Rent Index; Data Submission

Rent indices are compiled by cities and municipalities, as well as by representatives of landlords and tenants—such as tenant associations and property owners’ associations. A city or municipality should compile a rent index when there is a need to do so.

For municipalities with more than 50,000 residents, the requirement to compile rent indices has been in effect since July 1, 2022.

Rent indices should generally be adjusted to reflect market trends every two years.

The law and the Rent Index Regulation distinguish between (simple) rent indices and qualified rent indices.

A qualified rent index is prepared in accordance with recognized scientific principles and is recognized by the municipality or by representatives of landlords and tenants. It must be adjusted to reflect market developments no later than two years after its preparation and must be redrawn after four years.

For the purpose of compiling a qualified rent index and adjusting it based on a sample survey, owners and tenants of residential housing are required, upon request, to provide the competent authority with information regarding whether the housing is rented and the address of the dwelling.

Landlords and tenants of residential property are required to provide the competent authority, upon request, with information regarding the following details:

• Start of the tenancy,
• the date and type of the last rent increase, with the exception of increases pursuant to Section 560 of the Civil Code,
• Rent levels established by law or in connection with a subsidy commitment,
• type of rent and rent amount,
• Type, size, amenities, condition, and location of the rented residential property, including its energy-efficiency features and condition (Section 558(2), first sentence, of the German Civil Code),
• Existence of special circumstances that have led to a reduction in the rent, in particular a family relationship between the landlord and the tenant, an existing employment relationship between the landlord and the tenant, or the tenant’s assumption of special obligations,
• Address of the dwelling,
• the names and addresses of the tenants and landlord.

The obligation to provide information also applies to entities commissioned by the competent authority to prepare or update a qualified rent index.

You will be asked to submit data for the preparation of the rent index (usually in the form of a questionnaire).

The competent authority compiles a qualified rent index based on the data submitted by the party required to provide information and data from government agencies (e.g., the registration office, the federal and state statistical offices).