Germany has introduced new regulations to strengthen tenant protection amid rising housing costs. The law limits annual index-linked rent increases: rises exceeding three percent will only be counted at half the amount, reducing overall rent escalation. It also sets a clear maximum period for short‑term lease agreements, ensuring they are the only contracts exempt from the rent‑capping rule. For furnished rentals, the surcharge for furniture must be listed separately and capped at ten percent of the net cold rent, considered reasonable by time value. Additionally, the notice period for evictions due to arrears is extended, allowing a single chance to reverse a termination if arrears are paid. The changes aim to curb rapid rent growth and clarify ambiguous provisions in social tenancy law.
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