Commercial Late Fees and Rent Arrears in Schleswig-Holstein

A commercial tenant defaulting on rent in Schleswig-Holstein triggers notably more severe consequences than a residential tenant. The statutory default interest rates are significantly higher to deter late payments between businesses, the termination possibilities for the landlord are broader, and—most importantly—the residential grace period for curing arrears does not apply.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a qualified attorney for specific advice. Information last verified: March 2026.

Entering Default Without a Reminder

A commercial tenant enters default (Verzug) as soon as they fail to pay the rent by the agreed-upon due date (typically the 1st or 3rd working day of the month). Because the payment date is determined by the calendar within the contract, a formal reminder or dunning letter (Mahnung) is not legally required to trigger default consequences (BGB § 286 para. 2 no. 1). However, sending one remains best practice.

Higher Default Interest: B2B Transactions

The law recognizes the increased necessity for liquidity in business transactions:

The base interest rate is updated semi-annually by the German Bundesbank. The 9% premium ensures defaulting on commercial rent is a highly expensive form of unauthorized "credit" for the tenant.

Reminder Fees and the €40 Flat Rate

Upon default, commercial landlords can claim compensation for the delay:

• The €40 Pauschale (Flat Rate): According to BGB § 288 para. 5, the creditor of a remuneration claim in B2B transactions can demand a flat rate of €40 as compensation for the delay, without needing to prove any actual damage.
• Additional Costs: The €40 flat rate is offset against any further claims for legal prosecution (e.g., attorney fees).
• Actual Damages: The landlord can claim the actual costs incurred (e.g., fees for an engaged debt collection agency, attorney fees for drafting notice, overdraft interest incurred due to missing revenue), provided they exceed the €40 flat rate.

Immediate Termination Without Notice

If the arrears are serious, the landlord possesses a sharp weapon: Extraordinary termination without notice (BGB § 543 para. 2 no. 3).

The Crucial Detail: No Grace Period!

In residential tenancy law, a tenant can invalidate an immediate termination by quickly paying off the debt after receiving the eviction lawsuit (the Schonfrist). This protection does not exist in commercial tenancy law. Once the commercial landlord delivers a valid notice of immediate termination due to qualified arrears, the contract is definitively canceled. Even if the tenant transfers the missing rent minutes later, the termination stands, and the tenant must vacate.

Contractual Penalties

Due to freedom of contract, commercial leases frequently contain contractual penalty clauses (Vertragsstrafen) for late payments:

• E.g., a flat percentage surcharge on the outstanding rent for every commenced week of delay.
• The penalty must be proportionate and appropriate; excessively punitive clauses can still be overturned by a court under AGB control.
• These penalties must be unambiguously defined in the lease agreement.

Landlord's Lien (Vermieterpfandrecht)

A commercial landlord possesses a powerful statutory security right: The Landlord's Lien (BGB § 562).

• The landlord has a lien on the movable assets introduced into the leased property by the tenant (e.g., office equipment, machinery, inventory, stock).
• In the event of severe payment default, the landlord can prohibit the removal of these assets and eventually realize them to satisfy the outstanding rent claims.
• This right must be exercised carefully and legally, often requiring judicial assistance.

Recommended Action Plan

1. Immediate Reaction: Contact the tenant 3–5 days after the missed due date. In B2B relationships, immediate follow-up signals professional debtor management.
2. Formal Dunning Letter: Send a formal reminder demanding payment within a short deadline (7 days), explicitly mentioning the accrual of 9% default interest and the €40 flat rate.
3. Assert Landlord's Lien: If the business seems troubled, formally declare the assertion of the landlord's lien to prevent the quiet removal of valuable assets.
4. Immediate Termination: Upon reaching the 2-month threshold, deliver the termination notice via a court bailiff (Gerichtsvollzieher) to ensure undeniable proof of delivery.

How Landager Can Help

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Back to the Overview of Commercial Tenancy Law in Schleswig-Holstein.