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Additional costs: Vonovia threatens defaulting tenants with termination

2022-09-27T08:16:56.681Z

In view of the massive increase in ancillary costs, many tenants are hoping for the patience of the homeowners. Major landlord Vonovia, on the other hand, indicates that it has limits.



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Vonovia headquarters in Bochum: “Last resort: sending out the eviction notice”

Photo: Marcel Kusch / dpa

If necessary, the housing giant Vonovia wants to terminate tenants who have not been able to meet their payment obligations for months, for example for the sharply increased ancillary costs.

"Last resort: sending out the eviction notice," says documents from an investor day that Vonovia presented on Tuesday.

In the event of a delay in payment, Vonovia proceeds according to a staged model.

If the sum owed by the tenant corresponds to two months' rent, the contract may be terminated.

The group is in contact with tenants to find out the reasons for non-payment, it said.

If the tenant can get help from the state, Vonovia will inform him how he can get it so that the tax authorities can pay.

If the tenant still fails to meet his obligations despite an offer of individual solutions from Vonovia, the Group will send him a formal payment request.

If the arrears added up to the value of two months' rent, the last step would be an eviction action.

After that, the affected apartment can be rented again.

Group advertises for new investors

With the announcement, the group may also want to demonstrate strength in order to bring new investors on board.

Because the group wants to find partners for joint ventures in view of rising interest rates and rising construction costs.

Vonovia boss Rolf Buch also wants to sell apartments and single-family houses in the coming years and is hoping for income of around 13 billion euros.

Due to rising gas prices, utility bills for tenants can skyrocket.

According to earlier information from the group, around 55 percent of the heating systems in Vonovia's portfolio are supplied with gas.

Vonovia had announced that it would reduce heating at night to save gas.

The Bochum group owns around 490,000 apartments in Germany.

Vonovia boss Rolf Buch had also warned against significantly increasing ancillary cost bills in view of the rapidly increasing energy costs.

mike/Reuters

Source: spiegel

All business articles on 2022-09-27

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