Commercial Eviction Process in Hesse: A Landlord Guide

Navigating the commercial eviction process in Hesse requires careful adherence to both the lease contract and the German Civil Code (Bürgerliches Gesetzbuch – BGB), which originally came into force on 1 January 1900. Unlike residential leases, commercial agreements offer more flexibility, but the legal hurdles for physical removal remain strict to prevent arbitrary lockouts.

Terminating a commercial lease in Hesse differs fundamentally from residential tenancy law. While residential tenants enjoy eviction protections, commercial leases can be structured more flexibly - but may also carry higher financial risks. This guide explains the various termination options for landlords.

Types of Termination

1. Ordinary Termination (Open-Ended Leases)

For open-ended commercial leases, the statutory notice period under BGB § 580a (2) is:

• Notice must be given by the 3rd business day of a calendar quarter
• The lease ends at the end of the following quarter
• This results in an effective period of approximately 6 months
• Saturday counts as a business day

Example: Notice received January 2 → lease ends June 30. Notice received April 5 → lease ends December 31.

Notice periods can be contractually shortened or extended. No legitimate interest is required - either party can terminate without reason.

2. Fixed-Term Leases

During the fixed term, ordinary termination is excluded for both parties. The lease ends automatically at expiry.

Extension Options

Many commercial leases include renewal options for the tenant

These must be exercised on time and in the agreed form (usually written). If the tenant misses the deadline, the lease ends.

Early Termination Possible only through:

• Mutual termination agreement
• Immediate termination for important cause
• Special termination for leases exceeding 30 years (BGB § 544)

3. Immediate Termination (Fristlose Kündigung)

Grounds for Landlords The landlord may terminate immediately if (BGB § 543):

• Significant rent arrears: Two months' rent or more overdue
• Unauthorized use: Using the premises contrary to the lease purpose despite warning
• Property endangerment: Tenant neglects the premises
• Unauthorized subletting despite warning
• Tenant insolvency: Opening of insolvency proceedings (special termination right per InsO § 109 by the insolvency administrator)

No Catch-Up Payment Right

Unlike residential leases, there is no statutory right to avert termination by catching up on payments (Schonfristzahlung)

Immediate termination for rent default is not reversed by subsequent payment - significantly strengthening the landlord's position.

4. Text Form Risk (Textformkündigung)

The text form risk is a critical feature of German commercial lease law following the Fourth Bureaucracy Reduction Act (BEG IV):

• The strict 'written form' (Schriftform) requirement for commercial leases with a fixed term of more than one year has been abolished.
• It is replaced by the 'text form' (Textform) pursuant to Sections 578 paragraph 1, 550, and 126b of the German Civil Code (BGB).
• Commercial lease agreements can now be concluded by exchanging PDF documents, email correspondence, or messages in messenger services, without requiring wet-ink signatures on a physical printout.
• Text form requires a readable declaration on a durable medium that clearly identifies the person making the declaration.
• If the text form requirements are not complied with, the lease agreement is deemed to have been concluded for an indefinite term pursuant to Section 550 sentence 1 BGB.
• Either party may then terminate the contract with the statutory notice period (approximately 6 months to the end of a quarter), irrespective of any agreed fixed term.
• Transitional Period: The reform fully came into effect for new contracts presumably on January 1, 2025, and will apply to existing contracts from January 1, 2026.

Risk for landlords: Long-term fixed rents can suddenly become terminable - a major asset value risk for premium properties.

5. Court Eviction If the tenant does not vacate after effective termination, the landlord must file an eviction lawsuit at the competent court (Regional Court / Landgericht for claims exceeding €5,000):

1. File eviction lawsuit at the Regional Court
2. Court hearing - examination of termination validity
3. Eviction judgment - if successful
4. Enforcement by court bailiff
5. For urgent cases: temporary injunction for eviction (under strict conditions)

Best Practices for Landlords

1. Strictly observe text form for the contract and all amendments
2. Establish clear termination provisions in the lease
3. Monitor option deadlines digitally and document their exercise
4. Respond immediately to rent default - there is no catch-up payment right in commercial leases
5. Issue both immediate and subsidiary ordinary termination simultaneously

Landager helps monitor contract terms, option deadlines, and document terminations in full legal compliance.

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How Landager Helps

Landager tracks lease terms, eviction timelines, and regional regulation changes - making it easy to stay compliant with Hesse regulations