Have you inherited a flat and are wondering what rent you can charge? Setting the optimal rent is a balancing act between maximum return and legal security. This guide shows you in 5 clear steps how to find the optimal rent for your inherited flat and avoid pitfalls.
Chat with ImmoGPT for free now.
With access to Google, BORIS, and Deep Research.
The topic briefly and concisely
The local comparative rent, usually depicted in the qualified rent index, is the legal basis for determining rent prices.
An accurate calculation of living space according to the Living Space Ordinance (WoFlV) is crucial, as deviations of over 10% can lead to rent reductions.
In areas with rent control, the rent for new contracts may be at most 10% above the comparative rent, unless exceptions apply, such as new construction or comprehensive modernisation.
Inheriting a property immediately raises a central question: How do I find the optimal rent for my inherited apartment? Setting the price too high leads to vacancies and legal risks, while setting it too low wastes valuable potential. The solution lies in a data-driven analysis of legal frameworks and the local market. With the right strategy, you not only secure a sustainable return but also comply with all legal requirements. We guide you through the process, from the local comparative rent to strategic contract models.
Step 1: Use the local comparative rent as a foundation
The basis for determining almost any rent in Germany is the local comparative rent. According to § 558 Paragraph 2 of the German Civil Code (BGB), it is derived from the rents paid for comparable housing over the last six years. This tool provides an objective benchmark and protects against arbitrary pricing. For landlords, it serves as the first and most important point of reference.
To determine this value, most cities use what is known as the rent index. There are two versions: the simple and the qualified rent index. A simple rent index offers an initial orientation but is considered just one piece of evidence among many in court. The qualified rent index, on the other hand, is created based on scientific principles and carries high legal validity. From early 2024, cities with over 50,000 inhabitants are required to create such a qualified rent index. Finding and correctly applying the rent index valid for your city is the next crucial step. Learn more about how you can access your city's rent index online.
Step 2: Accurately calculate the rental price using the rent index
A rental index is not a single value but a range that depends on factors such as the year of construction, location, size, and features. Your task is to accurately place the inherited property within this matrix. Typical criteria that influence the value include the presence of a balcony, a lift, or the quality of the sanitary facilities. Each feature can lead to additions or deductions from the base value per square metre.
If there is no rental index for your municipality, you must justify the comparable rent differently. The law (§ 558a BGB) allows three alternatives here:
Identification of three comparable apartments: You must list at least three specifically named apartments that are comparable to your property in terms of features, size, and location.
Expert report: A publicly appointed and sworn expert prepares a report determining the local customary rent.
Rental databases: These are maintained by municipalities or interest groups, but are still very rare in practice.
Precise classification is crucial because even small errors can distort the calculation by 5-10%. A data-driven analysis, such as that offered by the Auctoa rental yield calculator, can eliminate uncertainties here. This gives you a solid foundation before you measure the living space accurately.
Step 3: Accurately determine the living area according to WoFlV
The rent is specified per square metre, so a correct calculation of the living area is essential. A deviation of more than 10% in favour of the landlord may entitle the tenant to a rent reduction. The binding method is usually the Living Space Ordinance (WoFlV). It defines exactly which areas are counted and how.
The living space generally includes all rooms exclusively belonging to the apartment. However, there are important detailed regulations:
Sloping Ceilings: Areas with a room height between one and two metres are only counted at 50%, and areas under one metre not at all.
Balconies, Loggias and Terraces: These are usually counted at only 25% of their base area, in exceptional cases with particularly high living value up to 50%.
Unheated Conservatories: Counted at half.
Accessory Rooms: Cellars, laundry rooms or garages do not count as living space.
An incorrect specification of the living area is one of the most common points of dispute in tenancy law. To be on the safe side, have the area re-measured by a professional if in doubt. With the correct square metre figure, you can now check the statutory upper limits.
Step 4: Observe rent control measures and cap limits
In many German cities and municipalities with a tight housing market, the rental price control applies. For a new tenancy, the rent here may not exceed the local comparable rent by more than 10%. Whether your inherited property is located in such an area is determined by the respective federal states through ordinances. However, there are exceptions that allow for a higher rent:
New build: Flats that were first used after 1 October 2014.
Comprehensive modernisation: When the investment reaches about a third of the value of a comparable new build.
