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Overview of New Tenant Protection Proposal in Germany
Germany’s Federal Minister of Justice, Stefanie Hubig, has introduced a draft law aiming to enhance tenant protections, particularly addressing challenges related to short-term rental contracts and costly furnished apartments. The proposal is designed to limit rent surcharges for furnished flats and regulate temporary leases to better shield tenants from sudden price hikes and insecure tenancy conditions. The draft law must proceed through hearings, cabinet approval, and parliamentary consent before becoming enforceable legislation [Source 1].
Key Measures Targeting Furnished Apartments and Short-term Leases
One of the central elements of the reform sets a standardized surcharge for fully furnished apartments at a maximum of five percent of the base cold rent, which landlords must communicate proactively before tenants express interest. This move aims to prevent landlords from charging excessive rents for furnished flats beyond this threshold. Furthermore, the law proposes limiting short-term rental contracts exempt from the Mietpreisbremse (rent brake) to a maximum duration of six months, closing a loophole that allowed longer temporary contracts with high rents. These changes respond to tenant difficulties during strong rent inflation periods, such as those experienced after the onset of the war in Ukraine [Source 1].
Implications for Expats and International Residents in Germany
This proposed reform directly affects expats, international students, and foreign workers who often rely on furnished accommodations and short-term leases when relocating within Germany. The standardized surcharge cap on furnished rentals could reduce the cost burden for those who typically pay premiums for furnished housing. Clarifying and limiting short-term rental contracts also provides greater security against sudden lease terminations and steep rent increases, common issues for newcomers unfamiliar with long-term rental markets. However, tenants should remain aware that the draft needs further approval stages and may be subject to changes before enactment [Source 1].
Additional Protections and Next Steps in the Legislative Process
The reform also includes a provision allowing tenants who have received eviction notices due to unpaid rent to avoid ordinary termination by settling their arrears once, offering a last opportunity to retain their housing. Moreover, the draft introduces potential fines for landlords who violate the Mietpreisbremse or engage in rent usury (Mietwucher). Before becoming law, the proposal will undergo a consultation process involving stakeholder associations, followed by government and Bundestag review. Expats and all tenants should monitor these developments as the regulations will influence rental costs, contract terms, and tenant rights in the near future [Source 1].
