Must we take over the tenancy, or can we give notice?

You take it over automatically: on the inheritance the community of heirs steps into the landlord’s position and the lease continues unchanged. Notice is possible only under narrow conditions, such as legitimate own use (section 573 BGB) — rarely viable where several heirs are involved.

Who receives the rent?

The rent flows into the estate; it is generally distributed only at the final division — an individual heir has no ongoing claim to payouts (section 2038 BGB). The tenancy is administered jointly (section 2038 BGB) — day-to-day matters such as the service-charge statement generally by majority, fundamental steps only with everyone.

Does the tenant have a right of first refusal if we sell?

Usually not on a straightforward sale. A statutory right of first refusal arises chiefly where the let dwelling is first converted into condominium ownership and sold to a third party (section 577 BGB). Whether it applies is, in case of doubt, examined by a lawyer.

Knowledge · Community of heirs & property

You have inherited a let property — what applies now

If a community of heirs inherits a let property, the tenancy continues unchanged — the heirs jointly step into the landlord’s position. That is no reason to rush. First settle who decides, keep the tenancy lawful, and weigh calmly: keep and let, or sell with the sitting tenant.

As at: June 2026 · ← back to the guide

The answer first. An inherited, let property is not a problem to be solved but an ongoing matter to be ordered. The tenancy continues; the community of heirs as a whole becomes the landlord and administers it jointly (section 2038 BGB). The rent flows into the estate; it is generally distributed only at the final division. Termination for personal use is possible within narrow limits — a single co-heir’s need can suffice, but the heirs must give notice jointly (section 573 BGB). You can also sell with a sitting tenant — the tenancy then passes to the buyer (section 566 BGB). It pays to sort this situation out first, before anyone acts.

The tenancy continues — you become the landlord

On the inheritance, the community of heirs steps into all the rights and duties of the previous landlord. The existing lease continues unchanged; the tenant need not consent anew, and no new tenancy arises. For you this means: collecting rent, settling service charges, maintaining the house — all of this now becomes the heirs’ joint task.

Administration is joint (section 2038 BGB). Day-to-day matters — the service-charge statement, a necessary repair, contact with the tenant — belong to proper administration and can generally be decided by a majority of shares. Fundamental steps, such as selling the house, require everyone. It therefore helps to agree early who leads the tenancy outwardly, so the tenant has one point of contact and not every question occupies the whole family.

Own use — only within narrow limits

Termination of the tenancy by the landlord requires a legitimate interest (section 573 BGB). The most common ground, own use, presupposes that a particular person — the landlord or a close relative — actually needs the dwelling for themselves; statutory notice periods that grow with the length of the tenancy also apply. A community of heirs, too, can rely on the personal need of a single co-heir or their close relative — but the landlord side must give notice jointly, and in practice that is where it often fails. Anyone toying with the idea of a termination should have it checked by a lawyer first — an invalid notice creates only conflict, not a vacant flat.

Selling with a tenant — and the right of first refusal

If the family decides to sell, selling with the tenant is the normal case, not the exception. The buyer steps into the existing tenancy — “sale does not break a lease” (section 566 BGB). The tenant need not move out, and you need not give notice before the sale. A let, well-kept property finds its circle of buyers; which paths lead out of the community at all is set out under Buyout, takeover or sale.

A special case is conversion into condominium ownership: where the let dwelling is first divided into flats and sold to a third party, the tenant may have a statutory right of first refusal (section 577 BGB). They may then step into the contract on the same terms. The tax side of a sale, too, wants thought — such as the ten-year rule; a sober overview is given under Selling an inherited house: tax.

Keep and let, or sell with the tenant?

Either may be right. Those who keep retain ongoing rental income, but also carry the joint administration over years — with all the coordination, maintenance and landlord duties that go with it. This presupposes that the heirs cooperate reliably and that the rent, as part of the estate, is cleanly shared (section 2038 BGB). Those who sell dissolve the community and share the proceeds — the buyer takes over the tenancy (section 566 BGB).

Our task is to order this weighing before anyone acts hastily: first a neutral valuation everyone can trust, then an honest comparison of keeping and selling, and only last — if the family agrees — the market. In this way both the value of the property and the peace in the family are preserved.

Sale does not break a lease (Kauf bricht nicht Miete). When a let property is sold, the buyer steps into the existing tenancy — the tenant keeps the dwelling on unchanged terms (section 566 BGB).

Own use (Eigenbedarf). The landlord may give notice only where they genuinely need the dwelling for themselves or a close relative — bound to narrow conditions and notice periods (section 573 BGB), rarely viable for communities of heirs.

This article provides orientation and does not replace legal or tax advice. Tenancy law and notice are examined by a lawyer, recording is done by a notary, tax questions belong with the tax adviser and the value is determined by a surveyor; the valuation and the agreement we prepare with you.

Your next step

Buyout, takeover or sale

The ways out of co-ownership, set calmly side by side.

Selling an inherited house: tax

Speculation tax and the ten-year rule.

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Must we take over the tenancy, or can we give notice?: You take it over automatically: on the inheritance the community of heirs steps into the landlord’s position and the lease continues unchanged. Notice is possible only under narrow conditions, such as legitimate own use (section 573 BGB) — rarely viable where several heirs are involved.
Can we sell with the tenant in place?: Yes, that is the normal case. The buyer steps into the existing tenancy — “sale does not break a lease” (section 566 BGB). The tenant need not move out, and you need not give notice before the sale.
Who receives the rent?: The rent flows into the estate; it is generally distributed only at the final division — an individual heir has no ongoing claim to payouts (section 2038 BGB). The tenancy is administered jointly (section 2038 BGB) — day-to-day matters such as the service-charge statement generally by majority, fundamental steps only with everyone.
Does the tenant have a right of first refusal if we sell?: Usually not on a straightforward sale. A statutory right of first refusal arises chiefly where the let dwelling is first converted into condominium ownership and sold to a third party (section 577 BGB). Whether it applies is, in case of doubt, examined by a lawyer.