Buying a Rented Property in Germany: Risks and 'Eigenbedarf'
Rented apartments are often 20-30% cheaper, but can you move in? We explain 'Kauf bricht nicht Miete' and the process of evicting for personal use.
InvestBud Team
Investment Analysts
You might notice that some apartments are listed at a significantly lower price per square meter. Usually, this is because they are 'vermietet' (rented out). In Germany, the golden rule is 'Kauf bricht nicht Miete' (Purchase does not break the lease). You basically buy the tenant along with the property.
1. What is 'Eigenbedarf'?
If you want to move in yourself, you must terminate the tenant's contract claiming 'Eigenbedarf' (personal use). This is a strict legal process. You must prove you really need the apartment for yourself or close family members. Depending on how long the tenant has lived there, the notice period can be up to 9 months.
Test this investment idea on your own address
Pick a location and enter the purchase price. We'll prepare rental yield, cash flow, tax impact, and the cost breakdown as a private report.
2. The 10-Year Lock-in Period
Be careful in cities like Berlin. If an apartment building was recently converted into individual condos (Umwandlung), tenants might have a special protection period (Kündigungssperrfrist) of up to 10 years before you can even declare Eigenbedarf. Always check this with a lawyer.
Written by
InvestBud Team
Our team of investment analysts brings you data-driven insights on the German real estate market. We combine financial expertise with local market knowledge to help you make smarter investment decisions.
Test this investment idea on your own address
Pick a location and enter the purchase price. We'll prepare rental yield, cash flow, tax impact, and the cost breakdown as a private report.
Continue Reading
More Insights
Repayment 1, 2 or 3 Percent: The Right Strategy for Your Investment Property
Compare repayment rates of 1%, 2% and 3% for investment properties with concrete numbers, interest calculations, use financing examples and bank negotiation tips.
What Is an Annuitized Mortgage? Simply Explained for Property Investors
Annuitized mortgage explained for investors: learn how the fixed payment splits into interest and principal, see concrete calculations, and use practical tools.
How Much Equity Do You Really Need for Property Investment in 2026?
Concrete financing advice for 2026: exact interest and repayment calculations, equity-debt examples, and steps to improve bank conditions for property investments.