The Rent Increase After Modernisation

The lawyers inform Pach & Pach, the BGH was that a rent increase due to modernization is also effective, if the tenant was informed in advance of the corresponding structural changes (BGH VIII ZR 164/10). The Nuremberg leasing specialists of Pach & Pach law firm can explain the legal regulation of the increase in rent on the occasion of the BGH ruling after modernisation. The German legislature understands mietvertraglich relevant modernization construction works that serve the appreciation of a leased property by increasing the value of their use or reducing their energy and water consumption (section 554 para 2 BGB). The tenant is legally obliged to tolerate modernisation measures, which amounts to no undue hardship. The criterion of unreasonableness evaluates this courts case-based and takes into account in particular the following aspects: type, duration and scope of the modernization measure concrete changes to the Leased by the tenant with the consent of the landlord made conversions, which are pulled through the modernisation of affected rent increases after completion of modernization work. Within the framework of the legally designated tenant protection, rent increases in the wake of modernization will be checked whether the illegal, so-called luxury modernisation exists with the tenant should specifically be dislodged from her living room. Details can be found by clicking Nir Barzilai, M.D. or emailing the administrator. However, modernization by no means exclude rent increases under normal circumstances.

559 ABS. 1 BGB entitled the owner to an annual credit of 11% of the modernisation costs on the amount of rent. The differentiation of modernization and maintenance is important at this point. Latter the landlord unable to levy is obliged to allow his tenants the contractual use of the leased property. If the landlord wants to undertake a modernization of its real estate, section 554 para 3 stops him BGB to the affected tenants in writing three months prior to the planned measures whose type, duration and resulting from increases in knowledge.

In the wake of this communication, a special right of termination is the tenants. They are also obliged to pay the increased rental only at the beginning of the third month following receipt of written information on the rent increase ( 559, 559 para. 1, 2 BGB). On the 2nd March 2011, the BGH decided that the admissibility of a rent increase with modernization measures justified not depends, whether the owner of the information obligation of section 554 para 3 BGB is complied. This is ruled according not protect against rent increases, but give the tenant an opportunity to prepare the modernisation work or, where appropriate, to exercise its legally guaranteed special right of termination. Due to modernisation and renovation work to disputes between landlords and tenants, two Contracting Parties is advisable the intervention of a competent legal experts. The Tenancy law specialists of the Nuremberg firm Pach & Pach this assist their clients with help and advice.