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Market analysis··2 min read

Zeitwohnwerk urges adjustment to tenancy law reform

Zeitwohnwerk warns of unintended consequences of the planned tenancy law reform for tenants of furnished temporary accommodation and calls for an extension of the proposed rental period limitation.

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Zeitwohnwerk urges adjustment to tenancy law reform. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The Zeitwohnwerk network appeals to the members of the Legal Affairs and Consumer Protection Committee of the German Bundestag to better consider the living realities of individuals who temporarily rely on furnished accommodation. The organisation expresses concerns regarding the potential impact of the planned tenancy law reform and calls for an adjustment to the proposed time limit for temporary lettings.

The current draft bill stipulates that temporary lettings should be limited to six months, with the possibility of a one-off extension of up to two months. Zeitwohnwerk considers this period insufficient. Instead, it calls for a regulation that allows for an extension of up to six months, in order to accommodate the complex life situations of many tenants.

Rationale for the demand

Norbert Verbücheln, Managing Director of Zeitwohnwerk, explains that the network's more than 30 years of experience show that the planned '6+2 rule' falls short. The majority of lettings in this segment focus on rental periods between six and twelve months. He cites examples such as the duration of professional projects, which can extend over ten months, or delays in house construction. Even after a separation, planning a permanent living situation is not feasible within a severely limited timeframe. For such transitional phases, sufficient flexibility is required, which a '6- to 12-month rule' could reflect much more realistically.

The companies united within Zeitwohnwerk observe that private furnished temporary accommodation is urgently needed by various groups of people. These include employees undertaking professional changes or fixed-term projects, as well as skilled workers and executives at new workplaces. Individuals in private transitional situations also belong to this group. Unfurnished flats often do not represent an immediate alternative for these tenants, as purchasing furniture and household goods for just a few months would be inefficient. At the same time, very expensive furnished hotel or serviced apartments are financially unfeasible for most tenants.

Sara Basad, also Managing Director of Zeitwohnwerk, points out that the tenancy law reform is primarily intended to protect tenants. However, an overly rigid time limit could have counterproductive effects for individuals with a demonstrably temporary housing need and exacerbate the situation.

Implications for skilled worker mobility and economic hubs

Zeitwohnwerk also sees potential negative impacts of the proposed regulation on employee mobility. Flexible housing options are an essential factor that facilitates a temporary move for skilled workers and executives to another workplace, without the need to immediately establish a permanent household there. This is particularly relevant for project work, probationary periods, transfers, and other professional transitional phases. For these constellations, a broader legal framework for temporary accommodation is indispensable.

  • Zeitwohnwerk calls for an adjustment to the planned regulation, whereby a letting for special temporary needs should initially be possible for up to six months, and
  • be extendable to a total of up to twelve months if a longer need arises after the start of the tenancy.

Zeitwohnwerk includes companies from major economic centres such as Düsseldorf, Duisburg, Frankfurt, Hamburg, Hanover, Cologne/Bonn, Munich, Nuremberg/Erlangen and Stuttgart. Some member companies have over 30 years of experience in the field of furnished temporary accommodation, which underpins the network's expertise in this specific market segment.

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