Learn about the rules for terminating a lease for personal use. Find out what rights tenants have and what deadlines landlords must meet in order to use their property for themselves—now in our ACCENTRO Knowledge Blog post.
Do you want to move into your currently rented property yourself, or are you planning to rent out a property you’ve purchased for the time being but use it as your own home in the long term? In such scenarios, you have the option to terminate your tenants’ leases on the grounds of personal use. However, this is not automatically possible. In this article, we’d like to explain what you need to be aware of and what rights and obligations you have in such a case.
Eligibility for Termination for Personal Use
It is important to know that not just any reason is sufficient for a termination for personal use. Section 573(2) No. 2 of the German Civil Code (BGB) stipulates that landlords may use their rental apartment for themselves, members of their household, or family members. This includes:
- (step- and foster) children
- (Foster and in-law) parents
- Spouses (even after separation or divorce)
- Grandparents and grandchildren
- Siblings, nieces, and nephews
- Relatives in need of care and caregivers
Surprisingly, even after a separation or divorce, the former spouse may still claim the right to use the residence for personal use, as the Federal Court of Justice ruled in 2020 that spouses remain part of the same family even after a separation. However, in the case of more distant relatives, it may be necessary to prove the existence of a close relationship. You must provide plausible reasons for your or the relevant person’s claim to the residence.
Plausible Reasons for Termination Based on Personal Need
The mere intention to use the property yourself does not justify a termination for personal use. Specific and verifiable reasons must be provided to substantiate the need for personal use. For example, a change in employment that now places the workplace closer to the rented property could be a plausible reason. Similarly, personal life circumstances—such as marriage, starting a family, separation, retirement, the death of a partner, or illness—may necessitate a change of residence.
Invalid Terminations for Personal Use
It is important to know that personal need does not apply if the property is to be used only temporarily. The decision on this often varies on a case-by-case basis. While, for example, an eighteen-month renovation period for the previously occupied home may be considered justified, a two-year training program for the landlord’s granddaughter was deemed an insufficient reason. Likewise, you cannot simply give notice as a precautionary measure if personal need does not currently exist but might arise in the future.
Applicable Notice Periods for Terminations Based on Personal Need
Terminations for personal use must comply with certain statutory notice periods, which depend on the length of the tenancy to date:
- For a tenancy of less than five years, the notice period is three months.
- For a tenancy of five to eight years, the notice period is six months.
- For a tenancy of more than eight years, the notice period is nine months.
These notice periods must be observed, and the notice of termination must be received by the tenants by the third business day of the calendar month for the notice period to be valid.
Treating Tenants with Respect When Terminating for Personal Use
A termination for personal use represents a significant change in the tenants’ lives. It often comes as a surprise and is unexpected. Therefore, it is advisable to seek a dialogue from the outset and give the tenants as much advance notice as possible. They may need time to make arrangements.
Conclusion
Terminations for personal use are subject to numerous legal provisions and deadlines. If you comply with them correctly, you have a good chance of successfully terminating the lease. Nevertheless, you should keep in mind that this represents a drastic change for your tenants. Even if a termination for personal use is legally permissible, you should always act with respect and sensitivity.
