Schleswig-Holstein Rent Increases: Caps, Rules, and Index Leases

Schleswig-Holstein was the first German state to abolish the rent brake (Mietpreisbremse) in November 2019 and has rejected its reintroduction to date. Therefore, landlords can generally set the rent freely according to the market for new leases. However, for existing tenancies, stricter limits have applied in 62 municipalities since May 2024 due to the new rent cap ordinance (Kappungsgrenzenverordnung or KappVO SH).

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a qualified attorney for advice specific to your situation. Information last verified: March 2026.

No Rent Brake (Mietpreisbremse) in Schleswig-Holstein

Unlike most other German states, there is no rent brake in Schleswig-Holstein (BGB § 556d). The ordinance to curb rent increases in tight housing markets was prematurely repealed on November 30, 2019. This means:

• There is no statutory upper limit based on the local comparative rent (ortsübliche Vergleichsmiete) for new residential leases.
• Landlords do not have to adhere to the "10 percent above the comparative rent" rule applied elsewhere in Germany.
• A reintroduction was once again rejected by the state government in May 2025.

Rent Cap (Kappungsgrenze) for Existing Leases

For ongoing tenancies, the following rules apply when increasing the rent to the local comparative rent (BGB § 558):

Affected Municipalities (Selection)

The 62 municipalities subject to the lowered rent cap include:

• Independent Cities: Kiel, Lübeck, Flensburg, Neumünster
• Tourism Regions: Numerous municipalities on the North and Baltic Sea coasts (e.g., Sylt, Timmendorfer Strand, Laboe)
• Hamburg Commuter Belt: Municipalities in southern Schleswig-Holstein with commuter links to Hamburg

The complete list is detailed in the annex to the KappVO SH. The ordinance is valid from May 1, 2024, until April 30, 2029.

Prerequisites for a Rent Increase

A rent increase according to BGB § 558 is only permissible under the following conditions:

1. Waiting Period: At least 12 months must have passed since the start of the tenancy or the last rent increase (BGB § 558 para. 1).
2. Justification: The increase must be justified using one of the following means:
   • Qualified or simple rent index (Mietspiegel, e.g., the Kiel Rent Index)
   • An expert opinion from a sworn appraiser
   • At least three comparable apartments
3. Written Form: The request for a rent increase must be directed to the tenant in writing and include the justification.
4. Consent Period: The tenant has until the end of the second month after receiving the request to agree to the increase.

Step Rent (Staffelmiete) and Index Rent (Indexmiete)

As an alternative to standard rent increases under BGB § 558, landlords can agree on a step rent (BGB § 557a) or an index rent (BGB § 557b) in the lease contract:

• Step Rent: The rent increase is agreed upon in advance in fixed monetary amounts for specific periods. There must be at least 12 months between the steps.
• Index Rent: The rent is coupled to the Consumer Price Index (CPI) determined by the Federal Statistical Office. Adjustments are permissible at the earliest after 12 months.

With step and index rents, any additional increase under BGB § 558 is excluded, unless it involves a modernization surcharge.

Modernization Surcharge (BGB § 559)

Following a modernization (e.g., energetic improvements, new heating system), the landlord may allocate an annual 8% of the modernization costs incurred for the apartment to the rent. The following rules apply:

• The rent may increase by a maximum of €3 per square meter within 6 years (for initial rents under €7/m²: maximum €2/m²).
• The tenant must be informed in writing 3 months prior to the start of the modernization measures.

Tips for Landlords

• Check the KappVO SH: Determine whether your property is located in one of the 62 affected municipalities.
• Use the Rent Index: Where available, always use the local rent index (Mietspiegel) as the safest means of justification.
• Observe Deadlines: Ensure you comply with the 12-month waiting period and the tenant's two-month consent period.
• Consider Index Rent: In an environment without a rent brake, index rents can provide a predictable alternative that hedges against inflation.

How Landager Can Help

Landager automatically calculates the maximum permissible rent increase based on the latest CPI data or the KappVO SH, tracks waiting periods, and ensures you draft legally sound rent increase requests. Never miss an opportunity to optimize your yield in Schleswig-Holstein.

Back to the Schleswig-Holstein Landlord-Tenant Laws Overview.