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Ending a Rental Agreement in Germany: Legal Rules for Landlords

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For private landlords renting out furnished apartments in Germany whether from within the country or abroad, the rules for ending a tenancy are strict and highly regulated. German tenancy law strongly protects tenants, meaning landlords cannot simply terminate a contract at will. 

If you are renting mid- to long-term through platforms like Wunderflats, it is crucial to understand the legal framework, the valid grounds for termination, and the correct procedures to follow. Doing so not only ensures compliance with the law but also helps avoid costly disputes.

This article explains the key legal provisions in the German Civil Code (Bürgerliches Gesetzbuch, or BGB) that govern rental terminations, the valid reasons landlords can rely on, the applicable notice periods, and common pitfalls to avoid.

Legal Basis for Termination

The termination of rental agreements in Germany is governed primarily by BGB §§ 568–573c, along with related provisions such as § 543 (extraordinary termination) and § 574 (hardship protection). Together, they form the framework for when and how a landlord may lawfully end a tenancy.

  1. Form Requirement (§ 568 BGB):
    Termination must always be given in writing (schriftlich). Electronic forms (emails, SMS, WhatsApp messages, scanned PDFs) do not meet the legal requirement. A handwritten signature of the landlord or authorized representative is essential.
  2. Requirement of Legitimate Interest (§ 573 BGB):
    Landlords must demonstrate a “berechtigtes Interesse” (legitimate interest) to terminate. Acceptable interests include personal use, contract breaches, or severe economic hardship. Without one of these, termination is invalid.
  3. Notice Periods (§ 573c BGB):
    Tenants enjoy graduated protection based on tenancy duration: 3, 6, or 9 months’ notice, depending on length of residence. This extension applies only to the landlord’s notice (landlord’s notice period extends to 6 or 9 months after 5/8 years).
  4. Extraordinary Termination (§ 543 BGB):
    In cases of severe misconduct (e.g., prolonged non-payment of rent), landlords may terminate without notice. This requires strict conditions.
  5. Hardship Protection (§ 574 BGB):
    Even if termination is valid, tenants may object if vacating would cause undue hardship, such as serious illness or extreme age.

The law is designed to balance landlords’ property rights with tenants’ housing security, but in practice, tenants receive stronger protection.

Formal Requirements for Termination (§ 568 and § 174 BGB)

1. Written Form and Signature (§ 568 BGB)

Termination must always be in writing with an original signature. Emails, faxes, scanned PDFs, or text messages are not sufficient. Only a signed paper notice delivered physically is valid.

2. Who Signs the Notice? (§ 174 BGB – Authorization of Agents)

If the landlord signs personally, no further proof is needed. But if someone else signs on the landlord’s behalf — for example:

  • a property manager,
  • a family member,
  • one of several co-owners,

Then special care is required.

  • Under BGB § 174, the tenant may reject the termination as invalid if the signature comes from an agent and no proof of authority is attached, unless the tenant already knows of the agent’s authorization.
  • The safe practice: always attach a copy of the power of attorney (Vollmacht) when the notice is signed by anyone other than the landlord.

This is especially important for absentee or international landlords who rely on local representatives. Courts frequently see cases where tenants successfully resist termination simply because no power of attorney was enclosed.

3. Addressing All Tenants

If the lease is signed by multiple tenants, the termination must be addressed to all tenants named in the contract.

  • You can either send one letter addressed to all tenants jointly, or
  • send separate identical letters to each tenant.

If the notice is only sent to one tenant, it does not terminate the tenancy for the others, and the contract remains in force.

4. Delivery of the Notice

  • Send by registered mail with acknowledgment of receipt (Einschreiben mit Rückschein) or hand-deliver with a signed receipt.
  • Keep copies of both the letter and proof of delivery.
  • Never rely on email or fax — they don’t meet the legal form requirement.

Practical Takeaway for Landlords

  • Sign personally where possible.
  • If someone else signs, enclose a power of attorney.
  • Always address all tenants.
  • Use a reliable delivery method to prove receipt.

Permitted Reasons for Termination

Landlords may only terminate if they can demonstrate a legally recognized ground. The most common are:

1. Personal Use (Eigenbedarf)

The most frequently used ground is Eigenbedarf. Under § 573(2) No. 2 BGB, landlords may terminate if they or close family members intend to use the apartment.

