Rent increase after heating replacement: Maximum costs and limits - advice from financial experts

Rent increase after heating replacement: Maximum costs and limits - advice from financial experts

According to a report from www.t-online.de, the Building Energy Act introduces new obligations for homeowners, which can also have an impact on tenants. If a homeowner replaces their heating system with a more efficient option, they can increase the rent. However, there are clear limits set out in the Civil Code.

According to Section 559 of the German Civil Code (BGB), a landlord may add a maximum of 8 percent of the costs incurred for modernizing the heating system to the annual rent. Within the last three years, the rent may not be increased by more than 20 percent, unless it is a particularly tense residential area in which a lower cap of 15 percent applies.

There is also a limit on the rent increase based on the square footage of the apartment. Within six years, the rent may not be increased by more than 3 euros per square meter of living space if the increase is justified by a modernization measure. For apartments in which less than 7 euros per square meter is currently paid, the limit is only 2 euros per square meter.

However, it is important to note that even if the landlord complies with all of these requirements, tenants may not be required to pay the higher rent if the rent increase was not properly announced. A correct announcement includes written notification at least three months in advance in accordance with Section 558a BGB.

These new regulations may have various effects on the real estate market. On the one hand, the possibility of a rent increase after replacing their heating system could motivate some homeowners to invest in more energy-efficient systems. This could lead to a reduction in energy costs and consumption in the long term.

On the other hand, tenants, especially in tense residential areas, could be confronted with higher rents if their landlords carry out modernization measures. This could lead to financial stress for tenants, especially if the rent increase reaches or exceeds the limits mentioned above.

Overall, it is important that homeowners and tenants inform themselves about their rights and obligations in connection with the Building Energy Act and possible rent increases. Accurate knowledge of the legal requirements can help avoid possible legal disputes and ensure fair conditions for everyone involved.

Source: According to a report from www.t-online.de