Index Rent

Index rent is a rental form where the rent is tied to a specific price index, usually the consumer price index. This means the rent is regularly adjusted to account for inflation. For example, if the rent increases from 800 Euros to 840 Euros due to a 5% rise in the index.

For residents in Germany or Austria, it is essential to know that the rent adjustment typically occurs once a year. Landlords must inform tenants in writing about the increase. A common mistake is for tenants to overlook the adjustment or fail to dispute it if it is incorrect. Relevant sections include §§ 557-559 BGB.

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