Who qualifies?

  • Landlord themselves
  • Spouse or registered partner
  • Children, grandchildren, parents, grandparents, siblings
  • In some cases, household staff or caregivers

Extended family (e.g., cousins, in-laws) typically do not qualify unless there is a close social bond. Courts interpret this narrowly to prevent abuse.

Requirements:

  • The need must be genuine and concrete, not speculative. For instance, planning “someday” use does not qualify.
  • The landlord must state in the termination notice who will move in and why.
  • The use must be plausible. For example, claiming a one-room flat for a large family is unlikely to hold up in court.

Case example:
The Federal Court of Justice (BGH) has upheld terminations where landlords needed the apartment for adult children moving for work or study. However, it has rejected terminations based on vague or insincere claims of future use.

2. Breach of Contract by Tenant

Another valid reason is when the tenant significantly breaches contractual obligations.

Common breaches include:

  • Persistent late payment of rent or arrears
  • Unapproved subletting
  • Misuse of the property (e.g., operating a business when only residential use is allowed)
  • Causing significant disturbances to neighbors

Ordinary vs. extraordinary termination:

  • Ordinary termination requires repeated breaches and documentation.
  • Extraordinary termination under § 543 BGB is possible if the tenant fails to pay two months’ rent in a row or is persistently late. This can be immediate.

Practical tip: Always send formal reminders (Mahnung) before terminating, so the court sees that the tenant had fair warning.

3. Economic Hardship or Legitimate Business Interest

Less common but legally possible is termination due to disproportionate hardship for the landlord.

Examples:

  • The landlord urgently needs to renovate or convert the building.
  • Continuing the tenancy would cause unsustainable financial loss.
  • The building is being repurposed for demolition and reconstruction.

Courts rarely accept financial motives alone, since landlords are expected to bear some economic risk. Strong documentation is essential.

Notice Periods

German law prescribes fixed notice periods depending on tenancy length (§ 573c BGB):

  • Up to 5 years: 3 months’ notice
  • 5–8 years: 6 months’ notice
  • Over 8 years: 9 months’ notice

Deadline rules:

  • Notice must reach the tenant by the third working day of the month for that month to count.
  • Example: If notice is delivered on March 2, the three-month notice ends May 31. If delivered on March 5, the notice period begins in April, ending June 30.

Important note:
The longer notice periods apply only to landlords. Tenants may always terminate with three months’ notice, regardless of tenancy length.

Restrictions and Tenant Protections

1. No Termination Without Reason

Landlords cannot simply decide to end a tenancy without cause. The law strictly prohibits “termination without reason.”

2. Fixed-Term Contracts

Fixed-term leases (befristete Mietverträge) automatically end on the agreed date. However, they are only valid if the landlord specifies a legitimate reason for the fixed term in the contract (e.g., planned personal use after 12 months). Otherwise, the contract is deemed indefinite, giving the tenant greater protection.

Fixed-Term Contracts and § 575 BGB

While most tenancies in Germany are concluded for an indefinite period, landlords sometimes prefer fixed-term contracts (befristete Mietverträge). However, the law imposes strict limits. Under § 575(1) BGB, a tenancy can only be validly limited in duration if the landlord states a legitimate reason in writing at the time of contract signing. Permissible reasons are narrowly defined:

  1. Personal use (Eigenbedarf) after lease end
    – The landlord or close family intends to occupy the property once the lease expires.
  2. Planned major renovations
    – Renovations or construction work are scheduled that cannot reasonably be carried out while the tenant is in possession.
  3. Employee housing
    – The property is reserved for housing an employee of the landlord (Dienstwohnung).

If no such reason is specified in writing in the rental contract, the fixed term is invalid. The lease is then automatically considered indefinite (§ 575(1) sentence 2 BGB). This means the tenant cannot be forced to leave simply because the agreed term has ended;  the landlord must follow ordinary termination rules with notice and justification.

Tenant’s Right to Clarification (§ 575(2)–(3) BGB)

Tenants also have protective rights under § 575(2)–(3):

  • Four months before lease expiry, the tenant may request confirmation from the landlord whether the reason for the fixed term still exists.
  • If the landlord fails to respond within one month, or if the reason has ceased, the tenant may demand that the lease be extended for a further period.  potentially indefinitely.

This provision prevents landlords from “inventing” or exaggerating reasons at contract signing only to later force the tenant out without valid cause.

