Thuringia Late Fees and Rent Arrears: Rules for Landlords

Unlike many English-speaking countries, Germany does not permit landlords to charge punitive flat-rate late fees on residential tenancies. Thuringia landlords must follow the uniform federal framework: only actual proven loss — expressed through statutory default interest and verified reminder costs — may be claimed when a tenant pays late.

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When Is the Tenant in Default?

Rent is typically due and payable by the third working day of each month (unless the lease specifies otherwise). Once that deadline passes without payment, the tenant is automatically in default — no prior reminder letter is required by law (§ 286 Abs. 2 No. 1 BGB, as the due date is set in the contract).

Statutory Default Interest

Once the tenant is in default, the landlord is entitled to charge statutory default interest under § 288 BGB. For consumer debtors (residential tenants), the rate is:

5 percentage points above the Bundesbank base rate per year

The base rate is updated by the Deutsche Bundesbank on 1 January and 1 July each year. For example, if the base rate is 2.62%, the applicable default interest rate is 7.62% p.a. on the outstanding rent.

Interest accrues daily on any outstanding, unpaid amount.

Reminder Letter Costs

Punitive "late fee" charges in residential lease contracts are not enforceable under German law. Standard-form clauses attempting to impose them violate § 307 BGB and are void.

What landlords may legitimately claim for sending reminder letters:

• First reminder: Generally free — courts do not award costs for the first notice, as the tenant is already in statutory default without needing a reminder.
• Second and subsequent reminders: Landlords can claim actual out-of-pocket costs, typically postage plus paper/envelope — in practice approx. €2.50–€5.00 per letter.
• Internal administrative time is generally not recoverable as a separate item.

Escalation Steps for Non-Paying Tenants

Germany's legal system gives landlords a structured escalation path when a tenant falls behind:

For the full eviction process, see the Eviction Process미리보기를 사용할 수 없습니다 guide.

The "Remedy Payment" (Schonfristzahlung) Rule

Germany gives residential tenants a statutory right to undo an immediate termination (for rent arrears) if the tenant pays all outstanding rent and default interest in full within two months of the eviction lawsuit being served. This right can only be exercised once every two years.

Practical implication for landlords: even after serving an immediate notice and filing for eviction, a tenant's full payment within the two-month window will nullify the termination. Landlords should nonetheless always issue a simultaneous ordinary (notice) termination as a backup, which cannot be undone by a remedy payment.

SEPA Direct Debit — a Practical Solution

One of the most effective ways to prevent late payments is to include a SEPA direct debit mandate in the lease, authorising the landlord to collect the rent automatically each month. This eliminates reliance on the tenant's own initiative and significantly reduces arrear rates.

How Landager Helps

Landager notifies you the moment a rent payment is overdue and tracks the number of days in arrears across your Thuringia portfolio. It calculates accrued default interest automatically and generates pre-formatted demand letters, so you can escalate quickly and compliantly.

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