Law amending provisions of the law governing residential tenancy

"The Law amending provisions of the law governing residential tenancy" has been adopted by the German Parliament on 27/01/2025. The bill aims to protect tenants from excessive rent increases and ensure affordable housing, proposing measures such as extending the observation period for rent determination, reducing the cap rate, and increasing transparency in rental agreements. These changes are expected to have a moderate impact on the industry, with some additional costs for landlords but overall minimal effect on public budgets.