Termination of tenancy agreement for personal needs and hardship: Your comprehensive guide to tenancy law 2025

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Introduction to the topic

Termination of personal needs is not only one of the most heavily discussed, but also one of the most emotionally and legally demanding problem areas in German tenancy law. As a landlord, you are faced with the challenge of striving for a formally correct and materially justified termination procedure so that your need for personal use of the living space is legally valid — on the other hand, tenants regularly experience massive cuts in their personal lives as a result of an impending termination, which are often perceived as threatening their existence. The legislative structure and supreme court case law are designed to establish a fair balance between these conflicting fundamental interests. Constitutional evaluation, in particular the interaction between guarantee of ownership, social responsibility and the protection of living space as a center of life, plays a central role. As a lawyer from Telgte, I can and will provide you with legal support both as a landlord or affected tenant nationwide as well as in an eviction action initiated due to termination of personal use.

The following provides an in-depth presentation of all practice-relevant issues relating to termination of personal needs, balancing interests and all tenant and landlord protection instruments.

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I. Constitutional and legal basis of termination of personal needs

1. Termination of personal use in the framework of property protection and tenant protection

Before you deal with the details of a specific personal use project or an impending dismissal, it is advisable to present the basic decision under Union and constitutional law. The legislator has deliberately made the Landlord's termination options restrictive in order to balance, on the one hand, freedom of ownership and right of use under Article 14 (1) GG and, on the other hand, the housing specially protected by Article 13 GG and the welfare state principle as the tenant's place of life. It follows that termination of personal use is only to be understood as an exception to the principle of inventory protection and is subject to strict requirements and legal controls. Federal Constitutional Court, resolution of 13.10.1993 — 1 BvR 1693/92

2. The legal requirements for admissible termination of personal use

The termination of personal use is based on Section 573 (2) No. 2 BGB and requires that the landlord needs the apartment as living space for himself, for family members or for people in his household. However, it is by no means sufficient to provide the abstract prospect of any personal use; rather, there must be an actual, present and comprehensible will to (own) use at the time of termination. This also applies in particular to groups of people for whom you would like to register personal use. The case law is strict in this respect: The more distant the relationship and the less plausible or urgent the established desire for use, the more intensively courts are required to critically examine the decision on the basis of the overall circumstances. (BGH, judgment of 18.05.2005 — VIII ZR 368/03)

Tabular overview of persons entitled to personal use

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The termination itself must also comply with certain formal requirements (read the technical article: Termination of the rental agreement)

Excursus Formalities of Termination under German Tenancy Law:

In Germany, terminations must meet certain formal requirements in order to be legally effective. It is important to understand the differences between text and written form and to know that a notice of termination must be received by the recipient in order to be effective. Here are the details:

Written form vs. textual form

written form

• Definition: The written form requires that a document be signed by hand. § 126 BGB
• Requirements:
  • The notice of termination must be submitted on paper.
  • It must bear the handwritten signature of the terminator.
  • Electronic signatures or fax copies are not enough.

textual form

• Definition: The text form is less strict than the written form. It requires that the declaration be recorded in a durable form, but not a handwritten signature.
• Requirements:
  • The declaration can be made by e-mail, fax or other electronic medium.
  • It must contain the name of the explanatory party.

Difference

• Usage: While the text form is sufficient for many contracts or declarations, the written form is required for terminations of employment contracts.
• Legal relevance: A notice of termination in text form would not be legally effective if the law requires written form.

Receipt of notice

For the termination to be effective, the Entry decisively:

• Definition: Access means that the termination is within the sphere of control of the recipient, so that the recipient has the opportunity to take notice under normal circumstances.
• Examples of access:
  • The notice of termination reaches the recipient by post and is delivered to him.
  • Handing over the notice in person against confirmation of receipt.
• Date of access: Access occurs when the recipient is usually able to take note of it — in the case of delivery by post, often on the day it is dropped into the mailbox.

For effective termination in Germany, the written form must therefore be complied with and receipt of the notice must be ensured. Only then will the termination have legal effect. The Landlord Is Burdened with Presentation and Evidence for Effectiveness When giving notice of termination, ensure that all landlords (with a majority of persons!) Sign them and the letter is verifiably received. Ask friends or relatives to read through the letter and watch how you envelope the letter and send it via throw-in letter. The Witnesses Must Observe How You Envelope Letters and Send Them by Drop in Letter

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A formal notice of termination must include in detail:

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• The exact name of the apartment and all tenants
• The precise name of the person (s) for whom personal use is claimed, together with an explanation of their relationship with the landlord
• A detailed, individual explanation of the circumstances and motives for which the use is necessary (e.g. change of work, addition of family, case of care)
• The provision of correct notice periods
• Explicit reference to the tenant's legal right of objection

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Practical tip:
In any case, make sure that your information is accurate and up to date. There is no room for manoeuvre as to whether personal use actually exists at the time of termination and continues to exist. For example, if the originally stated reason ceases to apply after receipt of the notice, you as the landlord are obliged to give immediate notice — otherwise you run the risk that the termination will subsequently be regarded as ineffective. If you fake your own use, you as a landlord are at risk of being liable to pay compensation. This can get out of hand. As a lawyer from Telgte, I helped a terminated tenant, who was the victim of fake personal use, to assert claims for damages. The compensation included the increased rent for an appropriate replacement apartment (not limited in time!) , the purchase of a used car (so that the dismissed person could reach his job in Telgte, which is now 20 km away), the removal costs and various purchase costs for furnishings. As you can see, as a landlord, you can expose yourself to high compensation claims. Seek advice from a lawyer if you would like to register your own needs.

