What Grounds Can a Landlord Use to Terminate a Lease? Section 573 BGB Explained

A landlord in Germany cannot simply end an open-ended tenancy without giving a reason. Section 573 of the German Civil Code (BGB) requires the landlord to have a legitimate interest in ending the lease, and paragraph 2 lists three specific situations that count as one. Anyone who receives a termination notice should first check whether the stated reason actually fits one of these categories.

The basic rule: no legitimate interest, no termination

Section 573(1) BGB makes clear that a landlord may only terminate a lease if there is a legitimate interest in ending it. A termination issued purely to raise the rent is explicitly ruled out. This sets German tenancy law apart from many other legal systems: an existing lease cannot be terminated just because the landlord could charge more on the open market.

The three grounds set out in Section 573(2) BGB

The law names three situations in which a legitimate interest is generally present.

First, a culpable and non-trivial breach of contractual duties by the tenant, such as repeated late payment, subletting without permission, or serious disturbance of the peace.

Second, so-called Eigenbedarf, or owner-occupancy need: the landlord requires the flat for themselves, for family members, or for members of their household. This is by far the most common ground used in practice, and the termination letter must name the specific person the flat is needed for and the reason for that need.

Third, prevention of reasonable economic use of the property, where the landlord would otherwise suffer significant disadvantage. Importantly, simply being able to charge higher rent through a different letting does not count as such a disadvantage, nor does an intention to convert the flat into condominium units and sell them individually.

Formal requirements for a valid termination notice

The grounds for the legitimate interest must already be stated in the termination notice itself. Other grounds are only taken into account if they arose after the notice was given. A termination that gives no reason, or one that is not specific enough, is formally invalid, even if a valid reason existed all along. Under Section 573 BGB, any agreement that departs from these requirements to the tenant's disadvantage is void.

Notice periods by length of tenancy

The actual notice period is set out in Section 573c BGB, staggered by how long the tenancy has lasted. As a baseline it is three months, rising to six months after five years and to nine months after eight years of tenancy. These periods apply regardless of which of the three grounds under Section 573(2) BGB is being used.

What tenants should check when they receive a termination notice

On receiving a termination notice, it is worth checking first whether the stated reason genuinely matches one of the three statutory categories, and whether it is specific enough — for example, naming the person and the family relationship in an owner-occupancy case. If the reason seems weak or the notice is missing required details, a consultation with the local tenants' association before any objection deadline expires is a sensible next step. Under certain conditions, a tenant can also object to the termination on grounds of unreasonable hardship under Section 574 BGB, for instance due to old age, serious illness, or the impossibility of finding suitable replacement housing.

Conclusion

A landlord's termination always needs a legitimate interest and must rest on one of the three grounds in Section 573(2) BGB: a significant breach of contract, owner-occupancy need, or prevention of reasonable economic use. Without a sufficiently specific reason, the termination can be challenged.

Frequently Asked Questions

What are the three main grounds a landlord can use under Section 573 BGB?

A culpable, non-trivial breach of contract by the tenant; owner-occupancy need (Eigenbedarf) for the landlord or their family; and prevention of reasonable economic use of the property.

Is the possibility of charging higher rent a valid ground for termination?

No. A termination issued purely to raise the rent is explicitly excluded, and a higher achievable rent through a different letting also does not count as economic disadvantage under the third ground.

Does the landlord have to state the reason in the termination letter itself?

Yes. The grounds for the legitimate interest must be given in the termination notice itself. Reasons that only arise later count only if they arose after the notice was issued.

How long is the landlord's notice period?

Section 573c BGB staggers it by tenancy length: three months as the baseline, six months after five years, and nine months after eight years.

Can a tenant object to a termination?

Yes, under certain conditions, on grounds of unreasonable hardship under Section 574 BGB — for example due to old age, illness, or the lack of suitable replacement housing.

Anyone searching for a new place because of a termination notice can browse current listings on Waitly. For Berlin's rent cap and other tenant protections, see Rental Laws in Berlin: Key Regulations & Tenant Rights. For the special case where the landlord lives in the same building, see Tenant Rights in Germany: Know Your Legal Protections. How the notice period develops for very long tenancies is explained in Tenant Rights in Germany: 9-Month Notice Period After 20 Years. If in doubt about a termination notice, a tenants' association can help.