October 15, 2026, 10:07 am | Read time: 3 minutes
New year, new changes in the law. Renters, in particular, should pay attention now and carefully review the adjusted deadlines and subsidies coming their way. myHOMEBOOK compiles the most important changes for renters in 2027 and explains what you should specifically watch out for.
Announced for 2027 is a so-called rental law reform “Rent II,” which includes several changes affecting more than 1.3 million people. Housing benefits are also impacted by the reforms. Although not all changes have been finalized, renters should know what plans are in store for the coming year.
Follow myHOMEBOOK on WhatsApp now
Is a Reduction in Housing Benefits Coming?
For 2027, a reduction in housing benefits is planned. This change affects more than 1.3 million people who currently receive an average of nearly 300 euros per month. Those who already have a notice of approved housing benefits need not worry until the end of the approved period.
On July 6, 2026, the federal cabinet presented a draft proposing that housing benefits be reduced starting January 1, 2027. Originally, an increase was planned, but that has now been scrapped. The biggest cut in housing benefits will be in heating costs. The subsidy for this will be significantly reduced, so that single individuals will receive only 48 euros instead of 96 euros monthly.
This change alone affects more than 500,000 single retirees in Germany who receive housing benefits.
The draft was first discussed on October 8, but it has not yet been finalized by the Bundestag.
By the way: The new calculation does not necessarily mean that 48 euros will be missing directly. Instead, the total entitlement to housing benefits will be recalculated. Accordingly, income and rent will determine the approved amount.
Also interesting: How do you actually apply for housing benefits?
Lower Heating Costs from 2027
While the new regulations on housing benefits have not yet been finalized, something else has already been established: By December 31, 2026, heating cost allocators, as well as heat and hot water meters, must be readable by radio. If landlords have not yet upgraded, tenants are allowed, according to § 12 of the Heating Costs Ordinance, to reduce their share of heating and hot water costs by three percent.
This means: If the landlord has not upgraded, this regulation applies for the billing year 2027. You will receive the billing for this in 2028.
KfW heating subsidy from September! Who can apply for the subsidy
Tenants Can Reclaim Certain Costs from Landlords for the First Time
What Else Is Set to Change?
- Rental Debts: Tenants with payment arrears who pay them off in full during the grace period will have a one-time opportunity in the rental relationship to avert an extraordinary termination. Previously, this only applied to immediate terminations.
- Furnished Rentals: For those who want to rent a furnished accommodation, it will be required in the future that the surcharge for the furniture is disclosed in the contract before signing. At the same time, landlords will be allowed to pass on up to 20,000 euros in modernization costs per apartment.
What Renters Should Do Now
For those who still want to apply for housing benefits, it is advisable to submit the application promptly. Housing benefits are approved from the period the application is received by the office. Therefore, you cannot apply retroactively after a possible decision, which means you may have to expect fewer subsidies.