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II. Misuse and Compensation in Case of (Feigned) Personal Use and Undue Termination of Data

In the practice of canceling personal needs, tenants repeatedly question the seriousness or truth of the claimed need — often with success. The Courts Review such cases particularly strictly, as a suspicion of abuse would undermine all reliance on the protection mechanism.

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1. When is there misuse due to fake personal use? — Requirements and case groups from case law

A feigned personal use exists when the alleged desire to use it is only advanced in order, for example, to get rid of an old tenant with a favourable contract, to rent out the apartment more expensive or to acquaintances, or to be able to use it more “lucratively” after modernization. Personal use that is factually unsubstantiated, arbitrarily or alternately named and which the landlord does not want to realize at all (or does not use the person at all) always results in the termination being ineffective and can have serious consequences.

Typical evidence of misuse of personal use

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• After moving out, the apartment actually used remains empty for a longer period of time or — contrary to information — is not used for residential purposes, but for commercial purposes, for example.
• The relative who allegedly claims personal use does not move into the apartment, but the landlord immediately resells it or concludes a new rental agreement.
• Further dismissals are being issued with ever new “people in need” at close intervals.
• The justification of the need is clearly incomprehensible, contradictory or general.
• At the time of giving notice of termination, the landlord has comparable vacant living space, which he could use as a matter of priority.

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Consequences:

The tenant is entitled to (full) compensation for the damage caused to him as a result of the fact that the apartment has been wrongly terminated. This means all verifiable costs that have Arisen as a result of the move — including higher rents, brokerage commissions, removal costs, renovation expenses and, under certain circumstances, even compensation for financial disadvantages suffered.

In extreme cases, the conduct of the landlord may be criminally relevant, resulting in an indictment.

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2. Cancellation of reserves

Termination of data is not a form of feigning personal use, but may trigger the same compensation obligations.

Withdrawal notice: The Landlord gives notice preventively and without specific cause, with the aim of being prepared for any future reasons that may arise. An inadmissible termination of tenancy law therefore exists when a landlord gives notice of termination without a specific reason for termination in order to keep an opportunity open for himself to terminate the rental agreement in the future.

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III. Balancing Interests — The Core of Hardship Protection

Few aspects of tenancy law are as central to legal practice, but also as situationally and complex as the balancing of interests to be carried out in the context of Section 574 BGB. In each individual dispute, it is used to clarify whether and for how long the completion of personal use must backfire on the tenant's individually proven needs.

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1. Standards and Principles of Consideration

The balancing of interests is not just a schematic check off of certain criteria. Rather, it is the task of the court to assess all the circumstances of the individual case completely freely, taking into account all social, health, family and economic factors. The decisive factor is whether the disadvantage for the tenant “cannot be justified taking into account all legitimate interests of the parties,” as required by the wording of the law. The assessment includes, for example, the following parameters:

• The extent and intensity of the tenant's impairment (e.g. age, frailty, illness, length of rental period),
• The social and family ties in the living environment
• The Possibilities and Reasonableness of Alternative Housing Supply,
• The urgency and plausibility of the landlord's request for use
• Economic or professional livelihood issues on both sides.

Exemplary Constellations
An 87-year-old tenant who has been living in the same apartment continuously for over 30 years and for whom moving would demonstrably mean a significant decline in health or even risk to life, enjoys — especially when no reasonable replacement apartment can be found — often also for an indefinite period of time against weighty landlord interests. The case must be assessed differently if personal needs include a relative in need of care or the founding of a family and the tenant cannot claim any serious hardships.

2. Tabular comparison of typical balancing situations

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3. Special Features of the Temporary Continuation

Courts have the option of ordering the continuation of the tenancy for a limited period of time in the event of only temporary hardship reasons (such as during illness, pregnancy or care phase). This fairly secures the interests of both parties.

IV. Hardship Constellations in the Light of Case Law

(With practical examples, sources and classification)

The following is an overview and explanation of the most important reasons of hardship whose enforcement is particularly promising — always accompanied by references to document requirements, legal requirements and typical sources of error.

1. Old age, illness, need of care and rooting

The combination of age, health care and social involvement is the “classic” of hardship cases — but not every pensioner is automatically protected against dismissal.

