Rent arrears – when can the landlord terminate the lease?

Termination without notice and eviction lawsuit

Unlike tenants, landlords need a valid reason to terminate a lease. Termination without notice is only permitted if the tenant has committed a serious breach. Significant rent arrears are not only the most common, but also the only reason for termination that does not require a prior warning. But what exactly constitutes significant arrears – and what can be done if the tenant refuses to move out?

The legal regulation according to § 543, paragraph 2, no. 3 of the German Civil Code (BGB) specifies two options: The landlord may terminate the lease if the tenant owes him two gross monthly rents (basic rent plus advance payment for ancillary or operating costs) in whole or in part in a row, whereby the total arrears must amount to more than one month's rent.

Termination without notice is also justified if rent arrears accumulate over a longer period, totaling two months' rent. This is referred to as "regular underpayment".

The termination of the lease due to non-payment of rent becomes ineffective if the tenant fully settles the overdue payments no later than two months after service of the eviction notice. However, if a termination without notice has already been issued within the last two years, then even the repayments are ineffective: the termination becomes effective.

The last resort: The eviction lawsuit

If the tenant still makes no attempt to vacate the apartment, often the only remaining option is to file an eviction lawsuit with the competent local court. After the court serves the eviction lawsuit, the tenant has two weeks to indicate their intention to defend themselves. If they fail to do so, they must expect a default judgment. If an objection to the default judgment is not filed with the competent court within the prescribed time limit, it becomes legally binding within two weeks and constitutes an enforceable title

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