Buying a Rented Property in Germany: Risks and 'Eigenbedarf'

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.

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.