Living on the Edge: The Impact of Unpaid Rent on Home Loss
The soaring cost of living is leaving its mark in more ways than one...
Rent arrears are the leading cause of individuals losing their homes in Germany. This information comes directly from the German government in response to a request by the Left Party. Consequently, most evictions took place in North Rhine-Westphalia (8,690), Bavaria (2,579), Lower Saxony (2,288), and Saxony (2,265).
Two Strikes, and You're Out
Tenants who cannot keep up with their rent payments face dire consequences. Generally speaking, if you fail to pay twice, you may receive an eviction notice without warning! The severity of the situation doesn't change if some portion of the rent has been paid. As long as the outstanding rent exceeds one month's worth, eviction is a real possibility.
Timing is Everything
Rent must be paid in advance. Along with advance payments for ancillary costs, they are due at the start of the rental period – usually at the beginning of the month. The rent must be transferred or paid by the third working day at the latest. This means Saturday is not considered a working day.
Tenants who repeatedly pay late may receive an eviction notice. Court rulings have shown that as few as four late payments can be enough to merit such a notice.
Reminders? Not Always Necessary
The rental agreement outlines the payment of rent in great detail. If the tenant fails to meet payment deadlines, they automatically default on their rent payment obligations. Consequently, the landlord does not always need to send a reminder.
Please note: If a reminder is not sent, the landlord can still demand interest on the outstanding amount. This interest rate amounts to five percent plus the base interest rate.
The Bank's Influence
When transacting rent payments, the location of money transfer rather than the actual arrival date is significant. According to the Federal Court of Justice, a clause in the rental agreement requiring the rent to be received by the landlord on the third working day is invalid. This is due to tenants having no control over the flow of money between banks.
However, it is your responsibility to ensure that your account has sufficient funds at the time of transfer. If this is not possible, the tenant is responsible for the delay!
Who foots the Eviction Bill?
The costs associated with an eviction are part of the overall court fees. The losing party in the court proceedings (usually the tenant) will be responsible for covering these costs.
Protecting Tenants in Trouble
Protection against eviction and enforcement is rare but available under specific circumstances. Elderly or infirm individuals, as well as those facing homelessness, are often provided protection. Ultimately, these decisions are made on a case-by-case basis by the respective courts.
Further Reading
While the sources do not provide specific details regarding late payment penalties, it is clear that late rent payments can escalate into serious consequences, including eviction proceedings if not addressed promptly.
