Rent increase in Germany - Part 2: Staffelmiete

When signing a lease in Germany, tenants may encounter Staffelmiete, a structured rent increase model that differs significantly from Indexmiete. Unlike index-based adjustments, Staffelmiete allows landlords to set predetermined rent increases at fixed intervals, with legal caps in place.

Currently, rent hikes under Staffelmiete can occur every 18 months, with a maximum increase of 15% over three years in most major cities. However, Germany's rent cap (Mietpreisbremse)—applicable in 13 out of 16 federal states—helps protect tenants from excessive increases. Exceptions apply, particularly for new buildings, furnished apartments, and holiday rentals.

While Staffelmiete provides predictability, it can be financially challenging, as costs steadily rise over time. In contrast, Indexmiete fluctuates with inflation, making it a more tenant-friendly option in the long run. Understanding these differences is essential when choosing a rental contract.

For a detailed comparison of Indexmiete vs. Staffelmiete, read the full article.

What is the Staffelmiete?

The Staffelmiete is the second type of rent increase and also the most polarising one. Here the increase is arbitrary, up to certain legal limits and requirements, and decided upon by the property owner/manager. The Staffelmiete foresees a rent increase every 18 months, with a maximum of 15% in a timeframe of 3 rent years (not calendar year).
The rent increase stipulates the increased cold rent and day of implementation, and it is staggered. 

There is currently a rent break (Mietpreisbremse) in place in 13 out of 16 federal states (Saarland, Sachsen-Anhalt and Schleswig-Holstein are not affected), implemented in 2019 and currently is extended until December 31st, 2025, if there are no further amendments brought to it and extended. If from January 1st, 2026, the rent break is no longer valid, then the rules of the free market apply.
One important aspect: the rent break regulations do not apply for accommodations in new buildings, used or rented for the first time after October 2014, hotels and holiday homes.

The big picture:

• In the big cities, the rent increase must not be higher than 10% compared to the average rent in the area (ortsübliche Vergleichsmiete).
• This rent increase is based on the rent index (Mietspiegel). Which the property owner can obtain from the local authorities, to justify the rent increase in comparison to the average price in the area. It is however not mandatory to get the Mietspiegel.

• Furnished accommodations are also subject to the rule. However, these particular rent objects are typically more expensive, far from the average price point in the area or its respective category.

• Furnished spaces (room, apartment, holiday homes) which are in the same building where the owner lives are exempt from the rent increase rule. 

Advantages

• The tenant has an awareness of the increase, in terms of time of implementation, amount, and overview for the next 2-4 increases.

• The tenant is protected in the big cities, through the rent break. 

Disadvantages

• The increase is financially dramatic (even if applied with the rent break, at 7-8% every 18 months).

• It sets the cost of living higher every 18 months.
  

Here is a quick comparison of the Indexmiete to the Staffelmiete.

This article is written by real estate experts licensed in Germany and members of the IVD German Real Estate Association It is not legal advice and should not be used as such. For any legal concerns on the subject presented in the article, expert legal advice is recommendable, with a lawyer, property owner or tenant association.