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2. Guide Overview
3. Tenancy law
4. Rent Level – How High Can Rent Be?

Rent Level – How High Can Rent Be?

Rent Level and Legal Limits

The rent level in Germany is generally negotiable between tenant and landlord. However, there are legal boundaries: if a landlord charges an unreasonably high rent during times of housing shortage, it constitutes an administrative offense under Section 5 of the Economic Offenses Act (WiStG).

A rent is usually considered excessive if it exceeds the local reference rent by more than 20%. These reference values can be found in the local rent index (Mietspiegel). If rent exceeds that limit, the tenant may report the landlord and reclaim the overpaid amount – even retroactively once they become aware of the overcharge.

The Rent Index (Mietspiegel)

The rent index, or Mietspiegel, provides an overview of typical rent levels in a city or municipality. It takes into account factors such as location, building age, condition, and size of the apartment. This helps tenants verify whether the demanded rent is in line with the local market.

Many municipalities publish the rent index online free of charge. In legal disputes, it serves as an important reference for determining whether rent is appropriate or excessive.

Rent Level in Shared Apartments

In a shared apartment (WG), the main tenant usually pays the full rent to the landlord. How this rent is divided among subtenants is not regulated by law. The main tenant may distribute the costs as they wish – for example, based on room size or usage.

Even if the main tenant charges subtenants more than they themselves pay to the landlord, this is legally permissible. Only if the subletting is unauthorized may the landlord issue a warning (Abmahnung) and demand that the illegal subletting stop. However, the landlord cannot claim the sublet rent from the main tenant.