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=U5= Sec556 -- Section 556 Agreements on operating costs
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=S=> BGB 556. 4 An agreement deviating to the disadvantage of the lessee from subsections ( 1 ) and ( 2 ) sentence 2 or subsection ( 3 ) is ineffective .
=U5= Sec556a -- Section 556a Accounting criterion for operating costs
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=S=> BGB 556a. 1 If the parties to the contract have not agreed otherwise and subject to other provisions , operating costs are to be apportioned in proportion to the floor space . Operating costs depending on recorded consumption or causation by the lessees are to be apportioned according to criteria that take into account the differing consumption or causation .
=S=> BGB 556a. 2 If the parties to the contract have agreed otherwise , the lessor may by declaration in text form specify that the operating costs may in future , contrary to the agreement reached , be apportioned in whole or in part according to a criterion that takes into account the recorded differing consumption or the recorded differing causation . The declaration may only be made prior to commencement of an accounting period . If the costs have previously been included in the rent , the rent is to be reduced accordingly .
=S=> BGB 556a. 3 An agreement deviating to the disadvantage of the lessee from subsection ( 2 ) is ineffective .
=U5= Sec556b -- Section 556b Due date of rent , right to set-off and right of retention
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=S=> BGB 556b. 1 Rent is to be paid at the commencement of the periods of time according to which it is computed but at the latest by the third working day of each such period .
=S=> BGB 556b. 2 The lessee may , notwithstanding a contract provision to the contrary , set off a claim based on sections 536a and 539 or a claim for unjust enrichment for excess payment of rent against a claim for rent , or may exercise a right of retention in relation to such a claim if he has notified the lessor in text form of his intention to do so at least one month prior to the due date of the rent . A deviating agreement to the disadvantage of the lessee is ineffective . Subchapter 2 Provisions on the rent amount
=U5= Sec557 -- Section 557 Increases in rent by agreement or law
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=S=> BGB 557. 1 During the lease , the parties may agree an increase in rent .
=S=> BGB 557. 2 Future changes in the amount of rent may be agreed by the parties to the contract as stepped rent under section 557a or as indexed rent under section 557b.
=S=> BGB 557. 3 Apart from this , the lessor may only demand rent increases under the provisions of sections 558 to 560 to the extent that an increase is not excluded by agreement or the exclusion emerges from the circumstances .
=S=> BGB 557. 4 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec557a -- Section 557a Stepped rent
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=S=> BGB 557a. 1 The rent may be agreed in writing in varying amounts for specific periods of time ; in the agreement , each rent amount or each increase must be indicated as a monetary amount ( stepped rent ) .
=S=> BGB 557a. 2 The rent must remain unchanged on each occasion for at least one year . During the period of stepped rent , an increase under sections 558 to 559b is excluded .
=S=> BGB 557a. 3 The right of the lessee to give notice may be excluded for a maximum of four years after the stepped rent agreement is entered into . Notice of termination is allowed to the end of this period at the earliest .
=S=> BGB 557a. 4 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec557b -- Section 557b Indexed rent
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=S=> BGB 557b. 1 The parties to the contract may agree in writing that the rent is to be determined by means of the price index for the cost of living of all private households in Germany computed by the Federal Statistics Office [ Statistisches Bundesamt ] ( indexed rent ) .
=S=> BGB 557b. 2 While an indexed rent is applicable , the rent , except for increases under sections 559 to 560 , must remain unchanged for at least one year at a time . An increase under section 559 may only be demanded to the extent that the lessor has carried out structural measures due to circumstances for which he is not responsible . An increase under section 558 is excluded .
=S=> BGB 557b. 3 A change in rent under subsection ( 1 ) must be made by declaration in text form . In this declaration , the change in the price index that has occurred as well as the rent in the individual case or the increase must be indicated as a monetary amount . The revised rent must be paid at the commencement of the second month beginning after receipt of the declaration .
=S=> BGB 557b. 4 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec558 -- Section 558 Increase in rent up to the reference rent customary in the locality
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=S=> BGB 558. 1 The lessor may demand approval of an increase in rent up to the reference rent customary in the locality if , at the time when the increase is to occur , the rent has remained unchanged for fifteen months . The demand for a rent increase may be made at the earliest one year after the most recent rent increase . Increases under sections 559 to 560 are not taken into account .
