Minden Real Estate

Business Updates for the Real Estate Industry

Restricted Market Mechanisms

Rent increase offer to compare local rent in accordance with the lock-up period and demand determine the price. This is a principle of free markets. The higher demand for a scarce good, the higher its price. This principle also applies to the rental of real estate. However it is massively limited since the beginning of the last century by the rental amount right. The legislature is here according to the motto: as many restrictions as possible and as much freedom as necessary. The market was expected no solution of the housing problems.

Still don’t. Therefore, you must deal with a comprehensive set of rules landlord, if they want to increase rents at existing tenancies. This set of rules can be found in the civil code in the sections 557 et seq. Now on the one hand, the increase in rent method should be the social requirements of the tenant for affordable housing; on the other hand, it should but also not investment hamper work because the housing needs in Germany only on private construction activity can be met. Whether the Legislators will meet both sides with its solutions I here will not discuss. That yield expectations are for the private investors of vital importance is clear to everyone.

Extent to which the provisions in the civil code have influence on each individual investors yield expectations and whether or not these regulations affect then investment promoting or inhibiting investment, like is anyone even beant – words. The fact is that we currently again entering a period of diminishing rental housing. There is basically for the investment in rental housing. Local comparison rent in so-called freifinanzierten apartments, apartments, which were not supported with public funds, may require the landlord consent to the increase in rent from his tenants. The new, so increased rent must not exceed the local comparison rent. This assumes that the tenant at the time pay less the rent increase, than normally paid in the area in which the apartment is located. The local comparison rent arises from the usual Salaries, which in the past four years agreed equipment, condition and location in the municipality or a comparable community housing comparable style, size, or have been changed. Except, subsidised housing is public. The local comparison rent is an upper limit. The rent may be increased only up to the local comparison rent if the rent at the time at the ER increase takes effect, is unchanged for 15 months. The landlord raised the rent, for example, 01.10.2010, his next rent increase request can go to at the earliest his tenant on the 1st October 2011. Earlier, his increase request goes to his tenant, he violated the embargo and the rent increase is ineffective (BGH RE WuM 93, 388). Your tenant breach of the embargo on the increase request does not need to react. By Thomas Trepnau in the context of his real estate counselors so far appeared: “More money with rent increases” “The secret of the damp wall – reduction in rent” “count on “with your tenant – operating costs, the second rent with”Buy a House and do more from this””what hut and plaice are worth”