Coronavirus and landlords

Some large companies are already requesting rent deferrals. What happens if private individuals can no longer pay their rent due to virus-related financial losses? At the same time, the German Bundestag has decided that tenants cannot be evicted if they can no longer pay their rent because of the coronavirus crisis. So, what can landlords do?

Landlords in financial distress

A large proportion of rental properties are privately owned. Among these private landlords, there are some who also have low incomes. It is therefore possible that landlords may be unable to service their existing loans due to unpaid rent. To address this, the German government's aid package includes a provision allowing landlords to defer loan payments. However, this only applies to consumer contracts concluded before March 8, 2020.

accommodation

It is important that all sides show understanding for one another. Just like tenants, landlords also depend on regular income. Therefore, experts advise talking to each other in a timely manner. 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 "Secure Housing Fund." Tenants should be able to apply to this fund for assistance with their rent if they are unable to pay it due to the current crisis.

Are you looking for a property management company to take care of your affairs as a landlord? Contact us! We'd be happy to advise you.

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