Termination & Economic Use: Tenants in Germany

If your landlord terminates the lease claiming economic use, many questions about deadlines, form and justification arise. This guide explains for tenants in Germany in plain language what "economic use" means, which statutory rules in tenancy law apply and how you can check a termination. You will learn when a termination due to owner occupation or conversion may be permissible, which forms and evidence are relevant and which deadlines the BGB prescribes. Practical template wordings and tips help prepare objections or assemble documents for the local court in time. The aim is that you as a tenant know your rights, meet deadlines and remain able to act on termination protection and possible court proceedings.

What does "economic use" mean?

"Economic use" is understood by the courts as a use of the building or flat that is associated with a sustainable, economically beneficial reorientation for the landlord. This can be conversion, subdivision into multiple units or another use that yields higher income for the landlord. Whether this constitutes sufficient justification for termination depends on the concrete planning, the scope of the measure and the reasonableness for you as a tenant.

Legal basis

For practice, the provisions of the German Civil Code (BGB) are particularly relevant, especially the rules on ordinary termination and termination grounds.^[1] Procedural rules of the Code of Civil Procedure (ZPO) apply if lawsuits or eviction proceedings arise.^[2] Decisions of the Federal Court of Justice (BGH) play an important role for interpretation of central terms.^[3]

Which types of termination are relevant?

• Ordinary termination for economic use: the landlord must state the reasons in writing and make them plausible.
• Termination for owner occupation: when the landlord needs the flat for themselves or relatives.
• Extraordinary (immediate) termination: only in case of serious breaches of duty, e.g. significant rent arrears.

Practical steps for tenants

• Check any deadlines in the termination immediately and do not delay your response.
• Collect evidence: photos, correspondence, witness statements to document the situation.
• Contact legal advice (tenant association, lawyer) and check eligibility for legal aid (PKH) if needed.
• Find out which local court (Amtsgericht) is responsible if an eviction lawsuit is threatened.

Forms and templates

Important official forms and applications for tenants include:

• Application for legal aid (PKH) – important if you cannot afford court proceedings; the form is available at courts or via the justice portals of the federal states.
• Statement of defence / claim forms (civil proceedings) – in court disputes, documents must be filed in accordance with ZPO requirements.
• Written reply to the landlord – not an official form, but a structured response listing facts and requesting evidence is practically useful.

What to do if a lawsuit is filed?

If the landlord goes to court, you should file a timely objection, submit all evidence and possibly name witnesses. Statements of defence must clearly set out the facts and legal objections. If quick action is necessary, an application for interim relief may be appropriate.

FAQ

What exactly is economic use?

Economic use refers to landlord measures for sustainably increasing income, for example by changing the use or modernizing, which may make continuation of the tenancy unreasonable.

Which deadlines must tenants observe?

Pay attention especially to deadlines for submitting a response and the statutory termination periods in the BGB; procedural deadlines are governed by the ZPO.

Are there official forms for defense?

Forms such as the application for legal aid or court forms are available at the local courts and on the justice portals of the federal states.

How-To

1. Read the termination carefully and note all stated reasons and deadlines.
2. Gather evidence: photos, communication with the landlord, witness statements.
3. Prepare a written reply to the landlord and request proof of the planned economic use if necessary.
4. Seek legal advice (tenant association or lawyer) and check eligibility for legal aid.
5. If a lawsuit is filed, submit your statement of defence to the competent local court in due time.

Help and Support / Resources

• Gesetze im Internet (BGB, ZPO) — Official statute texts
• Justice portal — Court information and forms
• Federal Court of Justice (BGH) — Decisions and summaries

1. [1] Gesetze im Internet — BGB §573 Termination
2. [2] Gesetze im Internet — ZPO (Code of Civil Procedure)
3. [3] Federal Court of Justice — Official Website