What happens when the landlord terminates the lease?
1. Tenant rights in case of termination
According to § 573 BGB, a landlord may only terminate a rental contract if a legitimate interest exists – for example, personal use (Eigenbedarf) or a significant breach of duty by the tenant.
This means:
- The tenant cannot be terminated without cause,
- the statutory notice periods must be observed,
- termination must be made in writing and state the reason clearly.
2. Who terminates leases in practice?
- Owner-occupiers: Buyers who want to live in the apartment themselves usually terminate due to personal use (§ 573 II No. 2 BGB).
- Investors: In many cases, the lease remains in place, as it represents secured income. Terminations are the exception here.
3. Notice periods for landlords
For ordinary termination, the following notice periods apply (§ 573c BGB):
- up to 5 years tenancy → 3 months,
- 5–8 years tenancy → 6 months,
- more than 8 years tenancy → 9 months.
4. Special aspects of termination
- Termination without cause is invalid.
- Formal errors (e.g., termination by e-mail) make the notice ineffective.
- All landlords listed in the contract must sign.
5. Impact on sale
- Apartments with existing leases usually achieve 15–30% lower prices than vacant properties.
- In some cases, a mutual agreement with the tenant (e.g., compensation payment) can facilitate the sale.
- For investors, rented apartments remain attractive investment properties.
6. Procedure after termination
- The tenant receives a written notice of termination.
- After expiry of the notice period, the apartment must be properly handed over.
- Any deposits and service charge statements must be settled correctly.
Why Dominart Real Estate GmbH?
- Over 15 years of experience in the German real estate market.
- We offer not only sales, but also professional property management.
- Full-service package: from valuation and marketing to notarization, also via power of attorney.
- Access to a wide network of investors in Germany, Switzerland and across Europe.
