Modernization Announcement

The notice of renovation is the legally required written notification from the landlord to the tenant, in which the landlord announces planned renovation measures at least three months before work begins. It is governed by Section 555c of the German Civil Code (BGB) and serves to protect the tenant, who should be able to prepare for the upcoming disruptions. If the notice is not provided in the proper manner or contains material defects, the tenant may refuse to tolerate the work.

Content and Form of the Modernization Notice

The notice must be in writing and contain the following information: The nature and scope of the modernization work, the expected start date and duration, the expected rent increase following completion of the work, and information regarding alternative arrangements if temporary alternative housing becomes necessary. If essential mandatory information is missing, the notice is invalid. The landlord must draft the notice in a timely and specific manner so that the tenant can assess their personal situation and, if necessary, assert grounds for hardship.

The requirement for written form does not necessarily mean regular mail-the text form pursuant to § 555c BGB (in conjunction with § 126b BGB) is sufficient, meaning email or a WhatsApp message is also acceptable. In practice, however, we still recommend the written form via certified mail to be able to prove receipt. This is because the three-month period does not begin to run without proof of the date of receipt.

Tenant’s Obligation to Tolerate and Grounds for Hardship

In principle, the tenant must tolerate modernization measures that serve to improve the quality of living, energy efficiency, or climate protection (Section 555d of the German Civil Code). However, the tenant may object to the measure if it imposes an unjustifiable hardship on them-for example, due to illness, advanced age, or an impending termination for the landlord’s own use. The tenant must assert the hardship objection in writing by the end of the month following the notice. The court will then weigh the interests of both parties.

Courts assess grounds of hardship differently: An elderly, ill tenant who can no longer tolerate the construction-related disruption has a good chance of having her case considered. A healthy, middle-aged tenant for whom the measure is merely a nuisance will have less success. Landlords should take hardship claims seriously and maintain dialogue with the tenant-often, compromises regarding timing or construction can be found that satisfy all parties involved.

Rent Increase Following Modernization

Upon completion of the modernization, the landlord may increase the annual rent by up to 8 percent of the modernization costs attributable to the apartment (Section 559 BGB). This modernization rent increase must be announced via a separate written notice accompanied by a transparent breakdown of costs. The rent increase takes effect no earlier than three months after receipt of this notice. The cap (max. 3 euros/m² over a 6-year period) and-where applicable-the rent control measures must be observed.

An important point: Maintenance costs must be excluded when calculating modernization costs. If certain work would have been required as repairs anyway, only the additional costs for the modernization component may be passed on. A clear separation in the cost breakdown is therefore essential-and at the same time provides protection against tenant complaints.

Practical Tip for Landlords in Nuremberg and Franconia

Landlords in Nuremberg planning energy-efficiency renovations (insulation, heating system replacement) should carefully prepare the modernization notice. An incomplete notice can lead to tenants refusing the work and the renovation schedule falling through. We recommend having the notice reviewed by a lawyer and involving tenants early on in a personal meeting-this significantly reduces resistance and lays the groundwork for a smooth implementation. In the Nuremberg metropolitan area, there are qualified tenancy lawyers who routinely draft and review modernization notices.

Frequently Asked Questions

Does the notice of modernization always have to be given three months in advance?

For simple maintenance measures, the three-month notice period does not apply-this is only required for modernizations under Section 555b of the German Civil Code (BGB). Minor repairs can be carried out with reasonable, shorter notice.

What happens if the tenant refuses to tolerate the work despite a proper notice?

The landlord can file a lawsuit with the local court to compel tolerance. If the refusal is justified on grounds of undue hardship, the court may postpone or modify the work. However, if the landlord proceeds with the work on his own despite the refusal, this would constitute a trespass.

Can the tenant terminate the lease after receiving the modernization notice?

Yes, the tenant has a special right of termination under § 555e BGB: They may terminate the lease effective at the end of the month following the month after next, up until the end of the second month following receipt of the notice, if the announced rent increase following modernization exceeds certain thresholds.

What exactly must be included in the notice of the planned rent increase?

The notice must contain an estimate of the expected rent increase-either as an absolute amount per month or as a percentage of the modernization costs. A detailed cost breakdown is only required in the rent increase letter after the work is completed; estimates are sufficient in the notice, provided they are plausible.

How does the modernization notice apply in a WEG homeowners’ association?

For multi-unit buildings with condominiums (WEG), a distinction must be made: If the modernization affects the common property (e.g., facade insulation, heating system), it is commissioned by a resolution of the homeowners’ association pursuant to § 20 WEG. The notice to landlords is issued via the WEG management; the individual landlord must then, in turn, notify their tenant of the modernization in accordance with Section 555c of the German Civil Code (BGB). For owners in multi-unit buildings in Nuremberg, where renovation measures are often coordinated across the entire building, this two-step communication process is a practically relevant point: The WEG assembly resolves on the measure, and the landlord-owner must comply with the statutory deadline for notifying their tenant-and they must do so on their own responsibility, as the WEG management does not fulfill this obligation on their behalf.

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