The proposed legislation introduces stricter regulations for landlords, capping rent increases tied to consumer price developments. It also seeks to prevent circumvention of rent control measures through short-term rentals and furnished apartments. Additionally, the bill extends the duration for tenants to make ‘grace period payments’ to avoid eviction, allowing them to settle overdue rent within two months of receiving an eviction notice. While the German Tenants’ Association welcomed the initiative, it criticized the limitation of the grace period to a single instance.