Tenants’ association warns of index rents: What should you pay attention to in the rental agreement?

Tenants’ association: In 2022, around every third new rental agreement in major cities will be index-linked

According to the German Tenants’ Association, the proportion of leases linked to the index has risen sharply. In larger metropolises it was estimated at 30 percent in 2022, in Berlin even at 70 percent and thus “significantly more than the average”. This assumption was suggested by consultations with the tenants’ associations in Hamburg, Hanover, Cologne, Frankfurt, Düsseldorf and Berlin. The German Tenants’ Association calls for a ban on index rents for new contracts.

60.01 euros rent increase in Dresden on average

The tenants’ association for Dresden and the surrounding area had examined 38 cases of those affected with index leases by November. The average rent increase was 7.94 percent, or EUR 60.01 per month.

Florian Bau, legal advisor at the association, assumes that the number of consultations will continue to increase in the future: “Whereas previously indexed leases were the exception, we have now noticed a significant increase for several years. No statistics are collected on the exact number. We However, we assume that index leases are now the standard, particularly in the high-priced rental segment.”

Index rental contracts are based on inflation and not on the local rent index. Because inflation is just above the rent index in Dresden and the rent can be adjusted once a year with an indexed rental contract, many landlords currently find this type of contract more attractive, estimates Bau.