Tenant protection; information

A new tenant protection ordinance has been in force in the Free State of Bavaria since January 1, 2022. It includes the rent cap, the reduction of the rent cap and the extension of the notice period for the conversion of rental apartments into condominiums.

Bayerisches Staatsministerium der Justiz

Sie können die Behörde auf sichere Weise kontaktieren

Secure contact form

Street address

Prielmayerstr. 7
80335 München

Postal address

80097 München

Mehr zur Behörde

Rent control

In principle, tenants and landlords are free to agree the rent at the start of the tenancy. However, in cities and municipalities where the rent freeze applies, the rent may not exceed the standard local comparative rent by more than 10 % at the start of the tenancy.

Exceptions apply to residential properties

that is used and rented out for the first time after October 1, 2014
which is let for the first time after extensive modernization,
where the rent paid by the previous tenant is above this limit (a rent up to the amount of the previous rent may then be agreed) or
where the landlord has carried out modernization measures in the last three years (the annual rent may then be increased by up to 11% [for modernizations up to 31 December 2018] or 8% [for modernizations from 1 January 2019] of the costs incurred, even if this exceeds the upper limit of the rent freeze).

The local comparative rent is understood to be the usual charges that have been agreed in the municipality or comparable municipalities for non-price-linked housing of a comparable type, size, furnishings, quality and location, including energy efficiency and quality, in the last six years or that have been changed without taking operating costs into account.

The rent freeze applies in areas with a tight housing market that have been defined as such in a state ordinance. In Bavaria, the rent freeze applies in 208 cities and municipalities in accordance with the Tenant Protection Ordinance of December 14, 2021, last amended by the ordinance of August 1, 2023.

Reduction of the rent cap

In an existing tenancy, the landlord can demand the tenant's consent to increase the rent up to a maximum of the local comparative rent if

this is not excluded by contractual agreement and
the previous rent has remained unchanged for at least 15 months.

Even then, however, the rent may not increase by more than 20 % within three years (rent cap). In areas with a tight housing market, the rent cap can be reduced to 15% by state ordinance. In Bavaria, this lowered cap applies in 208 cities and municipalities in accordance with the Tenant Protection Ordinance (see above). Rent increases due to modernization and increased operating costs are not taken into account here.

Extension of the notice period in the event of conversion of an apartment

If residential premises are converted into a condominium after being transferred to the tenant and sold to a third party, the purchaser may - unless the tenant exercises his statutory right of first refusal - only assert his right of termination for personal use or to enable an appropriate economic utilization of the property after three years have elapsed since its entry in the land register. This period is extended to ten years in municipalities that are designated as areas with a tight housing market - in Bavaria in 208 cities and municipalities in accordance with the Tenant Protection Ordinance (see above).

This blocking period for termination by the landlord also applies to any acquisition of rented residential property by a partnership or a majority buyer, even if the property has not yet been converted into condominiums. This does not apply to purchases by family and household groups.

The 208 Bavarian towns and municipalities in which the limitation of the permissible rent level at the start of the tenancy ("rent cap"), the reduced rent cap of 15% and the extended period of non-termination apply can be found in the annex to the Tenant Protection Ordinance (see "Legal bases").

Further information on tenancy law can also be found in the information brochure "Tips for tenants and landlords", which you can download free of charge (see "Further links").