2026 Tenancy Law Reform Tightens Rent-Brake Loopholes; Short-Term Rentals Capped
Germany's Mietrecht II reform (passed April 2026, in effect) closes rental market loopholes by capping furnished-rental surcharges, limiting successive short-term leases to 6 months, and capping index-linked rent increases at 3.5% annually in tight housing markets.
On 29 April 2026, the German government passed a significant amendment to tenancy law (Mietrecht II) designed to strengthen tenant protection and prevent landlords from circumventing the rent brake (Mietpreisbremse) through furnished apartments, short-term contracts, and index-linked escalations. The law is now in effect.
Key protections
- Furnished rental surcharges: Landlords must now itemise and justify any furnishing surcharge, accounting for the current value of furniture; unreasonable or excessive surcharges can be challenged
- Short-term lease limits: Successive short-term "temporary use" contracts are now combined and capped at 6 months maximum (8 months in exceptional cases); landlords must document a genuine temporary need
- Index-linked rent caps: In tight housing markets (Mietpreisbremse areas), annual index-linked rent increases are now capped at 3.5% — stricter than the previous rules for regular contracts
- Enforcement: Violations carry fines up to €50,000; tenants can reclaim excess rent for up to 30 months
Practical implications for expats and renters
If you are offered a furnished apartment with a high surcharge, ask for an itemised breakdown and compare it to local furnishing rates — you have grounds to negotiate or refuse unreasonable charges. If your landlord has repeatedly renewed your short-term contract, the new law now protects you: those contracts count as one continuous relationship and trigger permanent-tenancy rights after 6 months. Renters in rent-controlled cities should monitor their index-linked rent increases; 3.5% is now the ceiling even if your lease includes a cost-of-living clause. Expats without a Schufa credit history should note that furnished rentals remain popular workarounds, but landlords must now be transparent about costs.
Sources
MyHAbroad is an independent app and is not affiliated with, endorsed by, or representing any government or public authority. This is general information only — not legal, tax, medical, or financial advice. Always verify with the official source before acting:
