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Court Strengthens Tenants' Rights

Running a Business in a Rental Apartment Is Not Direct Grounds for Termination

Commercial Apartment
Running a business from home does not automatically justify eviction, as a recent court ruling demonstrates. Photo: Getty Images
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July 29, 2026, 4:32 am | Read time: 2 minutes

Running a business from home doesn’t necessarily mean you have to worry about losing your apartment. A recent ruling shows that landlords cannot justify an eviction solely based on business activities. What matters is how the apartment is actually used.

Court Examines Actual Use of the Apartment

Using a rental apartment for business purposes does not automatically constitute grounds for eviction. This was determined by the Munich District Court in a ruling highlighted by the Tenants’ Association (Case No.: 419 C 23314/24).

Generally, apartments are meant for living, and commercial spaces for working. However, in practice, the boundaries are not always clear. According to the court, it always depends on the specific circumstances of each case.

More on the topic

Business Address Alone Is Not Enough

In the case at hand, a tenant operated an online shop from his apartment, which was rented for residential purposes. The court clarified that merely listing the home address as the business location in the shop’s imprint does not constitute unauthorized commercial use.

Therefore, an eviction cannot be based solely on this. Landlords must prove that the permitted residential use is actually being exceeded.

These Circumstances May Be Relevant

According to the court, commercial use may be present if, for example:

  • Customers regularly visit the apartment,
  • Employees are working in the premises,
  • Goods for sale are stored in the apartment.

Whether an eviction is justified cannot be assessed in general terms. What is decisive is the extent and manner in which the business is actually conducted in the rental apartment.

With material from dpa

This article is a machine translation of the original German version of MYHOMEBOOK and has been reviewed for accuracy and quality by a native speaker. For feedback, please contact us at info@myhomebook.de.

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