Fixed-term rental contract: is the time limit even valid?

A fixed-term rental contract can seem practical, but it is only permitted in certain cases. Without a legally recognized reason for the time limit that was communicated to you when the contract was concluded, the contract in truth counts as open-ended.

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A time limit on a residential rental contract is only valid if the landlord names a legal reason for it in writing when the contract is concluded, such as personal use, planned demolition or renovation, or renting to someone contractually obliged to serve (§ 575 BGB). If such a reason is missing, the contract counts as open-ended.

A mere simple fixed-term contract without a recognized reason does not protect the landlord: you may then remain living there as with an open-ended contract and give notice in the ordinary way.

What you should do now

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1. Look for the reason for the time limit
Does the contract state a specific legal reason for the time limit, in writing and at the time the contract was concluded?
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2. Classify the reason
Personal use, demolition or renovation, or operational need are permitted; limiting the term just because is not.
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3. If the reason is missing
If the reason is missing, point out in writing that the contract counts as open-ended.
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4. Request information or confirmation
At the earliest four months before the end, you can request information on whether the reason for the time limit still exists.

Frequently asked questions

Is my fixed-term rental contract valid?

Only if the landlord named one of the legal reasons for a time limit in writing when the contract was concluded (personal use, demolition or substantial renovation, or renting to someone contractually obliged to serve, § 575 BGB). If such a reason is missing, the time limit is invalid and the contract counts as concluded for an indefinite period.

What happens if the time limit is invalid?

Then the contract continues like an open-ended one: you do not have to move out on the supposed end date and can give notice normally while observing the statutory notice period. The landlord can only give notice under the general requirements, for example a legitimate interest.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.