Kappungsgrenze
Rent-Increase Cap. The limit on rent increases within existing tenancies: 20% per three years nationally, reduced to 15% in state-designated tight markets: and never above the local comparative rent.
It binds increases toward the Mietspiegel level (§ 558 BGB); modernisation surcharges (8% of modernisation cost p.a., with hard caps) run on a separate track.
For under-rented acquisitions, the Kappungsgrenze defines your reversion speed: a flat 30% under market in a 15% city needs two three-year cycles to close the gap: model it into returns.
Frequently asked questions
How much can a German landlord raise the rent?
Within an existing tenancy, by no more than 20% over three years, reduced to 15% in state-designated tight markets, and never above the local comparative rent.
What is the difference between the Kappungsgrenze and the Mietpreisbremse?
The Kappungsgrenze limits increases within an ongoing tenancy. The Mietpreisbremse limits the rent that may be agreed when a new lease is signed. Both can apply to the same apartment at different moments.
Does the cap apply after a modernisation?
Modernisation cost allocation follows separate rules and its own limits, and is not counted inside the ordinary Kappungsgrenze. The two mechanisms sit alongside each other.