The first large companies are already demanding the deferral of rent. What if private individuals can also no longer pay their rent because of virus-related financial shortfalls? At the same time, the German Bundestag has decided that tenants may not be terminated if they can no longer pay their rent because of the Corona crisis. So what can landlords do?
Landlord in financial distress
A large proportion of rental properties are privately owned. Among these private landlords, there are some who also have only low incomes. It could therefore be the case that landlords are no longer able to service their current loans due to non-payment of rent. The German government's aid package allows landlords to defer their loans. However, this only applies to consumer contracts concluded before March 8, 2020.
It is important that all sides show understanding for each other. Just like tenants, landlords are also dependent on regular income. That's why experts advise talking to each other in good time. Politicians and associations are working on solutions to the problem. The German Tenants' Association (DMB) and the Federal Association of German Housing and Real Estate Companies (GdW), for example, are calling for a "safe-housing fund. Tenants should be able to turn to this fund and apply to have their rent costs covered if they are unable to pay their rent because of the current crisis.
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