A clever tenant who no longer wants to pay the rent can manage to drag out eviction proceedings almost indefinitely.
The lengthy legal process and dealings with bailiffs during the eviction of tenants from rented apartments cause a great deal of worry for the affected owners.
From the filing of an eviction lawsuit until the apartment is actually available for re-letting, it often takes more than 18 months. Here's how you can minimize your risk.
1. Obtain information about the tenant
Information about the prospective tenant should be gathered even before the lease agreement is signed. This can be done by obtaining reports from Creditreform or Schufa, or by completing a questionnaire about the tenant's personal information (tenant self-disclosure). Information from the previous landlord is also very useful. Following recent legal changes, tenants can also obtain their own Schufa report and present it to their landlord or property manager.
2. The first month's rent is due before the apartment is handed over
The first rent payment can be due before the apartment is handed over. If this rent is not paid, the landlord is not obligated to hand over the apartment.
3. Issue a warning in good time
In cases of late or missing rent payments, the landlord should not only send a reminder to the tenant but also issue a formal warning promptly. Even after the first late payment, a termination of the lease can be threatened if the tenant fails to pay on time in the future. A termination notice issued in the event of repeated late payments is not invalidated even if the rent arrears are paid in full.
4. Cancel quickly and correctly
Termination without notice is possible if the tenant is in arrears for an extended period and the outstanding amount reaches two months' rent. However, it is largely unknown that termination is also possible if the tenant is in arrears by slightly more than one month's rent for two consecutive months. This means that in this case, the landlord does not have to wait two months, but only until the beginning of the second month. Landlords and property managers can therefore save considerable time. Termination without notice should always be accompanied by a standard notice of termination. While payment renders the termination without notice ineffective, it does not invalidate the standard notice. Precise wording of the termination notice is crucial.
5. Discussions and agreements with the tenant
In the event of late payment, the landlord should always first try to talk to the tenant in order to find solutions in a timely manner and avoid unnecessarily escalating the situation. It may be possible to reach an amicable payment agreement.
Professional commercial landlords have had very positive experiences with proactive measures to address rent arrears with tenants, significantly reducing them. Landlords should also first have their own lawyer contact the tenant and their lawyer. A settlement – even during court proceedings – is always faster and often more cost-effective than eviction proceedings with subsequent enforcement measures.
6. Documentary proceedings
If the tenant does not claim a rent reduction, a quick judgment on rent claims can be obtained in summary proceedings, especially since the tenant usually does not proceed to further proceedings.
7. Eviction period only applies if current rent is paid
In eviction proceedings, to avoid a lengthy eviction period, reference should be made to the decision of the Higher Regional Court of Stuttgart (OLG Stuttgart 13 U 89/06) of July 7, 2006. According to this decision, granting a grace period for eviction is unreasonable if payment of the ongoing rent for the duration of the eviction period is not guaranteed.
8th Berlin eviction
If an eviction must be enforced through legal proceedings, the so-called "Berlin eviction" model can be chosen. In this model, the landlord, as the owner of the apartment, is granted possession by the bailiff and then arranges for the eviction himself. This approach can save costs and significantly speed up the process. This method of eviction has been deemed permissible by the courts.
9. Direct transfer of the rent to the landlord
If the proper use of benefits from the ARGE basic income support (formerly: social welfare office) for accommodation and heating cannot be guaranteed by the benefit recipient, the rent can be paid directly to the landlord. With the tenant's consent, this can be agreed upon in advance. For tenants receiving social assistance, it is advisable to insist that the security deposit also be covered by this agency. This should be clarified before the lease agreement is signed.
10. Rent deposit against tenants who don't pay rent
Landlords or property managers can refuse to hand over the apartment to the tenant if they do not simultaneously pay the first installment of the security deposit. Instead of a cash deposit, landlords and property managers can also agree with the tenant on the modern method of securing the security deposit through a guarantee or insurance policy. This has the advantage for the tenant that they do not have to tie up cash for the deposit. In addition, an independent credit check of the tenant is carried out. The landlord receives the full security deposit immediately before handing over the apartment. The landlord thus receives double security and therefore a good deterrent against tenants who do not pay rent.
