The German federal state of Hesse has drafted a law which would prevent landlords from leaving rental properties empty for longer than six months, unless they can provide a valid justification.

Hesse drafts law against vacant rentals

Economics Minister in Hesse Kaweh Mansoori (SPD) has presented a new draft law which would see the federal state prevent landlords from leaving rental properties empty for more than six months.

According to the minister, there are around 13.000 rental properties are currently empty in Frankfurt, Hesse's largest city. This is despite the fact that nationwide, Germany is facing the worst housing shortage in 20 years. 

If the new law were passed, local authorities would be permitted to investigate and potentially fine landlords who are suspected of having left their properties empty for six months or longer. So far, authorities in Frankfurt, Kassel and Wiesbaden have said they would be willing to monitor landlords under the new law.

Exceptions would be in place for landlords who could provide a justification for leaving properties vacant. Accepted reasons could include ongoing renovations or disputes over inheritance and ownership.

Hesse is not the only German state where a housing shortage and vacant housing units being left empty for prolonged periods are simultaneous problems. According to 2022 figures from the Federal Statistical Office (Destatis), there are around two million empty houses in Germany and over 40.000 in Berlin alone.

A law similar to Mansoori’s proposal has already existed in Berlin since 2014, and in 2018 the law's maximum vacancy period was reduced to three months, while authorities raised fines they charged landlords who were found to be in breach of the rules.

Why might landlords decide to leave properties empty in Germany?

If individual landlords and housing companies make money by renting properties, it may seem counterintuitive that they would decide to leave properties vacant for a long time.

Existing law means landlords may have several motivations. First, leaving a property empty may be cheaper than the cost of tenant turnaround or paying for necessary repairs. 

Second, an empty rental property is worth more because if it is sold the new owners can either rent it out or move in without the potential administrative hurdles of evicting the existing tenants from their rented homes. 

Third, in a heated housing market where rents are rising fast, such as in many German cities, landlords may decide to leave a property empty so that it can increase in value before they decide to sell.

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