If you want to buy a condominium and are also considering purchasing a property that was previously used as a rental apartment, you should definitely find out about the ban on converting rental apartments into condominiums. The following article will give you an initial overview.
What does the conversion of rental apartments into condominiums mean?
When rental apartments are converted into owner-occupied apartments, an apartment building or parts of it are turned into independent units, i.e. owner-occupied apartments. The condominiums created in this way can then be sold individually. The conversion of rental apartments into condominiums can therefore also be of interest to investors.
What is meant by the statutory prohibition on conversion?
The ban on conversion is a law that came into force as part of the Building Land Mobilization Act. The conversion ban was inserted into the Building Code (BauGB) under Section 250. According to this, approval from the local authority is required if rental apartments are to be converted into owner-occupied apartments. The local authority can refuse such approval or prohibit the conversion if the housing market in the area in question is considered to be under pressure. The specific areas to which this applies are determined by the state governments by means of a statutory order in accordance with Section 201a BauGB. The conversion of individual rental apartments into apartment buildings is also subject to approval. However, buildings with a maximum of five residential units are exempt from this regulation. Initially, the ban on converting rental apartments into condominiums will only apply for a limited period until 31.12.2025.
Explanation: What is the background to the legal regulation of the conversion ban?
In certain cases, rental apartments are no longer offered on the rental apartment market after being converted into owner-occupied apartments. As there is currently a shortage of rental apartments in Germany, particularly in metropolitan areas, the ban on conversion is intended to counteract this development. Tenant protection associations in particular have been working towards the creation of such a regulation for years.
When did the ban on converting rental apartments into condominiums come into force?
The ban on converting rental apartments into condominiums came into force in June 2021 as part of the Building Land Mobilization Act. The conversion ban is initially limited in time until 31.12.2025.
What impact does the conversion of rental apartments into condominiums have on tenants?
In most cases of conversion of rented apartments into owner-occupied apartments, these are occupied by tenants before the conversion. In this case, tenants have legal protection mechanisms at their disposal, which the owner wishing to convert must take into account and should therefore be aware of. Anyone wishing to convert rented apartments into condominiums should first seek expert advice so that the conversion can be planned accordingly and then implemented legally, socially acceptable and smoothly.
