When can a landlord terminate a lease due to rent arrears, and what rules apply to termination without notice? In this article, you will learn what requirements must be met, what risks exist, and why quick action is crucial.
Termination due to rent arrears – two classic scenarios
The law allows landlords to terminate a tenancy agreement due to late payment in two typical scenarios:
- If the tenant is in arrears with a significant portion of the rent for two consecutive months.
- If a significant amount of rent arrears accumulates over a longer period of time, even if this does not occur in two consecutive months.
In both cases, the arrears must still exist when the termination is received, otherwise the termination is invalid.
When is a rent arrears considered "significant"?
The interpretation of when arrears are considered "significant" is not precisely defined by law and is subject to the discretion of the courts.
An example:
In a case before the Berlin Regional Court , a tenant was 19% behind on their monthly rent in January and did not pay the full rent in February. The court ruled that this arrears were not sufficient grounds for termination, among other things because the January arrears did not even correspond to the monthly advance payments for ancillary costs.
As a rough guideline, if approximately 50% of the monthly rent is missing, it can be assumed that the arrears are not insignificant.
Remedy through subsequent payment – what is possible?
What happens if the tenant pays the arrears in full after receiving the notice of termination?
This depends on several factors:
- Was the termination without notice or with notice?
- When exactly was the payment made?
- Are there any other arrears that were not included in the termination?
- Has the tenant already made use of the possibility of rectification?
According to current BGH case law (November 2024), payment of all arrears only remedies termination without notice —but not a simultaneous termination with notice.
Special feature for social benefits:
If the rent is paid by a public authority, the same remedial effect applies if this authority undertakes to pay the arrears to the landlord.
However, if the tenant has already remedied the termination without notice once within the last two years by making a payment, a further remedy is not possible.
Conclusion: Two grounds for termination – many pitfalls
In summary, there are two legally recognizedgrounds for termination without notice due to rent arrears. However, each of these scenarios entails risks for landlords. Incorrect assessments can quickly lead to expensive termination proceedings, which landlords may then lose.
Our advice: Have every termination due to late payment reviewed by a lawyer. The legal assessment in each individual case is crucial—and protects you from unnecessary hassle and costs.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.