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Rent arrears · Termination · Eviction
Tenant doesn't pay – what to do? The process for landlords
- The sequence of actions with realistic timings from practice
- When summary dismissal is valid – and when a grace period payment overturns it
- What delays, procedures and vacancies cost together
- The six mistakes at which dismissals regularly fail
- 2Two months' rent arrears – termination is possible without notice
- 2Grace period of months for termination of employment
- 12Months realistically until eviction
- 0 €back if the tenant is insolvent
The initial situation
When is the tenant in default?
The rent is to be paid at the beginning of the period, by the third working day of the period at the latest, in accordance with § 556b para. 1 BGB. Because the payment date is thus determined by the calendar, the tenant is in default without a separate reminder. Therefore, you do not need to issue a reminder first to have rights – but you do need to do so to have evidence.
From the point of default, you can claim default interest: five percentage points above the base interest rate, § 288(1) BGB. The nine percentage points and the €40 flat rate from § 288(2) and (5) BGB only apply if no consumer is involved – therefore not for residential tenants. Economically, this is a minor matter, but procedurally useful: those who correctly claim interest show the court that they have control over the claim.
Two thresholds are relevant for termination. Pursuant to Section 543(2) sentence 1 no. 3 of the German Civil Code (BGB), there is an important reason if the tenant is in default with the rent or a not insignificant part thereof for two consecutive payment dates, or if the arrears over more than two payment dates reach the rent for two months. A partial arrear is only considered not insignificant pursuant to Section 569(3) no. 1 BGB if it exceeds one month's rent. A warning or a grace period for remedy is explicitly not required in the case of payment default, Section 543(3) sentence 2 no. 3 BGB.
Sequence of actions
From the first missed payment to eviction
The time indications are target values from our own inventory management. They vary considerably with the workload of the responsible district court, but the order is always the same.
- 1Tag 4
Check and document payment receipt
Draw up a bank statement, note the shortfall, allocate instalment payments to the oldest outstanding claim. It sounds trivial, but it later decides the coherence of your arrears calculation in court.
- 2Tag 5–10
First reminder in text format
Break down the arrears by month and amount, set a payment deadline of ten to fourteen days, and make access demonstrable. Legally not necessary for the termination, but practically the most important document – and it resolves the problem in about half of the cases.
- 3Weeks 3-4
Seek a conversation and clarify the cause
Job loss, illness, separation, citizen's income application being processed: The reason determines the prognosis. Where an authority will step in, an instalment agreement is usually more economical than any procedure. Instalment agreements should always be in writing, with a forfeiture clause.
- 4Month 2
Check for notice period termination
Does the arrears amount to two months' rent, or does it relate to two consecutive payment dates? Only then is an extraordinary termination under § 543 (2) no. 3 of the German Civil Code (BGB) justified. Anyone who terminates too early produces an ineffective termination and loses months.
- 5Month 2
Immediate termination, with ordinary termination as a backup
The reason for termination must be stated in the notice of termination, § 569 (4) BGB. In addition, alternatively explain the ordinary termination under § 573 (2) no. 1 BGB – it remains valid if the tenant prevents the extraordinary termination by a grace period payment. Access for all tenants of the contract.
- 6Month 3
File an eviction lawsuit
Following the expiry of the eviction period from the notice to quit. Combine eviction and payment in one procedure. Simultaneously examine an interim injunction for security under § 283a of the German Code of Civil Procedure (ZPO): If the tenant fails to comply with it, § 940a para. 3 ZPO opens the way for eviction by means of an interim order.
- 7Months 4-10
Proceedings, judgment, eviction period
The duration depends on the court. Expect several months until the hearing and that the court will grant the tenant a period of grace for eviction in its judgment. Until then, the occupational compensation will continue to run – on paper.
- 8afterwards
Enforcement by the bailiff
Apply for a clearance date, ensure access, arrange for a lock change and removal of contents. The classic clearance with storage is the most expensive option; the "Berlin clearance", which is limited to handing over possession, is usually significantly cheaper.
In our experience, it takes approximately twelve months from the first missed payment to the actual eviction of the tenant. During this time, your property continues to operate without rental income from that unit – in our experience, the arrears are no longer recoverable, and yet the legal costs are still incurred.
