"Works just fine" not actually. That's one of the reasons you see a lot of places going into airbnb (where they get paid more).
I'll give you it works better than some other places because the rights are balanced.
But 3 month termination notices are just an anachronism. German "bureaucracy" still think contracts are forever when they're getting shorter with time.
Yes, I'm giving you the 3 months notice when you could terminate the lease, let's say, with 1 month then have a queue of 10 people ready to rent it again (were you not petty)