Delayed rental payments by Jobcenter
> December 2016

If the Jobcenter delays the payment of the rent for people in need, an instant termination of the rental contract can in single cases be justified even if the lodger takes efforts for a timely payment. If the lodger receives payments from the Jobcenter it can be agreed that the rental payment is transferred directly to the account of the landlord. The BGH recently had to decide on a case from Hamburg where the Jobcenter repeatedly delayed the rental payment.

With their decision dated 29.6.2016 (VIII ZR 173/15) the BGH decided to the disadvantage of the lodger despite of the lodger taking efforts for a timely payment.

First, it has to be checked whether the lodger is responsible for the irregularities. This is the case for example when the lodger has not applied for benefits on time. The lodger also had to insist on a timely payment and inform the Jobcenter of the imminent termination of the rental contract.

Even if the lodger themselves are not to blame, it should be possible that the overall assessment according to article 543 section 1 BGB is to their disadvantage. The criteria for this were for example the number of delays, the significant period of time of the delay or the amount of the missing payments. Apart from that it can be decided to what extent the landlord depends on the timely payment. For example, the landlord is making a living of the rental payments or paying off a credit with it is a reason for a termination.

It has to be noted, however, that the lodger cannot yet appeal to their need for help from the beginning, provided it is a case of article 543 section 2 BGB. If the lodger is in delay of payment for two consecutive due dates or is in delay of payment for a not insignificant part, or it is a case of one of the other examples, no overall assessment is necessary. In these cases, the landlord is entitled to instantly terminate the rental contract.