The Institute of the German economy (IW) has criticised the Federal government’s plans for extension of the dismissal protection of tenants in the Corona-crisis. Problematic, the project is mainly because landlords could not decide whether a tenant is in fact insolvent, and whether this is a consequence of the pandemic, said the IW real estate expert Michael Voigtländer on Monday. Thus, there were incentives to exploit regulation.

Mietstundungen a burden on private landlords enormously

in Addition, Voigtländer referred to the impact of the approximately 3.9 million private landlords. 22 percent of them had an income below the average of the population. Were over-represented in addition, freelancers, the showed in the current situation, a special loss of income.

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Although, it should hours, according to the proposals of the Federal government’s landlord loans, but additional costs such as property taxes, energy costs, or insurance is continued. Mietstundungen could trigger, according to voigtländer, therefore, a Domino effect that potentiates the economic consequences of the crisis.

termination protection: IW-experts believe that a social Fund for a better solution

The IW expert, urged, instead, a social Fund for tenants and in Distress even users. In the case of such a Fund tenants could include a simple means test an interest-free loan to pay Rent more. Thus, tenants could be effective and objective helped exactly, without further consequence to trigger problems.

the owner Association Haus & Grund warned that a loss of rent for the owner, the rent only one apartment, a “serious financial distress” could cause. The Association of chief Kai Warnecke demanded in a letter to the competent Minister, the Federal government should instead make sure that sufficient funds for the housing money, and low-income people can take this quickly to claim.

in Addition, would have to be taken in case of unemployment, the cost of the property quickly, called for Warnecke. The corresponding reference values and upper limits would have to be expanded to meet the actual residential cost estimate. In the medium term tenants and owner-occupiers, which came into payment difficulties would have to be from a state Fund by grant or zinslosem loan support, also called on house & the reason.

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the tenant, the transfer of services or Funds should be protected according to Warnecke to the end of the Corona-crisis terminations. It must, however, be ensured that the funds arrive at the landlord. To the extent possible, should be paid by the funds from the state directly to the landlord.

Cabinet adopts unprecedented aid package in Corona, crisis

The Federal government wants to protect tenants in the Corona-crisis and the loss of their homes. For this purpose, the Federal Ministry of justice wants to put the current regulation in force, according to which a landlord may terminate the tenancy, if two months is paid in consequence of no rent. The deadline for this is 30 to. June 2020. First, there was talk of a six-month Termination notice. The act has been brought on Monday by the Cabinet and is expected to be adopted on Wednesday by the Bundestag.

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