Thuringia Rent Increase Rules: Caps, Brake & Notice

Rent increases in ongoing residential tenancies in Germany are primarily governed by the German Civil Code (Bürgerliches Gesetzbuch – BGB), which originally came into force on 1 January 1900, with Thuringia imposing additional restrictions specifically in Erfurt and Jena where the rental market is considered especially tight.

Legal DisclaimerThis guide provides general legal information. Lease laws can change. Always consult a licensed notary or lawyer in this region.

1. Rent Increase Cap (Kappungsgrenze) for Existing Tenancies

The standard tool for raising an ongoing residential rent in Germany is the Vergleichsmieterhöhung — raising the rent to align with the local reference rent (ortsübliche Vergleichsmiete) as determined by a local rent index (Mietspiegel) or comparable properties.

Standard Cap (Most of Thuringia)

Across most of Thuringia where no special ordinance applies, rent may be increased by at most 20% within any consecutive three-year period, capped at the local reference rent.

Reduced Cap — Erfurt and Jena (until 30 September 2029)

In Erfurt and Jena, Thuringia's state ordinance reduces the cap to 15% within three years (ThürKappGrVO, extended until 30 September 2029).

Procedural Requirements

2. Rent Brake (Mietpreisbremse) — Erfurt and Jena Only

The rent brake applies when re-letting an existing apartment (not new construction). In Erfurt and Jena it limits the initial rent for a new tenancy to a maximum of 10% above the local reference rent (ThürMietBegrVO, extended until 31 December 2027).

Exemptions

Note: To invoke an exemption (e.g., new construction, prior high rent, or major modernization), landlords must disclose it to the tenant in writing before the tenant enters into the lease agreement (§ 556g Abs. 1a BGB).

3. Rent Increases After Modernisation

After completing qualifying improvement works, landlords may charge a modernisation surcharge under § 559 BGB. The rules apply uniformly across Germany including Thuringia:

• Up to 8% of the costs attributable to the unit may be added to the annual base rent.
• Public subsidies and costs that were due anyway for routine maintenance (so-called Sowieso-Kosten) must be deducted from the eligible investment.
• Hard cap: The increase is capped at €3.00/m² within 6 years; for properties where the pre-modernisation rent is below €7.00/m², the cap is reduced to €2.00/m² (§ 559 Abs. 3a BGB).
• Tenants must receive written notice at least 3 months before works begin.

4. Index Leases (Indexmiete)

An increasingly popular method in Germany is the index lease (§ 557b BGB), which ties the rent directly to the official Consumer Price Index (Verbraucherpreisindex, VPI) published by Destatis (Federal Statistical Office).

• Duration: There is no minimum lease duration or requirement for an indefinite term for residential index leases. They are valid for any lease term.
• Notice Requirement: Increases are not automatic. The landlord must provide a declaration in text form for each increase, specifying the change in the Consumer Price Index (VPI) and the new rent amount (§ 557b Abs. 3 BGB).
• Effective Date: The adjusted rent is payable from the beginning of the second month following the month of the declaration (§ 557b Abs. 3 Satz 3 BGB).
• In Erfurt/Jena: the initial rent is still subject to the rent brake. Index-linked future increases, however, are not constrained by the Kappungsgrenze.

5. Graduated Rent (Staffelmiete)

Graduated rent agreements (§ 557a BGB) set specific future rent amounts in absolute Euro terms at the time of signing. Each step in Erfurt/Jena must also satisfy the rent brake at the point it falls due.

6. Disputes and Jurisdiction

In the event of a dispute regarding rent increases or the rent brake, the local District Court (Amtsgericht) where the property is located has exclusive jurisdiction (§ 23 Nr. 2a GVG; § 29a ZPO). This applies regardless of the amount in dispute for residential tenancies.

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