumlage?

Google translated English version includes:

 

"The modernization assessment is a special form of rent increase after a completed modernization . It is governed in Germany in § 559 BGB . The landlord can a supplement to net rental demand in structural changes that increase the residential value, causing a sustained energy conservation, or structural changes, which are due to circumstances for which the landlord is not responsible (eg. B. conversion from town gas to natural gas ).

The allowable increase in the annual rent is limited to 11% of pure modernization expenses.

 

Perhaps that's where the annual 11% of renovation costs comes from.

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Only when the renovations have taken place and have been proven that they are energy saving would i pay it and not before

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Hi,

yes it does mention Modernisierungsumlage.

The only thing that I find really SUSPICIOUS is the date from which the increase take place?!?

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I'm sorry. This isn't good news -

 

 

Die Ankündigung von teuren Modernisierungsmaßnahmen ist eine zu diesem Zweck weit verbreitete Methode. Eigentümer können 11 Prozent der Modernisierungskosten auf die Jahresmiete umlegen. Daraus resultieren oft ganz erhebliche Mietsteigerungen, die auch nicht auf der Höhe der ortsüblichen Vergleichsmiete nach dem Mietspiegel gekappt werden. Viele Mieter nehmen schon gleich nach der Modernisierungsankündigung Reißaus, weil sie sich den in Aussicht gestellten Mietzins nicht leisten können und nicht wissen, wie sie sich dagegen wehren können. Oft werden besonders aufwendige Modernisierungen angekündigt, um Mieter loszuwerden. Mit dem Einbau von Aufzügen, Fußbodenheizungen, Gästebädern und luxuriösen Kücheneinrichtungen oder dem Anbau von Balkonen kann man beispielsweise extrem hohe Modernisierungsumlagen erzeugen

 

 

very abbreviated - modernisations are a popular method of driving up the rent prices and driving out current renters. Often the announced measures are particularly expensive and involved - elevator, underfloor heating, guest bathrooms and luxurious kitchens

http://www.berliner-mieterverein.de/magazin/online/mm1012/hauptmm.htm?http://www.berliner-mieterverein.de/magazin/online/mm1012/101212.htm

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On 9/15/2014, 1:29:50, fraufruit said:

It could be a Nebenkosten increase, not the rent.

 

Just a guess.

 

It does seem like a lot all at once.

What is Nebenkosten ? 

@fraufruit

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24 minutes ago, kld said:

What is Nebenkosten ? 

@fraufruit

Please  don't say you are still in the business of  buying apartments and renting out-?  Maybe you should have taken a course/workshop first.

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8 hours ago, RedMidge said:

Please  don't say you are still in the business of  buying apartments and renting out-?  Maybe you should have taken a course/workshop first.

Yes I am still (If you do not mind)

 

You know the course is a good idea.

 

Do you know someone in Berlin  who give such a course ? 

 

 

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On 9/15/2014, 1:21:30, samdann said:

Hi everyone,

I want to share with you the unfortunate details of a misadventure that is happening to me at the moment, and get your opinion about the legal aspect of it.

I received a letter from the agency I am renting my apartment from ( 63m² in Mitte for 710€ warm) around beginning of July informing me that they are planning renovation work in the entire 4 buildings of the street number in which I leave starting from the 10.10.2014. The renovations will last for 6 months and will include (elevator, 2 Fucking balconies, energy saving related stuff, and the list is looooong...).

In the letter, it is clearly started that each tenant will have to bear up to 11% of the annual price of the renovation , and this will increase my monthly rent by 179€, which will take effect even before the renovations START.

Is this even LEGAL ???

 

I would appreciate any help/suggestions.

 

Regards

 

samdann

It sounds suspiciously high. I was curious on this and ran some calculations and while 11% sounds like a huge increase in the end it works out to quite a reasonable 40 or 50 Euros a month on an average rent. As @fraufruit mentioned it could be an increase in the NK as well. They also might have tacked on a normal rent increase to the modernization one. 

 

Don't forget that during the renovations they are required to lower the rent by a specific amount. I wrote a short free ebook on renting, Tricks and Bricks Germany, The Expat Guide to Renting, Whenever my website is up and running properly you'll be able to download it for free, in the meantime I'll PM it to you. Again the meitverien is your friend. 

 

11 hours ago, kld said:

What is Nebenkosten ? 

@fraufruit

 

Nebenkosten the Devil is in the Details

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We've never had a rent increase after normal renovations like painting and new insulation outside. We didn't even ask for a rent reduction the last time they scaffolded the whole building for some months because we were gone most of the time and it didn't really bother us.

