Rent arrears: what does this mean legally for you as a landlord?
When a tenant does not pay rent or pays structurally late, there are rent arrears. Legally, this constitutes a breach in the performance of the rental agreement.
Rent arrears can lead to:
- ✓ financial damage
- ✓ uncertainty about continuation of the lease
- ✓ problems with financing or operation
The question then is: when can you claim eviction? That depends strongly on the type of lease.
Eviction due to rent arrears for residential premises
Extensive tenant protection
For residential premises, strong tenant protection applies. This means that eviction is only possible:
- ✓ through the court
- ✓ after termination of the rental agreement
- ✓ with a judgment executed by a bailiff
Self-eviction or disconnection of utilities is always prohibited.
When does the court grant eviction?
In case law, the following principle applies:
- ✓ rent arrears of three months or more in principle justify termination and eviction
- ✓ for smaller arrears, the court makes a balancing of interests
Factors considered include:
- ✓ structural non-payment behavior
- ✓ previous payment arrangements
- ✓ personal circumstances of the tenant
- ✓ whether there is a prospect of payment recovery
Note for landlords
If landlords wait too long, the damage often increases unnecessarily. Timely legal action is crucial.
Eviction due to rent arrears for business premises
Less protection, faster results
For business premises (both 290 and 230a business premises), tenant protection is more limited. Courts are less reluctant to evict here.
In practice:
- ✓ rent arrears of two to three months are often sufficient
- ✓ commercial interests of the landlord weigh heavily
- ✓ inability to pay by the tenant is less readily accepted
Termination and eviction
The landlord can claim:
- ✓ termination of the rental agreement
- ✓ eviction of the property
- ✓ payment of arrears, interest and costs
Emergency eviction via summary proceedings: when possible?
What are summary proceedings?
Summary proceedings are an expedited procedure before the interim relief judge. This procedure is intended for situations where a full trial cannot be awaited.
When is eviction in summary proceedings possible?
Eviction in summary proceedings is possible when:
- ✓ the rent arrears are substantial and structural
- ✓ there is no realistic prospect of payment
- ✓ the landlord has an urgent interest
This urgent interest may consist of:
- ✓ serious liquidity problems
- ✓ imminent financing problems
- ✓ vacancy or re-letting that cannot wait
Residential vs. business premises in summary proceedings
- ✓ Business premises: summary eviction is granted relatively often
- ✓ Residential premises: court is more reluctant, but emergency eviction is possible in case of serious arrears or abuse of tenant protection
Important risk
If the summary proceedings are dismissed, a full trial can still follow. Good preparation is therefore essential.
What steps should you take as a landlord?
1. Written demand
- ✓ identify the rent arrears
- ✓ set a clear payment deadline
- ✓ announce legal steps
2. Legal assessment
Have assessed:
- ✓ whether termination is likely
- ✓ whether summary proceedings are possible
- ✓ what evidence is needed
3. Initiate proceedings
Depending on the situation:
- ✓ full trial
- ✓ summary proceedings
- ✓ or both in parallel
Common mistakes by landlords
- ✓ waiting too long
- ✓ informal agreements without documentation
- ✓ taking matters into own hands
- ✓ choosing the wrong procedure
These mistakes can delay or even prevent eviction.
Conclusion: acting quickly and legally correctly pays off
Eviction due to rent arrears is often possible, but requires a careful legal approach. Especially for business premises and urgent situations, summary proceedings often provide a solution.
Are you as a landlord dealing with rent arrears?
Are you considering eviction or summary proceedings? Have your situation assessed by a lawyer specialized in tenancy and real estate law.