Federal Supreme Court verdict strengthens rights of landlords

BGH-stärkt-recht-des-Vermiters-Federal-Supreme-Court-strengthens-landlord-rightsIf you are landlord of a flat that has part in an investment community, your rights as such will be strenghened by the recently adjudicated verdict.

Members of an investement community, that formed a „company constituted under civil law“ (GbR) now possess the right to claim personal needs of already rented property, according to the newest Federal Supreme Court verdict. Though, to dismiss current tenants the stated reason must be justified.

Personal needs as a pretextual matter

Origin of the latest verdict is an ongoing lawsuit between decades-long tenants and their landlord, who is part of a „company constituted under civil law“ (GbR). The landlord claimed personal needs of property for his daughter. An offer for a compensatory-flat was absent, although having available units. Instead the investment community started refurbishing their real estate, splitting it into profitable condominiums. An aspect that gives the impression, that the initial reason only was pretextual. Munich‘s Land court is currently looking into that.

However even after the Federal Supreme Court’s verdict a proper review of each individual case’s claim for personal needs will take place. Claims that have a pretextual matter are void, resulting in invalidity of a dismissal.

Compensatory-flats are no longer required

The prior provision, after which dismissals on the basis of personal needs are void, if the landlord is not able to present it’s tenant with a compensatory-flat in the same building, hereby was superseded with the latest Federal Supreme Court verdict.