Corona-related rent arrears

• The second wave of the coronavirus and the renewed lockdown are exacerbating the already precarious situation for many people and businesses. One consequence is rising rent arrears coupled with lower incomes – and this is likely to continue indefinitely.
• Tenants who can no longer afford their rent should immediately contact their landlord and work together to find a solution to reduce their debt.
• Private tenants can also apply for housing benefit. Businesses and self-employed individuals forced to close (again) during the second lockdown can apply for bridging aid.

The measures to combat the spread of the coronavirus pandemic are having a drastic impact on the economy. Companies are forced to close or change and adapt their operations. Supply and demand for products and services are shifting, and revenues are plummeting. For employees, this often means layoffs or reduced working hours, resulting in significantly lower income for an indefinite period.

As a result, many consumers can barely cover their living expenses and can no longer pay their rent. The same applies to businesses that, despite a lack of revenue, still have to pay rent, electricity, etc. Despite the ongoing coronavirus crisis, the federal government has not extended the relief measures for tenants. The legal deferral of rent arrears and the coronavirus-related eviction protection expired on July 1, 2020. But the problem remains.

If you have rent arrears due to the coronavirus pandemic, contact your landlord early

Private and commercial tenants who can no longer pay their rent should contact their landlord immediately and explain their payment difficulties. For example, Berlin housing associations signaled their willingness to find individual solutions with their tenants as early as spring. However, it is not advisable to simply stop paying rent without notifying the landlord.

Depending on the individual case, the following solutions are particularly conceivable:

• Agreement on payment in installments
• Agreement on a deferral of rent arrears, i.e., postponing the due date to a later date (moratorium)

Rent debt counselling for consumers as tenants

However, debt relief is unlikely to be considered because, due to the legal situation, companies cannot simply write off rent receivables.

Private tenants can also apply for housing benefit if their income is no longer sufficient to pay the rent. Businesses and self-employed individuals can apply for government bridging aid to cover their fixed costs if their business is prohibited due to the November lockdown.

Further information on the topic of "rent arrears due to Corona" can be found at: https://www.schuldnerberatung.de/mietschulden-corona .

background

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