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Rent Reduction – Tenant Rights, Risks, and Safe Alternatives
Rent reductions should never be made hastily – paying rent under reservation is the safer option until the defect has been legally assessed.
Conditions and Risks of Rent Reduction
A rent reduction is legally permitted if the apartment cannot be used as agreed due to a defect (§ 536 BGB). However, many tenants underestimate the risks. Reducing rent on their own without assessing the severity or cause of the defect can lead to serious legal problems.
If it later turns out that the defect was minor or even caused by the tenant, the landlord can demand back payments. Moreover, if the tenant falls behind by more than two months’ rent, the landlord may terminate the lease without notice. Therefore, rent reductions should only be made after careful evaluation or legal advice.
Unreliable Guidance from Rent Reduction Tables
Many online sources provide rent reduction tables listing suggested percentages for certain defects – for example, 10% for noise or 20% for heating failures. These can be helpful but are not legally binding.
Courts decide each case individually, considering factors such as duration, severity, and cause of the defect. Because rulings differ widely between courts, relying solely on these tables can result in incorrect reductions and costly repayment demands.
Paying Rent Under Reservation
A safer option than immediate reduction is paying rent under reservation. In this case, the tenant continues to pay the full rent but informs the landlord in writing that the payment is made under reservation due to an existing defect.
This approach prevents termination risks and gives the tenant time to investigate the cause and extent of the problem. If a valid claim exists, the tenant can later request a retroactive refund for the overpaid rent.
Recommendations for Tenants
Before reducing rent, tenants should always seek legal advice, for example from a tenant association or a lawyer specialized in tenancy law. Proper documentation of the defect and clear communication with the landlord are essential.
Paying under reservation is the safest strategy if there’s uncertainty about the defect’s severity. It preserves tenant rights while avoiding the risk of eviction or large back payments.
Frequently Asked Questions about Rent Reduction
When can rent be reduced?
If a serious defect significantly affects the apartment’s usability, such as mold, water damage, or heating failure.
What happens if the reduction is unjustified?
The landlord can claim repayment of the rent and may terminate the lease if arrears exceed two months’ rent.
What does “payment under reservation” mean?
The tenant continues paying full rent but declares in writing that it’s conditional due to a defect – a safe way to protect legal rights.
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Rent Reduction – Tenant Rights, Risks, and Safe Alternatives
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