Beat the Bills: Low Rent Arrears for Thuringians in 2024, Even During the Corona Pandemic
Absence of Worry over Rental Debts for Most Thuringian Residents - Unpaid rental debts seldom a concern for most residents of Thuringia
Hold up, folks! Despite a significant hike in extra costs, most Thuringians are sorting out their rent bills. According to the Housing Industry Association, out of over 265,000 rented apartments, rent arrears totaled 27.8 million euros last year—just 3.1% of the total rent collected.
The rate of rent arrears has stayed more or less consistent in the past few years. In 2015, it was at 28.7 million euros, and during the Corona pandemic in 2021, it dipped slightly to 26.5 million euros.
Association director, Frank Emrich, weighed in on the matter, telling the German Press Agency, "Most people prioritize housing, so we've got a sort of early-warning system, contacting renters who're behind. It ain't about loud reminders, but more about a chat with our social managers. They discuss payment options and support, and that seems to work."
Around five million euros in total rent remains unpaid, accounting for less than 1% of the total. Usually, defaults are due to consumer bankruptcies.
Emrich reckons that enhanced government aid for renters helped keep arrears stable. "More folks qualified for this assistance," he said, "and though monthly payments can be a headache, especially with the recent cost increases."
The average rent for municipal and co-op houses is roughly 5.63 euros per square meter a month. Extra costs, however, vary dramatically depending on energy providers and prices.
Evictions due to long-delayed rent payments are, as Emrich puts it, exceptionally rare; reserved for cases when other solutions fail. The termination of rental contracts due to missed payments or tenant misconduct occurs in about 1,000 cases each year—a drop from 1,600 in 2015.
"In most instances, this means tenants need to move," added Emrich, noting the comparison to 930 such cases in 2021.
Behind the Scenes
The relatively low rent arrears among Thuringians during the pandemic can be linked to a mix of factors, including government measures, consumer behavior, regional conditions, and social endeavors. Among these are:
- Government Support Measures: During the pandemic, the government rolled out several protective and fiscal relief measures to help households cope financially. These aided many renters in maintaining their rent payments despite income fluctuations caused by pandemic-related issues[4].
- Household Behaviors: Consumer confidence and spending patterns partially recovered after initial turbulence, indicating some resilience in the financial well-being of residents in Thuringia, thus helping them avoid rent arrears[1][4].
- Local Economic and Demographic Factors: Thuringia has a lower population density compared to the national average, which could have influenced both the spread of the virus and the local economic impact. Minimal strain on local resources and less economic disruption might contribute to more stable housing payments[2].
- Community and Policy Interventions: Efforts were made to assist vulnerable groups, such as asylum seekers and residents in communal dwellings, to prevent arrears. However, there were occasional tensions that necessitated interventions to maintain living conditions and prevent rent delinquency[4].
In sum, a combination of government pandemic response policies, economic assistance for households, local characteristics, and social initiatives contributed to keeping rent arrears among Thuringians relatively low in 2024 despite the Corona pandemic.
During the Corona pandemic, government support measures, such as financial relief for households, played a significant role in helping Thuringians maintain their rent payments and, as a result, keep rent arrears stable. On the other hand, for those seeking personal-finance management and vocational training, business skills training programs could be beneficial in managing costs and increasing income, thereby reducing the risk of rent arrears in the future.
