Termination for personal use

Termination for Personal Use - Termination for personal use is the termination of a residential lease by the landlord on the grounds that the apartment is needed for the landlord’s own use, for family members, or for members of the landlord’s household. It is governed by Section 573(2)(2) of the German Civil Code (BGB) and is the most common reason for ordinary termination by a landlord in Germany.

What exactly does termination for personal use mean?

Termination for personal use requires that the landlord have a legitimate interest in terminating the tenancy because they need the apartment for their own residential use or for the use of certain close relatives. The group of eligible persons includes, in addition to the landlord themselves, their spouse or partner, children, parents, siblings, grandchildren, grandparents, and persons who are part of the landlord’s household.

The termination must be in writing and contain a clear and reasonable justification. The landlord must specifically state for which person the apartment is needed and the reasons for this need. A mere declaration of intent without concrete circumstances is not sufficient. The Federal Court of Justice has clarified in its case law that the courts must review the claimed personal need for plausibility, but are not authorized to question the landlord’s life plans as such.

The statutory notice periods depend on the duration of the tenancy. For a tenancy of up to five years, the notice period is three months; for a tenancy of five to eight years, six months; and for a tenancy of more than eight years, nine months. The notice of termination must be received no later than the third business day of a calendar month so that the notice period begins to run from that month.

A special protective provision applies when rental units are converted into condominiums. Under Section 577a of the German Civil Code (BGB), the new owner may assert personal need at the earliest after the expiration of a waiting period. The standard waiting period is three years; in areas with a tight housing market, it may be extended by state ordinance to up to ten years. This waiting period begins with the transfer of ownership to the purchaser.

Falsely claimed personal use-if the landlord merely uses the need as a pretext, for example, to re-rent the property at a higher rate-makes the landlord liable for damages. The tenant may demand compensation for moving expenses, real estate agent fees, and the difference in rent compared to the new apartment.

Hardship Clause and the Tenant’s Right to Object

Even in the case of a formally correct termination for personal use, the tenant may, pursuant to § 574 BGB, file an objection and demand the continuation of the tenancy if the termination would constitute an unreasonable hardship for the tenant or their family members. Recognized grounds for hardship include, among others, advanced age, serious illness, pregnancy, upcoming exams for students, or deep roots in the social environment. The inability to find suitable replacement housing under reasonable conditions may also constitute a hardship case.

The objection must be received by the landlord in writing no later than two months before the end of the notice period. The court will then weigh the interests of both parties against each other. As a result, the tenancy may be continued for a fixed or indefinite period-under certain circumstances, even under modified terms.

Practical Tip for Property Owners in Nuremberg and Franconia

In the Nuremberg metropolitan region, the housing market remains tight in central locations such as St. Johannis, Gostenhof, or the Old Town. Landlords who wish to assert personal use should be aware that the Bavarian Tenant Protection Ordinance provides for an extended ten-year waiting period in Nuremberg for converted condominiums. In some surrounding municipalities, shorter periods apply-an individual review is therefore essential.

Our network of experts recommends that landlords carefully document their personal use and prepare the notice of termination well in advance with legal assistance. Errors in the justification or in calculating the notice period can render the termination invalid, requiring the process to start over. At the same time, we advise tenants not to accept a termination for personal use without review, but to have the justification and compliance with formalities checked by legal counsel.

Frequently Asked Questions

Can a landlord claim personal use for a vacation home?

According to the case law of the Federal Court of Justice (BGH), a termination for personal use solely for the purpose of occasional use as a vacation home is generally not permissible, as there is no permanent residential need. If, on the other hand, the apartment is needed as a second home for regular personal use, personal use may be justified under certain circumstances. The decisive factors are the extent and the seriousness of the planned personal use.

Is the landlord required to offer the tenant an alternative apartment?

Yes, the landlord is obligated to offer the tenant a comparable vacant apartment, provided the landlord owns such an apartment in the same building or residential complex. This obligation to offer applies to apartments that become vacant during the notice period. If the landlord fails to make such an offer, the termination for personal use may be invalid in individual cases.

What are the waiting periods following conversion in Nuremberg?

In Nuremberg, the Bavarian Tenant Protection Ordinance mandates a ten-year waiting period following the conversion of a rental apartment into a condominium. During this period, the new owner may not issue a termination for personal use. The waiting period begins on the date the new owner is entered in the land registry and protects the tenant regardless of when the purchase agreement was concluded.

What should be done if the need for personal use no longer exists?

If the reason for personal use ceases to exist after the notice of termination has been given but before the notice period expires, the landlord must immediately inform the tenant of this and continue the tenancy. If the landlord fails to do so, the tenant may claim damages. Caution is also advised if, after the tenant moves out, the landlord does not use the property for personal use-or only does so briefly-and instead sublets or sells the apartment at a higher price: In such situations, courts may conclude that the need for personal use was feigned. The landlord is then liable for compensation for moving expenses, the difference between the old and new rent, and any other consequential damages. In Nuremberg and Bavaria, such cases are scrutinized by tenant associations and courts, particularly if a significantly higher rent is achieved shortly after the eviction. We recommend that landlords assert personal use only if it is genuine and long-term, and document all relevant circumstances in writing.

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