The landlords’ right to increase your rent in Denmark

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The landlord may, if special conditions are met, increase your rent.

Rules for rent increase: When can the landlord increase the rent?

If your landlords wishes to increase the rent, then there are some rules for that must be followed in order for it happen.. The mandatory requirements that must be met by the  landlord to legally raise the rent are as follows:

1) It is a house or housing that is used for residential purposes.

The Danish Rent Act dictates that premises exclusively used for other than residential purposes (a so-called commercial lease) are not covered by these legislations.

2) The rent must be significantly lower than the value of the leased and may only be increased to what is reasonable.

But when is the rent “significantly lower”?

The Danish Rent Act dictates that the assessment of this is based on the amount you’re currently paying compared to the rent paid in similar apartments in the respective residential area. Also taken into account is the location, size, quality, equipment and maintenance condition.

Furthermore it must be taken into account that improvements of the apartment in form of renovation or others are not included in this assessment.

You may also like: Are you paying too much in rent in Denmark?

3) The tenant must have lived in the residence for a minimum of 2 years, or it must be 2 years since the rent was last raised.

However, an exception to this is if the tenant and the landlord have agreed that the rent follows Denmark’s Statistics net price index. If this is agreed upon in section 11 of the lease, the rent can be raised annually if the landlord gives the tenant a written notice of the increase in rent.

4) The rent increase must be notified 3 months before it becomes a reality.

One of the most important rules when it comes to rent increase is that it must be notified in writing. And it must contain a factual and reasonable explanation of the increase and the tenants’ rights to file a complaint. If this has not been done, the rent increase is invalid.

The tenant can appeal for up to 6 weeks after the rent increase has been announced by the landlord. If the landlord wishes to maintain the demand for the rent increase, he must bring the case to the Rent Assessment Committee who will decide if the justification of the rent increase is valid.

Until the verdict, the landlord may maintain the increase of rent, if it does not exceed 15 kr. per m2 gross area of floor space.

You may also like: How to get most of your deposit refunded in Denmark

Note if there is an increase in the property tax or the property is imposed to new or increased operating costs for water, electricity, toilet etc., the rules applying are like the ones in the rent act about rent increase in connecting with this.

However, there is a small difference.

Among other things, the landlord can demand the rent increased retroactively if he makes the demand of rental increase no later than 5 months after the expense was imposed on the property.
The rules are a base and therefore any agreement with the landlord can’t be made to the tenant disadvantage.

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