Qualified rent index

A qualified rent index is a document prepared in accordance with recognized scientific principles and approved by the municipality (or jointly by landlord and tenant associations) that establishes the local comparative rent for non-price-controlled apartments. It serves as the most important tool for landlords to justify rent increases under the comparative rent regulation (Sections 558 et seq. of the German Civil Code) and has a significantly stronger legally binding effect than a simple rent index. Since the 2022 rent index reform, municipalities with 50,000 or more residents have been required to create either a qualified rent index or a standard rent index that meets certain minimum requirements.

Requirements for a Qualified Rent Index

To be recognized as a qualified rent index, certain requirements must be met under § 558d BGB: The data must have been collected in a representative manner from the housing market (sample survey or census), the analysis must be conducted using recognized statistical methods, and the rent index must be jointly recognized by the municipality or by tenant and landlord associations. It must be updated every two years (revision) and re-established every four years. The re-establishment follows a complete re-collection of the data.

The collection of data typically includes a representative sample of existing tenancies that are no older than six years. New leases from the last three years are given particular weight in this process. The evaluated characteristics typically include living space, the year the building was constructed, the amenities (e.g., type of heating, bathroom fixtures, kitchen fixtures), and the neighborhood (basic, average, good). The result is a range (e.g., 8.50 to 11.20 euros/m²) with a median value for each combination of characteristics.

Legal Significance and Binding Effect

The qualified rent index enjoys a legal presumption: If a contracting party disputes the rent figures contained therein, that party bears the burden of proof that the local comparative rent differs (Section 558d(3) of the German Civil Code (BGB)). This makes it easier for landlords to enforce justified rent increases and for tenants to defend against excessive demands. Although courts are not absolutely bound by the qualified rent index, they attach considerable weight to it in the event of a dispute.

In practice, the legal presumption means that a landlord who correctly bases their request for a rent increase on the qualified rent index has a very strong position in any potential legal dispute. The tenant would have to submit their own expert opinion refuting the values shown in the rent index-a time-consuming and costly undertaking. This asymmetry creates an incentive for both parties to settle rent increases based on the qualified rent index out of court.

Distinction from the Simple Rent Index

The simple rent index (Section 558c of the German Civil Code) does not have to meet any statistical minimum standards and does not need to be recognized by associations. While it provides indicative values, it has no legal presumptive effect. In court, it has the value of an index, whereas the qualified rent index is considered evidence with high probative value.

In practice, the difference is this: If a landlord relies on a simple rent index, the tenant can more easily challenge it and does not have to bear the burden of proof for a deviating market rent. In the event of a dispute, the landlord must prove the validity of the rent increase by other means. With a qualified rent index, this burden of proof is reversed. For landlords, the qualified rent index is therefore the significantly stronger tool.

Rent Increases Using the Qualified Rent Index

The practical application of the qualified rent index for rent increases involves several steps: First, the landlord must classify the apartment into a category based on the characteristics listed in the rent index (year of construction, amenities, location, living space) and determine the range or median value. Then, they must verify whether the current rent is below the local comparative rent-an increase is only possible if this is the case. The request for an increase must be submitted to the tenant in writing, with reference to the rent index and in compliance with the statutory notice period (Section 558 of the German Civil Code [BGB]: 15 months since the last rent increase). The tenant then has two months to agree to the rent increase or to file an objection.

A common mistake when applying the rent index is incorrectly classifying the apartment in the feature matrix. For example, someone who mistakenly classifies an apartment in a poor location as being in the average location category or overestimates its amenities risks having an invalid rent increase notice that must be redrafted, thereby wasting time.

Practical Tip for Landlords in Nuremberg and Franconia

Nuremberg has a qualified rent index that is regularly updated by the city in collaboration with landlord and tenant associations. Landlords who wish to enforce a rent increase to the local comparative rent must justify the request for an increase in writing and may use the Nuremberg rent index as a basis for their justification. It should be noted that the permissible rent increase is limited by the cap: In Nuremberg, as an area with a tight housing market, rent may increase by a maximum of 15% (instead of the usual 20%) within three years.

We help you determine your apartment’s current classification in the rent index, calculate the potential for an increase, and prepare legally sound rent increase notices. Correct classification is crucial-incorrect rent increase notices may be invalid and must be redrafted, which costs valuable time.

Frequently Asked Questions

How often is the Nuremberg rent index updated?

The Nuremberg Qualified Rent Index is updated every two years and undergoes a comprehensive update every four years based on a new survey. The current version is available for download on the City of Nuremberg’s website.

Can I justify a rent increase even without the rent index?

Yes. As an alternative to the rent index, a rent increase can be justified by an appraisal from a publicly appointed and sworn expert, by comparing three similar apartments in the same location, or-for new construction-by information from a rental database. However, the qualified rent index is the simplest and most cost-effective means of justification.

Does the rent index also apply to furnished apartments or subleases?

No, the rent index applies only to privately financed, unfurnished apartments in the non-rent-controlled segment. Furnished apartments, vacation rentals, and social housing with rent controls are excluded. There is no standardized basis for comparison in these cases.

What happens if there is no qualified rent index for my municipality?

In municipalities without a qualified rent index, the landlord can rely on a simple rent index, comparable apartments, or an expert appraisal. The legal presumption does not apply in these cases, which makes it more difficult to enforce a rent increase in the event of a dispute. In smaller Franconian municipalities without their own rent index, we recommend commissioning an expert opinion early on in order to be able to reliably demonstrate the local comparative rent.

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