{"id":5087,"date":"2026-03-15T15:49:44","date_gmt":"2026-03-15T15:49:44","guid":{"rendered":"https:\/\/www.mth-partner.de\/?p=5087"},"modified":"2026-03-16T09:47:54","modified_gmt":"2026-03-16T09:47:54","slug":"mietrecht-erfolgreiche-verwertungskuendigung-wegen-umbau-und-sanierung-der-mieterwohnung","status":"publish","type":"post","link":"https:\/\/www.mth-partner.de\/en\/tenancy-law-successful-termination-due-to-conversion-and-renovation-of-the-tenants-apartment\/","title":{"rendered":"Termination due to renovation and conversion: When can landlords give notice - and what can tenants do?"},"content":{"rendered":"

Last updated: March 2026 | Legal basis: Section 573 (2) No. 3 BGB<\/span><\/i><\/p>\n

Important Note: The content of this article has been prepared to the best of our knowledge and belief. However, due to the complexity and constant evolution of the subject matter, we must exclude liability and warranty. <\/b>This article is intended as a general guide and does not replace individual legal advice. Whether a realisation notice is effective in your specific case depends on the details. Seek advice from a specialist lawyer before you act.<\/span><\/p>\n

Your landlord wants to renovate the building and has therefore given you notice. Or you are a landlord planning a major renovation and are wondering whether you are allowed to give your tenants notice. In both cases, it is a question of what is known as termination for use in accordance with Section 573 (2) No. 3 BGB - one of the most controversial forms of termination in tenancy law.<\/span><\/p>\n

This issue is sensitive for both sides. Tenants may lose their home. Landlords are faced with the question of whether their plans can even overcome the high legal hurdles. This article explains when such a cancellation is effective, when it is not - and what rights both sides are entitled to.<\/span><\/p>\n

<\/span>What is a realisation notice?<\/b><\/span><\/h2>\n

A realisation termination is a <\/span>ordinary cancellation<\/a><\/b> of the residential tenancy agreement by the landlord. It applies if the landlord is unable to fulfil an appropriate tenancy agreement due to the existing tenancy. economic utilisation of his property<\/a> and suffers considerable disadvantages as a result (Section 573 (2) No. 3 BGB).<\/span><\/p>\n

Put simply: The landlord may terminate the lease if he intends to do something commercially viable with the property - such as a sale, fundamental renovation, remodelling or demolition with new construction - and the existing tenancy prevents this plan. That sounds broad at first. However, courts actually interpret the conditions very narrowly in order to prevent property speculation.<\/span><\/p>\n

<\/span>Four requirements must be met simultaneously<\/b><\/span><\/h2>\n

A notice of cancellation is only effective if all four conditions are met cumulatively. If only one is missing, the cancellation is invalid:<\/span><\/p>\n

    \n
  1. Intention to utilise elsewhere. <\/b>The landlord must have a concrete intention to utilise the property in a different way - for example by selling it, renovating the core, demolishing it with a new building or repurposing it for commercial purposes. Mere considerations are not sufficient. The intention must be demonstrable, e.g. through building plans, estate agent contracts or building specifications.<\/span><\/li>\n
  2. The realisation is appropriate. <\/b>Reasonable means: based on reasonable, comprehensible economic considerations - not purely speculative (BGH, judgement of 28 January 2009, case no. VIII ZR 8\/08). Courts examine the overall circumstances here: motive for utilisation, purpose of utilisation and proportionality.<\/span><\/li>\n
  3. The tenancy prevents realisation. <\/b>The existing tenancy agreement must actually prevent the planned utilisation. In the case of refurbishment measures, this is only the case if the work cannot technically be carried out while the tenancy is still in force - for example, because the flat will be removed as part of the refurbishment or the Refurbishment of the flat<\/a> uninhabitable.<\/span><\/li>\n
  4. The landlord suffers considerable disadvantages. <\/b>Not every disadvantage is sufficient - it must be significant. In the case of a planned sale, courts are guided by the difference in value between the rented and unrented property. Dachau District Court has used a threshold value of 15-20 % as the materiality limit.<\/span><\/li>\n<\/ol>\n

    <\/span>Cancellation due to renovation: What landlords need to know<\/b><\/span><\/h2>\n

    This is the most common misunderstanding: refurbishment or modernisation alone does not entitle the tenant to terminate the lease. This is because maintenance and modernisation are part of the landlord's obligations (Sections 555a-555f BGB), and tenants must tolerate such measures in many cases.<\/span><\/p>\n

    One Realisation termination due to restructuring<\/a> can only be considered if:<\/span><\/p>\n