Factory apartment

Also known as: Worker's apartment, employer apartment

A company apartment is an apartment that is rented to an employee of a specific employer on the basis of an existing employment or training relationship. This is a special tenancy.

General and function-related company apartments

A distinction is made between general company apartments and function-related company apartments. In the case of a function-related company apartment, there is a spatial and function-related relationship with regard to the activity performed, which is not the case with the general company apartment.

In addition, the works service apartment is to be separated from the works apartment. The landlord does not necessarily have to be the employer, but the landlord and employer must have a legal relationship with one another. For example, the employer can have a stake in the renting housing company.

Legal provisions / work lease

Despite being bound by an existing employment relationship, the work lease is legally decoupled from the employment contract. This means that the termination of one contract does not lead directly to the termination of the other contract. Both contracts must be terminated separately, as different provisions apply to these two legal relationships.

The legal basis of normal tenancy law applies to a company rented apartment. In accordance with Section 576 (1) of the German Civil Code (BGB), however, the landlord has additional reasons for termination and notice periods.

For example, the landlord has the special right to terminate the tenancy if the apartment is needed for another employee. In the case of a company apartment, the tenancy can be terminated at the end of the month after next, provided that the apartment is required for another employee and the notice of termination was received on the third working day of the month.

The works or staff council must agree to the termination of a company flat or service flat by the employer, otherwise the termination is ineffective.


  • A company apartment is an apartment that is rented to employees of a specific employer
  • A distinction is made between general and functional company apartments
  • The tenancy is tied to a factory lease agreement and the legal basis of normal tenancy law
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