What Was the Rent Increase Rate for June 2020? The much-anticipated monthly rent increase rate for June 2020 has been determined. Based on the 12-month average of the Consumer Price Index (CPI/TÜFE), the rent increase rate for June 2020 is set at 12.10%.
Another eagerly awaited item was the publication of the inflation figures for May 2020. Once May’s inflation data were released, the rent increase rate to apply in June 2020 became clear. According to the 12-month average CPI for May 2020, the rent increase rate for this month is 12.10%. Thus, the rent increase rate established for June 2020 is 12.10%.
What Is the Maximum Allowable Rent Increase?
How much can the rent be increased at most? The applicable rent increase is determined using the 12-month average of the CPI that is announced in the month following the month when the lease was signed; this average serves as the annual rent increase rate. For a tenant whose lease ends in May, the rent payable in June will reflect the increased amount. When calculating the increase to be applied to the rent, the 12-month CPI average derived from May’s CPI and PPI figures is used to determine the June rent amount.
The 12-month CPI average calculated from the announced CPI and PPI figures for May sets the rate of increase to be applied to June’s rent. The CPI average published in this way represents the maximum rent increase landlords may lawfully demand from tenants. However, landlords and tenants may reach a mutual agreement to apply a lower increase than this maximum. The legal benchmark for negotiations between landlords and tenants is the 12-month CPI average; any agreed increase should not exceed that CPI-based rate.