BGH clarifies the legal situation: Do shops have to pay rent in lockdown?

Shops were forced to close during the pandemic lockdown, but initially they were not waived their rent. Was that right? This is now being clarified by the Federal Court of Justice.

Many commercial tenants are faced with the question of whether they will have to continue paying their rent if the authorities have ordered the closure of their shops due to the corona pandemic.

Different jurisdiction of the lower courts

The lower courts have treated the issue differently. Most found that there was no right to a reduction in rent because the rented property – i.e. the premises – was in order. Only a few judged that the tenants were entitled to a reduction in price because of the disruption of the basis of the business, for which the landlord bears the risk. The Federal Court of Justice (BGH) now has to standardize the jurisprudence.

KiK refused to pay the rent and sued

In the specific case, the clothing chain KiK refused in April 2020 to pay the monthly rent of just under 7,900 euros for a store in Chemnitz in the lockdown. The first court sentenced KiK to pay, the next higher regional court (OLG) ruled: KiK only has to pay half the rent.

At the end of the first Corona year 2020, the law was changed in favor of tenants. Since then, the courts have had to weigh up for whom the consequences of a rent reduction are more reasonable: for tenants or landlords or tenants or lessors. It remains to be seen whether the BGH civil senate will announce a judgment today.