The 5th Tenancy Law Inflation Relief Act came into force on 1 January 2026. With the new package, the legislator is intervening deeply in the market.
An overview of the most important changes for residential leases that are subject in whole or in part to the Tenancy Law Act (MRG):
INFLATION LIMIT:
If inflation exceeds the 3% mark within two years, only half of the excess may be passed on to tenants. Example: If inflation is 5%, the rent may only be increased by 4% (3% + half of the other 2%) in the future.
VALUE PRESERVATION:
Rent increases to preserve value are only permitted once a year on 1 April. Multiple increases per year are thus ruled out.
MINIMUM TIME LIMIT:
For new or extended leases, a minimum term of five years instead of three years now applies. Only for “real private landlords” will a three-year fixed-term contract remain possible in certain constellations.
RECLAIMS:
In the event of inadmissible or incorrectly applied value retention clauses, tenants will only be able to reclaim money retroactively for a maximum of five years. Reclaims of up to 30 years are thus off the table.
The new rental package significantly changes the rules of the game. Landlords should review existing contracts, adjust value retention clauses and set up new internal processes (index adjustments, fixed-term management, communication) to avoid legal risks from the changed legal situation.