Rent increases and rent overcharges in Essen: What you should know

Types of rent increases and rent caps

The topic of rent increases affects both tenants and landlords of properties in Essen. Rent increases can be categorised into 3 groups:

• Rent increases up to the standard local comparative rent

• Rent increases following modernisation measures

• Rent increase due to increased operating costs

Increasing the rent up to the local comparative rent is the most common form of rent increase and can be combined with an increase following modernisation measures. The local comparative rent represents the average rent for flats in a municipality. It is worth taking a look at the current prices. Currently, the average rent for a 30m2 flat in Essen is €11.03 and for a 60m2 flat €8.16 per square metre. In 2022, the rent for a 30m2 flat was €9.62 and for a 60m2 flat €7.63 per square metre. Owners are entitled to adjust the rent for their property to the local level with a minimum interval of 15 months

Please note, however, that there is a cap on rent increases, which stipulates that the rent may not increase by more than 20% within 3 years. If owners increase the rent of an existing property up to the local comparative rent and later carry out modernisation work on the property, the rent may be increased again.

For example, after you have replaced your old oil heating system with a heat pump or replaced the windows, you may increase the rent on your property. In this case, landlords may increase the annual rent by up to 8% of the modernisation costs. However, the costs of maintaining the property cannot be passed on to the tenant and must be deducted. In addition, the rents of modernised flats may not increase by more than 3 euros per square metre within 6 years. The aim of this cap, which was introduced in 2019, is to protect tenants from large rent increases, which were not uncommon in the past.

Landlords can also increase the rent of their property in Essen due to increased operating costs such as electricity, water and heating. The prerequisite is that the tenant pays an inclusive rent or gross cold rent, which includes the cold rent and the operating costs. Before you initiate a rent increase, let our experts advise you on this topic. Real estate agent Engel & Völkers Essen will inform you in detail about your options for a rent increase and the rent caps that you should take into account. Talk to us!

When is there a rent overcharge or usurious rent?

In the case of a rent overcharge or usurious rent, a property is offered for sale at a greatly inflated price. A rent overcharge occurs when the rent exceeds the 20% limit compared to the local comparative rent and there is a limited supply of comparable properties in the region. In this case, it is assumed that the landlord is deliberately exploiting the tenant's housing shortage, who has no alternatives.

Rent profiteering occurs when the rent of a newly let property is more than 50% above the local comparative rent and the tenant's predicament, inexperience or lack of judgement is exploited. In contrast to excessive rent, which is only an administrative offence, usurious rent is a criminal offence. To avoid such scenarios, you can rely on real estate agent Engel & Völkers Essen to help you find a suitable rental property or let your home professionally. Thanks to our many years of experience and our comprehensive market knowledge, we will bring together the right tenant and landlord and support you from the first meeting through to setting a fair price and signing the tenancy agreement.

Are you looking to let a property in Essen and need more information about rent increases and rent caps? Or are you a tenant of a flat and would like to find out more about the topic in order to protect yourself against excessive rent demands? Real estate agent Engel & Völkers Essen will be happy to answer all your questions in a free and non-binding consultation. Make an appointment now with our experts on site using our contact form or call us on +49 201 43 61 61. We look forward to your enquiry!