The new 2-tier law for property owners

The tightening of tenancy law is intended to make furnished rentals in particular less attractive for longer rental periods. An important area of the housing market is being poorly regulated on flimsy grounds and with unsound expert opinions, contrary to the advice of expert economists.

For prospective tenants who require flexible, furnished rental solutions in the medium-term range (seven months to two years), things are becoming much more difficult. Supply is becoming even scarcer because fewer landlords are willing to invest or continue to rent out their apartments furnished. What may have been a good idea on the part of politicians is very bad, not only for Munich as a location, but also for the companies and institutions that were very happy to have flexible solutions for their employees. Especially for people who are just starting their careers in Munich, finding accommodation will become more expensive and more difficult.

2-tier law for property owners:

The government is attempting to further establish a 2-tier right with its various measures:

On the one hand, landlords who purchase new-build properties from first occupancy after October 1, 2014. Here, the legislator does not provide for any restrictions through a rent freeze, and on the other hand, less well-off property owners with properties first occupied before October 2014 and considerable restrictions under tenancy law.

One could speculate: The purchase of older existing properties for renting out, e.g. for retirement provision, is not desired by the government, or at least they do not want to encourage it.

At the same time, the Federal Minister of Justice's announcement is also fueling mistrust among buyers of new-build properties. High rents are needed to be able to justify the high purchase prices. Property buyers must be able to trust that they will not be further regulated by the government the day after tomorrow.