§ 42

If the rent is significantly lower than the value of the leased property, the landlord may demand an increase to a reasonable amount considering this. In assessing the rent and the value of the leased property, the following are disregarded:

1)Rent increases pursuant to § 129, subsections 1 and 2, and § 137 and § 58 a of the previously applicable Rent Act, cf. Consolidated Act No. 927 of 4 September 2019, improvements pursuant to § 129, subsection 1, and §§ 137 and 146, and improvements under the previously applicable Chapter 6 a of the Act on Urban Renewal and Urban Development, cf. Consolidated Act No. 144 of 21 February 2020.

2)Rent increases pursuant to § 63 b of the previously applicable Rent Act, cf. Consolidated Act No. 963 of 11 August 2010, and improvements made for amounts covered by § 63 a of the previously applicable Rent Act, cf. Consolidated Act No. 963 of 11 August 2010.

3)Rent increases and improvements under the previously applicable Act on Renovation, cf. Consolidated Act No. 385 of 4 August 1983, the previously applicable Act on Urban Renewal and Housing Improvement, cf. Consolidated Act No. 820 of 15 September 1994 with subsequent amendments, the previously applicable Act on Private Urban Renewal, cf. Consolidated Act No. 49 of 1 February 1996 with subsequent amendments, the previously applicable Act on Urban Renewal, cf. Consolidated Act No. 260 of 7 April 2003 with subsequent amendments, and the Act on Urban Renewal and Urban Development.

4)Improvements made by the tenant at their own expense with the landlord's permission.

Stk. 2.In the decision pursuant to subsection 1, first sentence, a comparison must be made with the rent generally applicable in the neighborhood or area for a similar dwelling or single room for habitation, considering location, type, size, quality, facilities, and state of maintenance.

Stk. 3.In the comparison of leases, cf. subsection 2, it is given weight if the rent in the comparison leases has been subject to separate review.

Stk. 4.In the comparison, cf. subsection 2, the following are disregarded:

1)Leases improved pursuant to § 129, subsection 1, and § 137.

2)Leases covered by §§ 49-51 and Chapter 5.

3)Leases covered by the previously applicable Act on Renovation, cf. Consolidated Act No. 385 of 4 August 1983, the previously applicable Act on Urban Renewal and Housing Improvement, cf. Consolidated Act No. 820 of 15 September 1994 with subsequent amendments, the previously applicable Act on Private Urban Renewal, cf. Consolidated Act No. 49 of 1 February 1996 with subsequent amendments, the previously applicable Act on Urban Renewal, cf. Consolidated Act No. 260 of 7 April 2003 with subsequent amendments, and the Act on Urban Renewal and Urban Development.

Stk. 5.A demand for a rent increase can take effect no earlier than 2 years after the commencement of the tenancy, or 2 years after a previous rent increase took effect, due to the rent being significantly lower than the value of the leased property.