Index Rents, Furnishing Fees and Homelessness Protections at Stake
Politics

Index Rents, Furnishing Fees and Homelessness Protections at Stake

The Union caucus is demanding revisions to Justice Minister Stefanie Hubig’s draft tenancy law. Deputy caucus chairman Günter Krings told the newspapers of the Funke Media Group that the proposal still needs “adjustments in several places”. He pointed out that issues such as index‑based rents and short‑term leases require corrections, otherwise a tool that could ultimately benefit tenants would become unattractive.

Krings said that greater transparency concerning furnished rentals is fundamentally sensible, but the rigid five‑percent flat fee could create new conflicts. According to Hubig’s plan, an additional furnishing surcharge would only be considered reasonable if, for fully equipped units, it does not exceed five percent of the net cold rent.

Regarding the proposed grace payment, the law must clearly stipulate that it should target areas where homelessness is a risk. “In addition to tenant protection, small landlords also need safeguards against tenants who refuse to pay” Krings added.

He praised the increase of the ceiling for small modernisations to €20,000 as reflected in the draft, arguing that construction and trade costs have risen sharply.

Krings warned that simply amending tenancy law will not solve the housing crisis. “What matters is that measures actually help rather than deter investment”. The Union caucus intends to stabilise rents by making construction faster, easier and cheaper.