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We (all tenants of the building I live in) have been issued at notice that the landlord would like to renovate. This was formally communicated last week.
The renovations are to take place in a phased manner beginning with the larger apartments around end January 2013. Other apartments from early March 2013.
Post-renovations i.e. from May 2013, the rents will increase from 15%-30%.
The owners offer 3-months zero rent Feb-April along with temporary accommodation for the 4 weeks of renovation of their apartment. Tenants will have to bear the cost and effort of the move-out and move back in + any other inconvenience.
However, they require a decision (signed) before 9th January. For many of us the pace is too fast and the timing (winter) a real irritation. Of course, there are tenants who've been here 20+ years who might not be able to take a large rental increase.
In my specific case, I moved in Oct 2013 and have barely settled in. So they offered 2 extra months of zero rent until the new contract (if one signs) it takes effect. I am already aware of the MV (Mieter-verband) although I'm not sure what they can do to assist. If any of you has had experience in such situations and is familiar with the laws please let me know.
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Around here, usually the group of tenants hires a lawyer to represent them and make sure things are done in accord with the relevant laws. This is also helpful in perhaps negotiating a delay, more benefits etc.. Not sure what is in your contract as per notice period, but January seems awfully short. Contacting the MV is also a good idea.