Overview
- Justice Minister Stefanie Hubig said she expects the reform to pass this year, adding that completion before the summer recess is possible.
- The draft would require landlords in tight markets to itemize any furnishing surcharge and cap it at 5% of the net cold rent, with undisclosed surcharges treated as invalid.
- The proposal would restrict the short‑term lease exemption to contracts of up to six months only for tenant‑justified cases and cap index‑rent increases at 3.5% in high‑inflation periods.
- It would allow tenants to avert an ordinary termination once by fully repaying arrears within a short window, while doubling the simplified modernisation threshold to €20,000 per flat.
- The text is out for comment through March 6, with tenant groups broadly supportive and the CDU/CSU and Haus & Grund urging changes over burdens and investment concerns.