Commercial Eviction and Lease Termination in Baden-Württemberg

Terminating a commercial lease in Germany is subject to far fewer restrictions than ending a residential tenancy. There is no statutory tenant protection — no requirement for legitimate interest, no personal-use defense, and no social hardship clause. The lease contract and the BGB default rules determine the process.

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Expiry of Fixed-Term Leases

The majority of commercial leases are concluded for a fixed term (typically 5, 10, or 15 years, often with extension options).

• Automatic termination: The lease ends on the contractually agreed date without the need for a termination letter.
• No ordinary termination during the fixed term: Neither party may ordinarily terminate before expiry (unless the contract provides for special termination rights, e.g., in case of insolvency or relocation).
• Option rights: If the tenant has a contractual right to extend ("The tenant may extend by 5 years"), they must exercise it within the contractually specified deadline. If they miss it, the lease expires as scheduled.

Ordinary Termination of Open-Ended Leases

For open-ended commercial leases, either party may terminate at any time without citing a reason.

The statutory notice period under § 580a Abs. 2 BGB is approximately 6 months:

• Notice must be given by the 3rd business day of a calendar quarter, effective at the end of the following quarter.
• Example: Notice delivered on January 3 → lease ends June 30. Notice delivered on January 4 → lease ends September 30.

Contractual flexibility: Since the § 580a BGB deadline is a default rule, the parties may agree on shorter or longer notice periods in the contract.

Formal Requirements for Valid Termination

• Authorized person: If issued by a legal entity (e.g., GmbH), the notice must come from an authorized representative (Geschäftsführer). Action by unauthorized agents risks the notice being declared void (§ 174 BGB).
• Written form: While not strictly required by law for commercial termination, virtually every lease mandates written notice. Oral termination — though theoretically possible — is virtually impossible to prove.

Extraordinary (Immediate) Termination

Regardless of fixed terms or notice periods, the landlord may terminate immediately for " cause" (§ 543 BGB):

1. Payment default: The tenant is in arrears for two consecutive months with rent or a substantial portion. Critical difference from residential law: the residential "cure by late payment" (Schonfrist) remedy does not apply to commercial tenancies. Once validly served, the extraordinary termination stands.
2. Contractual misuse: Severe contract violations threatening the building or business (e.g., fire-hazardous storage despite warnings).
3. Unauthorized subletting: Particularly where it creates competitive activity against the landlord's other tenants.

The Court Eviction Process

If the commercial tenant refuses to vacate, the landlord must pursue a Räumungsklage (eviction lawsuit) — self-help eviction is prohibited (verbotene Eigenmacht).

• Jurisdiction: For commercial disputes with a value exceeding €5,000, the Regional Court (Landgericht) — and often the Chamber for Commercial Matters (Kammer für Handelssachen) — has jurisdiction.
• Timeline: Commercial eviction proceedings can be lengthy, particularly when disputed defects or counterclaims are involved.
• Landlord's lien (Vermieterpfandrecht): Under § 562 BGB, the landlord has a statutory lien on the tenant's movable property within the leased premises (e.g., inventory, equipment), providing security against loss during protracted proceedings.

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