Coronavirus rent relief & reductions for salary cut

10 posts in this topic

I've been renting out my flat for a few months and my tenant's salary has just been cut 20% because of the Corona situation. He's employed by a company in Berlin and therefore doesn't qualify for the "Liquiditätsengpässe wegen Coronavirus - Unterstützung für Berliner Unternehmen" which some of my freelance friends got money from.

He won't be able to pay the full rent from May and he told me that he would then have to move out, which I of course do not want. He's a good tenant and I would also probably end up with an empty flat for a while. 

Seems to me like the only option would be to reduce his rent for a few months but I'm not sure if there's any public help in place for someone in his situation so that he could keep paying the whole amount. This could go for a while which could translate in a pretty big loss and I gotta payback a large sum I borrowed last year. 

 

Just wondering if there's anything out there I haven't heard of!

Thanks

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48 minutes ago, stevekerr said:

I've been renting out my flat for a few months and my tenant's salary has just been cut 20% because of the Corona situation. He's employed by a company in Berlin

 

 

48 minutes ago, stevekerr said:

Seems to me like the only option would be to reduce his rent for a few months but I'm not sure if there's any public help in place for someone in his situation so that he could keep paying the whole amount.

 

Why should he receive additional funds? He has "only" had his salary cut by 20%. With Kurzarbeit it is possible that his net salary would be cut by upto 1/3. Unless he is now earning below the poverty line, there is really no need from him to receive additonal public funds.

 

48 minutes ago, stevekerr said:

This could go for a while which could translate in a pretty big loss and I gotta payback a large sum I borrowed last year.

 

That is your personal investment risk that will not be covered by taxpayers. You can apply to your lender for an extension.

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First note while he can ask for a rent reduction and even possibility not even pay the rent he will be responsible to pay an back rent owed (with interest??) once the state of emergency is lifted. I believe that The Local has done several articles on this point, mostly from a tenant point of view.

 

Your best option is probably to suck it up and tighten your belt for a few months. You'll probably end up with a loss on your taxes so it won't be totally for naught. A more difficult option (due to the assumed language barrier) is to ask your bank for a furlough on your payments. I don't know exactly how this works but it would be a safe bet that any extra interest fees would be added to the mortgage. A final option is things are really dire, say all your income disappeared is to go to the arbietsamp and ask for help. Again loads of article in English on how to do all this, just need to do some googling

 

Good luck and use this as an opportunity to get 6 months expenses stored away in a low interest bank account. 

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I appreciate that you're caught between a rock and a hard place, but couldn't you just agree that he pays you 80% a month until his wages go back up and then pays the rest in arrears at say 10% extra a month?

One of my clients here in the UK has a similar problem with one of his tenants, but the UK have said that the tenants can't be evicted for non-payment for the next 3 months, so he's having to accept the reduced payment and arrears for the time being.

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14 hours ago, Missysx said:

tenants can't be evicted for non-payment for the next 3 months,

Same in Germany. They´ll have 2 years to pay for those 3 months incrementally. Plus interest (not sure what rate though).

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Thanks everyone for your input, I think the most sensible thing to do would be to see if he's ok with paying reduced rent for a while and then pay that difference back later on, that difference doesn't really affect me as much atm as having the flat empty so I'm course interested in him not moving out.

On 4/11/2020, 9:12:19, Missysx said:

couldn't you just agree that he pays you 80% a month until his wages go back up and then pays the rest in arrears at say 10% extra a month?

Absolutely, just not sure if he wants to build up the debt and he can of course just bail out of the contract on 2 months notice, which is what I want to avoid at all costs.

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On 4/12/2020, 11:24:34, jeba said:

Same in Germany. They´ll have 2 years to pay for those 3 months incrementally. Plus interest (not sure what rate though).

 

Has anyone got a link to the details of this? Can't see to find anything.

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12 minutes ago, stevekerr said:

 

 

Has anyone got a link to the details of this? Can't see to find anything.

 

For example here:  https://www.haufe.de/immobilien/wirtschaft-politik/mietenmoratorium-gesetzgeber-reagiert-auf-corona-krise_84342_512414.html  and here:  https://www.anwalt.de/rechtstipps/mietschulden-zahlungsverzug-des-mieters-in-der-corona-krise-kuendigung-des-vermieters_164822.html

 

It says you can not give your tenant notice due to rent owed for April, May or June this year.  You can however still give them notice for other reasons if they come up but if they owe rent for those months, they have until June 2022 to pay it back.  It doesn't mention interest.

 

 

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