According to a report by the ARD capital studio, Federal Justice Minister Stefanie Hubig (SPD) has specified her plans for a reform of tenancy law with stricter rules for the rental of furnished apartments and short-term rental agreements. A first draft bill for a corresponding change in the law should be sent to relevant associations this Sunday so that they can comment.
As the ARD capital studio reports, according to the draft, landlords in tight housing markets will in future have to disclose, without being asked, what surcharge they charge for furniture. This should be done before a rental commitment is made. If this information is not provided, according to the draft, tenants should only have to pay the rent that would be permissible without furniture.
The furniture surcharge must therefore be “appropriate” and based on the purchase price and the degree of wear and tear of the furnishings. The Ministry of Justice stipulates a flat rate of five percent of the net rent for fully furnished apartments.
Make short-term rentals more difficult
According to the plans, fixed-term rental contracts will only be exempt from the rent cap if they are concluded for a maximum of six months. The prerequisite for a fixed-term contract should also be a special reason on the part of the tenant, such as professional circumstances.
Make index rents unattractive
Another suggestion concerns so-called index rents, which are based on the inflation rate. According to the draft, in phases of strong price increases the rent will be allowed to be increased by a maximum of 3.5 percent in the future.
If landlords currently sign an index rental agreement, they can adjust the rent based on the increased cost of living. You forego the opportunity to increase the rent based on a changed rent index or comparable apartments.
Making terminations more difficult
According to the ministry, in the future it will be possible to avoid a one-off termination in the event of late payment, provided that the outstanding rent is paid in full.
In the coalition agreement, the CDU, CSU and SPD agreed: “In tight housing markets, index rents for residential rentals, furnished and short-term rentals will be subject to expanded regulation.” Hubig announced new rules on these areas in December.
It is not clear from the ARD report whether, in addition to the planned new regulations on furniture surcharges, those for fixed-term and index rents should also be limited to tight housing markets, or whether they should apply everywhere. The federal states can identify tense housing markets in order to enable measures such as rent controls.
