A reduction in rent is prescribed by law for apartments, houses and other properties: Section 536 of the German Civil Code (BGB) states that the monthly rent must correspond to the level of the actual condition of the rented property. Reasons for a reduction of the rent result from material defects or defects of title of the rented property.
The following aspects are to be considered in the case of rent reduction:
- Which defects are decisive for the reduction of rent?
- From when and to what extent are the rent reduction grounds legally valid?
- Am I allowed to carry out the rent reduction informally?
- Do I need a lawyer or legally binding application to enforce the rent reduction?
- In what amount are rent reductions allowed?
- Is a retroactive rent reduction possible??
- In which time frame is the rent reduction valid?
- What are the potential consequences of a rent reduction?
- How must the rent reduction be announced in writing?
Which defects are decisive for the reduction of the rent?
The decisive factor is the extent to which the rental object (house or apartment) differs from the actual condition and the target condition (contractual agreements in the rental contract). The list of deficiencies is long and varied, which is why not all reasons are taken into account, but only frequently admitted circumstances at court hearings.
Whether a defect is taken into account for a rental property is decided by judges at the competent local or regional court. It is important that a defect exists over a period of several days to a long period of time or that the rental property is only partially habitable or not habitable at all. Before the law, a distinction is made in two main categories:
Material defects on or in the apartment or house
Among the most important material defects are qualitative or quantitative deviations. The quality of a rental property is always impaired when there is mold formation due to construction defects, moisture or insufficient ventilation by a previous tenant. Other qualitative restrictions on a tenant include:
- Smoke nuisance caused by barbecue or tobacco use by one or more neighbors
- Unusable electrical appliances or furniture in partially or fully furnished rental properties
- Reduction of the room temperature by failure of the radiators
- Return of excrement in the bathroom/WC
- leaking pipes
- damage and heavy soiling in the hallway by other tenants or/and its visitors
- Noise pollution from tenants or/and landlords (parties, loud music or construction work)
Attention: Age-related reasons of a house do not constitute a deficiency for a rent reduction, neither do natural decreases in the value of a property. Wear and tear is caused by the frequency of use by the occupants of a building.
In the case of quantitative restrictions, it is, for example, too little square meters than specified in the contract by the owner. The lack of habitable rooms are equally restrictions that lead to a reduction in rent for the house or apartment. If garden use is allowed but not granted, this counts toward reasons for a rental reduction. If basement or attic space was contractually guaranteed but not usable, the rent can also be reduced in such cases. Furthermore, this includes when a private parking or garage use is agreed, but these are not part of the rental property.
defects of title in a rented property
In the lease agreement concluded or to be concluded, the rights of a tenant are explained in detail. If this results in legal violations by third parties such as other tenants, landlords, administrators or owners, there is the right to a rent reduction. Commonly cited reasons include:
- temporary prohibition of use of the rented premises
- Access to the rental property is obstructed or unlawfully denied
- subletting granted is denied
- Delay of the move-in date by the landlord
- unannounced visits of the landlord to the rented premises; especially in the absence of the tenant
Disputes that do not have a direct impact on the rental property belong to civil criminal law and do not allow for a reduction of rent in principle. Example: the neighbor or landlord makes fun of the appearance of the tenant.
At what point and to what extent are the reasons for rent reduction legally valid?
The final legal validity of a rent reduction is the exclusive responsibility of the competent court if the situation cannot otherwise be settled. Arbitration can be brought about with the help of a tenant association or a lawyer for rental law. An out-of-court settlement generally lowers the cost of litigation. In most cases it turns out that landlords object to a rent reduction. In addition, the time required for a legal process in court is always higher than arbitration.
For orientation, whether a rent reduction has a chance of success, the following judgments are listed, where rent reductions have already been enforced. A very important note: The listed judgments can in no way be transferred 1:1 to an individual case and must be examined in detail. Therefore, the tip: Always consult a counseling center such as the Mieterschutzbund or a lawyer for tenancy law, if a rent reduction is to be claimed.
- According to the file GE 1991 S. 527 from the AG Schoneberg a tenant was awarded the right to 1% rent reduction because the stairwell light was defective.
- Under the case number 415 C 1021/82 from the district court of Hanover, the tenant was granted a 10% reduction in rent because there was moisture in the kitchen.
- The case number ZMR 2008, 456 from the Hamburg Regional Court dealt with a case of mold in the living room, which was granted with a 50% rent reduction.
- The district court of Berlin-Neukolln dealt with the case of a tenant under the case number MM 1988, 31 due to a complete failure of the power supply and granted a rent reduction of 100 percent.
The individual extent of a claim for rent reduction may have to be assessed by an expert or surveyor. The application for this is usually made and commissioned by the competent court.
May I carry out the rent reduction informally?
