Germany Updates Rent Protections for Furnished Apartments

The German Federal Ministry of Justice recently introduced the Mietrecht II package, a legislative update designed to close long-standing loopholes in the country's housing market. This draft bill specifically targets the high surcharges often found in furnished rentals and limits how much landlords can increase index-linked rents. Under the new rules, index-linked rent hikes are capped at 3.5% annually, providing much-needed predictability for those on long-term leases.

For the nomad community, the most significant change involves furnished apartments. Landlords in "strained housing markets" like Berlin, Munich, and Hamburg must now limit furnished surcharges to 5% of the net cold rent. Additionally, they are required to transparently disclose and justify these costs based on the furniture's current value. If they fail to provide this breakdown, the apartment is legally treated as unfurnished, making it subject to standard rent control limits.

Who it affects

These changes primarily impact expats and digital nomads who rely on the mid-term furnished rental market.

• Medium-term renters: Those on leases of six months or longer gain full protection under the national rent brake.
• Short-term travelers: If you are staying for less than six months for a specific reason, like a temporary work project or a short study course, you are less affected, though "chaining" short-term leases to bypass regulations is now restricted.
• Urban dwellers: The rules apply in areas designated by federal states as having tight housing markets, where most nomads tend to congregate.

What to do

If you are planning a move or currently renting in Germany, keep these practical steps in mind:

• Request a breakdown: Ask your landlord for an itemized list of the furnished surcharge. They must prove the reasonableness of the fee based on depreciated furniture value.
• Check your lease type: Ensure your contract specifies the reason for any "temporary" status. Short-term leases now require a tenant-specific justification to remain outside standard protections.
• Monitor index adjustments: If your rent is index-linked, verify that any increases post-ordinance do not exceed the 3.5% cap.

You can challenge unfair surcharges through local courts or tenant associations, which can often lead to rent repayments if the landlord is found in violation. Stay informed on the latest nomad news to see when these provisions move from draft to final enforcement.

Read our full Germany guide for the complete picture.