German Justice Minister Stefanie Hubig (SPD) has outlined a proposal aimed at better protecting tenants from costly furnished rentals and short‑term leases. A draft of the legislative amendment is set to be sent to housing associations this Sunday so they can give their feedback.
Under the draft, landlords in tight housing markets would have to disclose, before a prospective tenant expresses interest, how much they plan to add to the rent for furnishing the apartment. If a landlord refuses to disclose this surcharge, tenants would pay only the rent that would have applied without furnishings.
The surcharge must be “reasonable” and would be calculated based on the acquisition cost of the furnishings and their current wear and tear. For a fully furnished unit, the Justice Ministry proposes a flat fee of five per cent of the net base rent. The proposal further tightens rules around temporary contracts: they will be excluded from the rent‑cap only if they last a maximum of six months and only if the tenant can provide a specific reason-such as employment‑related circumstances-for a fixed‑term lease.
Another part of the proposal addresses index‑linked rents that track inflation. In periods of high inflation, rents would be allowed to rise by up to 3.5 percent. The draft also permits landlords to waive a standard termination once if a defaulting tenant pays the overdue rent, thereby avoiding a full eviction.
These suggestions echo commitments made in the coalition agreement, and the rent‑cap has already been extended for four years.
