A guide for tenants and landlords
A rent index is an overview of the rents paid for living accommodation not subject to price restrictions. It provides information about comparative rents for various housing categories in the local area.
- To make the rental price structure more transparent
- To help avoid disputes between tenants and landlords
- To reduce the cost of obtaining information about comparative rents
- To assist courts of laws in making decisions
- To help check whether rent increases are permissible
The rent index is continually updated in accordance with the provisions of section 558d para. 2 sentence 1 of the German Civil Code (Bürgerliches Gesetzbuch – BGB) based on the consumer price index for Germany. The point of reference for updating the rent index is a representative survey conducted in 2013 among tenants of properties not subject to price restrictions in the town of Esslingen am Neckar.
The data was collected in writing between June and August of 2013 from suitable randomly selected households for the sole purpose of compiling a rent index. The rent index is calculated on the basis of recognized scientific principles and hence meets the criteria for a qualified rent index in terms of the methodology applied. It has been compiled and updated with the help of a working group consisting of housing market experts. The following bodies were represented on the committee:
- Baugenossenschaft Esslingen eG
- Deutscher Mieterbund Esslingen – Göppingen e.V.
- EWB Esslinger Wohnungsbau GmbH
- Haus und Grund Esslingen e.V.
- Mieterbund Esslingen Stadt und Kreis e.V.
- Esslingen am Neckar Council, Office for Social Welfare and Sport (Amt für Soziales und Sport) and the Office of the Advisory Committee (Geschäftsstelle Gutachterausschuss)
The rent index is not a price recommendation; lower rents are permissible, but not significantly higher ones owing to legal provisions. Those involved in compiling the rent index anticipate that it will continue to serve as a practical and realistic decision-making aid for landlords and tenants, associations, independent experts and courts of law.