If a tenant, for example due to job loss, can no longer pay the rent, it is a problem for the landlord. No one wants a difficult and lengthy procedure. Many aspects of the rental agreement are legally regulated. For instance, the tenant is immediately in default if they do not pay the rent on time. But on the other hand, the law also offers protection to the tenant. You cannot simply terminate the lease and demand that the tenant vacate the property.

As soon as you notice that there is a rental arrear, it is wise to take action immediately. In this blog, we will outline a few steps you can take.

First Steps in Case of Arrears

If your tenant does not pay on time, it is advisable to find out the exact cause. Sometimes it happens that the tenant simply forgot. But sometimes there are also serious reasons why the tenant is unable to pay the rent. In such a case, it is important to contact the tenant in writing and demand that the rent be paid. In this letter, which you preferably send by registered mail, you formally notify the tenant of the default and specify the overdue amount and a deadline by which it must be paid. If the tenant does not pay, you can hand over the claim to a collection agency.

The collection agency will initially try to collect the rent debt out of court. This could potentially lead to a payment arrangement. If the collection attempt is also unsuccessful, you will likely need to approach the subdistrict court to request the termination of the lease.

Termination of the Lease Agreement

The law stipulates that a lease agreement can be terminated by the landlord if the tenant no longer meets their obligation to pay rent. If the rental arrears amount to at least 3 months, the landlord can request the termination of the lease agreement from the subdistrict court. In general, an eviction order will also be requested. If the subdistrict court rules in favor of the landlord, the tenant must vacate the property and, of course, pay the overdue rent. Eviction can also be carried out by a bailiff if the tenant does not vacate the property voluntarily.

Advice on Renting Out Your Property

Do you want to rent out your property? Make sure to get well-informed about rental laws. Request a free introductory meeting with us now. We are happy to explain what is involved and what returns you can expect.