The German Association of German Residential and Real Estate Companies (GdW) is advocating for a shift in how tenants contribute financially to rent increases resulting from modernization and renovation work. They propose linking this contribution to the tenant’s specific income level.
According to the association’s president, Axel Gedaschko, income must play a significantly greater role in the calculation than the basic, base rent. Gedaschko stated that the desired goal is an income-based scaling system: tenants with higher earnings should be required to contribute more significantly toward modernization costs than tenants with lower incomes.
This issue particularly concerns shared costs associated with upgrading to climate-friendly and efficient heating systems, as well as broader energy efficiency renovations. Currently, landlords possess the ability to pass these costs on to all tenants equally, regardless of their financial circumstances.
Gedaschko called upon the ruling governing coalition to act quickly, arguing that the current framework is inherently unfair. He cited the example of a single mother, a registered nurse, whose monthly rent increase following a renovation would be identical to that of a dual-income couple living in the same building.
