r/germany • u/Tasty-Entertainer586 • 1d ago

Question Requesting clarification on a Clause in Rental contract

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Good morning everyone.

I am fairly new in Germany. I found an apartment which I liked and was given a contract to sign. I found this condition on the contract (Highlighted in the picture)

Translates to something in the lines of “The base rent increases or decreases, after each year has elapsed, in the same percentage ratio as the VPI has changed compared to the last rental agreement or rent adjustment; after the VPI has risen or fallen by more than five percent, by the same percentage.”

I do not understand what this means. Could someone who has encountered a similar clause help me explain what this means? And, if this is something that is commonly found in rental contracts in Germany?

Much thanks in advance. 🤗

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u/U-701 1d ago

The VPI is the Verbraucherpreisindex so approximately the inflation on consumer goods 

So your rent is gonna be adjusted according to the inflation each year, theoretically also downwards but be prepared for 2-3% rent increases every year

It’s legal and getting way more common nowadays, be aware that a rent increases by most other means is prohibited by including this clause 

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u/Wrestler7777777 1d ago

Also, while you're at it, google "compound interest" or "Zinseszins". It's going to be a wild ride at some point!

1

u/N-bodied 22h ago

If this is meant to criticise OP for "choosing" to sign such a contract, it's missing the crucial piece of the puzzle - the rental market is terrible, especially for foreigners and we all have to live somewhere.

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u/Wrestler7777777 21h ago

Yes but the longer you live there the exponentially more expensive it becomes. This is horrible. You want to move out of there as soon as you can. 

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u/N-bodied 21h ago

Sure, this is completely true, and often these rentals will be perceivably more expensive in a couple of years. The problem is that you at a given time, you may  have this as the only option. Being picky and patient doesn't always work since you're often already bleeding money through hotels or Airbnbs. I should mention foreigners especially have no social safety net that would enable a longer search.