Costs and deadlines
What payment defaults really cost
The court and enforcement costs are the smaller part. What becomes expensive is the period in which no rent is received and the flat is still occupied. Therefore, always calculate both: the legal proceedings and the loss of rent.
| Position | Value | Basis |
|---|---|---|
| Rent due date | By the 3rd working day of the month at the latest | § 556b (1) of the German Civil Code (BGB) |
| Default | without reminder, from due date | § 286 (2) No. 1 of the German Civil Code |
| Late payment interest on residential tenants | 5 percentage points above the base rate | § 288 (1) BGB |
| Threshold for immediate termination | 2 months' rent or 2 consecutive dates | § 543 Paragraph 2 Sentence 1 No. 3 of the German Civil Code (BGB) |
| Partial backlog „not insignificant“ | more than one month's rent | § 569(3)(1) of the German Civil Code (BGB) |
| Grace period payment possible until | 2 months after the eviction claim has become legally pending | § 569(3)(2) of the German Civil Code (BGB) |
| Lockout for renewed grace period payment | 2 years | § 569(3) no. 2, sentence 2 of the German Civil Code (BGB) |
| Notice of ordinary termination | 3 months, after 5 and 8 years, plus 3 months each | § 573c (1) German Civil Code |
| Court costs eviction and payment action | 3.0 Fees; value of dispute for eviction = one year's net rent – at €500/month (€6,000) €579.00 | § 41(2) GKG, No. 1210 KV GKG, Annex 2 GKG |
| Legal costs first instance | 1.3 procedural fee + 1.2 hearing fee + €20 expenses lump sum – with a value of dispute of €6,000 €1,055.00 net | No. 3100, 3104, 7002 VV RVG, Annex 2 RVG |
| Bailiff, Berlin eviction | €109.00 without removal of items, €163.50 with complete clearance – plus time surcharge | No. 240, 241 KV GvKostG, § 885a ZPO |
| Eviction period that the court can grant | at most one year from the date the judgment becomes legally binding | Section 721, paragraph 5, of the Civil Procedure Code |
What is missing from this invoice: the flat itself. After the eviction, renovation and re-letting follow – based on experience, another two to three months without income. Therefore, never calculate a default in terms of open rent, but in months without use. It is precisely these months that lead many owners to decide against the procedure and in favour of selling.
The most important stumbling block
Grace period payments – and why you should consider terminating conventionally as a fallback
§ 569 (3) No. 2 of the German Civil Code (BGB) gives the tenant a powerful tool: If they pay the due rent and the due compensation for use no later than two months after the eviction claim has become legally pending, the immediate termination becomes ineffective. The same applies if a public body undertakes to make the payment.
For landlords, this means: they can win a legal case and still continue to live with the same tenant – only now the legal costs are involved. Therefore, we always explain the ordinary termination under Section 573 (2) No. 1 of the German Civil Code (BGB) due to culpable, not insignificant breach of contract. According to the wording of the law, the grace period payment explicitly only remedies the extraordinary termination.
There are two limitations you should be aware of. Firstly, the grace period payment does not apply if an eviction that became ineffective in this way has already preceded the termination not longer than two years ago – so, for the second time within two years, payment no longer helps the tenant. Secondly, immediate termination is excluded from the outset if the landlord is satisfied before the termination, § 543 (2) sentence 2 BGB. Anyone who accepts a payment and then terminates is in a poor position.
From practice
What we do differently in our own homes compared to the textbook
We manage residential properties in Berlin and Central Germany, and payment defaults are not an exception for us but a regular factor in our management. We have learned two things from this that are not included in any template letter.
Firstly: We give notice later than legally possible, but we chase payments earlier than usual. The first payment reminder is sent out as soon as the third working day has passed – not only when two rent payments are missed. The reason is not legal, but purely human: a tenant who is contacted in the first month is usually still communicative. One who hasn't heard anything for two months has mentally checked out of the tenancy, and the post is piling up unopened. That's precisely when it becomes expensive.
Secondly, we offset every eviction against an instalment agreement. Proceedings tie up months in which no rent is received, and afterwards an apartment remains vacant, which in many of our locations is not re-let within four weeks. A reliable instalment agreement with ongoing rent plus repayment of arrears is almost always the economically better option – provided there is an income or a paying authority in the background. If this is not the case, we proceed with the eviction without any intermediate steps, because every month of delay increases the damage.
And a third point, uncomfortable but honest: the vast majority of accumulated arrears will never be paid. A judgment against a tenant with no garnishable income is just paper. We therefore calculate arrears as a loss as a matter of doubt and base our decisions on how quickly we can get the flat re-let – not on how much we could theoretically sue for.
What this means for your decision: Legally, you almost always win these cases – but economically, you often lose them nonetheless. The title is acquired quickly, the money isn't, and you pay for the time in between out of your own pocket. Those who own multiple properties spread this risk and make it part of their daily operations. Those who manage a single property on the side bear it alone. We say this openly because we are on both sides: we conduct such proceedings ourselves – and buy properties from owners who no longer wish to do so.
Typical mistakes
Reasons why rent arrears evictions fail
- Terminated too early. A shortfall of one and a half months' rent is not sufficient. Two months' rent must be reached or two consecutive payment dates must be affected. The early termination is invalid and will cost a complete procedural cycle.
