📏 Rent level and rent brake
In brief
In some areas the rent under a new contract may be at most 10 percent above the local comparable rent. Your state determines by ordinance which areas these are.
- Check whether your municipality is listed in the ordinance.
- There are exceptions, for example a higher previous rent, new build after 1 October 2014 or comprehensive modernisation.
- If you rely on an exception, you must inform the tenant of it before the contract declaration.
Step by step
- Check the areaCheck your state's ordinance for your municipality.
- Determine the comparable rentUse the rent index (Mietspiegel) or other permitted sources.
- Check for an exceptionClarify whether previous rent, new build or modernisation applies.
- Inform the tenantCommunicate an exception in text form before the contract declaration.
Deadlines
- If you do not provide information on previous rent, modernisation or new build, you cannot rely on the higher rent (§ 556g Abs. 1a BGB).
- Which municipalities are covered depends on the state and was not researched here.
- Mietrecht II (government draft) is not yet law.
- The objection is not time-limited; if the tenant objects within 30 months of the start of the tenancy, repayment of excess rent paid earlier is also at risk (§ 556g Abs. 2 BGB).
In depth · legal basis, figures and practice – for advisers and professionals
Basic rule, § 556d BGB
If the tenancy starts in an area with a tight housing market designated by state ordinance, the rent may exceed the local comparable rent by no more than 10 percent. The ordinance must expire no later than the end of 31 December 2029 and must state reasons.
Exceptions, §§ 556e, 556f BGB
You may demand the previous rent if it is higher; rent reductions and increases agreed within the last year before the end of the previous tenancy are not taken into account (§ 556e Abs. 1). If you modernised within three years before the start of the tenancy, the rent may exceed the limit by the amount permitted under § 559 (§ 556e Abs. 2). § 556d does not apply to flats first used and let after 1 October 2014, nor to the first letting after comprehensive modernisation (§ 556f).
Information and reclaiming, § 556g BGB
Before the tenant makes their contract declaration, you must provide information on the exceptions without being asked; otherwise you cannot rely on § 556e or § 556f. The tenant's objection is not time-limited (Abs. 2). If they object within 30 months of the start of the tenancy and the tenancy still exists, they can also reclaim rent overpaid earlier; otherwise only the rent that fell due after the objection was received. The landlord's risk is therefore greater. Information is given in text form.
State law (sample BY/NRW/BE)
Sample, not complete, state law differs. Bavaria: The new version of the Tenant Protection Ordinance (Mieterschutzverordnung) applies from 1 January 2026 to 31 December 2029 (BayMBl. 2025 Nr. 558) and, according to the state government, covers 285 instead of 208 cities and municipalities; the rent brake (10 percent above the comparable rent) and a rent increase cap of 15 instead of 20 percent apply there. Whether each municipality has all the rules was not checked in full text; the municipality list is authoritative. North Rhine-Westphalia: The NRW Tenant Protection Ordinance has applied since 1 March 2025 in 57 municipalities (previously 18); rent brake until 31 December 2029, reduced rent increase cap of 15 percent until 28 February 2030 (state ministry MHKBD). Berlin: The entire city area is designated as an area with rent limitation from 1 January 2026 to 31 December 2029 (Senate press release). For the Berlin Rent Increase Cap Ordinance (in force since 11 May 2023), the percentage was not checked in full text. Check whether your municipality is listed in the ordinance.
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