The right of the landlord to increase your rent
The landlord may, if special conditions are met, increase your rent.
How do I know if I am entitled to compensation?
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Rules for rent increase: When can the landlord increase the rent?
There are some special rules for a rent increase if, if the landlord wishes to increase the rent. The mandatory requirements that must be met for 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 corresponding leases in the respective residential area. Also taken into account is the location, size, quality, equipment and maintenance condition.
Furthermore it must be informed that improvements of the lease in form of renovation or otherwise are not included in this assessment.
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 has agreed that the rent followsDenmark’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 for increase of rent is that the increase must be notified in writing, which must contain a factual and reasoned 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 on the justification of the increase of rent.
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.
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 as a basis mandatory and therefore, cannot deviate from the disadvantage of the tenant. By forming a lease of a larger residential property (a minimum 7 leases) built after December 31st 1991, and top floors that were not used or registered as a residence until after September 9th 2002, the rules in the Danish Rent Act can be waived in Section 11 of the lease, with the limitations of section 36 of the Danish Contracts Act.
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