Extension of a fixed-term tenancy for business premises

A fixed-term tenancy agreement does not require notice for termination, it ends with the expiry of the agreed duration. The tenant nevertheless has the right to submit a request for an extension to the arbitration authority.

As reasons for hardship, the business tenant may submit the same reasons as for an indefinite tenancy and the reasons submitted will be weighed against the landlord’s interest.

If a very short lease term is agreed for a business premises, this lease term alone is a hardship situation and may lead to an extension. The extension can also be demanded if it is clear that the definite end of the lease is imminent and search efforts could have been initiated early.

If the tenant argues that local market conditions are difficult, a simple list of possible replacement properties is not sufficient evidence and the extension will be refused. More qualified explanations would have to be given.

If a negotiation takes place, it is important and permissible for the landlord to get the tenant to waive his claim for a second extension. Having the tenant contractually waive a general extension claim is not permissible.

Important: An extension in the case of a fixed-term lease due to an imminent demolition or conversion project is excluded.