Ejection with announcement: BGH allows personal use even with plans to sell

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Convert, sell, cancel - and all legally?

People who rent live with the risk that at some point the owner might declare their own needs. Previously, only those who really needed the apartment themselves - for themselves or close relatives, for example - were allowed to give notice. But now the Federal Court of Justice (BGH) has surprisingly extended the scope. A Berlin landlord is allowed to give notice to his tenant even though he only needs the apartment for a few months - while he is converting the apartment he himself lives in for a better sale. The ruling: VIII ZR 289/23.

The case: conversion as a pretext or legitimate need?

An owner from Berlin lives in the house himself and wants to carry out a major renovation. His idea: his own apartment is to be connected to the top floor - but he needs his tenant's apartment temporarily for this. After the conversion, he wants to sell everything together. That's why he terminated the lease for personal use.

The Berlin Regional Court initially said: "No." The reasoning: The owner did not want to live there, but only wanted to make money. A conversion in order to sell the apartment at a higher price later was not a personal use - but a pure interest in exploitation. And according to the law, that is not enough for a termination.

Karlsruhe turns the tables

But the BGH took a completely different view. The judges ruled: Even if the owner himself "creates" the need for personal use, for example through a planned conversion, he may terminate the lease - as long as he really needs the apartment in the meantime.

This means that if a landlord wants to use the rented apartment temporarily to carry out building work in his own area, this can count as personal use. Is it ultimately also about money? Secondary.

In other words: If you want to convert, you can throw out - even if the aim is not to live but to sell.

What does this mean for tenants?

This ruling could become a dam break. This is because it allows landlords to construct their own needs as long as the process is reasonably plausible. Instead of "I need the apartment for my daughter", "I'm renovating and then I'll sell" may now suffice.

Critics are already saying that this opens the door to terminations that have little to do with genuine personal use. Especially in cities like Berlin or Munich, where property prices are going through the roof, many owners could now come up with similar ideas.

Personal use light?

What is emerging here is a dangerous trend. With a little creativity, owners can now give notice more than ever before, even if they don't want to move in themselves. The interests of tenants? Slipping further and further into the background.

It's almost as if the BGH is saying: "All you need is the right plan - then you'll get the tenant out." Sounds cynical, but it's real. And that is precisely why the question remains: how much personal use can tenancy law take before it becomes a farce?