Commercial Late Fees in Bremen: B2B Default Interest and Arrears

Commercial tenancy involves Business-to-Business (B2B) transactions governed primarily by the German Civil Code (BGB), which became effective 1 January 1900. Consequently, the protective leniency afforded to residential consumers regarding late payments simply does not exist in commercial law. Under the BGB, a Bremen commercial landlord possesses significantly sharper financial tools to penalize late rent and aggressive, swifter pathways to evict non-paying businesses.

Legal DisclaimerThis guide provides general legal information. Lease laws can change. Always consult a licensed notary or lawyer in this region.

Entering Default (Verzug)

Under BGB § 579 (1), commercial rent is statutory due at the end of each period unless the contract specifies advance payment (which is standard in commercial leases).

If the commercial tenant misses the contractually agreed payment date, they enter automatic default (Verzug) immediately. The landlord does not need to send a reminder letter (Mahnung) or warning to trigger the severe financial penalties associated with B2B default.

The B2B Financial Penalties

Under § 288 of the BGB, landlords dealing with a commercial tenant (who is not a consumer) can legally apply substantially higher default penalties than in the residential sector.

1. High Default Interest Rate (Verzugszinsen)

While residential leases max out at 5 percentage points above the base rate, the statutory default interest rate for commercial B2B transactions is set at 9 percentage points above the European Central Bank standard base rate (§ 288 Para. 2 BGB).

Calculation Example: If the base interest rate is 3.62% (as of early 2025), the total allowable default interest for commercial rent arrears would be a steep 12.62% per annum.

2. The €40 Flat Fee (Schadenspauschale)

If a commercial tenant enters default, the landlord has an immediate statutory right to claim a flat fee of €40.00 as compensation for internal recovery costs (§ 288 Para. 5 BGB). * You can claim this €40 fee automatically the very day the rent is late. * This significantly replaces the residential system of cautiously charging €2.50 for a second reminder letter.

3. Claiming Further Damages

If the commercial landlord's actual damages exceed the high default interest and the €40 flat fee—for instance, if the landlord falls into default on a massive commercial mortgage loan due to the tenant's late rent, triggering banking penalties—the landlord can legally sue the commercial tenant for those exact, documented excess costs (§ 288 Para. 4 BGB).

Extraordinary Termination Without Notice (§ 543 BGB)

If severe rent arrears accumulate, the commercial landlord can drastically sever the relationship with an immediate, extraordinary termination (fristlose Kündigung).

Valid Grounds Immediate eviction is justified if the commercial tenant:

1. Is in default for two consecutive dates with the payment of the rent or a significant part thereof.
2. Accumulates an overall debt (via repeatedly underpaying or missing isolated months) that reaches the amount of rent for two months over a period extending beyond two dates.

The Missing Grace Period (Difference)

In residential law, a tenant can magically "cure" an immediate termination by utilizing the "Grace Period" (Schonfristzahlung) to pay the debt within two months of an eviction lawsuit. Under commercial tenancy law, this Grace Period loophole is completely abolished. Once a commercial landlord legally issues an extraordinary termination for severe rent arrears, the tenant cannot invalidate it by simply writing a belated check.

The lease remains permanently terminated, providing deep security for the landlord.

Commercial Eviction Lawsuit (Räumungsklage)

If the terminated commercial tenant refuses to hand over the keys and vacate the premises, the landlord must still pursue a formal commercial eviction lawsuit through the courts.

However, commercial evictions are significantly faster than residential ones: * No Social Hardship Defenses: A business owner cannot stall an eviction by claiming "unjustifiable hardship" (e.g., claiming eviction will bankrupt them or cause their employees to lose jobs). * Speed: Because the defense mechanisms are vastly stripped back, commercial eviction judgments are issued more rapidly by the Regional Court (Landgericht).

Best Practices for Commercial Arrears *

Zero Tolerance Policy: Small businesses often use landlords as an informal, interest-free credit line by paying rent 10 days late. Enforce the strict 9-point interest and the €40 flat fee immediately to disincentivize this behavior. * Act Swiftly on 2-Month Arrears: Do not negotiate aimlessly if a commercial tenant hits the two-month arrears threshold. Issue the extraordinary termination immediately to crystalize the eviction right, as they cannot legally reverse it with a belated payment. * Utilize the Bank Guarantee: If the tenant provided a standard commercial "Bank Guarantee on First Demand" (Bankbürgschaft auf erstes Anfordern), you can draw upon the bank's funds almost instantly to cover the missing rent, maintaining your own cash flow while you begin the formal eviction.

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