World

Germany caps furnished-home rent surcharges at 10% in tight housing markets

Herz — World Desk · 31 July 2026 at 15:55 · 30s summary · 3 min read

The essentials

Germany’s cabinet has adopted a rental-law reform first presented by Federal Justice Minister Stefanie Hubig (SPD) in February 2026. In tight housing markets, surcharges for furnished homes will be capped at 10% of the net rent excluding service charges. That means a maximum of €60 a month on a reference rent of €600, compared with surcharges of up to €180 previously collected. Landlords must disclose the surcharge before a lease is accepted or receive only the permitted unfurnished rent. The reform affects about 5.5 million private landlords, but its exact commencement date remains unspecified.

Furnished-home surcharge capped at 10% of net rent in tight housing markets
Landlords must disclose the surcharge before the lease is accepted
Failure to disclose means only the permitted unfurnished rent is payable
About 5.5 million private landlords are affected
More than 30% of big-city listings were furnished or temporary in late 2024

What is known

Germany’s Federal Justice Minister Stefanie Hubig (SPD) presented the rental-law reform in February 2026, and the cabinet has since adopted it, according to Handelsblatt. The measure affects about 5.5 million private landlords in Germany.

In tight housing markets, where demand for rental homes is high, landlords will have to disclose the surcharge for furnished accommodation before a lease is accepted. If they fail to do so, the tenant will owe only the rent permitted for an unfurnished home.

The surcharge will be capped at 10% of the net rent excluding service charges, rather than the 5% proposed in the initial draft. On a reference rent of €600, the maximum will be €60 a month. Landlords had previously collected as much as €180 a month for the same surcharge.

The calculation method will also be regulated. The surcharge may be based only on the furniture’s purchase value and level of wear, with a ceiling of 1% per month of the current value of all equipment provided.

Retrospective disclosure and eviction protection

Landlords who have not yet disclosed a furnished-home surcharge will be allowed to do so retrospectively. However, the home will then be treated as unfurnished for two years from the date of that disclosure.

When an ordinary termination is issued over rent arrears, the tenant or a public authority may neutralise it by paying all arrears within two months after notice of the eviction claim. This protection applies only if no comparable grace payment has been made during the previous two years.