Practical Impact for Landlords

For landlords using rental platforms, where furnished mid-term rentals are common, § 575 BGB has major consequences:

  • A time-limited lease is only lawful if it is tied to one of the three statutory reasons, and that reason must be clearly written into the contract from the outset.
  • Vague or missing justifications (e.g., “landlord may need the property later”) will invalidate the fixed term.
  • If the fixed term is invalid, the contract converts into an indefinite lease, meaning the tenant gains full statutory protections and can remain until validly terminated under §§ 573 ff. BGB.

Note for Landlords 

Fixed-term contracts are common in furnished mid-term rentals. Remember that a lease period is only enforceable if you clearly state one of the three § 575(1) reasons in writing at contract signing. Otherwise, your contract will be treated as indefinite, and you cannot simply insist that the tenant leave at the end of the agreed term. Missteps often result in tenants acquiring stronger rights than intended.

3. Hardship Protection (§ 574 BGB)

Even if termination is legally valid, tenants may object if vacating would cause “unzumutbare Härte” (undue hardship). Courts have recognized hardship where:

  • Tenants are very elderly.
  • A family has school-aged children about to finish exams.
  • Tenants suffer from serious illness or disability.

In such cases, courts may extend the tenancy for several years or indefinitely.

Extraordinary Termination (Fristlose Kündigung)

While ordinary termination requires notice, § 543 BGB allows landlords to end the tenancy immediately in severe cases. This includes:

  • Tenant is in arrears of two full monthly rents.
  • Tenant repeatedly pays late, causing the landlord major difficulties.
  • Tenant endangers the property (e.g., causing severe damage, conducting illegal activities).

Procedure:
Landlords must usually send a warning (Abmahnung) before extraordinary termination, except in very severe cases (e.g., rent non-payment).

Caution:
German courts apply this strictly. If the tenant quickly repays arrears, the termination may be invalidated.

Common Mistakes to Avoid

  • Invalid format: Sending notice by email or phone is not legally binding.
  • Insufficient justification: Vague references to “needing the apartment” are not enough.
  • Miscalculating notice periods: Missing the third-day deadline shifts termination months later.
  •  Miscalculating the “third working day” deadline:
    By law, termination must reach the tenant by the third working day of the month to take effect for that month. Importantly, Saturdays count as working days under § 573c BGB (unless a public holiday). Many landlords wrongly assume only Monday–Friday count, which can shift the effective termination date by an entire month.
  • Improper fixed terms: Using a fixed-term contract without a legal reason makes the lease indefinite.
  • Omitting the hardship notice (§ 574b BGB): Overlooking tenants’ hardship claims risks court rejection. Landlords are legally obliged to inform tenants of their right to object to termination on hardship grounds. If the notice omits this, courts allow tenants to raise objections late, even during the eviction trial. This can seriously delay proceedings.

Practical Tips for Landlords

Provide Clear Documentation

Document arrears, complaints, or family needs with evidence. Courts expect proof, not assumptions.

Seek Legal Advice

Consult a tenancy law attorney before issuing a termination. This reduces the risk of invalid notices and costly litigation.

Deliver Notices Properly

Use registered mail with acknowledgment of receipt, or personal delivery with signature. This ensures proof of delivery.

Consider Amicable Agreements

Offering compensation (Aufhebungsvertrag) can encourage voluntary departure and avoid court delays.

Act Professionally

Maintain open, respectful communication. Courts view transparent landlords more favorably.

What If the Tenant Refuses to Leave?

Even with a valid termination, some tenants refuse to vacate. In such cases, the landlord cannot act unilaterally.

  1. Court eviction (Räumungsklage):
    The landlord must file for eviction at the local court (Amtsgericht). This process can take several months, depending on court workload and tenant defenses.
  2. Court ruling:
    If the court finds the termination valid, it issues an eviction judgment (Räumungstitel).
  3. Bailiff enforcement (Zwangsräumung):
    Only a court bailiff (Gerichtsvollzieher) may carry out the eviction. In practice, there are two models:
    • Full Räumung: Bailiff removes tenant and belongings, landlord covers storage costs.
    • “Berliner Räumung”: Bailiff only removes the tenant and hands over possession to the landlord; the tenant’s belongings stay inside, and the tenant must arrange removal. This is often cheaper for landlords.
  4. Costs:
    Landlords must advance court and bailiff costs, though they may later recover them from the tenant.

