When a landlord lives in a small, owner-occupied building, eased termination… (Photo by Sangga Rima Roman Selia on Unsplash)

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Housing market

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Waitly

June 11, 2026

When Your Landlord Lives in the Building: Exceptions Under Sections 573a and 573b BGB

Normally, a landlord in Germany can only give notice with a legitimate interest under Section 573 BGB — for example, personal use. Two special cases specifically override this strong protection against termination: when the owner rents out a unit in a small building they live in themselves, or a side room within their own apartment, eased rules apply. Knowing about these exceptions matters if you're apartment-hunting in a duplex or a furnished room at the landlord's place.

Eased Termination Under Section 573a BGB

Section 573a BGB lets a landlord terminate a tenancy for a unit in a building with no more than two units, one of which the landlord occupies themselves, without needing a legitimate interest in the sense of Section 573 BGB. In practice, this covers classic two-family houses where the owner lives on one floor and rents out the other. So the landlord doesn't have to prove personal need or a breach of contract to give notice. In exchange for this weaker protection, the notice period is extended by three months compared to the regular, tenancy-length-based period under Section 573c BGB. The landlord must also explicitly state in the termination notice that they're relying on this eased termination under Section 573a BGB. Any agreement that further restricts this protection to the tenant's disadvantage is invalid under Section 573a(4) BGB.

Partial Termination Under Section 573b BGB

Section 573b BGB covers a different situation: the landlord doesn't terminate the whole apartment, only individual rooms or parts of the property not used for living purposes — a cellar room, a garage, or a share of the garden, say — in order to convert or repurpose that space. Here too, the landlord doesn't need a legitimate interest under Section 573 BGB. Under Section 573b(2) BGB, this notice is permitted by the third working day of a month, effective at the end of the month after next — a shorter deadline than for terminating the whole apartment. If the announced construction work is delayed, the tenant can demand a corresponding extension of use under Section 573b(3) BGB. And if part of the previously used space is lost through the partial termination, the tenant is also entitled to a reasonable rent reduction for the remaining part of the tenancy under Section 573b(4) BGB.

What These Exceptions Mean for Your Apartment Search

If you're looking at a unit in a building with only two units where you'd be living right alongside the owner, it helps to know that regular protection against termination is limited here, as one German legal guide on this exact clause explains. That's not a reason to rule out such a listing outright, but it's worth factoring into your decision, especially if a stable, long-term living situation is a priority. It's worth checking the lease itself: if it already references Section 573a BGB, or explicitly describes co-rented side rooms that could later be terminated separately, it's worth asking the landlord or getting advice from a tenants' association before you sign.

Conclusion

Sections 573a and 573b BGB aren't blanket clauses against tenant protection — they're narrowly defined exceptions for two specific situations: the owner-occupied two-unit house, and the isolated termination of individual side rooms. Both provisions require a longer notice period or a compensating rule for the tenant in return. Knowing about these special cases lets you judge a listing in a small, owner-occupied building more realistically. For a rundown of Berlin's current rent cap and what's actually allowed after 10pm on noise, two further guides in this series cover the basics. With Waitly, you can keep searching for the right apartment regardless of the building or landlord setup — start your search here.

Frequently Asked Questions

Does Section 573a BGB apply to every multi-unit building?

No. The provision only applies if the whole building has no more than two units and the landlord lives in one of them. With three or more units, regular protection against termination under Section 573 BGB applies.

Does the landlord still need to give a reason under Section 573a BGB?

No, a legitimate interest under Section 573 BGB isn't required. But the landlord must explicitly base the termination on Section 573a BGB and keep to the notice period extended by three months.

What happens if living space is lost through a partial termination under Section 573b BGB?

The tenant is entitled to a reasonable rent reduction for the remaining use. If the landlord's announced construction work is delayed, the tenant can also demand a corresponding extension of use of the affected space.

Can the landlord further restrict the protection under Section 573a or 573b BGB by contract?

No. Both provisions expressly declare agreements that deviate from the statutory rule to the tenant's disadvantage invalid.