Yesterday, Brno-střed district council unanimously approved a waiver of rent increases for flats managed by the Brno-střed district for the last year. Photo credit: KK / Brno Daily
Brno, 29 March (BD) – Brno-střed district council has unanimously approved a waiver of the increase in rents for flats managed by the Brno-střed district, to help tenants with recent increases to the cost of living. The contractual conditions between tenants and the Brno-střed district contain a condition, the so-called inflation clause, which entitles the landlord to increase the agreed rent by the average annual inflation rate in each subsequent calendar year, but this will not now happen in 2022.
The annual inflation rate is based on the increase in the average annual consumer price index announced by the Czech Statistical Office for the previous calendar year. A total of 2,573 households will benefit from the move, as their rents will not be affected by inflation. Tenants will not have to apply for the waiver, which will be applied automatically to all leases.
“We are certainly not indifferent to the current situation, when energy prices and other housing costs are rising sharply,” said the mayor of the Brno-střed district, Vojtěch Mencl (ODS). “A large number of seniors live in municipal flats in our part of the city, and they are being very negatively affected during this period. Single parents and lower income families are also having problems. That is why we want to help them and not increase rents this year.”
As a result of the waiver, each household will save up to CZK 900 per month. In total, this decision will save tenants of district-owned apartments more than CZK 8 million a year. The regular increase in rent according to inflation usually applies from 1 July of a given year. For older types of leases, the term may be different.
