Notice period

Notice Period - The notice period is the time between the receipt of a notice of termination and the date on which the tenancy actually ends. Under German tenancy law, the notice periods for residential leases are governed by § 573c of the German Civil Code (BGB) and cannot be shortened to the tenant’s disadvantage.

Statutory Notice Periods for Tenants

Tenants are subject to a uniform three-month notice period effective at the end of the month, regardless of the duration of the tenancy. The notice of termination must be received by the landlord no later than the third business day of a month so that the tenancy ends at the end of the month following the next. For example, if the notice is received on June 3, the tenancy ends on August 31.

The three-month period is a minimum period that may not be shortened by contract. Extending the period at the tenant’s expense is also prohibited. However, the lease agreement may provide for a longer notice period for both parties equally-a unilateral extension solely for the tenant is invalid.

Graduated Notice Periods for Landlords

Under Section 573c(1) of the German Civil Code (BGB), graduated notice periods apply to the landlord, which are based on the duration of the tenancy:

For a tenancy of up to five years, the notice period is three months. After a tenancy of five to eight years, it extends to six months. For a tenancy of more than eight years, the notice period is nine months.

This graduated system serves to protect tenants: The longer a tenant lives in an apartment, the stronger their social roots become and the more time they need to find an equivalent replacement apartment. The graduated notice periods cannot be shortened by contract to the tenant’s disadvantage.

Termination without notice and special termination rights

In addition to ordinary termination, there is termination without notice for good cause under § 543 BGB. The landlord may terminate the lease without notice if the tenant is in arrears on two consecutive months’ rent or a substantial portion of the rent, if the tenant significantly endangers the rental property, or if the tenant transfers possession to a third party in violation of the contract.

The tenant may terminate the lease without notice if the apartment has a significant health hazard, if the tenant is not permitted to use the property as agreed in the contract, or if the landlord persistently disturbs the peace of the household. The tenant may also assert a special right of termination in the case of unauthorized subletting if the landlord wrongfully refuses permission.

A special right of termination also applies in the event of rent increases: The tenant may terminate the lease within two months of receiving the notice of rent increase, effective at the end of the month following the next, thereby avoiding the rent increase.

Notice Period Following a Change of Ownership

An important special rule for buyers of rented properties: According to Section 566 of the German Civil Code (BGB), the principle “Purchase does not terminate the lease” applies. The new owner fully assumes the existing lease agreement-with all rights and obligations. If the new owner wishes to claim personal use, the same statutory notice periods apply to them as to any other landlord, i.e., three, six, or nine months depending on the lease term. Furthermore, termination for the purpose of claiming personal use is only possible under strict conditions and must be properly justified in substance. A formal error-such as an insufficient justification of personal use-renders the termination invalid.

Practical Tip for Nuremberg and the Metropolitan Region

In the Nuremberg metropolitan region, disputes frequently arise regarding the delivery of the notice of termination, particularly regarding whether the third business day was observed. We recommend that both landlords and tenants serve the notice of termination via registered mail with return receipt or by personal delivery in the presence of witnesses. Simply dropping it in the mailbox can be difficult to prove in the event of a dispute-and in case of doubt, the end of the lease is postponed by a full month.

Landlords should also note that any ordinary termination of a residential lease requires a legitimate interest (Section 573 of the German Civil Code) - such as personal use, economic exploitation, or significant breaches of duty by the tenant. A termination without justification is invalid. In Nuremberg, a tight housing market with rent control, courts are particularly careful when reviewing terminations for personal use; landlords should always consult with a rental or real estate attorney regarding the justification before issuing the termination notice.

Frequently Asked Questions

As a tenant, can I terminate the lease early?

The three-month notice period cannot be unilaterally shortened. However, it is possible to enter into a termination agreement with the landlord that mutually terminates the tenancy at an earlier date. Alternatively, the tenant may-with the landlord’s consent-find a successor tenant to take over the tenancy. There is generally no legal right to early termination.

Does the notice period also apply to fixed-term leases?

A valid fixed-term lease (§ 575 BGB) cannot be terminated by either the tenant or the landlord during the agreed term-the regular notice periods do not apply here. However, the right to terminate without notice for good cause remains unaffected. The landlord must provide the reason for the fixed term in writing upon conclusion of the contract.

What happens if the notice of termination is received late?

If the notice of termination is received after the third business day of a month, the end of the lease is postponed by one month. Thus, the notice of termination does not become invalid, but takes effect only on the next possible date. If a tenant’s notice of termination is received on June 5, the lease does not end on August 31, but only on September 30.

What notice periods apply to commercial leases?

In the case of commercial leases, Sections 573 et seq. of the German Civil Code (BGB) do not apply; instead, landlords and tenants have extensive freedom of contract. Commercial lease agreements are often concluded with fixed terms (e.g., 5 or 10 years) and options to extend. If no fixed term is agreed upon, the statutory notice period of 6 months to the end of the quarter applies to commercial leases (Section 580a BGB). Since commercial leases are significantly more complex and often contain individual provisions, we strongly recommend that landlords and tenants seek legal counsel when entering into or terminating a lease.

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