Germany Tightens Tenant Protections with Major Mietrecht II Reforms
Federal government passes sweeping tenant law changes in April 2026, capping furnished-apartment surcharges, limiting short-term leases, and protecting rent payers from eviction. The reforms move to Bundestag in July, signaling stronger enforcement ahead.
On April 29, 2026, the German government passed the Mietrecht II (Tenancy Law Package II), a major overhaul of social tenancy law aimed at closing rent-control loopholes and strengthening tenant protections. The bill entered its first Bundestag reading in July 2026.
Key changes affect renters directly:
- Furnished apartments: Landlords must now itemize and cap furnishing surcharges at roughly 10% of net cold rent (5% for furnished rooms). Furniture must reflect current market value; items beyond a reasonable lifespan are excluded.
- Short-term contracts: Successive fixed-term leases are automatically combined; landlords must justify any temporary lease as a genuine business need (e.g., job relocation). Contracts capped at six months in tight markets.
- Index-linked rent increases: In designated tight housing markets, annual CPI-linked increases are limited to a maximum of 3.5% per year—well below inflation in recent years.
- Rent arrears protection: Tenants who settle overdue rent within a grace period are protected from both emergency and ordinary termination (once per tenancy).
- Modernization threshold: The simplified procedure threshold for renovation-related rent increases rises from €10,000 to €20,000, reducing the number of hikes landlords can justify without full tenant consent.
The government is also working on stricter penalties for violations—up to €50,000 in fines for knowingly charging excess rent or misclassifying furnished units.
If you are a renter in a major German city (Berlin, Munich, Hamburg, Frankfurt, etc.), these reforms directly protect you. If you're signing a new lease or renewing a contract in 2026 or later, check that any furnishing surcharge is itemized separately on your Mietvertrag (lease). If your landlord pushes through repeated short-term contracts to evade tenant protections, document these and contact your local Mieterbund (tenants' association) or Mietrechtsschutz (tenant legal insurance) for support.
Sources
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