Tenancy reform: hearing scheduled for 14 October

The Bundestag’s legal affairs committee has scheduled a public hearing on tenancy reform for 14 October 2026. According to the announcement published on 8 October, it will consider the government bill alongside several Green and Left Party proposals. The two-hour session starts at 4.30 p.m. Different approaches to regulating residential lettings will therefore appear on the same agenda. The hearing does not constitute adoption of legislation.¹

Government proposals on furnishings and index-linked rents

For furnished homes, the government bill proposes a statutory calculation of the surcharge: generally, a monthly charge of up to one percent of the furnishings’ estimated current value when the contract is signed would be considered reasonable. For fully furnished homes, a surcharge up to ten percent of the unfurnished rent would be presumed reasonable. Landlords would disclose it before signing, without being asked. Lettings for a special temporary need would generally be limited to six months, extendable to eight if a longer need arises after commencement. These remain proposed rules.²

Other provisions concern existing tenancies. As the government previously explained in the Bundesrat, annual index increases above three percent would count only half towards index-linked rent increases in tight housing markets. Full repayment within the grace period would also prevent ordinary termination for arrears on one occasion. For landlords, the cost threshold for calculating modernisation-related rent increases through the simplified procedure would double to €20,000. The government presents this as combining protection against financial overstretch with easier handling of smaller modernisations. The measures thus address different situations during a tenancy.³

Left Party seeks stricter limits on short-term lettings

The Left Party’s motion, also scheduled for consideration, calls for stronger intervention. New index-linked rental contracts would be prohibited. For temporary accommodation, it seeks a three-month maximum and application of standard rent controls. Successive fixed-term contracts could not circumvent that limit. For furnished homes, the surcharge, its calculation and the rent excluding furnishings and operating costs would be disclosed separately. Unlike the government, the party wants to retain the €10,000 modernisation cost threshold under the simplified procedure. These demands are political alternatives, distinct from the government bill.⁴

Greens seek restrictions on termination for owner occupation

A separate Green Party bill addresses termination for owner occupation. The owner’s or specified relatives’ housing need would have to last at least one year rather than arise occasionally. In designated tight housing markets, a five-year restriction on such terminations would follow a change of ownership. Additional protection periods would apply to disputes over breaches of rent controls. The standard initial notice period for owner-occupation terminations in these areas would be six months. The party argues that tenants should be able to enforce rent-related rights without fearing subsequent termination.⁵

The scheduled session brings these different regulatory approaches together. Alongside residential tenancies, the agenda includes commercial tenancy proposals. As of this report’s date, 8 October, no hearing outcomes are yet available.¹