⚠️ Important Note:
A landlord must never attempt a “self-help eviction”,  e.g., changing locks, removing belongings, cutting utilities, or blocking access. Such actions are unlawful in Germany and can lead to:

  • Tenant claims for damages,
  • Delay in regaining possession, and
  • Possible criminal charges.

Only the court process ensures a lawful eviction.

Special Considerations for Furnished Rentals

German tenancy law makes a distinction between regular furnished apartments (which follow the same rules as unfurnished apartments) and special cases where the landlord also lives in the property. These scenarios are often misunderstood, so it’s important to separate them clearly:

1. Lodger Rule – Furnished Room in the Landlord’s Own Residence (§ 549(2) No. 2, § 573c(3) BGB)

If the landlord rents out a furnished room within their own dwelling, for example, a furnished room in a flat where the landlord also lives,  then many tenant protections do not apply.

  • Termination is possible without providing a reason.
  • Notice is very short: the landlord may give notice by the 15th of a month for termination at the end of the same month (two weeks’ notice).
  • This exception only applies if the space is part of the landlord’s own home and is furnished at the time of rental.

This is the most flexible termination right available to landlords under German law, but it only applies to true “lodger” situations.

2. Two-Dwelling/Small Building Rule (§ 573a BGB)

If the landlord lives in a building with no more than two apartments (for example, a duplex or a single-family home with one rental unit), the landlord has a special “eased termination” right.

  • No legitimate reason is required (e.g., no need to prove Eigenbedarf).
  • However, the notice period is extended by three months.
    • Example: If normal notice would be 3 months, it becomes 6 months.
    • If normal notice would be 6 months (because of tenancy length), it becomes 9 months.

This balances the landlord’s personal living situation with tenant protection: the landlord can terminate without cause, but only with longer notice.

3. Fully Furnished Separate Apartments (e.g., Wunderflats Rentals)

If the landlord rents out a self-contained furnished apartment (not part of their own residence), then no special termination rules apply.

  • The tenancy is fully subject to the standard protections under §§ 568–573c BGB.
  • The landlord must provide a valid reason (Eigenbedarf, breach, etc.) and observe the statutory notice periods (3/6/9 months).
  • The fact that the property is furnished makes no difference to termination rights.

This is especially relevant for landlords renting through Wunderflats: even if the apartment is fully furnished, it is treated legally the same as an unfurnished rental unless one of the above exceptions applies.

Why this matters

The distinction ensures landlords don’t mistakenly assume that furnishing a flat makes termination easier. In reality:

  • Lodgers in your home: short notice, no reason needed.
  • Small buildings you live in: no reason needed, but longer notice.

Standalone furnished apartments: full tenant protection, just like unfurnished units.

Challenges for International Landlords

Foreign landlords renting properties in Germany should be especially cautious:

  • Distance issues: Coordinating notice delivery from abroad can lead to missed deadlines.
  • Cultural/legal differences: Practices common abroad (e.g., simple notice without reason) are invalid in Germany.
  • Language barriers: Termination notices must be in German and meet strict formality requirements.
  • Court presence: If litigation arises, landlords abroad must appoint legal representation in Germany.

Working with local property managers or attorneys can prevent procedural mistakes.

Step-by-Step Guide: Lawful Termination

  1. Identify the valid legal ground.
  2. Collect supporting evidence.
  3. Draft a detailed written notice.
  4. Calculate and respect notice deadlines.
  5. Deliver notice securely.
  6. Prepare for objections (hardship claims).
  7. If necessary, pursue eviction through court.

Sample Termination Notice (Eigenbedarf)

German Version (legally required)

(to be used as the official document)

Absender (Landlord):
[Name des Vermieters]
[Adresse des Vermieters]

Empfänger (Tenant):
[Name des Mieters]
[Adresse der Wohnung]

Ort, Datum

Betreff: Ordentliche Kündigung des Mietvertrags wegen Eigenbedarf (§ 573 Abs. 2 Nr. 2 BGB)

Sehr geehrte(r) Frau/Herr [Name des Mieters],

hiermit kündige ich den mit Ihnen bestehenden Mietvertrag über die Wohnung in [Adresse der Mietwohnung] fristgerecht zum nächstmöglichen Termin.

