Thuringia Rent Increase Rules: Caps, Rent Brake and Notice Requirements

Rent increases in ongoing residential tenancies in Germany are strictly controlled by federal law, with Thuringia imposing additional restrictions specifically in Erfurt and Jena where the rental market is considered especially tight.

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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. This extended protection was formally renewed and applies through 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.

Extended until 31 December 2027 under the Thuringian ordinance.

Exemptions

: To invoke an exemption, landlords must disclose it to the tenant in writing before the lease is signed (§ 556g BGB). Failure to do so means the above-threshold rent is forfeit until two years after a belated disclosure is made.

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 individual 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 total increase from modernisation cannot exceed €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.
• 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).

• Once agreed, rent adjustments follow the index change — no separate notice procedure per increase is required.
• In Erfurt/Jena: the initial rent is still subject to the rent brake. Index-linked future increases, however, are not constrained by the Kappungsgrenze.
• The lease must be for an indefinite duration (or at least 10 years) for an index clause to be valid.

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.

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