New rights for tenants – we explain what's coming.

The Tenancy Law Reform 2026 is meant to give tenants stronger protection. What will change for you?

The government draft “Tenancy Law II” (Mietrecht II) aims to limit furnishing surcharges, cap index-linked rents and extend the grace-period payment – here are the key points at a glance.

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What does this mean for you?

“Tenancy Law II” (Mietrecht II) is the government draft of a tenancy law reform (Bundestag printed paper BT-Drs. 21/6807) that is still going through the legislative process in October 2026 – the public hearing is scheduled for 14 October 2026. The plans include a disclosure obligation and an upper limit for furnishing surcharges, a cap on index-linked rents in times of high inflation and an extension of the grace-period payment to ordinary terminations. Nothing has been finally adopted yet – but many existing rights, such as rent control (Mietpreisbremse), already apply today.

The key points in brief.

“Tenancy Law II” is not yet applicable law but a draft in the parliamentary process. Even so, it's worth knowing where it's heading – and checking today whether your current rent is lawful.

A draft bill, not applicable law

“Tenancy Law II” is the government draft of a tenancy law reform (BT-Drs. 21/6807) and is still passing through the Bundestag in 2026.

Public hearing on 14 October 2026

After the first reading, the expert hearing is next. Individual provisions may still change afterwards.

Furnishing surcharge to be capped

A disclosure obligation and an upper limit are planned so that furnishing can no longer be used to circumvent rent control.

Already today: reclaim excessive rent

Regardless of the reform, you can already have your rent checked under the rent control rules to see whether it's too high.
Status of the process

How far along is “Tenancy Law II” so far?

A law isn't made overnight. The draft passes through several stages – only at the end is it clear what actually applies. This is what the path looks like (as of October 2026).

1

Cabinet decision (29 April 2026)

The Federal Government adopted the draft in cabinet and sent it into the parliamentary process. [to be verified: exact date of the cabinet decision]

2

First reading in the Bundestag (9 July 2026)

The draft was introduced in plenary and referred to the responsible committees for further deliberation. [to be verified: date of the first reading]

3

Public hearing (14 October 2026)

Experts from academia and from tenant and landlord associations submit their statements. Their input may still lead to changes to the draft.

4

Adoption, Bundesrat, entry into force

After the second and third readings, involvement of the Bundesrat (Federal Council) and promulgation, the law enters into force. Only then is it finally clear for each provision what applies and from when. [to be verified: planned date of entry into force]

What is set to change

Four levers intended to noticeably ease the burden on tenants.

The draft targets the points landlords have liked to use to push through higher rents – from furnishing and index-linked contracts to short-term lets. The aim: fewer loopholes, more transparency.

Important: the following points reflect the government draft. Details, thresholds and wording may still change in the further process. We only state specific percentage or euro limits where they are certain.

Furnishing surcharge: disclosure & upper limit

Landlords would in future have to disclose the share of the rent attributable to the furnishings – and this surcharge is to be capped. That means rent control can no longer simply be circumvented by letting “furnished”.

Index-linked rent: cap in times of high inflation

With index-linked tenancy agreements, the rent is tied to the consumer price index. A limit is planned so that tenants don't have to pay unchecked increases in periods of high inflation. [to be verified: specific level of the cap]

Short-term letting: new statutory presumption

For temporary use (§ 549 BGB, German Civil Code), certain tenant protection rules do not apply. The draft intends to use a statutory presumption to clarify when a let is genuinely only short-term – so that this route doesn't become a permanent loophole.

Grace-period payment also for ordinary termination

Tenants who pay off rent arrears can cure a termination without notice. In future, this grace-period payment (Schonfristzahlung) is also meant to be able to invalidate an ordinary termination for late payment.

The new rules

The planned rules in detail.

This is how the individual building blocks of “Tenancy Law II” are meant to work for tenants. The presentation follows the government draft – in the end, the adopted text of the law is decisive.

1

Furnishing surcharge transparent & limited

The part of the rent attributable to furniture must be itemised and may not exceed an upper limit – making it harder to circumvent rent control.

  • Separate itemisation of furnishings
  • Upper limit for the surcharge
  • Better protection against “sham furnishing”
2

Cap index-linked rent in times of high inflation

The automatic adjustment for inflation is to be given a limit. Tenants with an index-linked contract would be better protected during inflationary periods.

  • Limit on the annual increase
  • Rent control already applies in any case
  • [to be verified: exact level of the cap]
3

Short-term letting more clearly defined

A statutory presumption under § 549 BGB is to define when a let is genuinely only for temporary use – so that landlords can't undermine full tenant protection through short fixed terms.

  • Clearer criteria for “temporary”
  • Less circumvention of tenant protection
  • [to be verified: wording of the statutory presumption]
4

Grace-period payment also effective against ordinary termination

Paying off the arrears is in future meant to invalidate not only a termination without notice but also an ordinary termination for late payment – strong protection in the event of temporary financial difficulties.