Grund der Kündigung:
Ich benötige die Wohnung für den eigenen Gebrauch. Konkret soll die Wohnung von [Name der Person, z. B. meiner Tochter, Anna Muster, geboren am TT.MM.JJJJ] genutzt werden. Der Eigenbedarf ergibt sich daraus, dass [kurze Begründung, z. B. „meine Tochter nach Abschluss ihres Studiums in derselben Stadt eine Unterkunft benötigt und die Nähe zur Arbeitsstelle gegeben ist“].

Gemäß § 573c BGB beträgt die Kündigungsfrist [3/6/9 Monate, je nach Dauer des Mietverhältnisses]. Das Mietverhältnis endet daher zum [Datum einfügen].

Hinweis auf Widerspruchsrecht (§ 574 BGB):
Sie haben das Recht, der Kündigung zu widersprechen, falls diese für Sie eine besondere Härte darstellen würde. Bitte teilen Sie mir etwaige Einwände spätestens zwei Monate vor Ablauf der Kündigungsfrist schriftlich mit.

Bitte bestätigen Sie mir den Erhalt dieses Schreibens sowie den geplanten Auszugstermin schriftlich.

Mit freundlichen Grüßen,
[Unterschrift Vermieter]
[Name Vermieter]

English Version (informal translation for tenant clarity)

(This version is not legally binding, but recommended for international tenants to avoid misunderstandings.)

Subject: Ordinary Termination of Rental Contract Due to Personal Use (Eigenbedarf, § 573 para. 2 no. 2 BGB)

Dear [Tenant’s Name],

I hereby terminate the rental agreement for the apartment at [rental property address] with effect from the earliest legally possible date.

Reason for termination:
The apartment is required for personal use. Specifically, [name of person, e.g., my daughter Anna Muster, born DD/MM/YYYY] will move into the apartment. The personal need arises because [short justification, e.g., “she will begin employment nearby and requires suitable accommodation close to her workplace”].

According to § 573c BGB, the notice period is [3/6/9 months, depending on tenancy duration]. Therefore, the tenancy will end on [insert date].

Notice of objection rights (§ 574 BGB):
You have the right to object to this termination if moving out would cause undue hardship. Any objection must be submitted in writing no later than two months before the end of the notice period.

Please confirm receipt of this letter and provide written confirmation of your intended move-out date.

Sincerely,
[Signature Landlord]
[Landlord’s Name]

Key Notes for Landlords

  • Always use the German version as the official notice — only this is legally valid.
  • The English version is optional, but very useful for foreign tenants (common with Wunderflats rentals).
  • Specify exact names, dates, and reasons. Courts will invalidate vague notices.
  • Send by registered mail with acknowledgment of receipt (Einschreiben mit Rückschein) or personal delivery with signed receipt.
  • Keep a copy for your records.
  • Always include a paragraph about the tenant’s right to object for hardship (§ 574 BGB). this is not just “nice to include” but legally required under § 574b(2) BGB. If you omit it, the tenant may still raise objections at a late stage, prolonging the case.

For landlords in Germany, ending a rental agreement is far from straightforward. Termination is governed by BGB §§ 568–573c, along with extraordinary and hardship provisions. The most common grounds are personal use (Eigenbedarf) and tenant breaches, but both demand precise documentation and careful procedure. Courts heavily favor tenants, and landlords who make errors, such as vague reasons, invalid notice formats, or missed deadlines, risk months of delay and high legal costs.

By documenting thoroughly, seeking legal advice, respecting deadlines, and where possible negotiating amicable agreements, landlords can navigate the process legally and efficiently. 

For those renting furnished apartments through platforms like Wunderflats, a solid understanding of these rules is essential to protect property rights while avoiding costly disputes.

Legal review by Stephan Hartmann, Ass. jur., Data Privacy Officer at Lecturio — Tbilisi, Georgia
Legal review by Stephan Hartmann, Ass. jur., Data Privacy Officer at Lecturio — Tbilisi, Georgia

Disclaimer: The contents of this page have been prepared for your information and Stephan Hartmann, Ass. jur., Data Privacy Officer at Lecturio has been commissioned to check the legal correctness of this article. However, this article does not constitute legal advice. Always consult a legal professional for personalized guidance, especially if you're renting out property in Germany as a non-resident landlord or in complex circumstances.

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