Real estate concept:
Temporary letting
20.01.2023
What is a temporary letting of property?
A fixed-term tenancy is a tenancy that is agreed for a predetermined period and ends automatically without the need for notice of termination.
Fixed-term tenancy agreements are generally permitted in Germany as long as they do not violate existing laws or discriminate against tenants. However, there are some restrictions and regulations that must be observed. A fixed-term tenancy agreement is a tenancy agreement that is concluded for a specific period and then ends automatically. This means that the tenant must move out at the end of the fixed term unless the landlord extends the contract. Fixed-term tenancy agreements are often concluded when the tenant only wants to live in a flat for a limited period of time, for example while studying or working temporarily.
However, there are some restrictions when concluding fixed-term tenancy agreements. Firstly, the time limit must not be arbitrary or without a valid reason. The landlord must therefore have a valid reason for only offering the tenancy agreement for a limited period. Some common reasons for fixed-term tenancy agreements are, for example, renovation work, interim use or temporary employment of the tenant.
Legal duration of fixed-term property leases
There are also legal limits to the duration of fixed-term tenancy agreements. According to the law on tenancy law reform, a tenancy agreement can be limited to a maximum of three years, unless there is a so-called "compelling reason" for a longer time limit. Compelling reasons can be, for example, that the tenant will only be working in the city for a limited period of time or that the landlord can only make the flat available for a certain period of time.
Reasons required for the temporary letting of properties
It is also important to note that fixed-term tenancy agreements may not be terminated without a valid reason. The landlord must therefore have a valid reason to terminate the tenancy agreement prematurely. But what valid reasons are there for a fixed-term tenancy?- One of the most common reasons for a temporary rental is the temporary use of a flat or house. This can be the case, for example, if you move to another city or country for a certain period of time for work and need accommodation. Temporary lets are also an option for students who move to another city during their studies, as they do not want to be tied to one place for the entire duration of their studies.
- Another reason for a fixed-term tenancy may be the renovation or refurbishment of a flat or house. In this case, the landlord can limit the tenancy for a fixed period in order to carry out the work. For the tenant, this offers the opportunity to settle into a newly renovated flat without having to commit to one place for the long term.
- A temporary letting can also be useful if you are unsure whether you want to live in a particular place for the long term. A temporary rental gives you the opportunity to try out the flat or house and find out whether you feel comfortable there. If you decide to stay in the place for longer, you can always sign a new tenancy agreement.
- Another reason for a fixed-term tenancy may be that the landlord wishes to sell the house or flat at a later date. In this case, the landlord can set a time limit on the tenancy in order to free himself up for the sale.
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