Corona aid package. now tenants can reduce or suspend their payments for residential and commercial premises until 30 June 2020
The federal government’s Corona aid package includes a change in the law for tenants and landlords. Now tenants can reduce or suspend their payments for apartments and commercial premises until 30 June 2020 without landlords being able to terminate their contracts for this reason.
There is no regulation for the default of landlords.
However, tenants must prove that they have got into financial difficulties because of the Corona crisis. Tenants must also make up their rent payments by 3 June 2022.
Many tenants will take advantage of this protection against termination in the event of late payment.
The fact that interest on arrears will be charged under § 288 of the German Civil Code (BGB) is unlikely to help the landlord, whose only apartment is his first home and his retirement provisions. That would be 5 % per year plus basic interest rate (currently – 0.88 %). With an additional payment after 2 years at a value of 3000 € this would be approx. 250 € interest.
With several real estate loans, things could soon become tight. The creditworthiness of the landlords will suffer.
The Bundestag must approve the law.