KARLSRUHE (dpa-AFX) - If a landlord raises the rent after a modernization, he must disclose to tenants in the explanation comprehensibly any third-party funds such as government demand for energy renovations. Such information is to serve after one on Tuesday published judgement of the Federal High Court (BGH) in addition that tenants examine the reason and extent of the rent increase for plausibility and decide konnen whether they consult for example legal or technical building experts.

If, for example, the landlord pays for modernization measures with the help of low-interest or interest-free loans from public budgets, with loans or advance rent payments from the tenant, with services provided by a third party for the tenant or with funds from federal and state financing institutions, this reduces the rent increase accordingly. This is to ensure that the landlord is not placed in a better position than others who finance refurbishments from their own assets.

In the specific case from Berlin, the landlord had not given any indication of eligible third-party funds in the text of the increase declaration. However, he referred to a letter announcing the renovation, according to which he wanted to apply for funds from the Kreditanstalt für Wiederaufbau (KfW) for energy-efficient measures. The plaintiff considers the tenant improvement declaration to be invalid for formal reasons.

In the view of the BGH, the information provided leaves open whether the landlord received the claim but did not state it and did not offset reduction amounts - or whether the application may have been rejected or granted funds were not to be offset against the costs of the modernization measures. "It is also conceivable that the defendant simply forgot to make a declaration regarding the third-party funds," it said.

After the district court Berlin-Wedding had granted the tenant's claim and the landlord failed with the appeal at the district court Berlin, now also the BGH in Karlsruhe rejected its appeal against the judgment. (Ref. VIII ZR 416/21)/kre/DP/stk