Legal Insights — EN
When Is a Rent Determination Action Considered If the Rent Has Become Too Low?
Rent determination differs from unilaterally notifying a tenant of a comparable market price. The contract's duration, new period, notice and suitable comparables are examined.
Rent comparison columns, house model and unmarked clock face

Tenancy and Eviction

Tenancy and Eviction

Prepared by: Constantinople

Rent falling behind nearby asking prices does not allow a landlord to increase it unilaterally to any chosen amount. Rent determination examines the contract's duration, earlier increases and start of the new period. Comparable rents and equity become relevant for contracts exceeding five years or renewed after five years. Asking rent and actual rent are different.

Prepare the lease and annexes, commencement date, recent years' payments and increases. Actual rental information for the same building or similar properties may be supplied with sources. Differences in area, use, floor, maintenance and contract date matter. Selecting a few of the highest-priced advertisements does not provide a reliable assessment; suitable comparables must be identified.

The period from which a judgment affects rent is connected to the filing date and written notification. The contractual increase clause is also examined. Mediation and notification timing are planned together. If the new period is near, review the entire lease instead of merely waiting for discussions. Acceptance of the amount sought or completion within a particular time cannot be stated in advance.

In a paid assessment, we explain the period calculation, provable comparables and scope of proceedings. If someone else collects rent for an owner abroad, those records are compared too. An application is decided upon after fees, litigation expenses and representation stages are defined in writing.

Legal Basis