In future, municipalities with more than 50,000 inhabitants will have to draw up a rent index. This is the result of the "Law on the Reform of the Rent Index Law (Mietspiegelreformgesetz - MsRG)". According to the German government, the aim of this law is, among other things, to ensure a legally secure and reliable representation of the local comparative rent. The MsRG therefore specifies, among other things, aspects that must be taken into account in future when drawing up a rent index.
For example, owners and tenants must now provide the relevant authorities with information on the rent level as well as the type, size, furnishings, condition and location of the dwelling, among other things, in order to draw up a qualified rent index. This duty to provide information has been newly introduced. Among other things, the rent index serves as an important instrument for determining the local comparative rents. These provide owners with information on whether or not they may raise the rent and also provide tenants with important information on whether their rent is justified.
Until now, rent indices have been compiled every two years with the help of survey data. Participation in the survey was voluntary. However, this method has disadvantages because it can distort the results. For example, if the majority of respondents from a mixed neighborhood are high-income earners who can afford expensive housing, the results will be distorted. The data will now also be collected every two or four years (qualified rent index). In addition to the qualified rent indexes, there will also continue to be the simple rent indexes, which only provide an overview of the local comparative rents. This will accommodate smaller municipalities.Source: MsRG/bundesregierung.de
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