German cabinet approves tenancy reform affecting 5.5 million landlords

Germany’s cabinet has approved a draft tenancy law that will impose stricter rent controls on roughly 5.5 million private landlords. Bundesjustizministerin (Federal Justice Minister) Stefanie Hubig presented the Mietrecht reform in February, and the government adopted the draft in August.

Scope of the changes

The draft introduces tighter rent-control measures and new tenant-protection rules, according to Handelsblatt. It applies to the country’s approximately 5.5 million private landlords.

Industry criticism

Kai Warnecke, president of the property-owners’ association Haus & Grund, told Handelsblatt the proposals represent a “vote of no confidence” in millions of private landlords and a further attack on the functioning of the rental housing market.