Terminating a lease agreement as a landlord: requirements, deadlines, and legal bases

Terminating a tenancy agreement is one of the most sensitive issues in tenancy law. Clear legal guidelines apply to landlords, which precisely define the conditions under which a tenancy agreement may be terminated.

Unlike tenants, landlords cannot simply terminate a tenancy agreement without further ado. German tenancy law protects tenants particularly strongly, which is why a termination must always be justified and formally correct.

In practice, many landlords therefore ask themselves when a termination is permissible, which notice periods apply, and which formal requirements must be met.

In this article, you will learn when landlords are allowed to terminate a tenancy agreement, which reasons are permissible, and which steps need to be considered during the subsequent change of tenant.

When landlords are allowed to terminate a tenancy agreement

Landlords cannot terminate a tenancy agreement without a reason. German tenancy law provides that termination is only possible with a legitimate interest. This interest must be clearly named and comprehensibly justified in the termination letter.

The most common reasons include personal use, breaches of contract by the tenant, or economic reasons related to the property.

Legal basis of the landlord's termination

The legal basis for termination by the landlord is regulated in the German Civil Code (BGB). It stipulates that a landlord may only terminate if there is a legitimate interest.

A legitimate interest can exist, for example, if:

• the landlord wants to use the apartment themselves

• a close relative needs the apartment

• the tenant violates their contractual obligations

Without such a justification, a termination is generally invalid.

Difference between ordinary and extraordinary termination

In tenancy law, a distinction is made between two types of termination.

Ordinary termination:

This takes place with the statutory notice period and requires a legitimate interest on the part of the landlord.

Extraordinary termination:

This is only possible in special cases, such as serious breaches of contract by the tenant.

Typical reasons for termination without notice can be:

• significant rent arrears

• severe disturbances of the domestic peace

• unauthorized use of the apartment

Which reasons for termination are permissible for landlords

For a termination to be valid, it must be based on a legally permissible reason for termination. Tenancy law provides for several typical reasons.

Personal use

One of the most common forms of landlord termination is termination for personal use.

In this case, the landlord needs the apartment for:

• themselves

• family members

• members of their household

The reasons must be presented in a concrete and comprehensible manner in the termination letter.

Breaches of contract by the tenant

Violations of the tenancy agreement can also justify termination.

Typical examples are:

• repeated rent arrears

• unauthorized subletting

• significant disturbances of the domestic peace

In many cases, a warning must first be issued before termination.

Economic exploitation of the property

Another possible reason for termination is so-called economic exploitation.

This can apply if:

• a comprehensive renovation is planned

• the property is to be used differently for economic purposes

• significant economic disadvantages would arise

However, this reason for termination is subject to strict requirements.

Which notice periods apply to landlords

When landlords terminate a tenancy agreement, statutory notice periods must be observed. These depend primarily on the duration of the tenancy.

The longer a tenancy has existed, the longer the notice period is usually.

H3: Statutory notice periods

For landlords, the following periods generally apply:

• up to 5 years duration of tenancy: 3 months notice period

• 5 to 8 years duration of tenancy: 6 months notice period

• more than 8 years duration of tenancy: 9 months notice period

These notice periods are intended to give tenants sufficient time to find a new apartment.

H3: Start of the notice period

The notice period usually begins with the receipt of the termination by the tenant.

To ensure the period can be calculated correctly, it is important that the termination is delivered on time. In practice, this is often done by registered mail or personal delivery.

Formal requirements for a termination

For a termination to be legally valid, certain formal requirements must be met. Errors in the form or justification can lead to the termination becoming invalid.

Written form of the termination

A termination by the landlord must always be made in writing. Termination by email or SMS is not legally valid.

The termination letter should contain:

• name and address of the contracting parties

• exact description of the apartment

• reason for termination

• termination date

Justification of the termination

The reason for termination must be clearly formulated in the letter.

This means:

• concrete presentation of the reason for termination

• comprehensible justification

• if applicable, references to previous warnings

Only then can the tenant verify whether the termination is lawful.

How landlords organize the change of tenant efficiently

After a termination, the process of re-renting often begins. For landlords and real estate companies, it is important to organize this transition efficiently.

Planning the re-renting

As soon as it is certain when an apartment will become vacant, landlords can begin planning the re-renting.

Typical steps are:

• creating an exposé

• publishing advertisements

• organizing viewing appointments

• selecting suitable applicants

A structured process helps to keep vacancies as low as possible.

Using digital rental processes

Digital rental processes can significantly simplify the change of tenant. Platforms support landlords, for example, in organizing viewings or managing applications.

Typical features of digital rental solutions include:

• automated applicant management

• digital appointment scheduling

• structured applicant screening

• central document management

You can find further insights in this post:

Renting out real estate professionally: How EverReal revolutionizes the renting process

Digital contract processes are also playing an increasingly important role:

Digital signature in the tenancy agreement: advantages, legal aspects, and implementation

The termination of a tenancy agreement by the landlord is bound by clear legal requirements. Without a legitimate interest and a formal justification, a termination is generally invalid.

In addition to the legal requirements, organizational planning also plays an important role. A structured rental process helps to make the subsequent change of tenant efficient and reduce vacancy times.

Digital solutions can support landlords and real estate companies in organizing renting processes more transparently and simplifying administrative tasks.

When is a landlord allowed to terminate a tenancy agreement?

A landlord may terminate a tenancy agreement if there is a legitimate interest. Typical reasons are personal use, breaches of contract by the tenant, or economic reasons.

Which notice period applies to landlords?

The notice period depends on the duration of the tenancy. It is usually 3, 6, or 9 months.

Can a landlord terminate without notice?

Termination without notice is only possible in special cases, such as significant rent arrears or serious breaches of contract.

Must a termination be in writing?

Yes. A termination by the landlord must always be in writing. Digital messages or verbal terminations are not legally valid.