There are mainly two types of lease in the German market. With an open-ended lease, there is no limit on how long a tenant may stay, so when terminating one, both landlord and tenant must give at least three months’ notice. This article covers the notice periods for ending a German lease, and how deposits are handled.
Tenant’s Notice Period
Generally speaking, a tenant on an open-ended lease in Germany only needs to give the landlord three months’ written notice to end the lease, and the calculation is based on the third working day of the month. For example, if you give notice on July 30, you can move out by October 30; but if you give notice on August 2, you can also only move out by October 30, because by then the notice was given after the third working day of that month.
Landlord’s Notice Period
The landlord’s notice period is also three months at minimum, but it also depends on how long the tenant has lived there. If the tenant has lived there for 0-5 years, the landlord only needs to give three months’ notice; if 5-8 years, the landlord must give six months’ notice; if the lease has run for more than 8 years, the landlord must give nine months’ notice.
A Landlord May Only End a Lease for Personal Use
A landlord must give at least three months’ notice in practice, but only where there is a valid reason. The most common reason is that the landlord needs the property for themselves, a family member, or a friend (who must live there with the landlord) — in this case the landlord has the right to terminate the contract. But if the landlord only wants to move into one of the rooms, that reason does not hold up.
Termination Notice Must Be in Writing
A German termination notice must be in writing and signed. If there is more than one landlord or tenant, all landlords or tenants must sign when giving notice. A termination notice given by the landlord must also explicitly remind the tenant of their right to object; a tenant does not need to do the same.
Terminating a Lease for Rent Arrears
In Germany, falling behind on rent falls into two categories: not paying rent at all, and paying only part of the rent. Each has its own way of being handled.
Non-Payment of Rent
If the tenant fails to pay rent for two consecutive months, or pays only part of the rent and the total shortfall reaches one month’s rent, the landlord can terminate the lease.
Partial Rent Arrears
If, over more than two months, the tenant only pays part of the rent and the accumulated shortfall exceeds two months’ rent, the landlord can terminate the lease.
Example
Assume the rent is €3,000.
- Scenario 1: The tenant does not pay rent in June or July — this meets the condition for non-payment, so the landlord can terminate the lease.
- Scenario 2: The tenant does not pay rent in June, and pays only €1,000 in July — the landlord cannot yet terminate the lease.
- Scenario 3: Building on Scenario 2, the tenant again pays only €1,000 in August — the shortfall has now reached €4,000, which exceeds one month’s rent, meeting the condition for non-payment, so the landlord can terminate the lease.
- Scenario 4: The tenant pays only €1,000 in each of June, July, and August — the shortfall reaches €6,000 (two months’ rent), meeting the condition for rent arrears, so the landlord can terminate the lease.
Deposit Refunds
Under German law, a rental deposit cannot exceed three times the monthly cold rent, excluding additional charges, and the landlord may not use the deposit during the tenancy. After the tenant moves out, the landlord may inspect the unit for damage and decide whether to make a claim against the tenant, before returning the deposit. This inspection and claims period cannot exceed six months — meaning the landlord must return the deposit to the tenant within six months of the tenant moving out.
Summary
Germany’s well-developed legal framework protects the rights of both landlords and tenants, balancing both sides’ interests while setting out various conditions: it ensures tenants do not need to worry about being forced out, while also giving landlords a lawful way to pursue payment when rent is in arrears, avoiding losses on either side.
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