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In Germany, if a tenant has a fixed-term rental contract in a shared apartment (WG) that is set to expire soon, and they have always paid rent on time and followed the contract, can the landlord legally refuse to renew the lease without providing a valid reason?

For example, imagine the only explanation given is that another flatmate made negative claims about the tenant, which are unverified and possibly false.

The tenant is not given a chance to respond, and there is no contractual violation or other objective reason for refusing the renewal.

Would this be considered a lawful decision by the landlord, or could the tenant have legal grounds to challenge it?

Does tenancy law in Germany require a justified reason to deny a contract renewal, or is it entirely at the landlord’s discretion?

Any insights on relevant legal provisions or precedents would be greatly appreciated.

Dale M
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Hvjurthuk
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1 Answers1

14

yes, the landlord may refuse a new contract for a fixed-term rental contract.

Renters on a set-length contract don't have a right to an extension of the contract, or a new one to the same conditions. Only a contract that had no set length has that protection.

Since the contract ends on day X, the parties need to make a new one. But nothing can force the landlord to accept a new contract they don't want.

Justified reasons are only needed to dissolve a contract earlier.

fixed-term rental contracts are limited.

There are only three reasons when a normal rental contract made after 2001 may be limited in the first place:

  • If the owner wants to use the place after a certain date themselves, this also allows a fixed end time.
  • If the rental is slated for demolishment or refurbishment, a rental may be limited till that date.
  • If the owner wants to use the flat to house one of his employees.

However, there's also a number of rooms that do not benefit from those protections:

  • Housing that is only rented for temporary use (Hotels, holiday homes, flats for workers on assembly)
  • Housing that has the owner live in them in addition to the renters ("Einliegerwohnung")
  • Student Housing.

Fallback and normal termination is possible

Even if the fixed term rental clause is not valid and we have, as a fallback, a normal rental contract that runs till termination, the landlord can, still terminate the lease with the necessary 3 month time providing either a reason, having an exception from naming a reason. A valid reason to terminate can be a massive impact of the renter on the peace of the house, among others.

Trish
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