New German Rent Law Tightens Rules on Index Rents and Furnished Flats
Germany's Bundestag legal affairs committee heard expert testimony on October 14 on the government's new Mietrecht II bill, which would cap annual index-linked rent increases, restrict furnished-flat surcharges, and narrow short-term rental exemptions.
On October 14, 2026, Germany's Bundestag legal affairs committee held public hearings on the federal government's sweeping rent reform bill, known as Mietrecht II. The proposed legislation goes beyond the existing rent brake (Mietpreisbremse) to close loopholes that allow landlords to circumvent price controls.
Key Changes Proposed
The bill targets three major pressure points:
- Index-linked rent caps: When inflation exceeds 3% annually, only half the excess is passed to tenants. This directly addresses the pain point when index-linked contracts (Indexmietverträge) spiked by 7% during inflation surges.
- Furnished-flat surcharges: Furnishing charges must be disclosed before signing and capped at 1% of furniture value, or at a 10% presumption of net rent for fully furnished units.
- Short-term rental closures: "Temporary use" rentals are now permitted only where the tenant has a specific need and for a maximum of six months (extendable to eight), eliminating permanent short-let structures used to evade rent controls.
The bill, adopted by cabinet on April 29 and introduced in the Bundestag on July 9, is still in committee evidence-gathering phase—no second reading date is set. Tenant associations and unions are pushing for even tougher measures; landlord groups want the bill dropped entirely. An October 15 Forsa poll found 89% of tenants in large cities demanding stronger penalties for excessive rents.
For expats: If you are signing a new lease, pay close attention to how your rent is structured—index-linked, furnished surcharges, and short-term clauses all matter now. Once this bill passes (likely 2026–2027), these loopholes will narrow significantly. Check your current lease against the proposed rules to identify whether your rent may be challenged under the new framework.
Sources
Independent app, not a government. General information, not advice. The official source:
