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Corona express package – effects on tenancy law

On March 27, 2020, the legislature passed the “Law to Mitigate the Consequences of the COVID-19 Pandemic in Civil, Insolvency and Criminal Procedure Law”. This law also includes regulations that restrict the landlord in his right to terminate the rental payments in arrears.

Background : According to the currently valid regulations, leases can be terminated without notice by the landlord at the latest if the tenant has accumulated arrears corresponding to an amount of 2 months’ rent.

With its mitigation law, the legislature wants to prevent tenants who are unable to pay their rent as a result of the effects of the pandemic from losing their roof over their heads or their business premises. Therefore, landlords are now not allowed to terminate their tenants under the conditions set out below. The regulation applies to tenants of residential and commercial premises .

Requirements

Follow

Notes

The wording of the law

The law provides the following regulation for tenancies:

§ 2 Restriction of the termination of tenancies

(1) The landlord cannot terminate a lease for land or rooms solely for the reason that the tenant in the period from April 1, 2020 to June 30, 2020 despite the due date does not pay the rent if the non-payment is due to the effects of the COVID-19 pandemic. The connection between the COVID-19 pandemic and non-performance must be made credible. Other termination rights remain unaffected.

(2) Paragraph 1 cannot be deviated from to the detriment of the tenant.

(3) Paragraphs 1 and 2 apply accordingly to leases.

(4) Paragraphs 1 to 3 are only applicable until June 30, 2022.