Commercial tenancy law differs fundamentally from residential tenancy law as it does not offer any specific tenant protection. In this area, tenants and landlords are treated as equal parties.
Commercial tenancy law differs fundamentally from residential tenancy law as it does not offer any specific tenant protection. In this area, tenants and landlords are treated as equal parties.
This results in greater scope for terminating commercial leases. Contractual deviations can override legal provisions. Therefore, termination requirements and deadlines often vary in the individual contract. Before terminating the lease, it is essential to check the rental agreement to know the correct steps and deadlines.
Commercial leases are often concluded for a limited period of time. In such cases, ordinary termination is not possible as the contract ends automatically when the deadline expires. However, under certain conditions, extraordinary termination without notice or special termination is possible. A termination agreement can also be concluded by mutual agreement.
The type of contract depends on the intended use. A rental agreement for business use of the property is considered commercial. In contrast to this is the residential rental agreement, which covers private residential use.
In contrast to residential tenancy law, neither tenants nor landlords have to provide legal reasons for termination in the event of a normal termination.
Attention: In the case of temporary rental agreements, these end automatically and cannot be terminated normally. An exception are contracts with a term of over 30 years. In such cases, tenants and landlords can terminate the contract after 30 years (Section 544 of the Civil Code).
Both fixed-term and unlimited rental contracts can be terminated without notice if there is an “important reason” (Section 543 Para. 1 BGB).
The law recognizes such extraordinary terminations in the following situations:
What deadlines apply for commercial lease terminations? Without special contractual agreements, the statutory provisions apply. According to Section 580a Paragraph 2 BGB:
“For business premises rental contracts, ordinary termination is possible on the third working day of a calendar quarter to the end of the next calendar quarter.”
This means that tenants and landlords must give a notice period of at least six months until the end of a calendar quarter. The statutory notice period is between six and nine months.
Tip: Send cancellation by registered mail In order to meet the deadline, the time when the cancellation is received is crucial. It is therefore advisable to send the notice of termination by registered mail or hand it over in person in the presence of a witness. A written confirmation of receipt is recommended.
What information must be included in the letter of termination? The following points are essential: