Ruling: Rent increase only possible for modernization and not for maintenance measures

  • 4 years ago

The landlady of an apartment building in Düsseldorf had several construction measures carried out on the building following an announcement and passed the costs on to the tenants. The work included, for example, the replacement of the more than 60-year-old front door and the replacement of the aging stairwell windows and apartment doors. Mailboxes were also replaced, an intercom system and motion detectors installed, the house lighting renewed, and the house facade, basement ceiling and roof insulated. The heating system was also replaced by a district heating system. One of the tenants filed a complaint against the rent increase resulting from the construction measures.

Thus, before the construction work, the tenant was paying around 300 euros a month in rent. In 2016, there were two rent increases. The first was around 190 euros and the second around 240 euros. The landlady justified the higher costs with a modernization rent increase pursuant to Section 559 (1) BGB. In the court ruling, the Federal Court of Justice (BGH) decided that not all costs can be apportioned to the tenants. The decisive factor here is whether the measures are maintenance or modernization measures. Maintenance measures include all work that has to be carried out to keep the residential building in a tidy and habitable condition. The maintenance costs incurred as a result of these construction measures are to be borne solely by the landlord.

The situation is different for modernization measures. Since these works have an added value for the residents and improve the living situation of the tenants, the modernization costs may be passed on to the tenants on a pro rata basis. However, a certain upper limit must be taken into account here. In the case of the over 60-year-old front door, for example, the court decided that the useful life of the door had largely expired after several decades. Thus, it is not possible to speak solely of modernization of the door. Thus, part of the costs incurred fall under the aspect of maintenance and not modernization and must be deducted proportionately from the increase in rental costs.

Source: BGH
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