Rent Increase Rules in North Rhine-Westphalia: Guide for Landlords

Rent increase regulations in Germany are strictly governed by law. In North Rhine-Westphalia, the federal BGB provisions are supplemented by the NRW Tenant Protection Ordinance (MietSchVO NRW), which has applied to 57 municipalities since March 1, 2025. Landlords must understand and comply with these rules to execute lawful rent increases.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in North Rhine-Westphalia for guidance specific to your situation. Information last verified: March 2026.

Types of Rent Increases

Rent Cap (Mietpreisbremse) in NRW

Since March 1, 2025, the new Tenant Protection Ordinance applies in 57 municipalities across NRW (previously 18). In these areas, the initial rent on new leases may not exceed 10% above the local comparative rent (ortsübliche Vergleichsmiete).

Exemptions from the rent cap:

• Apartments first occupied after October 1, 2014 (new construction)
• Apartments after comprehensive modernization (first occupancy post-renovation)
• If the prior rent already exceeded the cap limit
• Properties outside the 57 designated municipalities

The rent cap is valid until December 31, 2029.

Selected municipalities under the rent cap: Cologne, Düsseldorf, Dortmund, Essen, Bonn, Münster, Aachen, Bielefeld, Bochum, Wuppertal, and many more along the Rhine.

Kappungsgrenze (Cap on Existing Tenancy Increases)

For existing tenancies, rent increases toward the comparative rent are subject to a cap:

The rent must also not exceed the local comparative rent.

Rent Increase to Comparative Rent

Requirements (§ 558 BGB)

1. The current rent must have been unchanged for at least 15 months
2. The proposed rent must not exceed the local comparative rent
3. The Kappungsgrenze (15% or 20% depending on the area over 3 years) must not be exceeded

Methods to Substantiate the Comparative Rent

• Rent index (Mietspiegel) of the municipality (a qualified Mietspiegel has stronger binding effect)
• Expert appraisal (Sachverständigengutachten)
• Comparable apartments (at least 3 comparable units)
• Rent database (where available)

Rent Increase Procedure

1. Written rent increase letter with substantiation
2. Tenant's consent period: until end of the second month after receipt (§ 558b BGB)
3. If consent refused: lawsuit for consent at the Amtsgericht (up to 3 months)
4. Rent increase takes effect from the third month after receipt

Modernization Rent Increase

Under § 559 BGB, the landlord may increase rent after modernization by up to 8% per year of the modernization costs incurred. Since 2019, an additional cap applies: rent may not increase by more than €3 per square meter within 6 years. For rents below €7/m², the limit is €2/m².

Notification requirement: Written notice at least 3 months before modernization begins.

Graduated and Index Rent

• Graduated rent (§ 557a BGB): Rent increases at specified dates by specified amounts. The amounts must be stated as fixed sums (not percentages). No other increases are permitted during the graduation period.
• Index rent (§ 557b BGB): Rent is linked to the Consumer Price Index (Verbraucherpreisindex) of the Federal Statistical Office. Increases are permitted only after 12 months.

Advantage of both: No additional substantiation or tenant consent required.

Best Practices for Landlords

• The rent increase letter must contain the correct comparative rent value and the appropriate method of substantiation
• Always check the applicable Kappungsgrenze for your municipality
• When using the Mietspiegel: use the most recent rent index for your city
• Observe deadlines carefully — defective rent increase notices are void
• Send modernization notices at least 3 months in advance with all mandatory information

Landager helps you monitor rent increase deadlines, compare rents with market values, and generate legally compliant rent increase notices.

Back to North Rhine-Westphalia Landlord-Tenant Laws Overview.