Rent reduction: which defects entitle you to reduce the rent
If your flat has a defect, the rent is reduced by operation of law. With a proper notice of defect and a reasonable reduction percentage, you can cut the rent without risking termination of the tenancy.
When is the rent reduced? (§ 536 BGB)
If a defect impairs the fitness of the flat to more than an insignificant degree, the rent is automatically reduced for as long as the defect lasts. Typical defects include mould, a failure of the heating or hot water, damp, persistent noise or a pest infestation.
The notice of defect (§ 536c BGB)
You must notify the landlord of the defect without undue delay and give them the opportunity to remedy it. If you fail to give notice, you may lose your rights to a reduction and to damages. It is best to report the defect in text form with a date.
By how much may you reduce the rent?
The reduction percentage depends on the nature and severity of the defect and is calculated from the gross rent (including operating costs). The ranges recognised in case law provide guide values – our rent reduction calculator gives you an initial estimate.
How to proceed correctly
Document the defect with photos and a date, report it in writing, set a deadline for remedying it and reduce the rent by a reasonable percentage. Do not cut it excessively: a reduction that is clearly too high can create arrears and thereby trigger a termination.
What you should avoid
Do not reduce the rent without giving prior notice and not for defects that are merely insignificant. When in doubt, withhold the disputed portion subject to reservation rather than stopping payment altogether.
Relevant law
Frequently asked questions
As soon as a defect impairs use to more than an insignificant degree and you have notified the landlord of it. The reduction takes effect by operation of law under § 536 BGB.
Yes. Under § 536c BGB the defect must be reported without undue delay. Without notice you may lose your rights to a reduction and to damages.
On the gross rent, that is the warm rent including operating costs.
According to the nature and severity of the defect; case law provides recognised guide values. The rent reduction calculator gives an initial estimate. Do not reduce excessively, so as to avoid a termination.
Not in the case of a justified, reasonable reduction. It only becomes risky if you reduce too much or without a defect and thereby create significant arrears.
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General legal information based on your contract — not individual legal advice.