How much you can raise the rent

Raising the rent is not the same thing as the annual settlement of service charges. Service advances stay on that settlement. The rent itself goes up in one of two ways: a rule the lease already contains, or a written proposal under § 2249 of the Civil Code (Act No. 89/2012 Sb.) when the lease has no such rule.

When the statutory proposal applies#

Use the clause in the lease when the parties have already agreed how the rent increases. An inflation index, a fixed step, or a date on which the rent changes is that agreement, and the new amount follows the clause. Section 2249 is the fallback. It applies when the lease neither agrees an increase nor expressly rules one out.

• A new lease, or a change both sides agree, sets the rent by contract. That is not the statutory proposal.
• If the lease says the rent will not be increased, the landlord cannot use § 2249.
• The proposal covers the rent. It does not recalculate heat, water, or the other services in the yearly settlement.

The two ceilings#

The proposed rent may go up to the comparable rent usual for that flat in that place, and the increase, together with every increase in the last three years, may not exceed 20%. Both limits apply at once, so the proposal stops at the lower of the two. It also cannot be sent until twelve months have passed in which the rent was not increased.

Comparable rent is not a guess from a listing. Government decree No. 453/2013 Sb. accepts an expert opinion on the usual rent for that flat, or proof of at least three comparable rents. The flats have to be comparable in the rights under the lease and in housing value. Rents for staff flats, short stays, cooperative member flats, and flats with a publicly subsidised rent are left out. A flat fee that folds services into one payment is not a comparable rent.

If the comparable rent were CZK 22,000, the proposal would still stop at CZK 18,000. If the rent had already gone up by 8% within the three years, only 12% would remain: CZK 1,800, and a ceiling of CZK 16,800, still capped by the comparable rent if that is lower.

What the proposal must contain#

The proposal is in writing. It states the new rent and shows that both ceilings are met. A proposal sent before the twelve months are up is disregarded. So is a proposal that states no new rent and offers no proof of the conditions. Keep proof of delivery: a data box, a registered letter, or a receipt the tenant signs.

If the tenant agrees#

Agreement has to be in writing, within two months of delivery. Silence is not agreement. If the tenant agrees, the higher rent is paid from the third calendar month after the proposal arrives. A proposal delivered on 15 January is paid at the new amount from April. Written consent in that example is needed by 15 March.

If the tenant does not agree#

Without written consent within two months, the landlord may ask the court to set the rent, and has three further months to file. In the example, that runs to 15 June. A late filing is refused if the tenant objects that it was late. The court sets the rent up to the amount usual in that place and time, with effect from the day the application is filed. The 20% ceiling limits the landlord's proposal. It does not limit the court's decision.

The tenant can propose a decrease on the same rules (§ 2249(4)). The yearly service-charge settlement is a separate document, and so is interest on the deposit.