Rent Check

A rent review is a systematic assessment of whether an agreed-upon or planned rent is in line with current market conditions-neither too high (risk of vacancy, rent control) nor too low (loss of return). It uses rent indices, current asking prices on real estate portals, and the reviewer’s own market knowledge as a data source. For landlords, the rent check is the most important tool before a new lease or a planned rent increase.

Methods of the Rent Check

The qualified rent index (where available) is the most reliable source: It reflects the local comparative rent, differentiated by apartment size, year of construction, location, and amenities. In addition, listing portals (ImmoScout24, Immowelt) serve as an indicator of market conditions-though they show only asking prices, not final prices. Professional real estate agents and property managers also have their own transaction data, which allows for a direct comparison with actual lease agreements.

A comprehensive rent check takes into account not only the living space but also qualitative factors: floor level and balcony, condition of the apartment and the building, amenities such as a modern kitchen or parking space, the location within the neighborhood, and energy efficiency. Two structurally identical apartments in the same building can command different market rents due to varying amenities or the state of the rental market. Only those who are familiar with all these factors can conduct a truly reliable rent check.

Rent Assessment Before Reletting

Before reletting, the rent assessment should answer two questions: What is the local comparative rent for this apartment, and what can actually be achieved in the current market? If the planned rent in a rent-control zone is more than 10% above the local comparative rent, it is legally vulnerable. If it is too low, returns will fall short of their potential. The range between the lower limit of the rent index and the upper market limit is the optimal range.

Special rules apply to new leases following modernization or renovation: If the property has been extensively modernized, an increased rent may be justified. Here, the rent check is particularly important to correctly assess the permissible amount and avoid subsequent complaints from the tenant.

Important to note: When re-letting, landlords must actively check whether exceptions to the rent control law apply-for example, if the previous rent was already higher than the permissible amount. In this case, the previous rent may be retained as the starting point. Those who are aware of these exceptions and document them correctly can rent out properties with legal certainty and need not fear a subsequent reduction.

Rent Review for Existing Tenants

A regular rent review is also advisable for ongoing tenancies. If the current rent is significantly below the comparable rent, there is potential for an increase-provided that waiting periods and cap limits are observed. If existing rents in the area have risen sharply, you should check whether and how rents can be adjusted gradually. We recommend conducting the review at least every two years-in parallel with the publication of a new rent index.

Important: Rent increases based on the rent index must be formally justified. The rent increase notice must refer to the specific entry in the rent index, clearly explain the apartment’s classification within the grid, and compare the new rent with the comparable rent. Formal errors render the increase request invalid-a mistake that is often avoidable.

Energy Efficiency as a Growing Factor in Rent Pricing

With the increasing importance of energy efficiency, a new factor influencing rent has emerged. Well-insulated apartments with low heating costs command higher rents in the market because the rent including utilities is more attractive to tenants. At the same time, modernized rental law allows the costs of energy-efficiency renovations to be passed on to the rent on a pro-rata basis-which gives landlords an economic incentive to invest.

A comprehensive rent assessment should therefore also consider the property’s energy performance certificate class and evaluate whether an energy-efficiency upgrade would significantly increase its rental potential. Particularly for properties with poor energy ratings (F, G, H), modernization can significantly improve both marketability and the achievable rent.

Rent Review as a Tool for Portfolio Optimization

Anyone who owns multiple rental properties should use the rent review as a systematic portfolio tool. Experience shows that every portfolio contains properties with significant rental potential that has gone untapped for years-often because long-term tenants are reliable payers and careful occupants, leading the landlord to shy away from raising the rent. A structured review reveals where latent loss of income has occurred and enables a planned, gradual adjustment without unnecessary conflicts.

Practical Tip for Property Owners in Nuremberg and Franconia

The City of Nuremberg’s qualified rent index is published every two years and serves as the basis for rent increases throughout the city. In the metropolitan region (e.g., Fürth, Erlangen, Schwabach), there are separate rent indices; surrounding municipalities without rent indices require comparable apartments or expert appraisals. We conduct rent reviews for our landlord clients free of charge as part of our property management services and identify whether and where adjustments are needed.

Landlords who regularly conduct their rent reviews and consistently implement adjustments within the legally permissible limits achieve significantly better returns over time than those who postpone rent increases for years. We support you in formulating rent increases in a legally compliant manner and communicating them clearly to the tenant.

Frequently Asked Questions

Where can I find the current rent index for Nuremberg?

You can find the official rent index for the City of Nuremberg on the City of Nuremberg website (nuernberg.de) or at the Office for Housing and Urban Development. It is available free of charge.

Does the rent control law apply in Nuremberg?

Yes, Nuremberg is designated as an area with a tight housing market where the rent control law (§ 556d BGB) applies. For new leases, the rent may not exceed the local comparative rent by more than 10% (with defined exceptions).

How accurate is an online rent calculator?

Online rent calculators on portals provide a rough estimate but are imprecise: they often do not sufficiently account for the specific characteristics of the apartment (features, location within the neighborhood, condition). For legally compliant rent increases or lease agreements, the qualified rent index should always be consulted.

How often should I check my rent?

At least every two years-in conjunction with the publication of the new rent index. In the event of a significant market increase or following renovations, a more frequent check may also be advisable. As professional property managers, we conduct such checks for our clients regularly and as needed.

Can I refuse a rent increase if I consider it inappropriate?

As a landlord, you have the right to review the justification for the rent index entry and to object if the classification is obviously incorrect. In principle, however, a rent increase is valid if it meets the formal requirements and the comparative rent has been correctly determined. In the event of a dispute, the competent local court will decide.

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