Mietrecht II Reform Targets Furnished Rentals and Short-Term Housing Loopholes
Germany's federal government adopted a draft rental reform (Mietrecht II) in April 2026 to tighten rules on furnished apartments and mid-term rentals, closing gaps in the existing Mietpreisbremse regime. The reform aims to prevent landlords from bypassing rent controls through short-term furnished lettings.
The German Federal Ministry of Justice released the ministerial draft for the "Mietrecht II" reform in April 2026, representing the first major overhaul of rental law protections since the 2015 Mietpreisbremse introduction. The reform directly addresses landlord strategies that circumvent existing rent controls through furnished apartments and flexible short-term contracts.
Core Changes
The draft proposes capping furnishing surcharges at 5% of the net cold rent (Kaltmiete) for properties in tight housing markets, and imposing a rigid 6-month limit on how long a property can be continuously marketed as furnished before it must revert to standard tenancy rules. These measures target the "Zeitwohnen" (flexible housing) market, which has become a common workaround for bypassing Mietpreisbremse restrictions.
The reform also seeks to strengthen protections for tenants in existing leases and improve transparency around what costs landlords can pass through via service charges (Nebenkosten). Additionally, it mandates that rent indices (Mietspiegel) be published every two years in all municipalities, ensuring more consistent legal reference points for tenancy disputes.
For expats and international residents renting furnished apartments on short-term contracts, this reform signals stricter legal clarity about your tenant rights. If you are currently in a furnished arrangement presented as "temporary," understand that this law — if passed — will require conversion to standard tenancy after six months, which would give you stronger protections including adherence to the Mietpreisbremse. Monitor your local tenant union (Mieterbund) for updates on when this draft becomes law.
Sources
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