Rent grace period brandenburg, germany

When the rent is delayed, landlords quickly find themselves in a difficult position. Effective since 1 January 1900, the German Civil Code (Bürgerliches Gesetzbuch – BGB) governs residential tenancies in Brandenburg. Unlike in some Anglo-Saxon countries (such as the US), Germany - and thus Brandenburg - does not have fixed, freely selectable "Late Fees". Instead, civil law regulates so-called reminder fees (Mahngebühren) and default interest (Verzugszinsen).

The Due Date of the Rent

According to legal regulations, rent must always be paid in advance (§ 556b BGB). Specifically, this means that the tenant must have initiated the payment order (e.g., issued a transfer order to their bank) no later than the third working day of a month (Exception: the contract explicitly stipulates a different time). According to established Federal Court of Justice (BGH) jurisprudence (e.g., VIII ZR 222/15), Saturday is not considered a working day for the purpose of calculating this three-day deadline.

A tenant who initiates payment after this third working day is automatically in default of payment, without any additional warning required.

Default Interest (Verzugszinsen)

Landlords have the right to charge default interest against residential tenants who are in arrears. The statutory default interest rate in Germany is 5 percentage points above the applicable base interest rate (defined by the German Bundesbank).

For calculation: If the base interest rate is, for example, 3%, the default interest is 8% for the exact duration of the delay (to be billed per day or month).

Landlords can demand default interest along with the outstanding total sum. Because the effort often exceeds the financial yield of the daily calculated amounts, interest claims are usually waived for very short delays.

Reminder Fees (Mahngebühren)

A flat "late fee" in a high euro amount, as is often common in foreign lease agreements, would be legally invalid in Germany. Landlords can, however, invoice a reminder fee for each reminder sent to cover their organizational effort.

• The first reminder: The so-called "founding reminder", which prompts the tenant to pay after the default has occurred, generally cannot yet be charged with a reminder fee.
• Judicial Determination: According to current jurisprudence, flat rates of €2.50 to a maximum of €5.00 per subsequent reminder are recognized as appropriate and permissible. The fee is intended merely to cover real expenses (paper, stamp, ink), but not to become a hidden source of income.

If a legally secure agreement for flat reminder costs is desired, it should be explicitly mentioned in the lease agreement, provided it does not exceed the court-ruled maximum (max. €5).

Immediate Termination for Payment Default

While reminder fees are low, German law has installed a sharp weapon against missing payments through the instrument of termination.

According to § 543 Para. 2 Sentence 1 No. 3 BGB, the landlord can terminate without notice if:

1. The tenant is in arrears with the rent or a substantial part thereof for two consecutive payment dates.
2. The tenant is in arrears for an amount that, summed up, reaches two full months' rent over a period extending beyond two payment dates.

Immediate termination can be retroactively averted by paying off the debts within a defined grace period ('healing of the termination'). This is possible if the landlord is fully compensated no later than two months after the tenant has been formally served with the eviction claim (§ 569 Para. 3 No. 2 BGB). However, this does not save the lease agreement if the landlord has simultaneously validly issued an 'ordinary' termination (due to culpable breach of contract) under § 573 BGB.

Disputes and Jurisdiction

In Brandenburg, disputes regarding rent arrears or late fees fall under the jurisdiction of the District Court (Amtsgericht) where the property is located. This applies regardless of the value of the claim for residential tenancy matters (§ 23 No. 2a GVG).

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