Late Fees and Default Interest in Brandenburg

When the rent is delayed, landlords quickly find themselves in a difficult position. 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).

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

The Due Date of the Rent

According to legal regulations, rent must always be paid in advance (§ 556b BGB). Specifically, this means that the landlord must be able to access the rent amount no later than the third working day of a month (Exception: the contract explicitly stipulates a different time). Unlike the calculation of deadlines for termination, Saturday is generally not a working day for the payment deadline.

A tenant who pays 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 3 BGB, the landlord can terminate without notice if:

1. The tenant remains in arrears with the rent or a substantial part of it (at least one month's rent) for two consecutive months.
2. The tenant remains in debt over a longer period for amounts that, sum up, reach two full months' rent.

Immediate termination can be retroactively averted by paying off the debts within a defined grace period ("healing of the termination"). However, this does not save the lease agreement if the landlord has simultaneously validly issued an "ordinary" termination (due to culpable breach of contract).

Payment Management with Landager

Good tenancy management requires seamless monitoring of incoming payments. The Landager Dashboard automatically reconciles payments on the business account in Brandenburg with the tenants' target receivables, calculates default interest, and generates legally compliant reminders to prepare a quick and compliant eviction process if necessary.

Back to Brandenburg Landlord-Tenant Laws Overview.