Overview
- Justice Minister Stefanie Hubig has circulated a bill capping annual increases on index-linked rents at 3.5%, applying to new and existing contracts in areas defined as strained housing markets.
- Short-term rental contracts would be limited to six months, after which units fall under the rent brake that applies in designated areas.
- For furnished lettings, contracts must separate base rent from a furniture surcharge, with a flat 5% of the net base rent allowed for fully furnished homes.
- Tenant protections would expand by letting arrears repayment void not only summary but also parallel ordinary terminations, and landlords could use a simplified procedure to pass through modernization costs up to €20,000.
- Reactions are mixed: tenant groups and unions welcome the push but call 3.5% too high and seek tighter curbs, while Haus & Grund condemns the cap and the Left demands a ban on index leases; the package is targeted to take effect by early 2027.