Living in old buildings could be up to 17.5 percent more expensive this year, as rents are legally rising due to high inflation. “All rent increases this year will burden those affected with 400 million euros,” calculates AK house law expert Lukas Tockner.
For tenants in the old building, who occupy an average of 72 square meters, housing became considerably more expensive in 2022 due to some adjustments.
The next increase will come in April 2023
The law regulates exactly how much can be demanded. The benchmarks increased by 5.85 percent in April 2022. On average, the adjustment led to extra monthly costs of around 28 euros or just under 340 euros per year. The next increase will come in April 2023 and will be based on annual inflation for 2022.
government does not intervene
Rents of the cheaper category have already increased twice. This is possible because a threshold of five percent in consumer prices is applied for the increases. In April, that was plus 5.47 percent, as 2021 had “catched up”. An additional 5.46 percent more could be requested by June 2022. This resulted in extra monthly costs of approximately 25 euros (300 euros per year). They will continue to rise in November unless the government intervenes. According to the tenants’ association, that would be an increase of 17.5%.
The cost increase also affects many independent (new-build) tenants who have adjustments in their contracts. According to the AK, a five percent increase in main rent in this segment amounts to approximately 26 euros per month and 310 euros per year.
Source: Krone
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