The cap (§ 558 (3) BGB)
Even if the local reference rent has risen, rent may increase by at most 20% within three years. In tight housing markets a state ordinance reduces this to 15% — including Berlin, Munich, Hamburg, Cologne, and Frankfurt. Anything above the cap does not have to be accepted.
The cap is only one of three hurdles
A § 558 increase additionally requires the rent to have been unchanged for 15 months, a proper justification (e.g. the Mietspiegel) — and no running stepped or indexed rent in your lease, which excludes § 558 increases entirely. Those checks need your contract and the letter.
Check both documents against each other automatically
Upload your lease and the increase letter to Lucid for free: waiting period, cap, and the Staffelmiete exclusion are checked deterministically against each other, your § 558b response deadline is computed as a concrete date — and a draft response is one click away.