Termination for cause

Ordinary termination is the standard, notice-based termination of a lease by the landlord or tenant in compliance with statutory or contractually agreed notice periods. It contrasts with extraordinary (immediate) termination, which requires good cause. Under residential tenancy law, ordinary termination by the landlord is subject to specific conditions-the landlord must have a legitimate interest in terminating the contract, such as personal use or economic exploitation.

Notice Periods for Tenants and Landlords

Tenants may always terminate an indefinite lease with three months’ notice to the end of the month. For the landlord, the notice periods increase gradually with the length of the tenancy: for a tenancy of up to five years, a three-month notice period applies; for five to eight years, six months; and for more than eight years, nine months. These notice periods are prescribed by law (Section 573c of the German Civil Code) and may only be modified in the lease agreement in favor of the tenant.

In practice, this means: Anyone wishing to terminate a long-term tenant’s lease after twelve years must give nine months’ notice and additionally demonstrate a legitimate interest. This protects long-term tenants from being displaced at short notice-but also means that landlords must plan very early on in situations where they need the property for their own use.

Landlord’s Legitimate Interest

A regular termination by the landlord requires a legitimate interest (Section 573 BGB). Recognized grounds include: personal need (use by the landlord or close relatives), a significant culpable breach of duty by the tenant (e.g., repeated late payments), and economic utilization (if the property cannot be used economically in an appropriate manner due to the continuation of the tenancy). The notice of termination must be in writing and must substantiate the reason for termination. If there is no legitimate interest or if the justification is insufficient, the termination is invalid.

The grounds for termination based on economic utilization are subject to particularly strict regulations: The landlord must prove that the continuation of the tenancy would cause him significant disadvantages-for example, because a planned sale would yield significantly less or an urgently needed renovation cannot be carried out. In legal practice, such cases are complex and risky; courts interpret the requirements strictly.

Personal Use: The Most Common Ground for Termination in Nuremberg

Terminations for personal use are common and legally complex in tight housing markets like Nuremberg. The landlord must demonstrate the need for personal use in a concrete and credible manner-which person is to move in and why? Falsely claiming personal use may result in liability for damages. A situation of undue hardship (e.g., advanced age, serious illness, the tenant’s lack of alternative housing) may justify the tenant’s right to object and cause the termination for personal use to fail. We recommend that landlords seek legal advice before issuing a termination for personal use.

Personal use is recognized not only for the landlord themselves but also for close family members: children, parents, siblings, and spouses. More distant relatives, such as cousins or in-laws, have been treated differently depending on the legal situation and individual case-here, it depends on the specific circumstances of the need.

Practical Tip for Owners in Nuremberg and Franconia

Anyone who buys a rented condominium in Nuremberg and wishes to move in themselves must observe the waiting period: After converting a rental apartment into owner-occupied property, a three-year waiting period applies in many Bavarian cities (including Nuremberg) under Section 577a of the German Civil Code (BGB); in tight markets, this can be extended to ten years. Only after the waiting period has expired can the lease be terminated for personal use. We advise you on how to realistically assess your rights and obligations when purchasing a rented apartment.

Especially when purchasing a rented condominium as an owner-occupier, the waiting period is a frequently underestimated risk. Anyone who assumes they can move in after two years and then discovers that the waiting period still has five more years to run faces a significant problem. A thorough review before the purchase is essential here.

Frequently Asked Questions

Does the landlord’s ordinary notice of termination have to be in writing?

Yes, absolutely. A notice of termination given verbally or via email is invalid under residential tenancy law. The notice must be signed in the original and delivered by mail or in person-a scan or fax is not sufficient.

Can a tenant object to a notice of termination?

Yes, in cases of undue hardship (§ 574 BGB). The tenant must submit the objection in writing to the landlord no later than two months before the end of the notice period. In the event of a dispute, the local court decides on the validity of the objection.

Does the special right of termination apply when the property is sold?

No. The principle “a sale does not terminate a lease” (Section 566 BGB) protects the tenant: The new owner assumes the existing lease agreement. A termination for personal use by the new owner is only possible after the statutory waiting period.

As a landlord, can I terminate the lease if the tenant consistently pays too little?

Yes. Repeated or significant rent arrears constitute a legitimate interest in ordinary termination (Section 573(2)(1) BGB). If arrears amount to two months’ base rent, extraordinary termination without notice is also possible. In practice, it is advisable to first have a clarifying discussion regarding payment issues before taking legal action.

What specific considerations apply to termination for personal use in the Nuremberg rental market?

Nuremberg is considered an area with a tight housing market. This has direct consequences for terminations for personal use: The requirements for the landlord’s duty to provide evidence are strict, and courts carefully examine whether the need for personal use is genuine and concrete. A feigned personal need-for example, to get rid of an unwelcome tenant or to sublet the apartment at a higher rent-results in the landlord being liable to the tenant for damages for all resulting losses (moving costs, higher rent in the new apartment, rent differential for the remaining lease term). Anyone with a genuine need for personal use should draft the notice of termination in writing, including the full name of the person moving in, the specific purpose of use, and the intended move-in date. We also recommend proactively offering the tenant-where possible-alternative housing within the same complex or in the same neighborhood, provided it is available. This strengthens the credibility of the claim of personal need and can counter an objection based on undue hardship.

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