=S=> BGB 558. 2 The reference rent customary in the locality is formed from the usual payments that have been agreed or , with the exception of increases under section 560 , that have been changed in the last four years in the municipality or in a comparable municipality for residential space that is comparable in type , size , furnishings , quality and location . Exempted from this is residential space where the amount of rent has been stipulated by law or in connection with a promise of sponsorship .
=S=> BGB 558. 3 In the case of increases under subsection ( 1 ) , the rent may not be raised within three years , except for increases under sections 559 to 560 , by more than twenty per cent ( capping limit ) .
=S=> BGB 558. 4 The capping limit does not apply if a duty of the lessee to make compensation payments under the provisions on the reduction of improper subsidisation in housing has lapsed because the public-sector connection has ceased , and to the extent that the increase does not exceed the amount of the most recently payable compensation payment . The lessor may at the earliest four months prior to the cessation of the public-sector connection demand that the lessee inform him within one month of the duty to pay compensation and of its amount . Sentence 1 applies with the necessary modifications if the duty of the lessee to make a compensation payment under sections 34 to 37 of the Residential Housing Subsidisation Act [ Wohnraumförderungsgesetz ] and provisions of Land law issued thereunder has lapsed due to the repeal of rent control .
=S=> BGB 558. 5 From the annual amount that would result in the case of an increase to the reference rent customary in the locality , third-party funds within the meaning of section 559a are to be deducted , in the case of section 559a ( 1 ) in the amount of eleven per cent of the subsidy .
=S=> BGB 558. 6 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec558a -- Section 558a Form and justification of the rent increase
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=S=> BGB 558a. 1 A rent increase demand under section 558 must be declared and justified to the lessee in text form .
=S=> BGB 558a. 2 In justification , reference may in particular be made to a list of representative rents ( sections 558c and 558d ) , information from a rent database ( section 558e ) , an opinion , provided with supporting grounds , by an officially appointed and sworn expert , examples of equivalent payment for individual comparable dwellings ; in this case , it is sufficient to name three dwellings .
=S=> BGB 558a. 3 If an expert list of representative rents ( section 558d ( 1 ) ) , where the provisions of section 558d ( 2 ) have been complied with , contains information for the dwelling , then the lessor must in his demand for a rent increase communicate such information even if he wishes to support his rent increase by another means of justification under subsection ( 2 ) .
=S=> BGB 558a. 4 When making reference to a list of representative rents containing spans , it is sufficient if the rent demanded lies within the span . If , at the time when the lessor makes his declaration , no list of representative rents in which sections 558c ( 3 ) or 558d ( 2 ) have been complied with is available , then another list of representative rents , in particular an outdated one , or a list of representative rents from a comparable municipality may be used .
=S=> BGB 558a. 5 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec558b -- Section 558b Approval of a rent increase
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=S=> BGB 558b. 1 To the extent that the lessee approves the rent increase , he owes the increased rent from the beginning of the third calendar month after receipt of the demand for an increase .
=S=> BGB 558b. 2 To the extent that the lessee does not approve of the rent increase by the end of the second calendar month after receipt of the demand , the lessor may sue for grant of approval . An action must be brought within three additional months .
=S=> BGB 558b. 3 If the action is preceded by a demand for increase that does not comply with the requirements of section 558a , then the lessor may correct this in the legal dispute or remedy the defects in the demand for increase . In this case too , the lessee is entitled to the approval period under subsection ( 2 ) sentence 1.
=S=> BGB 558b. 4 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec558c -- Section 558c List of representative rents
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=S=> BGB 558c. 1 A list of representative rents is a table showing the reference rent customary in the locality , if the table has been jointly produced or recognised by the municipality or by representatives of lessors and lessees .
=S=> BGB 558c. 2 Lists of representative rents may be produced for the area of one municipality or of more than one municipality or for parts of municipalities .
=S=> BGB 558c. 3 Lists of representative rents should be adjusted for market trends at intervals of two years .
=S=> BGB 558c. 4 Municipalities should produce lists of representative rents if there is a need for this and if this is possible at a reasonable cost . The lists of representative rents and the changes to them should be published .
=S=> BGB 558c. 5 The Federal Government is authorised , by statutory order issued with the approval of the Federal Council [ Bundesrat ] , to issue provisions on the detailed contents and on the procedure for drawing up and adjusting lists of representative rents .
