Coronavirus and landlords
Landlords in financial distress
The majority of rental properties are privately owned. Some of these private landlords also have only a low income. It could therefore be the case that landlords are unable to service their current loans due to non-payment of rent. To address this, the federal government has included provisions in its aid package allowing landlords to defer their loans. However, this only applies to consumer contracts concluded before March 8, 2020.
Concessions
It is important that all sides show understanding for each other. Like tenants, landlords are also dependent on regular income. Experts therefore advise talking to each other in good time. Politicians and associations are working on solutions to the problem. The German Tenants' Association (DMB) and the Federal Association of German Housing and Real Estate Companies (GdW), for example, are calling for a "secure housing fund." Tenants can turn to this fund and apply for the rental costs to be covered if they are unable to pay their rent due to the current crisis.
Are you looking for a property management company to take care of your affairs as a landlord? Contact us! We will be happy to advise you.
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