New Regulations on Furnished Mid-Term Rentals in Germany
UPDATE: Federal Cabinet Approves Government Draft (29 April 2026)
On 29 April 2026, the German Federal Cabinet approved the government draft of the “Act Amending the Law on Residential and Commercial Lease Agreements.” (Mietrecht II). The draft has moved from a ministerial proposal (Referentenentwurf) to a government bill (Regierungsentwurf), which is now being debated in the parliamentary process.
Key provisions of the Cabinet decision:
- Fixed-term furnished rental contracts are capped at six months (extendable to eight months) and are only permitted when the tenant has a “specific personal reason.”
- A flat furnished supplement of ten percent on the net rent applies to fully furnished apartments.
- Rent increases for index-linked contracts are regulated.
Wunderflats considers the planned restrictions on flexible mid-term housing to be factually wrong and legally untenable. Wunderflats will contribute concrete proposals to the parliamentary process and will examine legal steps should this draft become law.
Legal Experts Confirm: Proposed Regulations Violate Constitutional and EU Law
To provide clarity, Wunderflats commissioned a legal opinion from the law firm GSK Stockmann. Led by Prof. Dr. Ulrich Battis, the study reaches a definitive conclusion: The proposed regulations violate both the German Constitution (Grundgesetz) and European law.
Here are the key findings of the legal opinion for you as a landlord:
1. Violation of EU Law (Services Directive)
Furnished housing for temporary use is legally classified as a service under the EU Services Directive.
- Lack of Justification: Interventions such as price caps or time restrictions are only permissible if they are proven to be suitable, necessary, and proportionate. The legal opinion states that the Federal Government has failed to provide this evidence.
- Infringement of Service Freedom: The planned cap on furnishing surcharges constitutes an unlawful maximum price requirement.
2. Disproportionate Interference with Property Rights (Art. 14 GG)
The combination of a capped furniture surcharge and rigid time limits violates the constitutional property rights of landlords.
- Economic Unviability: A cap (e.g. at 5% or 10% of net cold rent) fails to account for actual acquisition costs, maintenance, and the higher vacancy risks associated with mid-term stays.
- Lack of Necessity: There are “milder” ways to protect tenants, such as the transparency requirements already included in the draft (specifically, the separate disclosure of surcharges).
3. The 6-Month Limit is Detached from Reality
The draft intends to limit “temporary use” (§ 549 BGB) to a maximum of six months.
- Ignoring Actual Needs: Many legitimate housing needs, such as those of project consultants, researchers, or international specialists, naturally last longer than six months (often between 9 and 12 months).
- No Impact on Housing Supply: The legal opinion clarifies that such a limit does not create new housing; it merely leads to unnecessary moves and increased bureaucratic overhead.
4. Protection of Quality and Diversity
A rigid price ceiling would remove the economic incentive to provide high-quality, sustainable furniture. This patronizes tenants who specifically seek “move-in ready,” high-standard apartments and would instead lead to a general decline in furnishing quality across the market.
What Does This Mean for You as a Landlord?
For landlords working with Wunderflats, nothing changes for the time being.
- Draft Status: The Federal Cabinet approved the government bill on 29 April 2026. The draft is now in parliamentary procedure.
- Active Advocacy: Wunderflats will contribute concrete proposals to the parliamentary process and is examining legal steps should the bill pass.
- Future Viability: Even if the draft were to be implemented, rentals defined as “temporary use” (Überlassung zum vorübergehenden Gebrauch) would remain exempt from the Rent Brake (Mietpreisbremse), and the requirements for disclosing or capping the furnishing surcharge would not apply.
- For tenancy periods of six or eight months or longer, the rent cap would apply to the rent, and the furnishing surcharge would have to be listed separately, with a maximum of 10 percent of the net rent excluding utilities. Services and flat-rate utility charges would remain unregulated.
Wunderflats’ position and next steps
Wunderflats is actively engaging in the political dialogue and continues to stand for a fair market where all parties operate on equal footing. We support transparency but will continue to fight against hurdles that punish mobility and housing quality in Germany.
A recent study by the research institute Prognos AG reveals: in the past four years alone, over 400,000 people on Wunderflats had a specific need for furnished mid-term housing, around 250,000 of them in professional transition situations, many in shortage occupations.
Depending on the strictness of regulation, only 22 to 29 percent of affected landlords would actually switch to the regular rental market. Meanwhile, three quarters of the affected skilled workers would be forced into expensive alternatives, and one quarter would shorten or cancel their stay entirely. Total economic loss in Germany: up to approximately 720 million EUR per year in foregone value creation.
Jan Hase, CEO of Wunderflats: “Germany needs international talent, but is taking away their last chance of finding a home.”
Access the full documents here (all in German):
Please note: This article does not constitute legal advice. The content on this page has been created exclusively for your information. As a platform, we can share our assessments but cannot provide legally binding recommendations for your individual situation.
Last Updated: May 07, 2026
