The draft bill "Tenancy Law II", after its first reading in the German Bundestag on 9 July 2026, is now under review by the relevant committees, primarily led by the Committee for Legal Affairs and Consumer Protection. The German Micro-Living Association (BML) appeals to the members of parliament to use this phase for substantial adjustments. The association expresses concerns that the proposed regulations regarding short-term rentals, furnishing surcharges, and index-linked rents could jeopardise the professionalism of the micro-living segment and lead to a reduction in urgently needed housing for students, trainees, and skilled workers.
Michael Vogt, the chairman of the BML, emphasised the necessity for the committee deliberations to go beyond mere cosmetic corrections. He pointed out that the members of parliament have the opportunity to develop a practicable law from the draft. Vogt argued that a blanket assumption of circumvention intentions in flexible housing forms not only affects cases of abuse but primarily also reputable providers who supply essential housing in strained markets.
A core demand of the BML is the explicit recognition of micro-living as an independent asset class, which must be clearly distinguished from abusive rental models. Professionally managed offerings such as student and business apartments thus fulfil a specific function in the housing market by providing furnished accommodation for temporary phases of life, education, or work. The association particularly criticises the limitation on rental duration for temporary use to generally six months, with a possible extension to a maximum of eight months, as stipulated in the government draft. This regulation, it argues, ignores reality.
The BML proposes instead a regular duration of up to twelve months, with an option for extension to up to 36 months. For accommodation rented to students or trainees, the association believes that a rigid time limit should be waived. Vogt noted that university courses, apprenticeships, or projects do not end after 180 days. A forced search for new accommodation after a short period deprives those affected of planning security and compels them to move at inconvenient times.
The BML also calls for improvements regarding the furnishing surcharge. The draft bill provides for a monthly surcharge of no more than one percent of the estimated current value of the furnishings, whereby for fully equipped accommodation, a surcharge of up to ten percent of the net cold rent is to be considered appropriate. The association deems linking this to the cold rent as inappropriate, as furnishings are acquired at specific purchase costs. It demands that the acquisition value be recognised as the assessment basis, with an annual surcharge of up to 20 percent of the acquisition value being deemed appropriate. This would account for the above-average wear and tear in professionally operated micro-living properties, where annual fluctuation is 40 to 50 percent. Vogt stressed that furnishings are acquired with real Euro amounts, not based on a percentage of the cold rent, and an inadequately calculated surcharge makes furnished rentals uneconomical.
Furthermore, the BML sees a need for correction regarding the planned limitation of index-linked rent increases in strained housing markets. The draft stipulates that if the consumer price index increases by more than three percent within one year, only half of the excess amount will be taken into account. While the association accepts the goal of protecting tenants from abrupt burdens during periods of high inflation, it warns that rents would be permanently decoupled from actual cost developments. The BML demands a legal possibility to catch up on unconsidered index increases in later years. Otherwise, inflation and cost risks would be unilaterally shifted to owners and operators, which would complicate the financing of new projects and weaken investment willingness in an already undersupplied housing market.
The German Micro-Living Association concludes by warning against passing the draft bill unchanged or with only marginal adjustments. The combination of short contract durations, insufficient furnishing surcharges, and interventions in index-linked rental agreements creates additional uncertainty for investors and operators. This would particularly affect those housing forms that contribute to relieving conventional housing markets and are tailored to the needs of a mobile society.