 

As a landlord, we've never increased rent when major works were done on the building but all of the flat owners must pitch in a bit. We never put that on our renter. It is our property.

 

Please join the Mietverein.

 

oops! Now I see that Tim Horton quoted a post from 2014.

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1 hour ago, Tim Hortons Man said:

while 11% sounds like a huge increase in the end it works out to quite a reasonable 40 or 50 Euros a month on an average rent.

 

renovation increases are not based on the cold rent, they are based on the cost of the renovations - ie "average rent" does not predict what a renovation increase might cost.

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I just wasn't aware that tenants could be charged for normal works on the house. I guess if they get 2 new balconies that would be considered more living area.

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Just now, fraufruit said:

I just wasn't aware that tenants could be charged for normal works on the house. I guess if they get 2 new balconies that would be considered more living area.

 

According to https://ratgeber.immowelt.de/a/worauf-vermieter-bei-einer-modernisierungsmieterhoehung-achten-sollten.html they may charge the tenants if the renovation is increasing their quality of life, nicer apartment, new balcony, elevator etc. or if it's saving them money, as in saving energy or water.

 

The tenant needs to be informed of the planned work and cost, in writing, at least 3 months in advance.  The tenant can protest the renovations and also has the right to give extra short notice on the apartment in case they want to leave.

 

 

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1 hour ago, Tim Hortons Man said:

It sounds suspiciously high. I was curious on this and ran some calculations and while 11% sounds like a huge increase in the end it works out to quite a reasonable 40 or 50 Euros a month on an average rent. As @fraufruit mentioned it could be an increase in the NK as well. They also might have tacked on a normal rent increase to the modernization one. 

 

Don't forget that during the renovations they are required to lower the rent by a specific amount. I wrote a short free ebook on renting, Tricks and Bricks Germany, The Expat Guide to Renting, Whenever my website is up and running properly you'll be able to download it for free, in the meantime I'll PM it to you. Again the meitverien is your friend. 

 

 

Nebenkosten the Devil is in the Details

I check the website.

It is very useful .

Thanks

 

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52 minutes ago, fraufruit said:

We've never had a rent increase after normal renovations like painting and new insulation outside. We didn't even ask for a rent reduction the last time they scaffolded the whole building for some months because we were gone most of the time and it didn't really bother us.

 

As a landlord, we've never increased rent when major works were done on the building but all of the flat owners must pitch in a bit. We never put that on our renter. It is our property.

 

Please join the Mietverein.

 

oops! Now I see that Tim Horton quoted a post from 2014.

Does it make a difference how much your property is rented for when you're-sell it ? 

I think that rent maynot be important but most landlord prefer to increase rent so they have an attractive Rental Yield when they resell. 

I have seen a nice condo for sale for a good price only EUR 112.000 but the rent is only EUR 200. 

 

 

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3 minutes ago, kld said:

Does it make a difference how much your property is rented for when you're-sell it ? 

I think that rent maynot be important but most landlord prefer to increase rent so they have an attractive Rental Yield when they resell. 

I have seen a nice condo for sale for a good price only EUR 112.000 but the rent is only EUR 200. 

 

I would say yes because the landlords are not allowed to increase rents at will so it is better to sell a condo that is rented out for market value already.  Unless the landlord is renovating, they can only increase the rent as much as 20% every 3 years and only if the rent is still lower than the rent for similar apartments in the same area.  Hence, if you buy a condo where the rent is 200 and should be 400, you can only increase the rent 20% so to 240 then have to wait 3 years before you can increase again by 20% etc.  The tenant can dispute the increase in which case, you may need to go to court.  This may be why many landlords do not bother to increase the rent for a sitting tenant.  I lived in the same apartment for 6 years and my rent was never increased.

 

If you are renovating, you are not tied by the 20% cap.  You would however have to spend a lot of money on renovations before you can get your money back from the tenant.  For example, you spend 5000€ on renovations, you may increase the yearly rent for 11% of that so 550 per year.  For your 200€ a month apartment, that means 550/12 so 45,83€ per month more rent which is more than 20%.  However, you would have spent the 5000 before you could get that 45€ a month more.

 

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If you want to sell, you will get more money if the flat is empty. You could try for a rent increase and see if the renter will move out because of it. Like Leon said, they could also protest it. We wanted to renovate our rental and get more money so we raised the rent a bit and our renter moved out. She had been planning on moving into a bigger place with some friends so it worked out well for all of us.

 

We spent  5k on the reno and made that back in one year.

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