COVID-19: Crisis-related exclusion of termination right on landlords takes effect

Hogan Lovells
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On April 1, 2020, an exemption from the landlord's termination right comes into force, which protects tenants against the loss of their apartment or commercial space in the event of late payment of the rent. However, this does not simply lead to a deferral of payment obligations without consequences. Only tenants who actually suffer an acute liquidity shortage due to the pandemic will be protected. In addition, the rent payments remain due and are subject to interest during the period of default. Furthermore, landlords can enforce rental securities. Landlords do not have to accept a simple reference to the pandemic to justify the exemption from their termination right. Rather, tenants must credibly demonstrate the connection between their inability to pay rent and the effects of the COVID-19 pandemic.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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