Germany advances rental law reform to protect tenants

Germany is preparing a significant reform of its rental legislation aimed at protecting tenants in markets facing housing shortages. The bill has passed its first reading in the Bundestag and will undergo detailed review by parliamentary committees. The changes are expected to affect approximately 5.5 million private landlords.

Key provisions include stricter rules for furnished apartments. Landlords will be limited in the additional fees they can charge for furniture, with the surcharge generally capped at 1% of the furniture's residual value. For fully furnished units, a presumption exists that a supplement of up to 10% of the unfurnished rent is permissible, provided the landlord informs the tenant in advance. Failure to disclose this may result in the property being treated as unfurnished.

Additionally, the reform seeks to limit the use of short-term rental contracts, which may only be used for periods of up to six months, with potential extensions to eight months under specific circumstances. These measures are designed to prevent landlords from bypassing rent control regulations by offering minimally furnished apartments at significantly higher prices.