COVID-19: Impact on Legal Positions of Landlords in Germany

What actions are available to the landlord in the event of COVID-19-based rent payment defaults?

As a result of the legal amendments on German tenancy law that were passed in March 2020 in connection with the COVID-19 pandemic, landlords are not allowed to terminate lease agreements for default of rental payments occurring in the period from April 1 to June 30, 2020, until June 30, 2022, if those defaults result from the COVID-19 pandemic. Soon, there will be an increasing need for commercial landlors to deal with the fact that either rental payments for the abovementioned three-month period are outstanding for a longer period of time than initially expected or that insolvency proceedings will be initiated against the tenant’s assets if its financial situation gets worse.

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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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