Rent Index

Rent Index - The rent index is a systematic overview of the typical comparative rents in a city or municipality and serves as a key tool for determining a reasonable rent level. It forms the basis for rent increase requests, the assessment of rent control measures, and the judicial resolution of rental disputes.

Simple and Qualified Rent Index

The German Civil Code distinguishes between two types of rent index. The simple rent index under Section 558c of the German Civil Code is jointly compiled by the municipality or by representatives of landlords and tenants. It provides an overview of local comparative rents and is typically published as a table that differentiates by year of construction, neighborhood, size, and amenities. A simple rent index functions as an index in court-it is used as a guide but does not establish a presumption.

The qualified rent index under Section 558d of the BGB is subject to stricter requirements. It must be compiled in accordance with recognized scientific principles and be recognized by the municipality or by representatives of the respective interests. A qualified rent index establishes the legal presumption that the values listed therein accurately reflect the local comparative rent. If a party wishes to deviate from the values of the qualified rent index in a rent increase proceeding, that party bears the burden of proof.

Since the 2022 rent index reform, municipalities with more than 50,000 residents are required to prepare a rent index. Municipalities with more than 100,000 residents must even submit a qualified rent index. The validity period is two years; after four years, the rent index must be completely redrafted based on new data.

For landlords, the rent index is the most important tool for rent increases up to the local comparative rent under § 558 BGB. The request for a rent increase must refer to the rent index and clearly explain which rent index category the apartment falls into. In doing so, surcharges and discounts for features that enhance or reduce the quality of living are taken into account-such as a balcony, a built-in kitchen, or the building’s energy efficiency.

Rent Index and Rent Control

In areas with a tight housing market, rent control applies under Section 556d of the German Civil Code (BGB). According to this provision, the rent for a new lease may not exceed the local comparative rent by more than ten percent. The rent index is the key tool for determining this limit. Without a current rent index, enforcing the rent cap in practice is significantly more difficult, as tenants would otherwise have to provide evidence of the local comparative rent.

The cap limit under Section 558(3) of the German Civil Code (BGB) also limits rent increases during the current tenancy. In areas with a tight housing market, rent may increase by a maximum of 15 percent within three years; in other areas, by a maximum of 20 percent-in each case only up to the level of the local comparative rent as per the rent index.

Practical Tip for Landlords and Tenants in Nuremberg and Franconia

The City of Nuremberg publishes a certified rent index that is regularly updated. The rent index table differentiates by year of construction, residential location, and amenities, and specifies ranges within which the local comparative rent falls. Nuremberg is also classified as an area with a tight housing market, meaning that both the rent cap and the reduced cap limit of 15 percent apply.

We recommend that landlords carefully verify the correct classification of their apartment within the rent index category before requesting a rent increase. Errors in classification-such as an incorrect neighborhood or omitted features-can render the rent increase request invalid. We advise tenants to cross-check a rent increase notice against the current Nuremberg rent index and, if in doubt, to seek professional advice within the consent period.

Frequently Asked Questions

Is the rent index also binding for new leases?

The rent index itself is not a price cap for new leases. However, in areas with rent control-such as Nuremberg-the rent for a new lease may not exceed the local comparative rent, as determined by the rent index, by more than ten percent. Exceptions apply to new buildings, extensively modernized apartments, and cases where the previous rent was already above the limit.

What should you do if your apartment does not clearly fit into a single rent index category?

In practice, it often happens that an apartment has features from different equipment categories. In such cases, a differentiated classification based on the explanations in the rent index is required. Surcharges and discounts within the specified range allow for individual adjustments. In cases of uncertainty, an expert opinion can specify the local comparative rent.

Does the Nuremberg rent index also apply to surrounding municipalities such as Fürth or Erlangen?

No, each municipality compiles its own rent index. The values in the Nuremberg rent index apply exclusively to the city of Nuremberg. Fürth and Erlangen have their own rent indices with values and categories that sometimes differ. For properties in the metropolitan region, the rent index of the municipality in which the apartment is located is therefore always decisive.

What happens if a municipality does not have a rent index?

For municipalities without a rent index, the local comparative rent must be substantiated by other means-such as three specific comparable apartments, an expert appraisal, or a rental database. This is more time-consuming and expensive for both parties than using an existing rent index. In smaller municipalities in the Nuremberg area that do not maintain their own rent index, landlords often rely on qualified appraisers to justify rent increases in a legally sound manner. We recommend that landlords in such municipalities document a current comparative value early on, as resolving disputes later on is more difficult and costly without a rent index.

2022 Rent Index Reform and Its Impact

The 2022 rent index reform has significantly raised the quality requirements for rent indices. In addition to the obligation to create them for cities with 50,000 or more residents, minimum scientific standards for data collection have been introduced. In particular, the sample must be representative and based on a sufficient number of rents actually paid. The requirement for biennial updates and quadrennial recalculations ensures that rent indices reflect actual market developments in a timely manner. For landlords, this means: Older rent indices lose their binding effect once a current one is available. Requests for rent increases must always refer to the currently applicable, up-to-date rent index.

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