Adjusting the contracts will cost tenants millions this year.
Bad news for many renters. Due to the rapidly rising inflation, many households are threatening a new rent increase this year. Because housing costs often rise if the average price level has risen by 5 percent since the last adjustment.
Additional costs of 450 euros per year
That was already the case twice in 2022 and the next price increase is imminent before the end of the year. This includes people who live in old buildings with rent category. That’s about 250,000 contracts signed before February 1994. (Not to be confused with the benchmark rents, which are adjusted for inflation every two years.) According to the AK, three increases mean an additional cost of 450 euros per year for an average rental household (about 70 square meters).
But all those tenants of new construction, homes, etc. who have an index clause in their contract, also have higher housing costs. For them, the additional costs due to more expensive rents are even higher. Operating costs also increase accordingly.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
