Market Trends

Germany and rents

by Realigro Team On 03/27/2020

The new protections

Germany and rents ! As we know, the Coronavirus is creating significant problems in all the nations of the world. From the most developed to the most backward. Today our focus will be on Germany in particular. As the undisputed hub of the European economy, the nation has decided to adopt additional protections, just as far as the German real estate is concerned. No tenant will lose their home because of the coronavirus! This is what the German government intends to achieve. But let’s see how

The document

The document helps the 45 million citizens (about 55% of the population living in Germany) who have signed a lease. Because of the economic crisis, driven by Covid-19 , there could be many difficulties in paying the rent on time. So what does this document foresee that Germany is so attentive to rents on its own soil?
The objective is to make payments more flexible. For a period ranging from 1 April to 30 September 2020 (a range within which non-payment is not considered a reason for eviction).
Obviously, this does not mean that the contractual obligation between landlord and tenant is not fulfilled.

Further details

But why was this very time frame selected ? The answer is simple. According to experts in the field, the most critical period for Germany concerning the Coronavirus emergency should be largely over by this date. It is considered the current one, therefore, as the most complex phase of the German (and European of course) recession.

There are, of course, a number of exceptions relating to the non-payment of water and electricity. As well as greater protection for those who are actually in economic difficulties as a result of the Coronavirus.
In addition, a delay in payment will be accepted . But only for all those who find themselves in difficulty in being able to withdraw liquidity. We would also like to point out that a special state fund will probably set up. In order to help tenants in order to make good any shortfalls.

But why was it so urgent to pay special attention to the rental contracts? For historical, cultural and economic reasons, Germany was born and continues to be a nation of tenants. It is, in fact, the European nation with the lowest number of contracts of sale and purchase. Buying a property, therefore, is not the primary concern of the German population. On the contrary, if you think that only in Berlin , the percentage of rents exceeds 85 %. It ‘s possible to understand that the demand is very high.

So what are the forecasts ? It hopes , of course, that this measure will simply alleviate the growing difficulties .(that most European nations are experiencing at the moment). Nevertheless, Germany has always been a strong but not very versatile and change-prone nation. Therefore, we hope that this measure will be really effective . So that tenants will also be able to avoid problems in this sad phase we are going through.