Termination of lease

Eviction - Eviction refers to actions taken by a landlord or property owner with the aim of compelling tenants to move out so that the building can subsequently be sold vacant, renovated, converted into condominiums, or otherwise utilized. Eviction can be carried out through legal means (e.g., justified termination for personal use, notices of modernization, settlement offers) or through unlawful methods such as harassment, construction disturbances, or withholding maintenance services. The latter is a criminal offense.

Legal and Illegal Forms of Eviction

A clear distinction between permitted and prohibited measures is crucial:

Permitted Measures:

• Termination for personal use pursuant to § 573 BGB (if genuinely necessary and justified)
• Termination due to planned economically viable use of the property (Section 573(2)(3) BGB) - only under very strict conditions
• Offer of voluntary severance payments for moving out (Tenants may refuse)
• Announcement and implementation of genuine modernization measures with a proper rent increase

Prohibited measures (landlord-driven “rent nomadism” / “displacement”):

• Deliberate noise pollution or deterioration of living conditions
• Failure to perform necessary repairs in order to render the apartment uninhabitable
• Intimidation, threats, or deception
• Cutting off heating or other utilities
• Fictitious terminations for personal use without genuine need

Unlawful eviction measures may be prosecuted under criminal law as coercion (Section 240 of the German Criminal Code) or trespassing (Section 123 of the German Criminal Code).

Eviction in the Context of Conversion and Sale

Eviction is of particular significance in the context of converting rental apartments into condominiums:

• In tight housing markets, state governments may mandate a “conversion permit” by regulation (Section 250 of the German Building Code (BauGB)) - Bavaria has made use of this provision
• Existing tenants have a statutory right of first refusal in the event of conversion (Section 577 BGB)
• Following a conversion, a moratorium on termination applies for at least 3 years (Section 577a BGB); in areas with housing shortages, this period extends to up to 10 years
• A property sold “vacant” fetches significantly higher prices on the market than a rented one-this creates economic incentives to evict tenants

Economic Background and Market Trends

The price gap between rented and unrented residential properties is a key driver of eviction attempts. In tight markets such as Nuremberg, a vacant condominium can yield 15-30% more revenue than a comparable rented unit. Investors who acquire an existing multi-family home with the aim of converting it into condominiums therefore face the economic temptation to terminate existing lease agreements.

The legislature has countered this with various protective measures: In addition to the notice moratorium periods under Section 577a of the German Civil Code (BGB), Bavaria has introduced a permit requirement for residential conversions in tight housing markets under Section 250 of the German Building Code (BauGB). This permit is granted only if certain conditions are met-including that a sufficiently large proportion of the converted units is sold to the existing tenants. Violations of the permit requirement can result in the conversion being deemed null and void.

Practical Tip for Property Owners in Nuremberg and Franconia

In Nuremberg and the metropolitan region, the housing market is tight, leading to increased pressure on existing tenants. We advise both landlords and prospective buyers interested in acquiring multi-family homes: Anyone purchasing a building with tenants should be fully aware of the lease history, existing protection periods, and the legal limits on eviction.

The Mieterverein Nürnberg und Umgebung e.V. (Tenants’ Association of Nuremberg and Surrounding Areas) provides free advice to affected tenants. For landlords and property owners, we recommend Haus & Grund Nürnberg as a point of contact for legal questions regarding tenancy agreements. We advise property owners: Always follow legal procedures during restructuring-tenants know their rights and are well-connected. Anyone who violates the ban on illegal eviction risks not only criminal prosecution but also civil claims for damages.

Frequently Asked Questions

As a landlord, can I use renovation work to force tenants to move out?

Renovations are permitted if they constitute genuine improvements and are properly announced. However, a feigned or excessive renovation that serves only to drive tenants out is abusive and may be considered unlawful eviction.

What can I do as a tenant if I am being pressured?

Document all incidents in writing (date, nature of the harassment, witnesses). Contact the tenants’ association, a tenant rights counseling service, or a lawyer. You can report unlawful eviction measures to the public prosecutor’s office and file a civil lawsuit seeking an injunction and damages.

How long does the moratorium on termination apply after the conversion of a rental apartment?

In general, a moratorium of 3 years applies from the date the new owner is entered in the land register (Section 577a of the German Civil Code). In areas with a tight housing market-which includes Nuremberg-the moratorium can be extended to up to 10 years by state ordinance.

Can a buyer terminate the lease immediately after purchasing a rented property?

No. Ownership does not automatically grant the right to terminate a lease. A termination for personal use requires that the new owner or close relatives actually and seriously need the apartment for their own residential purposes. Landlords are liable for damages in cases of fraudulent terminations for personal use-even if the move-in ultimately does not take place.

What is a voluntary settlement offer, and how much should it be?

If a landlord wishes to encourage a tenant to move out on a voluntary basis, they may offer a settlement-this is entirely legal. The amount depends on the individual utility value of the apartment for the tenant: In Nuremberg, with its tight housing market, severance payments of 10,000 to 30,000 euros or more are quite common for long-term tenants in good locations if the owner’s economic interest (e.g., a significantly higher resale price than an empty unit) justifies the amount. A fair, written offer process with a cooling-off period and professional guidance is better than informal discussions: Both parties should know what is at stake and be able to seek independent advice. We recommend that landlords have such agreements notarized to avoid later misunderstandings regarding the move-out date, the condition of the apartment, and the payment terms.

Termination of Lease and Misuse of Residential Space

In Bavaria, the prohibition on the misuse of residential space applies in areas with a tight housing market (Art. 1 ZwEWG Bavaria). Nuremberg has made use of this legal authority. Anyone who, after terminating a lease, does not use or rent out an apartment as residential space again, but instead leaves it vacant permanently or converts it to commercial use, requires a special permit from the city planning office. A vacancy lasting longer than six months without a special permit may be considered a misuse of residential property and subject to substantial fines. For owners who wish to vacate a multi-family home for renovation and subsequent sale, this legal framework is an important planning factor: The permissible duration of vacancy is limited, and close coordination with the Nuremberg City Planning Office is recommended as early as the planning phase.

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