German civil law differentiates between residential and commercial leases (Mietvertrag) and leaseholds (Pachtvertrag). Residential or commercial leases are more common than leaseholds: they grant the tenant a right to use the premises in return for paying the agreed rent. By contrast a leasehold entitles the tenant also to the benefits (Fruchtziehung) from the use of the premises. This is why leaseholds are, for example, regularly seen in the hotel sector.
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