Real Estate Glossary

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Index-linked rent

Index-linked rent

Short definition

An index-linked rent is a rental agreement in which the rent is linked to the development of the consumer price index. If the index rises, the rent can be adjusted accordingly.

When is an index-linked rent worthwhile for landlords?

An index-linked rent is particularly worthwhile for long-term tenancies and rising inflation, as it allows for an automatic adjustment of the rent.

How is the index-linked rent adjusted?

The adjustment is based on the consumer price index and must be announced in writing.

Practical Context

Index-linked rents are used to link rent adjustments to inflation and to create long-term planning security. At the same time, they require clear communication and correct calculation.

Example
Errors in the adjustment lead to tenants contesting the increase.

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