Rent increase at the landlord's discretion – is the clause valid?
Likely invalid — such a clause does not bind you.
Rent increases are only permitted under the statutory regime — Staffelmiete / Indexmiete, increase to the local comparable rent (§ 558 BGB), or modernisation (§ 559 BGB). Unilateral increases at the landlord's discretion are void (§ 557 para. 3 BGB).
What you can do next
Object to such rent increases in writing. The clause is invalid.
The law behind it
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General information based on German law and court decisions, checked by lawyers — not legal advice for your individual case.