Union Pushes for Critical Revisions to Germany's Tenancy Law Draft.
Politics

Union Pushes for Critical Revisions to Germany’s Tenancy Law Draft.

Union faction calls for improvements to the draft tenancy‑law proposal presented by Justice Minister Stefanie Hubig (SPD). Deputy Union‑faction chairman Günter Krings told newspapers of the Funke‑media group that the draft still needs adjustments in several areas. He singled out index rents and short‑term rental contracts, warning that without corrections an otherwise beneficial instrument could become unattractive for tenants.

The proposal seeks greater transparency for furnished rentals, but Krings said the rigid five‑percent flat fee “could create new conflicts”. According to Hubig, a furnishing surcharge should be deemed acceptable if it does not exceed five percent of the net cold rent for fully equipped accommodation.

The planned grace‑period payment scheme must be clearly defined so that it applies specifically where the risk of homelessness is greatest. “Besides protecting tenants, small landlords also need safeguards against unruly tenants” Krings added. Raising the ceiling for minor renovations to €20,000, as set out in the draft, is justified “because construction and craft costs have risen sharply”.

Krings warned that mere amendments to tenancy law will not solve the housing crisis. “What matters is that the measures truly help and do not deter investment”. The Union faction aims to stabilize rents by making construction faster, simpler, and cheaper.