Introduction
In the summer of 2025, the Federal Ministry of Justice (Bundesjustizministerium) established an expert commission tasked with critically reviewing Germany's complex tenancy law. Representatives of landlord and tenant associations, municipalities, and academia are jointly developing reform proposals. The VDIV Deutschland (German Association of Property Managers) is also represented on behalf of the property management industry. This article examines the background and potential implications.
Mandate of the Commission
The expert commission has been mandated to analyze existing tenancy law for practicability and effectiveness. The focus includes, among others:
The commission is to develop concrete reform proposals that take into account the interests of both tenants and landlords.
Points of Contention and Reform Considerations
Rent Cap (Mietpreisbremse)
The rent cap has been extended until 2029, but its effectiveness remains disputed. Critics point to circumvention possibilities and a lack of sanctions. Under discussion are, among other things:
Index-Linked Rents (Indexmieten)
Index-linked rental agreements, where the rent is tied to the consumer price index, are under criticism. In times of high inflation, they can lead to sharp rent increases. A cap on annual increases is being discussed.
Furnished Apartments
Renting furnished apartments enables higher rents and is not subject to the rent cap. Regulation is under consideration to make circumvention more difficult.
Short-Term Rentals
Platforms like Airbnb have changed the housing market in major cities. Stricter regulations on permit requirements and usage durations are being considered.
Termination for Personal Use (Eigenbedarfskuendigung)
The barriers for termination for personal use could be raised to better protect tenants. At the same time, it must be considered that excessive restrictions on personal use claims can dampen investment willingness.
Perspective of the Property Management Industry
The VDIV Deutschland brings the perspective of professional property management to the commission. Key concerns are:
Practicability
New regulations must be implementable in practice. Excessive bureaucracy burdens all parties involved.
Balance
A functioning rental market requires a fair balance of interests. One-sided burdens on landlords can inhibit investment and reduce the housing supply.
Clarity
Legal uncertainty leads to conflicts. Clear and unambiguous regulations facilitate contract design and reduce disputes.
Digitalization
Tenancy law should enable and promote digital processes. The relaxation of written form requirements through the Bureaucracy Relief Act (Buerokratieentlastungsgesetz) is a step in the right direction.
Outlook
The work of the expert commission will shape tenancy law developments in the coming years. Concrete legislative changes can be expected no earlier than 2026. We will closely monitor developments and keep our clients informed.
Conclusion
The establishment of the tenancy law expert commission demonstrates that the need for reform is recognized. For balanced further development, it is important that all perspectives -- including that of the property management industry -- are heard.
---
*This article is for general information purposes and does not constitute individual legal advice.*
