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Modernization: Allocate costs for rental properties
Modernization: Allocate costs for rental properties

Video: Modernization: Allocate costs for rental properties

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Video: How I Renovate My Rental Properties | BEFORE & AFTER 2023, February
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If you modernize your property, you can pass the costs on to your tenants if you meet all the requirements. This rent increase is then eleven percent of the cost of the apartment each year.

Construction measures

Landlords can allocate such costs to the tenant that sustainably increase the value in use of the property, for example the installation of a bathroom, central heating or a new balcony. This also includes measures that permanently improve general living conditions (such as the installation of a lift), as well as innovations that bring about sustainable energy savings. This applies above all to the installation of new windows or the installation of thermal insulation.

Tolerance obligation

The rent increase does not depend on whether the tenant has agreed to the structural change. As a rule, he is obliged to tolerate the modernization. The measure should be announced to him three months before it starts. However, if the landlord has not properly explained them, for example, has not communicated the expected higher rent, the notice period is extended to six months (Federal Court of Justice, judgment of September 19, 2007, VIII ZR 6/07).

rent increase

The rent increase is only permitted after completion of the work. The adjustment must be clearly explained on the basis of the costs incurred so that it is understandable for the tenant. Funding for modernization measures must of course be deducted, decided the Federal Court of Justice (judgment of January 19, 2011, VIII ZR 87/10).

In this post you read:

  • What do the neighbors say?
  • When must insulation measures be tolerated?
  • Allocate costs for rental properties

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