According to a recent survey conducted by the property owners’ association Haus und Grund, 60.5 percent of private landlords are considering either reducing or completely discontinuing their rental activities, and selling their residential properties instead. The primary concern, the “Handelsblatt” reports, is not any single regulatory measure, but rather the cumulative effect of several proposed changes to housing law.
The Federal government recently approved “Mietenpaket II” (Rent Package II), which introduces new rules concerning furnished living spaces and short-term rentals. These initiatives aim to improve tenant protection and curb rising rents in tight housing markets.
Several aspects of the new regulations have drawn particular criticism from landlords. A prominent worry is the planned expansion of grace periods for rent arrears, which 68.5 percent consider a strong or very strong restriction. Haus und Grund noted that this intervention affects the core area of rental income-the enforceability of payment claims-and is thus viewed as structurally relevant.
Concerns also exist regarding the limits placed on index-linked rent increases, which may only be partially considered if the increase exceeds three percent. Twenty-six percent of surveyed landlords anticipate strong or very strong limitations on this area. Haus und Grund explained that index rents are a crucial risk-management tool for many members, and that any restriction directly impacts economic calculations and the ability to cover costs rising due to inflation.
Kai Warnecke, the president of the association, told the “Handelsblatt” that the government’s proposals convey a message that private landlords are to be penalized. He believes this attitude will dampen willingness to invest and build new housing, ultimately harming the supply of affordable residential space.
