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Rent increase after modernization despite the lack of notice permitted

The Federal Court today, a decision of a rent increase after modernization measures taken that were made without prior notice.

The defendant is a tenant on the second floor apartment situated to the applicant in Berlin. By letter dated 29 September 2008 increased the plaintiff has a base rent of € 338.47 to € 120.78 for the costs incurred for the installation of an elevator. The plaintiff had the modernization measure, first by letter dated 9 September 2007 announced. On the contrary the defendant took the plaintiff's modernization announcement in February 2008 back, but had installed the lift. The defendant did not pay the rent in the following period.

In his application, the landlord sought payment of the increase amount for the months of June to August 2009. The district court dismissed the action. On appeal the plaintiff, the district court has upheld the complaint.

it against that revision of the defendant was unsuccessful. Who among other responsible for the Housing Tenancy Eighth Civil Division of the Federal Court held that a rent increase, which made pursuant to § 559 para 1 BGB * actually carried out after a modernization is not excluded, because the performance of work under § 554 para no announcement had been preceded by ** 3 BGB. The notice requirement is to allow the tenants to adjust to the anticipated construction projects in his home and may exercise its break option. The purpose of the notice requirement, however, is not to restrict the powers of the lessor, the cost of actually carried out modernization in accordance with § 559 para 1 BGB shall turn to the tenant.

* § 559 BGB: rent increase for modernization

carried out by the landlord of construction design increase the use value of the leased term, improve the general living conditions in the long run or making sustainable savings in energy or water (modernization), or has carried out other construction measures due to circumstances for which he was not responsible, he may, the annual rent by 11 per cent of the increase for the housing costs incurred.

(...)

** § 554 BGB: Toleration of conservation and modernization

(...)

(3) Measures referred to in paragraph 2, sentence 1, the landlord to the tenant latest notified three months before the start of the action which the nature and probable extent and commencement, expected duration and the expected rent increase in writing. The tenant has the right to the end of the month following the receipt of such notice, to terminate the very end of the next month. (...)

Judgement of 2 March 2011 - VIII ZR 164/10

AG center - Case of 15 September 2009 - 8 C 63/09

LG Berlin - Case of 25 June 2010 - 63 S 530/09

Source: Federal Communication Press Office No. 034/2011 dated 02.03.2011

Source: © Uli Carthusian / PIXELIO http://www.pixelio.de/