“Local reference rent” is a term used by the German Civil Code (BGB). It marks the ceiling up to which rent increases are lawful pursuant to Article 558, German Civil Code.
Quoted reference rents differentiate between apartment size, fit-out, and location, and represent the median of the past four years. Calculation of the reference rent takes both rents on new leases and current rents into account. By contrast, it does not consider apartments that are subject to rent control and / or that were raised within the framework of public housing construction.
The local reference rent always refers to a specific municipality. If a community publishes a rent table, it will list the reference rents. If not, a good way to obtain a reference rent is by comparing at least three properties of similar size, fit-out and location, or through an expert valuation.
Whether Prior to an Acquisition...
Even ahead of an acquisition, the Accentro Real Estate Encyclopaedia offers interesting facts and decision guidance: We will coach you through the first steps on your path to homeownership. For instance, it provides information on the process flow of a condominium purchase. It will also tell you what sort of documents you need in order to buy property, and where to obtain them.
... or after – Our Real Estate Encyclopaedia Provides the Answers You Need
Once you have bought a property, you may wonder who is going to manage your condo and how. After all, caretaking your property is one of your main obligations as a condominium owner. In addition to numerous tips and suggestions, you will find answers here to many questions involving the property management subject, such as: What does “individual freehold ownership” mean? What exactly do “condominium regulations” govern? And what does the term “condominium fee” imply? In addition, we elaborate subtle differences between terms such as “real estate management” and “corporate real estate management.”
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