Fixed term lease

In fact, landlords try to use fixed term leases to get around tenants’ rights and increase rents.


That’s unusual because, in Germany, unlimited rental agreements are the standard. So it’s worth checking carefully:

  1. Is the fixed-term rental agreement even valid?
  2. What happens if the fixed term is invalid?
  3. What are the consequences if it is valid?

In German tenancy law, there are two types of fixed-term rental agreements for residential property. Both are only valid under specific conditions. In particular, there must be a legally recognized reason.

Recently, so-called short-term rental agreements for temporary use are becoming more common. They are based on § 549 Para. 2 No. 1 BGB.
Here, the landlord claims you only want to use the apartment for a short time.

For the term to be valid, the use must truly be temporary
Courts have not yet fully agreed on when the period becomes too long:

  • Some courts find 12 months too long.
  • Some consider more than 6 months to indicate regular use.
  • Others draw the line at 3 months.

The rental must not only be short but must also have a concrete reason. Mere claims by the landlord (“You’re only staying briefly”) are not enough.
Most courts require a so-called special purpose.

Examples of valid reasons:

  • A clearly limited internship or semester.
  • A temporary work assignment.

In practice, landlords often just assert you want to stay briefly – without actual basis. Frequently, this is written into the contract without informing you beforehand.

Important: The landlord has to explain and prove the reason. If this is not plausible, there’s strong indication that it’s actually an unlimited rental contract.
Be careful about what you say during viewings or in communications – it could be used later.

Consequences:

SituationConsequence
Valid short-term lease– Lease ends automatically on the agreed date
– Rent control (Mietpreisbremse) doesn’t apply (§ 549 BGB)
– Landlord can demand immediate move-out
– Court may grant a short eviction period under § 721 ZPO, but no long protection period
Invalid short-term lease– Lease becomes unlimited
– Termination only for legal reasons (e.g., personal use, breach of contract)
– Rent control applies

Tip:
It’s often worth getting advice or even having the invalidity confirmed in court.

These are genuine fixed-term contracts with an end date because the landlord has a valid reason. This is regulated under § 575 BGB.

Valid reasons (§ 575 Para. 1 BGB):

  1. Personal use – The landlord or close family intends to move in after the term.
  2. Planned renovations or modernization that are incompatible with your continued occupancy.
  3. Connection to an employment relationship – very rare, get advice!

Formal requirements:

  • The reason must be in writing in the rental agreement and clearly described!
    • For personal use: Who exactly will move in? (e.g., daughter, mother, etc.)
    • For modernization: What measures specifically? Why can’t they be done while you live there?

Simple phrases like “due to personal use” are not enough!

If the fixed term is formally valid – Four-month rule (§ 575 Para. 3 BGB):

You can, at the earliest, 4 months before the end date, ask the landlord to confirm:

  • Whether the reason for the fixed term still exists.
  • When and how exactly it will be implemented.

Landlord’s duty to respond: 1 month.
If they fail to reply or the reply is insufficient → The tenancy continues until a proper response is given.
If false information is provided or the reason no longer exists → The tenancy becomes unlimited.

Consequences:

SituationConsequence
Invalid fixed termRental agreement becomes unlimited
Formally valid fixed term– Lease ends automatically
– No protection against termination
– Eviction lawsuit possible
– Court cannot grant an eviction period (§ 721 Para. 7 ZPO)
– Rent control applies during the contract term but must be claimed within the term (and no later than 30 months after contract start)

Important:

  • No hardship clause (§ 574 BGB) – You cannot claim special hardship to stay longer.
  • After the term expires, you are obligated to move out. Otherwise, you risk costs (eviction lawsuit, damages, etc.).

Fixed-term rental contracts are often flawed. It’s always worth checking:

  • Is there a valid reason for the fixed term?
  • Is the reason properly described?
  • Does the contract reflect your actual intention to stay?

Get advice:

  • Free legal advice services in your district
  • Major tenant organizations (e.g., Berliner Mieterverein, Mietergemeinschaft)

Steps to take in order to effectively challenge rent levels and fixed-term leases:

If you need advice on getting your lease extended, see above!

Check for rent gouging, reduce your rent, and take action. Visit the Berlin review office at https://www.berlin.de/aktuelles/9514648-958090-mietpreispruefstelle-geht-an-den-start.html.
Or, even easier, go to www.mietwucher.app/de.
Enforce rent control (Mietpreisbremse): Information material from MGB.

Inform your neighbours! They are often unaware that fixed-term leases may be invalid and that their rents are too high. (The flyer is available to print and distribute.)
Stable, long-term tenancies benefit the entire neighbourhood and its sense of community. New neighbours will also be happy to stay for a long time!