Good news for tenants who are experiencing financial difficulties due to the Corona crisis: The federal government wants to temporarily prohibit the termination of rental contracts.
Tenants should not be allowed to quit due to rent debts in the Corona crisis. This provides for a bill from the Federal Ministries for Justice, Home Affairs and Economy, which is available to the German Press Agency in.
This should apply to rent debts from April 1 to September 30, 2020. In principle, however, the tenant’s obligation to pay the rent remains. Other debtors who are unable to meet their contractual obligations due to the coronavirus pandemic are also not expected to face legal consequences. There should be a legal deferral rule for loans.
The bill is due to be adopted next Monday in the Federal Cabinet and on Wednesday in the Bundestag. The template creates the possibility of extending the deadlines by one year:
“If it turns out that the period from April to September 2020 is not sufficient, (…) the Federal Ministry of Justice and Consumer Protection (…) will be given the opportunity to (…) time limits (…) until July 31, 2021 at the most. “
DGB demands loans for housing companies
Previously, the German Trade Union Confederation (DGB) had called for a ban on rent cancellations during the Corona crisis. “Politicians must now send a clear signal: the home must be safe,” said DGB board member Stefan Körzell.
The DGB warned that a safe home is more important than ever at the moment. But in the long term, rent or real estate loans would no longer be affordable for many people, given the drop in wages, such as short-time benefits.
If people are dependent on basic security in the wake of the crisis, housing costs must be covered quickly and in full. The DGB continued to demand interest-free bridging loans for owner-occupiers, small private landlords, but also for housing companies and cooperatives that get into difficulties due to loss of rent.
Körzell emphasized: “Unreasonable hardships must be avoided at all costs.” The first step is to ask the landlords, who should approach the tenants accordingly and offer them options for deferral.
Suspension of the obligation to apply for bankruptcy
According to the latest information, the federal government also plans to suspend the insolvency filing – “unless the insolvency is not based on the effects of the Covid 19 pandemic or there is no prospect of an existing insolvency being remedied”.
General meetings of companies should be able to be held online without attendance. For cooperatives and associations, temporary relief is also to be created for holding meetings without a physical presence.