Late Fees and Default Interest in Mecklenburg-Vorpommern: What Landlords Can Charge

When a tenant pays rent late or not at all, it creates financial damage for the landlord. German tenancy law allows landlords to take certain measures in case of payment default — but there is no statutory late fee for residential rent.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in Mecklenburg-Vorpommern for guidance specific to your situation. Information last verified: March 2026.

When Is Rent Due?

Under § 556b BGB, rent is due at the beginning of the month — no later than the third business day of each calendar month. A different arrangement may be agreed, but the due date may not be set later than the start of the month.

Late Fees for Residential Rent

German residential tenancy law does not provide for statutory late fees. However, landlords may:

• Claim actual processing costs as damages (§ 286 BGB)
• Charge statutory default interest

Flat-rate late fee clauses that exceed the actual damage are invalid. Courts have generally rejected flat fees of more than €5 per reminder.

Default Interest (§ 288 BGB)

When a tenant is in default, the landlord may charge statutory default interest:

The base rate is adjusted semi-annually by the German Bundesbank (as of March 2026: approx. 2.90%, resulting in a default rate of approx. 7.90% p.a.).

Example: For a monthly rent of €700 and 1 month in arrears:

• Default interest = €700 × 7.90% / 12 = approx. €4.61

When Does Default Occur?

Under § 286 BGB, a debtor is automatically in default when performance is not rendered at the time it is due and:

1. A reminder has been sent, OR
2. The due date is fixed by calendar (as with rent — no separate reminder needed)

For rent, default therefore occurs automatically after the third business day of the month.

Steps When a Tenant Defaults

Step 1: Send a Reminder

Although technically not required, it is advisable to send a written reminder:

• In writing via registered mail
• Clear statement of the outstanding amount and payment deadline
• Warning of further measures (termination, lawsuit)

Step 2: Extraordinary Termination

Immediate termination is possible when the tenant owes at least 2 full monthly rents (§ 543 para. 2 no. 3 BGB) or repeatedly defaults.

Step 3: Court Order / Lawsuit

If the tenant does not pay, the landlord has the following legal options:

• Court payment order (Mahnbescheid) via the local court (quick and inexpensive)
• Payment lawsuit at the local district court
• Eviction lawsuit if termination is based on payment default

Tenant's Right to Avert Termination

A tenant may avert an extraordinary termination for payment default by paying the full outstanding amount within 2 months of being served the eviction lawsuit (§ 569 para. 3 no. 2 BGB). This option is available only once every 2 years per tenancy.

Best Practices for Landlords

1. Send reminders immediately — do not wait when rent is overdue
2. Send written reminders — via registered mail for proof
3. Document all payments — use spreadsheets or software for every rent payment
4. Act at 2 months arrears — consider extraordinary termination
5. Do not charge excessive late fees — avoid invalid clauses

How Landager Helps

Landager helps you monitor all rent payments, set automatic reminders for payment defaults, and document reminder correspondence.

Back to Mecklenburg-Vorpommern Landlord-Tenant Laws Overview.