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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