As of: March 26, 2024, 5:00 a.m
By: Bleranda Shabani
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Previously, personal use was often a reason for termination for owners.
This will become more difficult in the future.
The Berlin district court has strengthened the rights of tenants.
Berlin – Owners who want to use their apartment for themselves or their relatives may decide to end the rental for various reasons.
But while the law fundamentally supports such terminations, a recent ruling by the Berlin Regional Court is causing uncertainty among owners and potential buyers.
Termination for personal use: Court grants a two-year lease extension
A ruling by the Berlin Regional Court ruled in favor of the tenants.
This decision raises questions: What makes this ruling so special and how will it impact future litigation?
Expert opinions and recommendations from specialist lawyers for affected landlords are intended to provide clarity.
As the
Handelsblatt
reported, in the case in question, an apartment owner had given notice to her tenant because of her own use.
The tenant objected and invoked the hardship regulation in the German Civil Code (BGB), as he could not find suitable alternative living space under reasonable conditions.
The landlady didn't want to accept this and sued.
Landlords cannot always enforce their own needs.
(Symbolic image).
© Marco Zangger/Imago
The district court dismissed the landlord's lawsuit because formal requirements were not met.
In the second instance, the Berlin regional court decided to dismiss the eviction lawsuit.
The court referred to particular hardship reasons because the tenant could credibly prove that he had not found an alternative apartment.
The rental agreement was extended until January 31, 2026 - with a slight rent increase.
Tenancy law expert: “Judgment is revolutionary”
Ricarda Breiholdt, specialist lawyer for tenancy and condominium law at Breiholdt Voscherau in Hamburg, describes the judgment as “very remarkable”.
Tenancy law expert Peter JS Lau, partner at the tenancy law firm Lützenkirchen Rechtsanwälte in Cologne, even goes so far as to say that the ruling is “to some extent revolutionary”.
Lau strongly believes that it will shake up the real estate market and have a lasting impact on the industry.
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“It's quite remarkable: you get court confirmation that your termination for personal use is legal, but you still can't use your apartment for the time being,” Lau told
Handelsblatt
.
Berlin ruling is a victory for tenants
In this particular case, the court placed the tenant's interests above those of the landlord because he was at risk of becoming homeless.
The Berlin district court said that the tenant would not have been able to find an apartment at short notice either on the free or on the publicly subsidized housing market.
In the two and a half years between termination and the main hearing, the tenant had unsuccessfully applied for a total of 244 apartments, including private and municipal landlords in a search radius of 39 districts from Adlershof via Marzahn to Wittenau.
The court also contacted the Mitte district office, but received no positive response.
According to the Mitte district office, there would be no replacement apartments in the foreseeable future.
An expert was also called in.
In his report, he came to the same conclusion: the tenant's chances of finding an apartment were extremely low due to the "scarce supply of available apartments", and his limited financial resources made his situation even worse.
Rental prices are rising rapidly in major German cities.
(Symbolic image) © Frank Rumpenhorst/dpa
What tenants and potential buyers need to consider
But rents are not only rising in Berlin.
Specialist lawyer Lau expects that tenants and their lawyers will soon lodge objections to terminations for personal use in other large cities.
“This will prolong the proceedings further – especially if an expert has to be called in,” Lau told the
Handelsblatt.
In areas with tight housing markets, potential buyers of rented properties should particularly carefully examine their prospects of successfully terminating the property for their own use, Lau recommends.
The recent ruling provides a precise guide for tenants who object and can serve as a guide to make informed decisions about whether and under what conditions a tenancy should continue.
Hardship cases are crucial for rent extensions
For tenancy lawyer Sebastian Bartels, managing director of the Berlin Tenants' Association, the ruling also has a “big downer” in its possible impact on similar cases, as he told
rbb
: “The ruling confirms the termination, and it only gives the tenant a reprieve Abstract.
It also comes with increased rent.”
At the same time, the judgment also shows: “For the landlord, the risk of being able to terminate tenants successfully and quickly has increased.
It means: own needs cannot be implemented as quickly as before.”