Index clause for business rentals becomes relevant

In recent years, clauses in commercial leases that linked the rent to the national consumer price index received little attention. The reason was the low inflation rate, which is now rising rapidly and is reflected in the tenants’ rental costs.

The index increase becomes controversial if the landlord delays the adjustment and demands a rent increase retroactively, which is not allowed. Subsequent demands are not permitted. The landlord must use the official form for a rent increase. Without the official form, the increase is void, i.e. the previous rent continues to apply. If the business tenant has paid the increase without the landlord using the official form, the tenant is entitled to a refund.

The parties should set a fixed date per year for the index rent increases.