Glossary
Kappungsgrenze
Rent-Increase Cap. The limit on rent increases within existing tenancies: 20% per three years nationally, reduced to 15% in state-designated tight markets — and never above the local comparative rent.
It binds increases toward the Mietspiegel level (§ 558 BGB); modernisation surcharges (8% of modernisation cost p.a., with hard caps) run on a separate track.
For under-rented acquisitions, the Kappungsgrenze defines your reversion speed: a flat 30% under market in a 15% city needs two three-year cycles to close the gap — model it into returns.