New tenant protection law

About this video

• Video Title: New tenant protection law
• Channel: immocation
• Speakers: Bodo, Martin Groszewski
• Duration: 00:40:28

Overview

This video discusses proposed changes to German rental law, focusing on their implications for landlords and property investors. Speakers Bodo and Martin analyze key areas including new regulations for furniture surcharges, short-term rentals, caps on indexed rent, grace period payments, and the expansion of modernization surcharges.

Key takeaways

• Furniture Surcharges: New regulations aim to standardize and limit surcharges for furnished rentals, capping them at 5% of the base rent unless specific criteria for full furnishing are met. This aims to prevent circumvention of rent control laws.
• Short-Term Rentals: The law clarifies that short-term rentals (up to 6 months) are permissible if initiated by the tenant due to a specific need and not for establishing a permanent residence, offering more legal certainty.
• Indexed Rent Cap: In designated "tense" housing markets, rent increases tied to the consumer price index will be capped at 3.5% per year, addressing concerns about extreme rent hikes during high inflation.
• Grace Period Payment: A tenant can now make a one-time payment of rent arrears after receiving an ordinary termination notice to invalidate that specific termination, providing a safety net for tenants facing temporary financial difficulties.
• Modernization Surcharge: The simplified procedure for passing on modernization costs to tenants will have its cap per apartment increased from €10,000 to €20,000, acknowledging rising construction costs.