Mietrechtsreform: Key Protections Tighten for Furnished and Short-Term Rentals July 1
Germany's landmark rental law reform takes effect July 1, 2026, sharply restricting furnished apartments and short-term leases while capping index rent increases and tightening rules on furnished-room premiums. The changes aim to funnel more housing back to the long-term rental market.
Starting July 1, 2026, German renters and landlords face sweeping new rules under the federal rental law reform (Mietrechtsreform). The changes directly target strategies used to circumvent rent controls in tight housing markets.
Key Changes
- Index rents capped: Rents tied to inflation can now rise by a maximum of 3.5% per year, regardless of actual inflation rates. This prevents landlords from passing through full inflation increases to tenants in tight markets.
- Short-term rentals restricted: Furnished or temporary rentals can now last only up to 6 months (extendable to 8 months if longer stays are needed), rather than indefinite "furnished rental" exemptions. This closes a loophole used to bypass rent controls.
- Furnished room premiums limited: Landlords can charge a monthly premium of no more than 1% of estimated furniture value, capped at 10% of the unfurnished rent for fully furnished units. This prevents exploitative markups.
The Mietpreisbremse (rent brake) remains in effect nationwide through December 31, 2029, limiting initial rents in tight markets to a maximum of 10% above the local reference rent (ortsübliche Vergleichsmiete).
For tenants and expats looking for housing, these protections strengthen your position when renting in competitive cities like Berlin, Munich, and Frankfurt. If you're signing a new lease, check whether your landlord correctly applies the index rent cap (3.5% maximum per year) and verify furnished premiums don't exceed the legal limits. If you're offered a furnished "temporary" rental beyond 6–8 months, it may violate the new rules—consult a tenant union (Mieterbund) if concerned.
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:
