Person packs moving box due to termination of personal use
August 08, 2021Valid reason for personal use? What landlords need to consider
InvestReal estate rental

When can personal use be claimed?

Landlords have the option of terminating a tenancy agreement and registering personal use for themselves, close relatives or household members. However, there are various aspects to consider here. If a termination is to be made due to personal use, the landlord must observe the prescribed notice periods and clearly state the reasons for personal use in the termination letter. The law regulates when a termination for personal use is legal.

Person packs moving box due to termination of personal use

Termination for personal use - definition and purpose

Own use exists if a landlord wishes to use the rented apartment himself or make it available to a family member or a member of his own household. The regulations on this can be found in § 573 Para. 2 No. 2 BGB. Only those who are entered in the land register as the owner of the property at the time of termination may register their own use. This means that the declaration of personal use cannot be made for a buyer, for example. If the buyer wishes to terminate the tenant’s tenancy for personal use, they must do so themselves as soon as ownership has been transferred to them. For reasons of tenant protection, the landlord must have a valid reason for personal use. This must be set out in writing in the notice of termination in order to ensure legality. A feigned personal requirement is not legal.

Who can register personal use?

In principle, the landlord is responsible for registering personal use. If a related person is to use the apartment, the degree of kinship is decisive. In principle, the higher the degree of kinship, the easier it is for the landlord to recognize the termination due to personal use. In the case of closer relatives, such as children, parents or siblings, no proof of a special relationship to the landlord is required. For cousins or great-nephews and great-nieces, however, this must be provided. Household members include descendants from the previous relationship of a non-marital partner or people who are employed to provide domestic care and live in the household. Anyone who buys an apartment can and may give notice of termination for personal use after the purchase.

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2 people moving after termination for personal use

Timing and legal deadlines

The applicable notice periods for terminating a tenancy for personal use depend on the duration of the previous tenancy. If this is between 0 and 5 years, the notice period is 3 months. If the tenancy has been in place for 5 to 8 years, it is extended to 6 months and from 8 years, a 9-month notice period applies. The notice period for personal use is also valid after the change of ownership. Once the date of termination has been determined, the letter of termination must be drawn up. This must be in writing and state the exact reasons. A reference to personal use is not sufficient. The notice of termination must be delivered to the tenant by the third working day of the current month in order to be effective at the end of the month after next.

Tenant protection for personal use

In order to ensure tenant protection, there are a few things to consider when giving notice of personal use. If a landlord already knows at the start of the tenancy that he wants to give notice of personal use, he must announce the personal use in the tenancy agreement. In addition to the notice period for personal use, the completeness of the letter must be taken into account. It should include details of the person who needs to move out and the nature of the landlord’s relationship with them. In addition, the landlord must give precise reasons for the need for accommodation, such as a change of job, caring for relatives or an intention to separate from the spouse. A pretended personal need can lead to the invalidity of the claim. A reference to the right of objection must be included. If the landlord has an alternative apartment, he is obliged to offer this to the tenant. Reasons must also be given as to why this alternative apartment is not suitable for the landlord or the tenant. For the termination to be effective, it must be proven that the tenant has received it. It is therefore advisable to send it by registered mail or hand it over directly in person in the presence of a witness.

A recognized reason is, among other things, if you register your own needs after a purchase. In addition to the termination of owner-occupancy after purchase, the desire to spend your retirement in a smaller apartment for health reasons is also considered legitimate. Other legitimate aspects include the need for a second home for professional reasons, the desire to have children and the associated need for separate rooms for the children or the need for an alternative home if renovation and conversion work is taking place in your own home that will last several years.

The termination is invalid if there is a pretended personal requirement. It is also invalid for fixed-term tenancy agreements. In addition, a contractually agreed waiver of termination on the part of the landlord has a preclusive effect. If a rented apartment is converted into residential property, the three-year blocking period must be observed. Terminations by legal entities as owners of a property due to personal use are also invalid.

When giving notice of personal use, the statutory deadlines must be observed, which depend on the duration of the tenancy. The notice of termination must be received by the tenant by the third working day of the month in order to be valid at the end of the month after next. If the tenant receives the notice of termination on a Monday, July 1, for example, the tenancy is deemed to have ended on August 31.

For tenancies of up to 5 years, the notice period for personal use is 3 months, for up to 8 years it is 6 months and for 8 years or more it is 9 months.

The objection to the termination due to personal use must be received by the landlord no later than two months before the end of the notice period. In this case, the question of whether the personal use is legal will be clarified in court. The decisive factor here is whether the termination of the tenancy is unreasonable for the tenant and therefore a case of hardship exists. This applies, for example, in the case of old age, illness, pregnancy, suicide risk or insufficient income on the part of the tenant. An objection is also lawful if there is a suspicion of pretended personal use. In this case, the tenant is entitled to compensation.