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Rent increases are guided first and foremost by agreement, then the law

Rent increases are guided first and foremost by agreement, then the law Tenancy may take years, during which the rise and rents. Rent increases can be adjusted beforehand in the lease agreement or later. However, if the tenant and the landlord to increase rents agree, the court will decide based on the rules of the Civil Code. About what percent of the landlord may increase the rent and under what conditions?

Terms of rent increases the landlord may negotiate with the tenant in the lease agreement. "Most often in the lease provides for rent increases so-called inflationary clause. Alternatively, it is possible to agree on a rent increase form of an addendum to the contract. Rent increases can also lessee and the lessor agreement completely ruled out. The agreement in this case has precedence over the law, "says Luke Green, head of the legal department Dtest.

If rent increases do not address lease contract and the lessor to the lessee increasing agree, proceed in accordance with the Civil Code. The landlord may contact the tenant with a written proposal to increase the rent for the first year since the last rent increase. "The increase may not exceed 20% of the border, including the increase that occurred in the past three years. The extra amount of rent shall not exceed the so-called usual rent. It means the amount of rent for a similar apartment in the place of the leases under similar conditions. Usually the rent is determined by a note of Realtors or expert opinion, "says Luke Green.

If the tenant within two months, has agreed a proposal to increase the rent, the landlord can claim the rent increase in court. Action to increase rent must be submitted within three months and attach proof that the tenants submitted a written proposal to increase rents and kept 20% limit and the limit of usual rent. In judicial proceedings, the landlord may propose an increase exceeding 20% ​​limit, but the court may increase the rent up to the amount of usual rent. "The ability to increase rents through the courts over the 20% limit has probably motivate tenants to the landlord accepted the proposal and have to deal with an increase in court," says Green.

Rents can also be increased after construction modifications that improve the utility value of the apartment, general conditions in the apartment or house or lead to permanent savings in energy or water. Rents can thus be increased annually by 10% of the amount of costs reasonably incurred. With such an increase in rent must agree to two-thirds of apartments in the house. When such consent not get the landlord is entitled to seek rent increases in court, up by 3.5% per annum of the costs reasonably incurred. The rent increases are only single.

Consulting in lease relationships and relationships related to housing provides dTest thanks to financial support from the Ministry for Regional Development of the project dTest helps with problems with housing.

Source:, tz

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