Local Court Frankfurt am Main, 25.04.2024, Ref.: 33067 C 42/23
In a judgement dated 25.04.2024 (Ref.: 33067 C 42/23), the Frankfurt/Main Local Court handed down a landmark ruling in tenancy law. It clarifies key questions regarding the termination of a tenancy without notice in the event of deposit arrears and the requirements for reminders.
Judgement content and key decisions
- Default of payment for deposit arrears
If a rental deposit is to be paid in instalments and the first instalment is due at the beginning of the tenancy, the tenant is in default of payment without a reminder (Section 286 (2) no. 1 BGB). The landlord is not obliged to remind the tenant of the payment again. - Deposit not by SEPA direct debit
If the tenancy agreement stipulates that the deposit is to be transferred directly to a separate account of the landlord, the tenant cannot claim that the landlord should have collected the deposit payment by direct debit. The direct debit authorisation usually only applies to current rent payments. - Repeated payment arrears and right of cancellation
The court confirmed the termination without notice, as the defendant was once again in arrears with rent payments at the time the notice of termination was issued. A grace period payment (Section 569 (3) no. 2 sentence 1 BGB), which makes cancellations retroactively ineffective, could no longer be asserted as the defendant had already used this provision within the last two years.
Effects on landlords and tenants
- Landlord benefit from the clarification that no reminder is necessary if the due date of the deposit payment is clearly regulated in the tenancy agreement. In addition, their position is strengthened in the event of repeated payment delays.
- Tenant should take care to check the arrangements for paying the rental deposit carefully. Even if a SEPA direct debit mandate has been issued for rental payments, this does not automatically apply to the security deposit.
Consequences of the judgement
The ruling emphasises the importance of clear contractual regulations and punctual payment transactions. For landlords, it emphasises the importance of handling rent and deposit claims separately. For tenants, it makes it clear that ambiguities about payment methods are no excuse for arrears.
Source: Local Court of Frankfurt am Main
Important Note: The content of this article has been prepared to the best of our knowledge and belief. However, due to the complexity and constant changes in the subject matter, liability and guarantees are excluded.Important Note: The content of this article has been prepared to the best of our knowledge. However, due to the complexity and constant changes in the legal field, we exclude liability and warranties.
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