Tenancy Law Reform 2026: What Is Planned, What Applies Now
Not law yet: where the process stands
None of the planned tenancy-law reform applies yet. It is a government bill, the "Entwurf eines Gesetzes zur Änderung des Rechts der Wohn- und Geschäftsraummiete" (BT-Drs. 21/6807).
The timeline so far:
- 29.04.2026: adopted by the federal cabinet
- 12.06.2026: opinion of the Bundesrat
- 09.07.2026: first reading in the Bundestag, referred to the Legal Affairs Committee (Rechtsausschuss)
- 14.10.2026: public hearing in the Legal Affairs Committee
The Bundestag and the Bundesrat would still have to conclude their deliberations before the law could be promulgated. Amendments are quite possible. All figures below come from the bill and may change.
Index rent: a brake during high inflation
Today: With an index rent (Indexmiete), the rent follows the consumer price index in full (Section 557b BGB). The rent must stay unchanged for at least one year at a time. The Mietpreisbremse only applies to the initial rent (Section 557b(4) BGB).
Planned (new Section 557b(4) BGB): If the index rises by more than 3 percent within one year, half of the portion above 3 percent would not count. Example from the bill's explanatory notes: with 5 percent inflation, the rent could rise by only 4 percent. It would only apply in areas designated by state ordinance, for up to five years at a time.
Furnished flats: a cap and a duty to disclose
Today: In designated areas, the Mietpreisbremse also covers furnished flats, but the law sets no limit for the furnishing surcharge, and it need not be shown separately in the lease.
Planned (Section 556d(1a), Section 556g(1b) BGB):
- A monthly surcharge of no more than 1 percent of the estimated current value of the furniture at the time of signing would be considered appropriate.
- For fully furnished flats, a surcharge of up to 10 percent of the rent for the unfurnished flat would be presumed appropriate.
- The landlord would have to state the surcharge before you sign, without being asked. Otherwise, the flat would count as unfurnished for the Mietpreisbremse until two years after the information is provided.
Temporary lettings: a fixed maximum period
Today: Housing let "only for temporary use" is exempt from the Mietpreisbremse and from protection against termination (Section 549(2) No. 1 BGB). There is no fixed time limit.
Planned: The exemption would only apply if the flat is rented for a special temporary need for up to six months. If a longer need arises later, an extension to eight months in total would be possible. It would only apply to leases signed after entry into force.
Rent arrears: grace period for ordinary notice too
Today: A termination without notice (fristlose Kündigung) for arrears can become invalid if the arrears are paid in full no later than two months after the eviction claim has been served, or if a public body commits to paying them (Section 569(3) No. 2 BGB). This does not apply to the ordinary notice often given at the same time; it may remain valid despite payment.
Planned (new Section 573(4) BGB): Paying within the grace period could also invalidate an ordinary notice based on arrears of rent or deposit. This would be possible only once per tenancy. A notice also based on other sufficient grounds, such as persistently late payment, would remain valid. It would only cover breaches after entry into force.
Modernisation: simplified procedure up to 20,000 EUR
Today: If modernisation costs do not exceed 10,000 EUR per flat, the landlord may calculate the rent increase using a simplified procedure (Section 559c BGB). A flat 30 percent is deducted for maintenance. In this procedure, tenants generally cannot raise the hardship objection under Section 559(4) BGB.
Planned: The threshold would rise to 20,000 EUR. The procedure, which offers tenants less protection, could then cover more modernisations.
Overview: planned / today
| Topic | Planned (bill) | Today |
|---|---|---|
| Index rent | Above 3 % a year only half counts, only in areas designated by ordinance | Full adjustment to the index |
| Furnishing surcharge | Max. 1 % of current value per month, duty to disclose | No statutory cap, no duty to show it |
| Temporary lettings | Up to 6 months, extension up to 8 months | No fixed maximum period |
| Grace period | Also for ordinary notice, once per tenancy | Only for termination without notice |
| Section 559c BGB | Up to 20,000 EUR | Up to 10,000 EUR |
When would this apply?
Under the bill, the rules on temporary lettings and furnished flats would apply from the first day of the fourth month after promulgation, the rest from the day after promulgation. No date is set; until then, only current law applies.
What you can do now
- Index rent: Check every increase under current law: it must be in text form, state the index change and the new amount, and only becomes payable from the start of the month after next. The planned 3 percent limit does not apply yet.
- Furnished flat: The Mietpreisbremse may already apply today. You can ask the landlord for the facts that determine the permissible rent (Section 556g(3) BGB) and send a formal complaint (Rüge) if the rent is too high. More in our article on the Mietpreisbremse.
- Notice for rent arrears: Under current law, an ordinary notice may remain valid even if you pay the arrears. Seek advice early from a tenants' association (Mieterverein) or a lawyer.
- Modernisation notice: The 10,000 EUR threshold still applies.
This article is general information and not legal advice. Status: 07.10.2026. Whether and in what form the reform will be passed is open.