A rent reduction may not be carried out informally. A tenant is not entitled to independently reduce the rent or withhold it completely without prior notice and giving reasons. It requires in principle the written form, in order to reduce the rent under indication of the lacks. It is recommended to send the formal letter by registered mail with return receipt to the landlord or his legal representative.
Attention in case of independent reduction or withholding of rent:
Anyone who informally reduces or withholds rent thereby falls into a proportionate or complete rent arrears and is admonished in writing by the landlord.
Do I need a lawyer or a legally valid application to enforce the rent reduction?
There is no obligation to initiate a legal dispute procedure. In the first step, it is the tenant's responsibility to contact the landlord in order to remedy any defects immediately. The advantage of this option is that the tenancy does not lead to any conflicts. If, due to one or more deficiencies, the landlord does not react in a way that averts a rent reduction, advice should be sought from the Mieterschutzbund (tenant protection association). If an out-of-court settlement appears to be unsuccessful, a specialist lawyer for tenancy law should be commissioned to deal with the matter. A plaintiff must be represented by a lawyer before a German court. The required application to the court for a rent reduction is prepared in cooperation with a lawyer, since each dispute must be handled individually.
Facts about rent reduction at a glance
- Rent reduction is possible if the actual condition deviates from the target condition of a rental object
- Distinctions concern material defects and defects of title
- Age-related and natural wear and tear of a property are not grounds for a reduction in rent
- Arbitration to remedy deficiencies reduces dispute costs and time spent
- Rent reduction requires notice to the landlord by written form
- Consult the tenant protection association and, if necessary, a specialist lawyer for tenancy law
In what amount are rent reductions allowed?
In contrast to the rent increase, where the price regulation follows strict rules, there are rough guidelines for a rent reduction in most cases. However, it is advisable to check these similarly to the service charge settlement. Here are examples of the amount of a rent reduction, which in no way override an individual decision:
rent reduction to 100 percent
- uninhabitable condition of the rented property (fire, littering, defects in the building fabric)
- from September to February complete failure of radiators
- contractually agreed furniture or fitted kitchen not present at the time of moving in
Rent reduction at 50 percent
- Renovation or conversion work caused by the owner of the building
- Order of eviction by official authority due to serious construction defects or unapproved construction sections
- Asbestos in the rented premises, which is found to be hazardous to health
Rent reduction to 10 percent
- withdrawal or prohibition of use of cellar or attic storage room
- contractually agreed parking space or vehicle parking space is not available or not accessible
- prolonged failure of the elevator from the fourth floor onwards
Note on the amount of rental reduction:
Further percentage rent reductions are possible in other percentage amounts. The information is for guidance only, individual cases are not taken into account.
Is a retroactive rent reduction possible?
Many tenants and landlords are of the opinion that a rent reduction on the part of a tenant is only valid from the time of the rent reduction notice. With the decision of 20.10.2011 by the Federal Court of Justice, the following law applies to tenants:
The rent reduction comes into effect by operation of law if the requirements for the reduction of the rent are met and no reason for exclusion exists.
This means that a tenant can also retroactively enforce a rent reduction after reviewing the case, provided that the defects are to be recognized by the court.
Example of a retroactive rent reduction: the landlord arranges for extensive renovation or refurbishment work to be carried out on the house without prior notice. The tenant waits a few days to see if the work is completed within a reasonable time frame. Since the tenant determines that the work will continue for a longer period of time, the tenant has a right to a rent reduction from the start of construction.
In many cases, the number of square meters is contractually higher than in the actual condition. Not every tenant fully measures the rental premises at or before moving in to verify the landlord's information. If, at a later point in time, the tenant nevertheless takes measurements and finds that the square meterage is less than contractually agreed, there is a rent reduction. In this case, the landlord has received a higher rent than he is legally entitled to. The difference must be reimbursed by the landlord or compensated by a rent reduction.
In what time frame is the rent reduction valid?
The respective time frame of the rent reduction depends on the length of the actual state of the defects. As soon as these have been remedied, the landlord is entitled to the full monthly rent again. In the case of a court ruling, the judge usually specifies by when the defects must be remedied.
What are the potential consequences of a rent reduction??
The enforceable rent reduction creates potential for conflict between tenant and landlord. In many cases, a legally binding court decision leads to tensions that permanently place an unreasonable burden on the rental relationship. In such cases, tenants are advised to consider moving because mental stress leads to illnesses.
Important contents for a written notice of rent reduction
As already mentioned, a rent reduction requires the written form. It is essential that the following points are present:
- List of deficiencies in bullet points with exact date of discovery
- Effects of the deficiencies in detail for the tenant and his roommates
- assured agreements from the existing rental agreement, which affirm the respective defect
- Photographs as visible evidence of a defect (if possible)
- Announcement of the rent reduction in percentage amount
- Request to remedy the deficiencies with a fixed time frame
- Announcement of legal steps in the absence of a response from the landlord to remedy the defects
This advice article was created for purely informative purposes on the topic of "rent reduction" and does not provide any legal basis or legal advice.