The determination of the exemption clause for renting of residential real estate in student residences for temporary use has not yet been completely clarified. The Federal Court of Justice had outlined what this means in his earlier judgement (Az. ZR 92/11). An occupancy concept is therefore required, enabling rotation and time-limited renting.

Dr Gerd Hoor, Partner at Osborne Clarke commented: “It’s against the rotation principle if the operator gives access to different user groups. In the worst-case scenario the operator can lose the possibility of using the rotation principle. According to the case law, it is an essential part of a residence establishment. All students should be given the possibility to get places at dormitories while studying. For this reason contracts should only be concluded for a very limited period. This principle does not apply to `regular` tenants, who could file a complaint due to the contractual period.”

Osborne Clarke advises leading companies in various sectors in the area of commercial and tax law. In the area of student accommodation Osborne Clarke had previously advised market leaders on projects in several European countries.

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