Rent Increases in Lower Saxony: Rent Cap & Rent Brake

If landlords in Lower Saxony demand higher rents, they must adhere exactly to the provisions of the German Civil Code (BGB) as well as the special features of the "Lower Saxony Tenant Protection Ordinance". Formal errors or exceeding legal limits regularly lead to the invalidity of the demand for an increase.

Disclaimer: This guide provides general preliminary information and is not legal advice. When enforcing rent increases, we recommend consulting a qualified attorney. Information last verified: March 2026.

1. Adjustment to the Local Comparative Rent (§ 558 BGB)

The most common form of rent increase is the adjustment to the local rent level. Three criteria are decisive here:

• Annual Blocking Period: A rent increase can be demanded at the earliest one year after the last move-in or the last rent increase (excluding modernizations). The increased rent may only become due after 15 months.
• Consent: The tenant must agree to the increase. They are entitled to a period of reflection until the end of the second month after receipt of the request.
• Justification: The landlord must prove that the demanded rent is customary in the locality. This is mostly done by referring to the qualified or simple rent index (Mietspiegel) of the respective municipality in Lower Saxony, an expert opinion, or by naming three comparable apartments.

The Rent Cap in Lower Saxony

By law, the rent may generally be increased by a maximum of 20% within three years (rent cap or "Kappungsgrenze").

In Lower Saxony, however, a reduced rent cap of 15% applies through the Tenant Protection Ordinance for certain cities and municipalities with a tight housing market. These include (as of 2023):

• Hanover
• Braunschweig
• Göttingen
• Osnabrück
• Lüneburg
• Wolfsburg
• as well as various island municipalities (e.g., Borkum, Norderney)

(Note: Landlords must regularly check whether their municipality is currently listed in the Tenant Protection Ordinance, as the list may change).

2. The Rent Brake (for New Rentals)

The rent brake (Mietpreisbremse) applies in the same municipalities in Lower Saxony as the reduced rent cap. When re-letting existing apartments, the new rent may be a maximum of 10% above the local comparative rent.

Important Exceptions:

• Grandfathering: If the direct previous tenant's rent was already higher, this may be maintained (without further increase).
• New Construction: For apartments that were first used and rented after October 1, 2014.
• Comprehensive Modernization: The rent may be set freely after a modernization that corresponds in scope to about one third of the costs for a comparable new building.

Attention: The landlord must provide the tenant with information in text form regarding the existence of an exception unprompted (!) before the contract is concluded.

3. Rent Increase After Modernization (§ 559 BGB)

If the landlord increases the living quality through modernization measures (e.g., energetic renovation such as new windows, heating replacement, insulation), the annual rent can be increased by 8% of the modernization costs spent on the apartment.

Maintenance measures (repairs) may not be passed on to the tenant. In addition, there are absolute maximum limits (cap for modernizations):

• The monthly rent may increase by a maximum of 3 euros per square meter within six years.
• If the initial rent is less than 7 euros per square meter, the limit is 2 euros per square meter.

The landlord must send a modernization announcement three months in advance, informing tenants of their potential right to object on the grounds of hardship.

4. Index-Linked and Stepped Rent (§ 557a, § 557b BGB)

To avoid regular disputes about rent indexes, alternative rental models can be agreed upon in the contract:

• Index-Linked Rent (Indexmiete): The rent is linked to the Consumer Price Index (CPI) of the Federal Statistical Office. If the cost of living rises, the rent may be adjusted proportionally. Increases according to the comparative rent system are excluded during this time. The rent brake only applies here to the starting rent.
• Stepped Rent (Staffelmiete): The lease agreement stipulates from the outset on which dates (at least 1 year apart) the rent will increase by a specific monetary amount (not in percent). Ordinary rent increases are not possible during the stepped term. If the rent brake takes effect in Lower Saxony, each individual step must respect the permissibility limit.

Maintaining Compliance with Landager

Automatic index adjustments, flawless modernization announcements, and checking the regional rent index - Landager supports landlords in Lower Saxony in processing rent increases in compliance with the law and in a legally secure manner to avoid errors and formal defects.

Back to the Lower Saxony Landlord-Tenant Laws Overview.