Rent reduction in Germany: when you pay less, and how much
Rent drops automatically when your flat has a defect, but no law and no table tells you the right amount.
Checked by Radif Partners · Editorial policy · Method
Reduction on the gross rent
Reduction per month
€90
| Gross rent | €900 |
| Payable | €810 |
If your flat has a defect that impairs its fitness for normal use, German law lets you pay only an appropriately reduced rent for that period; if the flat is unusable, no rent is due (Section 536(1) of the Civil Code, BGB). This rent reduction (Mietminderung) happens by operation of law: you do not have to apply for it or get permission. The conditions are that you report the defect without delay (Section 536c BGB) and did not already know of it when signing (Section 536b BGB). Trivial impairments do not count, and during energy-saving modernisation no reduction applies for three months. The reduction is calculated on the gross rent including service charges, as the Federal Court of Justice held in case XII ZR 225/03. With €820 base rent and €230 in advances, a rate of 15 % that you choose yourself is worth €157.50 a month, against €123.00 on the base rent alone. There is no official table of rates; cut too much and you build up arrears that, after some months, can justify termination.
What the law treats as a defect
Section 536 BGB covers three kinds of defect. A physical defect (Sachmangel) exists when the flat departs from the condition the lease assumes and this impairs its fitness for normal use: the heating fails, water comes in, mould spreads, windows do not close. A missing assured feature (Section 536(2)) is treated the same way, for example a parking space or fitted kitchen the lease expressly promised. And a legal defect (Section 536(3)) exists when a third party’s rights deprive you of use, say because the landlord let the same cellar room twice.
What matters is the effect, not the cause. Building noise from next door or a broken shared facility can also impair the flat. Who caused the defect is irrelevant for reduction, unless you caused it yourself.
Three levels: no rent, reduced rent, no change
- Fitness removed: no rent is due for that time, for example if a burst pipe makes the flat uninhabitable.
- Fitness reduced: you pay an appropriately reduced rent. This is the normal case.
- Trivial impairment: ignored, for example a dripping tap that is fixed straight away.
One special rule covers energy-saving modernisation: for three months, any reduction caused by work under Section 555b No. 1 BGB is disregarded (Section 536(1a)). Everything else is beyond the reach of the lease; any departure to the tenant’s disadvantage is void for residential lets (Section 536(4)).
Why we publish no table of rates
Online you will find tables giving fixed percentages for mould, heating failure or noise. The law contains no such figures; it requires an appropriately reduced rent. Those tables collect court decisions on individual cases, often decades old, whose facts rarely match your flat. Heating failing in July is not the same as in January, and mould behind a hallway cupboard is not the same as in a child’s bedroom. A number from a table suggests a certainty that does not exist, and that false certainty can cost you.
What drives the amount can still be named: how much of the floor area is affected and which rooms, how strong and how frequent the problem is, the season, and whether health is at risk. Discuss the rate with your tenants’ association (Mieterverein) or a public tenancy advice service. The small calculator above and the rent reduction calculator then show what your chosen rate means in euros.
The basis is the gross rent
The reduction applies to the whole rent including service charges, whether paid as advances or a flat rate. The Federal Court of Justice (Bundesgerichtshof) decided this on 6 April 2005 (XII ZR 225/03). For a flat at €820 base rent and €230 advances, a rate of 15 % means €157.50 a month; on the base rent alone it would be €123.00. If the defect lasts from 12 February 2026 to 20 April 2026, the day-by-day calculation gives €358.13 for 68 days. Your service-charge statement does not change: the advances count as fully paid, and the reduction applies to the rent as a whole.
Conditions and pitfalls
First, notice: under Section 536c BGB you must report a defect without delay. Where the landlord could not fix it because you stayed silent, you cannot reduce. The reporting defects page shows what a good notice contains. Second, knowledge: if you knew of the defect when signing, you cannot reduce, and if you accept a defective flat knowingly, you must reserve your rights (Section 536b BGB).
Third, the risk of setting the rate too high. Rent is due by the third working day of the month. If you cut more than is appropriate, the difference becomes arrears. The table shows how arrears build up if it turns out no reduction was justified at all:
| Months reduced | Arrears built up | More than one month’s gross rent? |
|---|---|---|
| 1 | €157.50 | no |
| 3 | €472.50 | no |
| 6 | €945.00 | no |
| 9 | €1,417.50 | yes |
| 12 | €1,890.00 | yes |
Arrears exceeding one month’s rent count as significant under Section 569(3) No. 1 BGB and, together with Section 543 BGB, can support termination without notice for non-payment. If in doubt, keep paying the full rent under reservation (unter Vorbehalt) and reclaim the reduction later. To offset it against future rent, Section 556b(2) BGB requires notice in text form at least one month before the rent is due.
Beyond reduction: damages and self-help
Reduction only compensates for the flat being worth less. If you suffered further loss, such as furniture ruined by a leak, damages under Section 536a BGB are possible where the defect existed at signing, the landlord is responsible for it, or he is late in fixing it. If he is in default, you may also have the defect repaired yourself and claim the necessary costs. For heating problems, check your heating-cost statement as well.