For personal use

Personal Need - Personal need exists when a landlord requires a rented apartment for themselves, for family members, or for members of their household. According to Section 573(2)(2) of the German Civil Code (BGB), personal need is a legally recognized ground for termination that entitles the landlord to terminate the lease in accordance with the statutory notice periods.

Requirements for a Valid Termination for Personal Use

A termination for personal use must meet several requirements to be valid. In the notice of termination, the landlord must name the person for whom the apartment is needed and state the reasons why this particular apartment is required. General phrases such as “due to personal use” are not sufficient.

The group of eligible persons includes the landlord themselves, their parents, children, grandchildren, siblings, nieces, and nephews, as well as their spouse or partner and their close family members. Caregivers who are to be taken into the landlord’s household may also constitute a need for personal use.

The need must be specific and verifiable. The Federal Court of Justice (BGH) requires a serious, reasonable, and verifiable interest in using the apartment. In doing so, the court does not examine whether the landlord actually “needs” the apartment, but only whether his desire to use it is plausible and not merely a pretext. A falsified personal need makes the landlord liable for damages.

Notice Periods and Right to Object

For termination for personal use, the landlord’s graded notice periods apply: three months for a lease term of up to five years, six months for five to eight years, and nine months for a lease term of more than eight years. The notice of termination must be in writing and must be received by the tenant no later than the third business day of the month.

The tenant may object to the termination pursuant to § 574 BGB if moving out would constitute an unreasonable hardship for the tenant, their family, or their household members. Typical grounds for hardship include advanced age, serious illness, pregnancy, or the inability to find suitable replacement housing. The court then weighs the interests of both parties.

Waiting Period When Purchasing a Rented Apartment

A special case of particular importance to buyers: Anyone who purchases an already rented apartment and subsequently wishes to use it themselves is bound by a statutory waiting period. According to Section 577a of the German Civil Code (BGB), in the case of an apartment that is converted into a condominium after purchase or sold as such for the first time, the new owner may terminate the lease for personal use no earlier than three years after the transfer of ownership. In areas with a tight housing market-which includes Nuremberg-the Bavarian State Government may extend the waiting period to up to ten years. Prospective buyers who wish to purchase a rented apartment for their own use must absolutely factor these waiting periods into their planning.

Practical Tip for Landlords in Nuremberg and Franconia

In the Nuremberg metropolitan region, the housing situation in central neighborhoods is tight, which can make it difficult to enforce termination for personal use in court-since tenants’ hardship claims carry greater weight when replacement housing is scarce. We recommend that landlords thoroughly document their personal need and have the termination reviewed by an attorney before serving it. Document all relevant circumstances in writing: Why is this specific apartment needed? Why are other alternatives unsuitable? Which other apartments in the building are not available? Incomplete justification often renders the termination invalid. The waiting period is particularly important: If you purchase a rented apartment and then terminate the lease for personal use, a waiting period generally applies in Nuremberg, which must be clarified with a lawyer.

Frequently Asked Questions

Can a landlord claim personal use for a second home?

Yes, the Federal Court of Justice (BGH) has ruled that personal use can also be claimed for a second home or vacation home, provided the desire to use it is genuine and reasonable (BGH, ruling of September 23, 2015, VIII ZR 297/14). The court examines the proportionality particularly closely if the landlord only wishes to use the apartment occasionally-a work-related second residence in another city has a stronger case than a vacation home in a resort town. In any case, the landlord must explain why this particular apartment, and not another, is suitable for the purpose.

What happens in cases of feigned personal use?

If the landlord does not move in personally after giving notice or does not use the apartment as announced, the tenant may claim compensation-for example, for moving expenses, higher rent in the new apartment, and other costs incurred due to the forced move. The burden of proof for actual personal use lies with the landlord. We strongly recommend that landlords actually move in and remain in the apartment for at least two to three years-moving out shortly after the notice of termination is considered strong evidence of a false claim of personal use.

Does personal use also apply to a limited liability company (GmbH) as a landlord?

A GmbH cannot assert personal use, as it is a legal entity and therefore has no personal residential needs. In the case of a GbR, individual partners may claim personal use, although the Federal Court of Justice (BGH) applies strict standards to the demonstration of such need-in particular, the partner for whom the need is claimed must hold a stake in the GbR that justifies personal use. Anyone who holds a rented property through a company and intends to use it for personal purposes should have the ownership structure reviewed by a lawyer at an early stage.

Can personal use be claimed for a study or a home office?

The Federal Court of Justice (BGH) has clarified in several rulings that personal use can be claimed not only for residential purposes but also for professional use-for example, if the landlord needs the apartment for an office, a practice, or a studio. The prerequisite is that the request for use is specific and genuine and does not appear to be a pretext. The more unusual the claimed need (e.g., a home office instead of residential use), the more carefully courts will examine its plausibility. In tight housing markets such as Nuremberg, the requirements for demonstrating personal need tend to be higher, as the loss of living space carries particularly heavy weight in court.

Alternatives to Termination for Personal Use

Before a termination for personal use is issued, it is worth exploring alternatives. A mutual termination agreement-with a financial settlement for the tenant-is often faster, less contentious, and more legally secure than a litigated termination process. Especially in Nuremberg, where courts take hardship objections seriously and proceedings can last several years, reaching an agreement can be more cost-effective. In practice, the settlement amount is based on moving costs, the difference between the current rent and the market rate for a new lease, and the length of the tenancy. In downtown Nuremberg locations, where market rent is significantly higher than the existing rent, a generous one-time payment can be advantageous for both parties: the landlord moves in, and the tenant finds-with financial support-a new apartment. We advise owners in such situations and help develop fair and legally sound solutions.

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