Tenancy Law Amendment Act

Rent reduction

If the landlord carries out energy modernisation measures, the tenant may no longer reduce the rent in the first three months. They must continue to pay the full rent, despite noise, dirt, scaffolding, etc. However, rent reductions are still possible for all other modernisation work in or on the building, repairs and maintenance.

Modernisation / rent increase

Only energy modernisations that actually help to save final energy, i.e. ultimately heating costs, justify a rent increase. As before, the landlord can add 11 percent of the modernisation costs to the annual rent.

Flat-rate values

When announcing modernisation measures, landlords no longer have to calculate in detail the potential savings for tenants. The landlord can refer to so-called recognised flat-rate values.

Tolerance

In principle, tenants must tolerate planned modernisations, especially energy-related modernisations. Only if they can invoke reasons of hardship will their interests be weighed up. The tenant's interests must then be weighed against the landlord's interests and now also the interests of energy efficiency and climate protection.

Deadlines

There is a new deadline. Tenants must have invoked any existing reasons for hardship no later than one month after receiving the modernisation notice.

Reason for hardship rent increase

Modernisation can no longer be stopped with the argument of not being able to pay the rent increase. Financial hardship will only be examined in connection with the rent increase itself, not in connection with tolerating the modernisation.

Contracting

The changeover from traditional energy supply by the landlord to heat supply by a third party (heat supplier) is regulated by law for the first time. It is now stipulated that the costs of the heat supply may not exceed the previous operating costs for heating and hot water (warm rent neutrality).

Comparative rent

In addition to the type, size, fixtures and fittings, condition and location of the flat, the energy-related fixtures and fittings and condition will also play a role in determining the standard local comparative rent in future. This gives energy-related rent indexes a legal basis.

Capping limit

In cities or districts with housing shortages or even a housing shortage, the so-called rent cap can be reduced from the current 20 per cent to 15 per cent. This means that the rent may then only increase by 15 per cent within three years on the way to the local comparative rent, the average rent in the place of residence. The cities in question must first be determined by the state governments by statutory order. Such an ordinance is currently planned in Berlin and in Bavaria for Munich. This may take some time in other places.

Termination without notice

The landlord can not only terminate without notice if the tenant does not pay the rent. Termination without notice is now also possible if the tenant does not pay the agreed rental deposit or the agreed deposit instalments.

Protection against dismissal

The lock-up period after conversion into a condominium is already at least 3 years. In future, this lock-up period will also apply if the apartment building is acquired by a civil law partnership and the respective partners claim personal use of the individual flats.

Eviction by interim injunction

If the tenant and landlord are in dispute over rent payments, rent arrears and rent reductions in an eviction process, the court can order the tenant to provide security for rent payments that are still due until the final court settlement. If the tenant does not pay or does not respond to this security order, the court can order the eviction of the flat by means of a temporary injunction.

Berlin eviction

If the bailiff receives a limited enforcement order from the landlord, he only has to arrange for the flat to be returned. He no longer has to take care of clearing the tenant's belongings.

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