Tenants should avoid these seven mistakes

Frankfurt Nina Zimmermann’s rent recently increased by around 150 euros per month in one go – because the working woman had signed an index rental contract when she moved in. Such contracts link the amount of the rent to the development of inflation, which has recently risen significantly in Germany.

For tenants’ associations and parts of the SPD and Greens, these agreements are a red rag. Federal Building Minister Klara Geywitz would like to cap the increases in rents, but this does not meet with the approval of the coalition partner FDP. So nothing has been decided yet.

It is therefore important for tenants in Germany to know what they are getting themselves into when they conclude a corresponding contract. What are the pitfalls of the contracts? And what advantages do they offer? The Handelsblatt has compiled important facts on this. Tenants should better avoid these seven mistakes in index contracts.

1. Mistake: Underestimating your own negotiating position