- The outstanding amount is not comprehensibly itemised. „You are in arrears with the rent“ does not constitute notice. It requires a breakdown by month, rent due, payment, and outstanding amount – otherwise, the court cannot verify the threshold.
- Termination addressed to only one of several tenants. If the spouse is included in the contract, the termination must also be served on them. The most common avoidable formal error in old rental agreements.
- Terminated with immediate effect. Without a subsidiary ordinary notice of termination, a grace period payment will cause the entire proceedings to fail – and you will be left with the costs and the old tenancy agreement.
- Partial payment accepted and yet cancelled immediately. If the landlord is satisfied before the termination, the immediate termination is excluded. Please check the current account balance before sending, not the balance from the week before last.
- Self-managed eviction. Changing the lock, moving furniture out, turning off the electricity: This is unlawful self-help, makes you liable for damages, and in turn gives the tenant a claim for an injunction. Only the bailiff is allowed to evict.
Frequently Asked Questions
Tenant not paying – landlords' most common questions
From when can I give notice if the tenant doesn't pay?
As soon as the arrears reach two months' rent or the tenant is in default with rent or a not insignificant portion thereof for two consecutive payment dates. Not insignificant means: more than one month's rent. A warning notice is not required for payment default, but a documented demand for payment is strongly recommended.
Do I have to give a reminder beforehand?
Legally, no. Rent is due by the third working day of the month, so the payment date is fixed by calendar, and the tenant will be in default without a reminder. Practically, you should still send a reminder: the payment request is your most important proof of the amount owed and resolves many cases without legal proceedings.
A grace period payment
If the tenant pays the outstanding rent no later than two months after the eviction claim has been legally filed, the immediate termination becomes invalid. The same applies if a public authority takes over the payment. This escape route only works once every two years – and it does not remedy an alternatively declared ordinary notice of termination.
How long does an eviction lawsuit take?
This depends almost entirely on the workload of the responsible local court. In our experience, several months, often half a year or more, pass between the filing of the lawsuit and eviction by the bailiff. If a surrender period granted in the judgment is added, the timeframe is extended accordingly.
May I clear out the flat myself or change the lock?
No. This is unlawful self-help and makes you liable for damages. The eviction of residential property may only be carried out by the bailiff on the basis of a court order. An interim order for eviction is only permissible in narrow exceptional cases, such as unlawful self-help or a concrete danger to life or limb.
Will I get the outstanding rents back at the end?
Mostly only partially. The title only helps if there is enforceable income or assets. For tenants in financial difficulties, the arrears largely remain irrecoverable in practice. Therefore, calculate arrears conservatively and base your decision on the speed of re-letting.
Is a payment plan worthwhile?
Often yes – if there's an income or a paying authority in the background. The agreement should include the ongoing rent plus a fixed repayment instalment and a forfeiture clause: in the event of a missed instalment, the entire remaining balance becomes immediately due. Always in writing, always with proof of receipt.
Sources and status of the data
- §§ 286, 288, 543, 556b, 569, 573, 573c German Civil Code (BGB) – gesetze-im-internet.de
- §§ 283a, 721, 885a, 940a ZPO – laws-in-the-internet.com
- § 41 GKG as well as No. 1210 KV GKG and Annex 2 GKG – gesetze-im-internet.de
- No. 3100, 3104 and 7002 VV RVG as well as Annex 2 RVG – gesetze-im-internet.de
- No. 240 and 241 KV GvKostG – laws-in-the-internet.de
All information checked on 02.08.2026. Monetary amounts are fee values according to the applicable fee schedules, not estimates.
When the object costs you more in hassle than it brings in
A single payment default can be weathered. What wears down owners is the sum of it: twelve months without rent from that unit, court and legal costs that you have to pay upfront, a writ of execution against someone with nothing to collect – and afterwards, a flat that needs renovating before it can be let out again. We buy properties in precisely this condition: with outstanding rents, ongoing litigation, a judgment with no prospect of payment, and partial vacancy. You don't hand over the process, you hand over the property.
What suits your situation?
Tell us what it's about – the answer will then be specific.
Non-binding, no commission, and no agency agreement. We are long-term holders – you speak directly with the buyer.
Further
Relevant posts and pages
- Rent Index Weißenfels – how to prove the customary comparable rent without a rent index.
- Rosenbaum Group Real Estate Acquisition – Process of a direct sale to a portfolio holder.
- Sell inherited property – if the problem tenant is part of the estate.
- Sell a multi-family house in Berlin – our acquisition from the Berlin portfolio.
- Purchasing regions – all cities in which we buy apartment buildings.
Process is ongoing, patience has run out?
We also buy in the middle of repossession proceedings. A brief conversation is enough to clarify what your property is worth in its current state.