=U5= Sec558d -- Section 558d Expert list of representative rents
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=S=> BGB 558d. 1 An expert list of representative rents is a list of representative rents produced according to recognised scientific principles and recognised by the municipality or by representatives of lessors and lessees .
=S=> BGB 558d. 2 The expert list of representative rents is to be adjusted for market trends at intervals of two years . When this is done , a spot check or the trend of the price index for living standards of all private households in Germany computed by the Federal Statistical Office [ Statistisches Bundesamt ] may be used as a basis . After four years a new expert list of representative rents must be produced .
=S=> BGB 558d. 3 If the provisions of subsection ( 2 ) are complied with , then it is assumed that the payment cited in the expert list of representative rents reflects the reference rent customary in the locality .
=U5= Sec558e -- Section 558e Rent database
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=S=> BGB 558e A rent database is a collection of rents maintained on an ongoing basis to determine the reference rent customary in the locality ; this database is jointly maintained or recognised by the municipality or by representatives of lessors and lessees , and information is issued on the basis of this database that makes it possible to come to a conclusion as to the reference rent customary in the locality with regard to individual dwellings .
=U5= Sec559 -- Section 559 Rent increase in case of modernisation
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=S=> BGB 559. 1 If the lessor has carried out construction measures that increase the utility value of the leased property with lasting effect , improve general living conditions permanently or lead to savings of energy or water with lasting effect ( modernisation ) , or if he has carried out other construction measures due to circumstances for which he is not responsible , then he may increase the annual rent by 11 per cent of the costs spent on the dwelling .
=S=> BGB 559. 2 If the construction measures have been carried out for more than one dwelling , then the costs must be apportioned reasonably among the individual dwellings .
=S=> BGB 559. 3 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec559a -- Section 559a Crediting of third-party funds
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=S=> BGB 559a. 1 Costs assumed by the lessee or assumed by a third party for the lessee or covered by subsidies from public authorities do not form part of costs spent within the meaning of section 559.
=S=> BGB 559a. 2 If the costs of the construction measures are covered in full or in part by low-interest or interest-free loans from public authorities , then the amount of the increase under section 559 is reduced by the annual amount of the interest reduction . The latter is calculated from the difference between the reduced rate of interest and the going market interest rate for the original amount of the loan . The going market interest rate for first-priority mortgages at the date when the measures ended is conclusive . If subsidies or loans are used to cover ongoing outlays , then the amount of the increase is reduced by the annual amount of the subsidy or loan .
=S=> BGB 559a. 3 A lessee loan , an advance rent payment or a service performed for the lessee by a third party for the construction measures are equivalent to a loan from public authorities . Funds from the financial institutions of the Federal Government or of a Land are deemed to be funds from public authorities .
=S=> BGB 559a. 4 If it cannot be ascertained in what amount subsidies or loans have been granted for the individual dwellings , then they must be apportioned according to the ratio of costs spent on individual dwellings .
=S=> BGB 559a. 5 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec559b -- Section 559b Assertion of an increase ; effect of declaration of increase
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=S=> BGB 559b. 1 The rent increase under section 559 must be declared to the lessee in text form . The declaration is only effective if in it the increase is calculated on the basis of the costs incurred and explained in accordance with the requirements of sections 559 and 559a.
=S=> BGB 559b. 2 The lessee owes the increased rent from the beginning of the third month after receipt of the declaration . The period is extended by six months if the lessor has failed to notify the lessee of the expected increase in rent as required by section 554 ( 3 ) sentence 1 or if the de facto rent increase is more than ten per cent greater than the increase notified .
=S=> BGB 559b. 3 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec560 -- Section 560 Changes in operating costs
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=S=> BGB 560. 5 In the case of changes in operating costs , the principle of economic efficiency must be observed .
=S=> BGB 560. 6 A deviating agreement to the disadvantage of the lessee is ineffective .
=U5= Sec561 -- Section 561 Special right of termination of the lessee following a rent increase
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=S=> BGB 561. 1 If the lessor asserts a right to a rent increase under sections 558 or 559 , then , until the end of the second month after receipt of the declaration of the lessor , the lessee may terminate the lease for cause by special notice to the end of the second month thereafter . If the lessee gives notice of termination , then the rent increase does not take effect .
=S=> BGB 561. 2 A deviating agreement to the disadvantage of the lessee is ineffective .
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