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What Landlords Need to Know About the New Draft of the Federal Rental Reform in Germany

The German Federal Ministry of Justice has released a new ministerial draft for the “Mietrecht II” reform. This proposal aims to tighten regulations on furnished apartments and mid-term rentals.

The key questions facing the industry are:

  • Will the furnishing surcharge be capped at 5% of the net cold rent?
  • Will a rigid 6-month limit for “temporary use” become an insurmountable hurdle?
  • Is mid-term, furnished housing still a legally secure option for landlords?

The Ministry’s draft aims to tighten regulations by requiring surcharges to be disclosed separately and, in many cases, capped. Additionally, it seeks to impose a strict time limit on rentals defined as being for “temporary use”.

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% 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: This is a ministerial draft (Referentenentwurf) that is still at the very beginning of the legislative process.
  • Active Advocacy: Wunderflats is actively engaging in the political dialogue. We presented our official legal opinion at the Federal Press Conference on February 10, 2026, to demand a rational and fact-based debate.
  • Future Viability: Even if the draft were to be implemented by the government as proposed, 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.

Wunderflats 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.

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.

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