Terminating a Tenant: a Comprehensive Guide
What You Need to Consider As a Landlord When Giving Notice
Most people who buy an apartment or apartment building as an investment subsequently rent the property out to tenants.
Despite great tenant screening, you may have to give notice at some point during the rental process. However, in terms of tenant protection, this is not a simple matter.
There are a lot of things you need to consider, including the legal requirements, deadlines, legitimate grounds for termination, the rights and obligations of tenants and landlords, as well as different types of termination. So let's take a look. 🧐
- Legal matters
- Types of termination
- Terms & conditions
- Grounds for termination
- Formal structure
- Rights & Duties
- FAQ
Legal Basis and Requirements for Termination of Tenants
As a landlord, you generally have the right to terminate the tenancy agreement with your tenants. However, for valid tenant protection reasons, this is only possible under certain conditions and for particular reasons.
The most important legal basis for terminating a tenancy agreement can be found in the German Civil Code (BGB). It contains the general regulations on tenancy law, including the notice periods and reasons for termination. However, the rental agreement is of course also important. You should check whether it contains additional grounds for termination and notice periods that are binding for both parties.
Types of Tenancy Terminations
As a landlord, you have two options for terminating the tenancy agreement with your tenant: ordinary or extraordinary termination.
For an ordinary termination, landlords need a justified reason. This could be, for example, if you want to use the apartment yourself or make it available to a close relative. However, repeated breaches of the tenancy agreement by the tenant can also be grounds for termination if they do not pay the rent on time, disturb the peace or damage the apartment.
Extraordinary termination is only possible in exceptional cases if the tenant has grossly violated their obligations. This may be the case, for example, if the tenant fails to pay several months' rent or uses the apartment illegally and thus endangers other residents. In these cases, you can terminate the tenancy without notice.
Terminating a rental agreement: Terms and conditions
The notice period for tenancy agreements depends on two factors: the type of termination and the duration of the tenancy. If you wish to terminate the tenancy agreement with due notice, i.e. without serious cause, you must respect a defined notice period. This period varies depending on how long the tenant has been living in the apartment. If a tenant has lived in an apartment for up to five years, the notice period is three months. Between five and eight years, tenants benefit from a six-month notice period, which increases to nine months if the tenant has lived in the apartment for over eight years.
In exceptional cases, extraordinary termination is possible, for example if the tenant does not pay their rent or the apartment is badly damaged. In this case, there is no fixed notice period. However, the notice must be given immediately after you learn of the violation.
Grounds for terminating a tenancy agreement
As a landlord, you have various options for terminating the tenancy agreement with your tenant. Here are some of the acceptable reasons:
Late payment
The tenant is in arrears with at least two months' rent. In this case, you can terminate without notice.
Breach of contract
The tenant is not adhering to the rules of the tenancy agreement. This can include, for example, keeping animals without permission, regularly disturbing the peace at night or causing damage to the rented property. Termination without notice is also possible here.
Personal use
You need the apartment for yourself or a close relative. In this case, you must give three to nine months' notice, depending on the length of the tenancy.
Necessary renovations
The apartment must be extensively renovated so that it is not possible to continue the tenancy. Ordinary notice of termination with the appropriate notice period is also required here.
Legally Compliant Termination of the Rental Agreement: How it Works
But even in the event that you have the right to terminate your tenant's lease, it depends on the notice of termination. Only if it meets certain formal criteria will you have a legally secure and valid document.
Terminating tenants with legal certainty
Written form: Notice of termination must always be given in writing.
Justification: The reason for the termination must be clearly and comprehensibly stated.
Deadlines and dates: Compliance with the statutory or contractually agreed notice periods is mandatory.
Specification of the termination date: This is particularly important to avoid misunderstandings.
Landlord Terminates Rental Agreement: Rights and Duties of Both Parties
Both tenants and landlords have certain rights and obligations during the termination process. From the landlord's perspective, it is particularly important that the notice of termination is given in writing and addressed to the right person. Depending on the duration of the tenancy, the notice period varies between three and nine months. In the case of ordinary termination, landlords must give a justified reason, such as personal use or late payment.
On the other hand, tenants have the right to take legal action against a termination if it is unjustified or does not meet the formal requirements. In the event of termination due to late payment, termination without notice can often be averted by settling the outstanding items. Under certain circumstances, an objection can be lodged against an ordinary termination, particularly in cases of social hardship.
Understanding the termination process and the legal framework
As is so often the case, knowledge is key. As a landlord, it is important to be aware of the legal framework and to respect it. A well-founded and formally correct notice of termination is essential to minimize potential conflicts and make the process fair for both sides. At the same time, tenants naturally have the right to defend themselves if the termination is unfounded or their rights have been violated. Knowledge is power — for both tenants and landlords.
