How NRW is stopping exploitation with scrap properties - North Rhine-Westphalia's bold new law targets slumlords and illegal rentals

North Rhine-Westphalia is set to crack down on housing misuse and slum conditions with a new law. The state government has approved the draft Fair Housing Act, targeting exploitative rentals, illegal short-term lets, and welfare fraud. Tougher penalties and stricter oversight are on the way for property owners who break the rules.

The proposed law introduces sweeping changes to tackle housing abuses. Short-term rentals without a permit will face tighter restrictions, with the allowable period cut from 90 days to just 56 nights per year. For the first time, exploitative housing practices—such as overcrowded worker accommodations—will be explicitly banned.

Authorities will gain stronger powers to intervene in problem properties. Tools like trustee administration and expropriation will be available, though expropriation will only apply in extreme cases. Before seizing land, officials must first attempt to buy the property and prove it can be restored for proper residential use.

Local councils will also enforce new rules on lodging quality. Landlords may need to register properties and pass inspections to earn a 'Fair Housing Certification' before renting out rooms. The law will also force better data sharing between agencies to detect welfare fraud linked to housing misuse.

Fines for violations could reach €500,000, with the measures possibly taking effect as early as autumn. The state is even considering a federal push for a 'social welfare right of retention' to stop public funds from supporting criminal landlords.

The Fair Housing Act aims to clean up North Rhine-Westphalia's rental market by closing loopholes and increasing transparency. Stricter inspections, higher fines, and new enforcement tools will put pressure on landlords who exploit tenants or break housing laws. If passed, the law would mark one of the region's strongest efforts yet to combat slum conditions and illegal rentals.