Higher previous rent: If the rent paid by the previous tenant was already above the limit, you may continue to charge it.
For existing tenancies, the capping limit is also relevant. It states that the rent may not rise by more than 20% within three years, often only by 15% in areas with a tight housing market. Knowing these regulations is essential to fully reap the benefits of renting an inherited flat without running legal risks. Next, we will consider types of contracts that could offer you greater flexibility.
Step 5: Use strategic leases for long-term planning
In addition to the standard rental agreement, there are two alternatives that make rent increases more predictable and deviate from the rigid rules of local comparative rents: graduated rent and index-linked rent. These options must be explicitly agreed upon in the rental contract. The decision between Selling or Renting can also depend on these strategic options.
With graduated rent (§ 557a BGB), you specify at the outset of the contract when the rent will increase by a set amount. There must be at least a year between increases. The advantage lies in the high level of predictability for both parties. Further rent increases, such as after renovations, are excluded for the duration of the graduated period.
The index-linked rent (§ 557b BGB) links rent development to the official consumer price index of the Federal Statistical Office. If the general cost of living increases, you can adjust the rent accordingly once a year. This model offers good protection against inflation, which has made it particularly attractive to many landlords in recent years. An increase in line with the local comparative rent is excluded here. By choosing the right contract model, you complete your strategy for optimal renting.
Conclusion: With data and strategy to the optimal rent
Finding the optimal rent for your inherited apartment is not a matter of intuition, but the result of a structured, data-driven process. By using the local comparative rent as a basis, correctly applying the rent index, calculating the living space accurately, and examining special regulations such as the rent control, you create a legally secure foundation. Strategic rental agreements also offer long-term planning security.
This 5-step process minimizes your risk and maximizes your return. The key to success lies in careful analysis at the start. If you are uncertain, a neutral, AI-supported assessment from Auctoa or a conversation with our ImmoGPT can quickly and precisely provide you with the necessary security. This way, an inherited property becomes a sustainably profitable investment.
optimale-miete-fur-meine-geerbte-wohnung-finden
Additional useful links
Statistisches Bundesamt offers tables on rent prices and household net income in Germany.
The Bundesbank provides an indicator system for the residential property market in Germany.
The Bundesfinanzministerium provides information on inheritance and gift tax.
KfW Research analyses the trends in housing rents in Germany.
On Gesetze im Internet you can find the full text of the Operating Costs Ordinance (BetrKV).
The Bundesfinanzministerium offers information on income from renting and leasing according to § 21 EStG.
A press release from the Statistisches Bundesamt presents the results of the 2022 housing statistics.
FAQ
What can I do if there is no rent index for my community?
If there is no rent index available, you can demonstrate the local comparative rent by naming at least three comparable apartments, an expert report, or, if available, a rent database.
How often am I allowed to increase the rent?
A rent increase up to the local comparative rent is permissible no sooner than one year after the last increase, and the rent must have remained unchanged for 15 months at the time of the increase. Furthermore, the rent must not rise by more than 20% over three years (in some areas by 15%) (capping limit). For graduated or index-linked rents, the contractually agreed conditions apply.
Does the balcony count towards the living area?
Yes, but only partially. According to the Living Space Ordinance (WoFlV), the floor area of balconies, loggias, and terraces is generally counted as 25% towards the total living area. Only in cases of exceptionally high quality can a proportion of up to 50% be considered.
What is the difference between maintenance and modernization?
Maintenance involves the removal of defects and restores the original condition (e.g. repairing a broken heating system). Modernisation, however, sustainably improves the living value (e.g. installing a more energy-efficient heating system or adding a balcony). Only the costs for modernisations can be passed on to the tenants.
Is an index rent or graduated rent more worthwhile?
That depends on market expectations. A graduated rent offers high predictability with fixed increases. An index rent protects against inflation and can be advantageous in times of high inflation rates, but it offers less potential for increase when inflation stagnates. The choice depends on your individual risk tolerance and strategy.
What responsibilities do I have as a landlord of an inherited apartment?
Your main duties include maintaining the apartment, ensuring traffic safety (e.g., keeping pathways clear in winter), ensuring proper heating, and preparing an accurate operating cost statement. Learn about all <a href="/blog/geerbtes-haus-vermieten-welche-pflichten-habe-ich">responsibilities as a landlord</a>.
