Lease Agreements During Covid

In the current situation, tenants are increasingly questioning whether it is possible to apply specific concepts in their dealings with tenants in their dealings with tenants to reduce rents/delay payments, consider the most important with regard to rental contracts: the tenancy obligation is extinguished under section 782 BGB, if a tenant cannot use the dwelling in full or in part. The result is a termination of the contract, which in turn leads to the termination of payment obligations, not a temporary suspension of rent. In continuing the discussion of the rights of a landlord and tenant when defining the rent reduction and application options for each party to a tenancy agreement, some of the relevant tenancy provisions are listed below, which should be reviewed and considered. The status of the parties to a commercial lease agreement related to the COVID 19 outbreak depends on whether the premises are located in a shopping centre (i.e. a commercial building with a retail area of more than 2,000 square metres), whether the tenant`s activity has been temporarily prohibited and whether the outbreak results in losses to the tenant. Within 3 months of the expiry of the activity ban, the tenant is required to submit to the landlord an offer to extend the tenancy period for the extension of the prohibition for an additional six months. Therefore, if the ban lasts one month, the offer should be 7 months. The contract of a silent enjoyment lessor gives a tenant the freedom to disturbance or significant intervention in the possession of the rented premises as long as he fulfils his obligations under the tenancy agreement. Silent enjoyment clauses are generally formulated in such a way as to be subject to the terms of the lease, conditions which may require the lessor to comply with existing laws or to act in a certain way in an emergency. Therefore, a „violation“ of a tenant`s silent enjoyment is unlikely to be found if a landlord is forced by the government to close his building for reasons related to LA COVID-19. These clauses generally provide that the corresponding obligation is suspended after written notification to the other party during the persistence of the incapacity caused and that that party is exempt from liability during that period.