  • Extended protection against termination
  • A chance to keep your home
  • [to be verified: deadline for the payment]

New legal consequence for breaches: local comparative rent instead of the maximum rent

If a landlord charges too much, the rent is in future to fall back to the local comparative rent (ortsübliche Vergleichsmiete) – not just to the previous maximum limit. For tenants, this could mean reclaiming even more overpaid rent. [to be verified: exact statutory design]

What applies from when

What applies from when – and what already applies today?

Many tenants ask: “Do I have to wait until the reform comes?” The answer: no. The most important protective rights already apply. The reform builds on them.

Nowalready in force
=Rent control
Rent control (§ 556d BGB, the Mietpreisbremse) applies wherever the federal states have designated a tight housing market – and already allows you to object to excessive rents today.
Latertransition
=Transitional rules
Whether new rules apply only to new contracts or also to existing tenancies is governed by transitional provisions. [to be verified: specific cut-off dates and application rules]

You don't have to wait for the reform.

Regardless of “Tenancy Law II”, you can have your rent checked today. If your rent is above the permissible level, you can tackle it through rent control – and rent control applies to an index-linked tenancy agreement too. If you want to know whether your landlord is circumventing the rent brake through supposed modernisation works, the best thing is to have it checked for free. The sooner you act, the more you can reclaim.

What you can do

What tenants can do now.

Observe, prepare, check: with just a few steps you'll be ready – whatever becomes of the draft.

1

Check your contract

Look at whether you have a furnished, index-linked or fixed-term contract – that's exactly where the reform comes in. Note down your current rent and the size of your flat.

2

Have your rent checked for free

Already checkable today: is your rent above the permissible level? The assessment takes around 2 minutes – with no risk and no contact with your landlord.

3

Decide whether Conny takes action

If there's a realistic chance of success, you can instruct us to reduce your rent. Only then do we approach your landlord – firmly but politely.

Ready to check your rent?

Why Conny

Reform or not – we enforce your rights today.

“Tenancy Law II” is meant to close loopholes we've known for years: furnishing surcharges, index-linked contracts, short fixed terms. These are exactly the tactics we take on for tenants – long before the legislator catches up.

Instead of waiting for a law, we use the law in force: rent control and the existing tenant protection rules. That's how tenants reclaim overpaid rent – with no cost risk.

Specialised in rent control

We've been fighting for fair rents for years and know exactly the points the reform targets – furnishing, index-linked rent, short-term contracts.

No cost risk

The check is free. A success fee only if your rent actually goes down. If we're not successful, you pay nothing.

Digital & straightforward

Everything online, no office visits. We handle the communication with your landlord – you stay in control of every step.

FAQs

Frequently asked questions about the Tenancy Law Reform 2026

What is “Tenancy Law II”?

“Tenancy Law II” (Mietrecht II) is the short name for a government draft to reform tenancy law (BT-Drs. 21/6807). Among other things, it is intended to give tenants better protection regarding furnishing surcharges, index-linked rents, short-term letting and protection against termination. As of October 2026, the draft is still in the legislative process.

Does the Tenancy Law Reform 2026 already apply?

No. The draft has not yet been adopted. After the first reading, the public hearing is due on 14 October 2026, followed by further readings and the involvement of the Bundesrat. Individual provisions may still change during the process. [to be verified: current status of the process and entry into force]

What changes for the furnishing surcharge?

A disclosure obligation and an upper limit are planned: landlords would have to itemise the share of the rent attributable to the furnishings, and this surcharge is to be capped. This is meant to prevent rent control from being circumvented by furnishing a flat.

Will index-linked rent be capped in 2026?

The draft provides for a limit on index-linked rents in times of high inflation so that tenants with an index-linked contract don't pay unchecked increases. Important: rent control already applies to the initial rent under index-linked tenancy agreements today. [to be verified: specific level and design of the cap]

What changes for the grace-period payment?

Until now, paying off the arrears mainly cures a termination without notice for late payment. In future, the grace-period payment is also meant to be able to invalidate an ordinary termination – significantly extended protection in the event of temporary financial difficulties. [to be verified: exact deadline and requirements]

What does “local comparative rent instead of the maximum rent” mean?

The draft provides that, in the event of a breach, the rent falls back to the local comparative rent – rather than only to the previous statutory maximum. For tenants, this could mean that even more overpaid rent can be reclaimed. [to be verified: exact statutory legal consequence]

Do I have to wait for the reform to reduce my rent?

No. Regardless of “Tenancy Law II”, you can already have your rent checked under the rent control rules today. If it's above the permissible level, you can already demand a reduction and reclaim overpaid rent.

What does the check at Conny cost?

The analysis and calculation of your savings potential is free and non-binding. If you instruct us to reduce your rent, we work on a success basis – if we're not successful, you pay nothing. We only contact your landlord once you've instructed us.

Don't wait for the reform – check your rent now.

Free check in 2 minutes. No upfront payment. Your landlord won't hear anything until you instruct us.

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Status: October 2026 · This article reflects the status of the legislative process and does not constitute legal advice. Individual details are still to be confirmed by the editorial/legal team.

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