Exemple:
A 78-year-old tenant with serious heart problems, whose entire circle of acquaintances and treating doctors are based in the immediate vicinity, can prove that moving involves risks for his health and independence that can hardly be compensated for. In addition, there is the decades-long commitment to housing, the surrounding area, shopping facilities and the neighborhood. In such cases, courts regularly rule in favour of the tenant — provided that the risks are adequately substantiated by specialist medical certificates. (AG Bayreuth, judgment 4 C 78/89)

2. Exceptional Psychological Circumstances and Risk of Suicide

If significant psychological risks are to be expected in the event of a loss of housing — up to an increased risk of suicide — courts are required to order at least a temporary/trial continuation, even if there are significant personal reasons needs. Ultimately, the submission of comprehensive specialist medical reports is almost essential in these cases. (Federal Constitutional Court, resolution 1 BvR 1147/97)

3. Pregnancy and Special Family Constellations

Especially in the last third of a pregnancy or in the sensitive period after birth, moving house is regularly considered an unacceptable hardship — both for the mother and for the newborn. Case law assumes that, under normal circumstances, the tenancy is expected to continue at least 8—12 weeks after the birth. (Stuttgart Regional Court, judgment 16 S 378/90)

4. Lack of alternative housing despite extensive search

However, the mere reference to housing shortages or increased prices is not enough to be recognized as a case of hardship. It requires a demonstrably committed, serious search, which can ideally be substantiated by detailed documentation of all inquiries, viewings and cancellations. In the absence of such an active effort, the court will generally reject the hardship claim. (AG Mannheim, judgment 14 C 29/09)

5. Professional and economic existential risk

If professional activity, such as exercising a freelance profession or working from home, complies with the need to remain at home, hardship is also an option — for example, if a short-term move would result in abandonment or a life-threatening interruption of employment.

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V. Protection Instruments: Objection, Eviction Period, Enforcement Protection — Procedure & Details

1. An overview of the objection under Section 574 BGB

As soon as you have received a notice of personal use, you have the right — if the hardship reasons outlined above exist — to object to the termination. However, the exercise of this right is subject to certain formal and substantive requirements:

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2. The eviction period in accordance with Section 721 Code of Civil Procedure

If you, as a tenant, are subject to the eviction process, the additional protection instrument of the eviction period is available to you. In particular for humanitarian and social reasons (e.g. serious health problems, ongoing treatment, completion of training), the court may postpone the eviction for a period of up to one year. In doing so, the court takes into account in particular the urgency and remedability of the individual burden, the practical organization of a move and any arrangements between the parties.

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3. Enforcement Protection under Section 765a Code of Civil Procedure

Enforcement protection is designed as a “last resort network” and only applies in exceptional situations in which eviction would demonstrably lead to immoral consequences (e.g. acute danger to life, life-threatening homelessness or severe psychological damage). The application for enforcement protection must be well-founded and up-to-date, with the hurdles being significantly higher than for an appeal or eviction period. (BGH, resolution I ZB 27/10)

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VI. Tenants' rights and strategies: practical advice

Have checked all legal periods immediately after receipt of the notice — in particular for the appeal under Section 574 BGB and the subsequent application for eviction period or enforcement protection.

Submit all documents, evidence and explanations in a collected and organized manner to support the balancing process in favor of your concerns. In case of doubt, legal advice is recommended before the appeal period expires in order to identify possible formal deficiencies and material gaps at an early stage and to close them in a targeted manner.

Stay factual in your communication — with all due self-confidence — avoid personal attacks and get in touch with the landlord or his stakeholders as quickly as possible if issues are unclear so as not to prevent appropriate “good” solutions from the outset.

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VII. Information and risks from a landlord's perspective: avoid mistakes, seize opportunities

Describe your personal needs as detailed and specific as possible — both with regard to the beneficiary and the motivation, urgency and duration of the planned move in.

Before giving notice, consider whether all alternatives have been exhausted (e.g. rent cancellation agreement with moving fee, arranging replacement housing, toleration of a longer transition period).

If, in the course of the termination or appeal procedure, you discover that your life plan or the ability of the person in need has fundamentally changed, please report this immediately in writing in order to avoid legal disadvantages or compensation obligations.

VIII. Summary and final recommendations

The hurdles for successful termination of personal needs are high, both materially and formally, and court practice reflects the complexity of the individual cases in question. For tenants and landlords alike, the more carefully you review and document your own initial situation, existing interests and all evidence, the easier it is to enforce or ward off individual claims. Conflicts can often be alleviated through timely communication, a clear legal roadmap and openness to amicable solutions — this applies even to long-term and emotionally burdened tenancies.

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Note: This presentation cannot and should not replace individual legal advice in a specific individual case. In the event of a dispute, it is advisable to seek legal advice and to comply with any deadlines. Attorney Depenbrock from Telgte is always available for advice in the Depenbrock Pulpit!

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