Graduated rent (Staffelmiete) and index-linked rent (Indexmiete) are two ways of fixing the rent in the tenancy agreement for the future, and students and early-career professionals meet them more often than you might think. With graduated rent the future amounts are written into the contract, with index-linked rent the rent follows price developments. This guide explains, based on §§ 557a and 557b of the Bürgerliches Gesetzbuch (BGB, German Civil Code), what the contract must say in each case, which other increases are excluded and what to watch for before you sign.
Short answer: Under § 557a BGB, a graduated-rent contract states each rent as a sum of money, each step lasts at least one year, and the right to terminate may be excluded for at most four years. Under § 557b BGB, an index-linked rent stays unchanged for at least one year and follows the price index of the Federal Statistical Office. Last updated: November 2026.
The key points at a glance
- Graduated and index-linked rent must be agreed in writing under §§ 557a and 557b BGB.
- With graduated rent every amount is in the contract, each step lasts at least a year, and increases under §§ 558 to 559b are excluded.
- With index-linked rent the rent stays unchanged for at least a year, and an increase to the local comparative rent under § 558 is excluded.
- A waiver of termination rights is possible with graduated rent for at most four years from the date of the agreement.
- In student halls of residence §§ 556d to 561 BGB do not apply under § 549(3). A government bill on index-linked rent in tight markets is in the legislative process.
What is graduated rent, and what does § 557a BGB require?
With graduated rent the parties agree in writing that the rent differs for certain periods. The agreement must state each rent or each increase as a sum of money. Percentages or formulas are not enough. Each rent step must apply for at least one year. While the graduation runs, increases under §§ 558 to 559b BGB are excluded, so the landlord can raise the rent neither to the local comparative rent nor because of modernisation. The wording is available at gesetze-im-internet.de (German).
The rules on the rent brake (§§ 556d to 556g BGB) apply to each rent step under paragraph 4. For the second and each further step, what counts is not the start of the tenancy but the due date of the first rent of that step. Agreements to the tenant’s disadvantage are void. A footnote to subsection 4 in the version on gesetze-im-internet.de refers to transitional rules in Art. 229 § 35 EGBGB, so you should clarify with a tenants’ association whether and how the rent brake applies to your flat.
What is index-linked rent, and what does § 557b BGB require?
With index-linked rent, the rent follows the price index for the cost of living of all private households in Germany, calculated by the Federal Statistical Office. This is the consumer price index, although the statute does not use that term. This agreement also requires writing. While it applies, the rent must stay unchanged for at least one year. An increase under § 558 BGB is excluded. Increases under §§ 559 to 560 BGB remain possible, those for modernisation under § 559 only if the landlord carried out building work for reasons he is not responsible for. Under subsection 4, §§ 556d to 556g BGB apply only to the starting rent of an index-rent agreement. The wording is available at gesetze-im-internet.de (German).
The landlord must claim the change in text form. The declaration must state the change in the index and the new rent or the amount of the increase in euros. You owe the changed rent from the start of the second month after receipt of the declaration. If it arrives in March, the new rent applies from 1 May.
Graduated or index-linked rent: what is the difference?
| Feature | Graduated rent (§ 557a BGB) | Index-linked rent (§ 557b BGB) |
|---|---|---|
| Form of agreement | In writing | In writing |
| How is the rent fixed? | Every amount is in the contract | The rent follows the price index of the Federal Statistical Office |
| Minimum time between changes | Each step at least one year | Rent unchanged for at least one year |
| Increase to comparative rent (§ 558) | Excluded | Excluded |
| Waiver of termination | At most four years from the agreement | Not regulated in § 557b |
| Predictability for you | High, all amounts are known | Low, the amount depends on the index |
| Landlord’s declaration | Not needed, the steps are in the contract | Text form with index change and new rent in euros |
What does this look like in numbers?
Assumption: a graduated-rent contract provides 380 euros from October 2026, 400 euros from October 2027 and 420 euros from October 2028. Over 36 months you pay 4,560 plus 4,800 plus 5,040 euros, 14,400 euros in total. That is an average of 400 euros a month. The last step is therefore 20 euros above the average, the first 20 euros below.
Assumption for index-linked rent: the starting rent is 420 euros. The index rises between the comparison dates from 120.0 to 123.6, which is 3.0 percent. If the rent follows the change in the index proportionally, as a typical agreement provides, it is then 432.60 euros. The wording of your index clause is always what counts. The figures are freely chosen.
What does it mean for students who change study location?
The waiver of termination is the point students most often overlook with graduated rent. Under § 557a(3) BGB the tenant’s ordinary right to terminate may be excluded for at most four years from the date of the graduated-rent agreement. If you change course or move to another city, you cannot terminate in the ordinary way during that time. A replacement tenant can be an option, which is a matter of negotiation with the landlord. Read the contract to see whether a waiver is agreed, and weigh its duration against your study plans.
In a student hall of residence §§ 556d to 561 BGB do not apply under § 549(3) BGB. There the rent depends on the contract with the student services organisation or provider.
What changes through the government bill on tenancy law?
A government bill amending the law on residential and commercial tenancies (Bundestag document 21/6807) is in the legislative process. According to the Bundestag report of 2 July 2026, annual index increases are to be capped in tight housing markets: if the price index rises by more than 3 percent within a year, half of the excess is to be disregarded when calculating the increase. The first reading was scheduled for 9 July 2026. That is the position of the Bundestag report of 2 July 2026, so this is a planned change and not current law. The Bundestag’s documentation system (DIP) shows the current status of the procedure.
Frequently asked questions
May the landlord raise graduated rent in addition?
No. Under § 557a(2) BGB, increases under §§ 558 to 559b are excluded while the graduation runs. That rules out the local comparative rent and the modernisation levy.
How often may index-linked rent rise?
Under § 557b(2) BGB the rent must stay unchanged for at least one year. An adjustment comes into question at the earliest after that year.
From when do I pay the increased index-linked rent?
Under paragraph 3, from the start of the second month after receipt of the declaration. If it arrives in March, the new rent applies from 1 May.
Must graduated rent be stated in euros in the contract?
The law requires each rent or increase to be stated as a sum of money. A percentage alone is not enough. If the amount is missing, the agreement does not match the wording.
Does the rent brake apply to graduated rent?
Under § 557a(4) BGB, §§ 556d to 556g apply to each rent step. How the rent brake affects students is explained in the guide on the rent brake until 2029.
What to do now
- Check the contract for a graduated or index clause and whether it is in writing.
- Project the graduated amounts or a possible index rise over the length of your studies.
- Look for a waiver of termination and compare its length with your study plans.
- Compare the starting rent with the rent index and the rent brake before you sign.
- Ask a tenants’ association or student advice service if anything is unclear.
Related guides
- Student housing: rent, flat share, hall of residence and housing benefit
- The rent brake until 2029: what students need to know
- Finding and reading a rent index: how to check your rent
- Student Tenancy Agreement: What You Should Check Before Signing
- Affordable student housing: strategy, portals and costs
Sources: Civil Code (BGB), § 557a graduated rent (gesetze-im-internet.de, retrieved 2 November 2026, German text); Civil Code (BGB), § 557b index-linked rent (gesetze-im-internet.de, retrieved 2 November 2026, German text); Civil Code (BGB), § 549 provisions applicable to residential tenancies (gesetze-im-internet.de, retrieved November 2026, German text); German Bundestag: government bill on tenancy law, hib 542/2026 of 2 July 2026 (document 21/6807, German).
Last updated: November 2026. This guide is general information, not individual advice.
