Termination of Tenancy Due to Owner Occupancy

Having an open-ended tenancy agreement is something of a luxury these days, given the cur-rent housing crisis. So, when a notice of termination for owner occupancy drops through your letterbox, it often comes as a shock. However, such terminations are not always legally valid. Sabine Brandl, a legal expert at ERGO Rechtsschutz Leistungs-GmbH, explains, when owner occupancy applies, what rights tenants have if their landlord claims owner occupancy, and when it may be worthwhile to object.

For Whom Can a Landlord Claim Owner Occupancy?

Flats—especially in large cities—are not only expensive but also in short supply. Anyone with an open-ended tenancy can count themselves lucky. “A landlord can only terminate such a tenancy if they have a legitimate interest,” explains Sabine Brandl. “One example is owner occupancy.” This applies when the landlord requires the entire flat for themselves or for close family members, such as their children, grandchildren, parents, sons- or daughters-in-law, nieces or nephews, spouses or registered partners. “There is an exception for more distant relatives, such as cousins or uncles and aunts by marriage, if a close personal relationship can be proven,” Brandl adds.

Further Requirements for Legitimate Owner Occupancy

Landlords must also be able to demonstrate a legitimate reason in needing the property. “For example, if the owner or an eligible person needs more space due to a growing family—after marriage or the birth of a child—that may be grounds for owner occupancy,” Brandl explains. A job change may also justify owner occupancy if the flat is closer to the new workplace, or if parents need a larger home due to requiring care. “Importantly, the need for the property must be current or foreseeable in the near future—pre-emptive or speculative terminations are not permitted,” Brandl notes. Another require-ment is that the landlord’s need for space must be appropriate for the size of the flat—for example, a one-bedroom flat would not be suitable for a family of five.

When Is a Termination for Owner Occupancy Invalid?

Terminations for owner occupancy are subject to certain legal requirements in order to be valid, and these are not always fully met. “Tenants should therefore scrutinise any notice of termination for owner occupancy,” advises Brandl. “The notice must include clear and comprehensible reasons, specify exactly who will be moving into the property, and state the correct date for the end of the tenancy in line with the statutory notice period.” If information is missing—for example, if no reason is given—or is incor-rect, the termination is invalid. Since assessing this can be difficult for tenants, Brandl recommends seeking advice from a lawyer.

What Should Tenants Do After Receiving Notice of Owner Occupancy?

Even if the notice meets all formal requirements, it does not necessarily mean the landlord’s claim of owner occupancy is legitimate. “In many cases, this is not immediately clear and must be assessed on a case-by-case basis,” says Brandl. She again recommends discussing your options with a lawyer. If the tenant does not move out as requested, the landlord can file for an eviction order, which will be exam-ined by a court. It’s important to note the date you received the notice and to keep track of all rele-vant deadlines.

When Is It Worth Objecting?

Even if the termination for owner occupancy is legally valid, tenants may, in exceptional cases, be al-lowed to remain in the property. “In cases of unreasonable hardship—for example, old age combined with illness or frailty, serious illness, pregnancy, or upcoming important exams—tenants may not have to move out if their hardship outweighs the landlord’s need for the property. To make use of this pro-vision, tenants can object in writing within two months. Whether an unreasonable hardship exists is often a matter for the courts to decide on a case-by-case basis.

What Rights Do Tenants Have After an Unjustified Termination for Owner Occupancy?

If a landlord unjustifiably claims owner occupancy—using a false reason—and the tenant moves out as a result, the tenant may be entitled to compensation, such as moving costs. This might apply, for ex-ample, if the property is subsequently let to a new tenant rather than being occupied by a family member. If the landlord unexpectedly no longer needs the property before the notice period expires—because, for example, their daughter’s place of study changes at short notice—they must inform the tenant, who can then demand that the tenancy continue.