Rent index

A rent index gives you an overview of the rents of comparable apartments in the city or municipality. It contains indications that:

• whether a request for a rent increase by the landlord is justified,
• whether the rent is permissible in the case of re-letting if the apartment is located in an area where the provisions of the so-called rent brake apply,
• whether the rent is reasonable in principle (outside the scope of the so-called rent brake).

On the basis of net rents exclusive of heating expenses that have been newly agreed or changed in the last six years, the rent index shows the average rent net (local comparative rent) in euros per square metre per month. This comparative rent can be higher or lower for each individual apartment. The criteria for this are listed in the rent index.

For example, the following can be decisive:

• Apartment size
• Age of construction
• Area
• energy-efficient state of modernization and
• Equipment of the apartment, for example central heating, indoor toilet, parquet floor.

The local comparative rent may differ from the current market rent.

Rent indexes are compiled jointly or by the cities/municipalities by representatives of the interests of landlords and tenants, such as tenants' associations, homeowners' and landowners' associations. A city/municipality should compile a rent index if there is a need for it.

According to the Act on the Reform of the Rent Index Law, municipalities with more than 50,000 inhabitants will be obliged to compile simple rent indexes in the future (entry into force on 1 July 2022).

As a rule, rent indexes are to be adapted to market developments and published every two years.

Rent indexes are available in many larger cities and municipalities.