Federal law plans law for special rules until September for protection against dismissal of defaulting tenants

Rents are due again in less than two weeks. Many tenants do not know how to pay them. Berlin’s Senator of Justice, for example, has called for protection against dismissal for defaulting tenants.
Those who can no longer pay rent because of the Corona crisis do not have to fear being terminated. A federal law sets out special rules until September.

The law should grant tenants and landlords alike a deferment for the duration of the corona epidemic. On Saturday, the federal government agreed on the “law to mitigate the consequences of the Covid 19 pandemic in civil, insolvency and criminal proceedings”.

From 1 April to 20 September, tenants can suspend their payments without having to fear termination by the landlord. Tenants will not be exempted from paying their rent: “The obligation to pay remains in force”, the law states.

If landlords are threatened with bankruptcy because they no longer receive rental income, the grand coalition has introduced a “deferral regulation” for loan agreements of property owners in the same law. Here, too, “statutory protection against dismissal” applies. Credit institutions could not terminate the contracts with their debtors because their debtors did not pay the loan instalments.

The federal government has doubts that the corona epidemic will be over by September. Therefore, the protection against dismissal for tenants and landlords can be “extended until July 31, 2021 at the latest”, according to the draft law.

It also states that it must be ensured that “only those rent payments that are due to the pandemic may be suspended without consequences”. Thus, tenants should seek government support such as housing subsidies.