We have previously written about the risk of rising net price index having a major impact on tenants’ rents. There is finally news – the parties have agreed that rent increases can be a maximum of 4% after the net price index, instead of the almost 10% that is currently at risk. The parties have asked for an urgent procedure so that changes can be made quickly, hopefully coming into force from 1 January 2023.
The agreement states that landlords who make use of the net price increase, as set out in the lease, may not increase the rent by more than 4% over the next 2 years.
Read more about the risk of the high increase at the following link: https://digura.dk/er-du-klar-til-at-betale-knap-10-ekstra-i-husleje-pr-maaned/ (text is in Danish).
What impact can such an agreement have on you as a tenant?
The agreement is designed to give peace of mind to tenants who would otherwise risk a substantial rent increase due to the sharp inflation-driven net price increase that they will not be able to afford. There has been a need for a political review of the rules to safeguard tenants.
What agreement do the politicians want to be adopted;
- There is a rent cap of 4% per annum.
- The agreement applies to existing as well as future rentals. Rent that has been adjusted in the last 3 months, according to the net price index, will be reduced again.
- Effective 1 January 2023.
- If the landlord can prove an increase in operating costs of more than 4%, the rent may continue to be increased by more than 4%. This requires a statement of the total expenditure of the property, which must be sent to the tenant so that the tenant has the opportunity to object. In this case, the rent board must decide within 3 months.
- 160,000 tenants are to be covered by the agreement.
In addition, the parties understand a new index so that rent increases no longer follow increases in food and energy. The parties are thus working on a new index to protect tenants against significant rent increases.
DIGURA will keep you updated on new changes!