LAST week the European Parliament voted for stricter regulations related to energy efficiency. For example, buildings should achieve certain energy efficiency classes in the same way as, for example, kitchen appliances.

The proposal of the European Commission aims to align the EU construction sector with climate neutrality. By 2050, all buildings should be free of harmful emissions, the European Commission stated as its goal. The following should therefore apply to new buildings: new public buildings must be so-called zero-emission buildings from 2027, and all other (private) new buildings from 2030, writes Fenix Magazin.

According to the German Civil Code (BGB), landlords can actually increase the annual rent by eight percent due to “costs incurred for the apartment”. Because of this, homeowners face high costs, and tenants are also affected by the new regulations.

Limiting additional costs for tenants

The BGB also states that the so-called upper limit for raising rent is three euros per square meter within six years. If modernization costs are higher, they may not be passed on to the tenant. If the rent was less than seven euros per square meter, the rent may be increased by only two euros.

There are also numerous regulations that landlords must take into account when renovating a residential property, that is, modernizing it. While investments that would make the house more suitable for living (increasing energy efficiency or reducing water consumption) are permitted, this does not apply to luxury renovations.

In addition, tenants must be notified at least three months before the start of construction work, as well as about the expected rent increase.

Landlords can pass renovation costs on to tenants

The president of the tenants' association in Germany, Lukas Siebenkotten, told German media that in the future the high costs of mandatory modernization could be passed on entirely to tenants. “The costs of expensive renovations could ultimately end up entirely on tenants. Additional costs of 200 euros are possible,” said Siebenkotten.

German media presented several examples of what awaits tenants in Germany:

• Renovating an 80-square-meter apartment costs 30,000 euros.
• Eight percent (2,400 euros) can be passed on to the tenant.
• 2,400 euros calculated over one year is about 200 euros of higher monthly rent

Another example from Stiftung Warentest:

• Renovating a 1,000-square-meter building with a total of ten apartments costs 100,000 euros.
• Eight percent (8,000 euros) can be passed on through the rent.
• The rent increases by eight euros per square meter.
• In an apartment in a 100-square-meter building, the additional rent amounts to 800 euros per year – which is almost 67 euros per month.

Source: index.hr