- Rental increases above the rent level are generally not allowed
The Munich Regional Court I has set clear limits on rent increases that exceed adjustments based on the rent index. Such a surcharge cannot be justified by inflation and is generally not permitted, according to the 14th Civil Chamber, which is responsible for appeals against Munich Local Court rulings on rent increases.
In a specific case, a landlord demanded an increase in rent values based on the 2023 rent index, citing an unusually significant rise in local comparative rent. A local court judge dismissed the claim, stating that an increase of less than 3.5% in the net cold rent index for Bavaria did not constitute an exceptional rent increase.
The regional court agreed with this assessment. Even high inflation rates do not constitute a valid reason. The consumer price index is calculated based on a basket of around 700 goods and services, which does not provide a reliable basis for local comparative rent.
Many appeals pending
At the Munich Local Court, the question of the benchmark surcharge is answered differently by judges. Many appeals on this issue are pending at the regional court. The chamber's precedent-setting decision therefore has significant implications for many rental agreements in Munich. In the specific case, the landlord withdrew their appeal following the chamber's guidance.
The ruling by the 14th Civil Chamber of the Munich Regional Court has led to a wave of appeals regarding housing rent increases, as many landlords dispute the limits set. Despite inflation, the court has emphasized that high consumer price indices do not justify excessive rent increases in local comparative rent.
