Grace Period for Late Payments: What Tenants and Landlords Should Know

What is the grace period?

The grace period is a legally defined period during which tenants have the opportunity to reverse the effectiveness of a termination notice for non-payment of rent by paying the outstanding rent, including any reminder fees and default interest. This provision is intended to provide tenants with additional protection against the loss of their apartment.

Legal Framework

The grace period regulation is anchored in the German Civil Code (BGB) under § 569 paragraph 3 No. 2. It states that a termination becomes invalid if the tenant pays the entire outstanding rent within two months of receiving the eviction lawsuit. This regulation applies to arrears of less than two monthly rents.

Significance for Tenants

For tenants, the grace period offers an important opportunity to save their tenancy, even after a termination notice for non-payment of rent has been issued. However, it is crucial for tenants to adhere to the deadlines and pay the outstanding amounts in full within the specified period. It is advisable to contact the landlord early in case of payment difficulties to discuss possible solutions.

Significance for Landlords

Landlords should be aware of the grace period and comply with the legal requirements when issuing a termination notice for non-payment of rent. It is important to carefully prepare the termination and subsequent eviction lawsuit, taking into account the possible application of the grace period. Landlords must also accept the complete payment of the outstanding rent within the grace period and continue the tenancy.

Tips for Dealing with Payment Defaults

• Communication: Open and timely communication between tenant and landlord can help find solutions to financial difficulties before resorting to termination.

• Payment Plans: In individual cases, landlords can agree with the tenant on a payment plan to gradually settle outstanding rents.

• Timely Payment: Tenants should make every effort to pay the outstanding amounts within the grace period to avoid termination of the tenancy.

Conclusion

The grace period for payment defaults is an important legal provision that provides tenants with additional protection, but it must also be considered by landlords. It is essential for both parties to be familiar with the legal framework and work constructively together to find solutions to financial problems and maintain the tenancy.

For questions about the grace period or other tenancy law issues, the Hochheiden property management is at your disposal. Contact us – we are here to assist you with our experience and expertise and find a fair solution for all parties involved.