At the Federal Council meeting of 14.12.2018, the Tenancy Law Adjustment Act was finally passed. In the future, only 8 percent can be allocated to the tenant each year for the modernisation levy. In addition, the capping limit of 3 euros per square metre must be adhered within 6 years. For apartments with a rental price below 7 euros per square metre, the capping limit is only 2 euros per square metre within 6 years. The modernisation levy applies throughout Germany. When the new regulations will come into force now depends on the announcement in the Federal Law Gazette. If this will happen in December, the regulations already apply from 1st january 2019.