Rent reductions: table of rulings and percentages

Moe Afonso · 2026-10-14

Monday morning, a message from your tenant: the heating has been cold since Saturday, and they are reducing the rent. They may even quote a figure they have found online. You wonder whether it is correct and what you should do now.

A rent reduction is not a penalty but a consequence of the law. As long as a defect affects the property, the tenant owes only a reduced rent. If there is a dispute, a court decides how much less is payable based on the individual circumstances.

Here you will find a table of percentages from published rulings, the correct calculation method, the cases in which no reduction applies at all, and a calculation showing why the fastest tradesperson is your best protection.

01When the tenant is entitled to reduce the rent

The reduction takes effect automatically. The tenant does not have to apply for it, and you do not have to agree. It requires a defect: a discrepancy between the property's actual condition and the condition owed under the agreement.

Three conditions must be met together. The defect impairs use to more than an insignificant extent (§ 536 Abs. 1 Satz 3 BGB). The tenant has notified you of it (§ 536c BGB). And they did not already know about the defect when the agreement was concluded (§ 536b BGB).

Contractual clauses excluding or restricting rent reductions for residential property are invalid (§ 536 Abs. 4 BGB). You therefore cannot contract out of a rent reduction. Your influence lies elsewhere: in how quickly the repair is carried out.

02Rent reduction table: percentages from court rulings

The following percentages come from published decisions. They indicate a general scale, not fixed entitlements. Another court may reach a different decision for a similar defect because duration, season and severity all matter.

Mould has deliberately been left out of this table. Everything depends on the cause, and special rules apply to the allocation of the burden of proof. There is a separate guide to rent reductions for mould, with rulings and percentages.

03How the reduction is calculated

Two mistakes crop up repeatedly in practice, on both sides.

First, the calculation basis. The reduction applies to the gross rent: basic rent including all service charges, whether agreed as a flat rate or as advance payments (BGH XII ZR 225/03, confirmed for residential property in VIII ZR 223/10). Using only the basic rent produces a figure that is too low.

Second, the period. The reduction applies only to the days on which the defect exists. If the heating fails for ten days, the reduction applies to ten days, not the whole month.

04When no reduction applies

For landlords, this is the most important section. Not every impairment leads to a lower rent.

The construction-noise ruling matters for property investors in growing cities. The Federal Court of Justice says that if noise increases due to building work next door only after the agreement has been concluded, this generally does not constitute a defect if you, as the owner, cannot take action against it or claim compensation under § 906 BGB. The position may be different if you yourself receive compensation from the developer. You would then have to pass it on.

05Worked example: heating failure in January

Petra lets a flat for a basic rent of €750. Added to this are advance payments of €150 for operating costs and €90 for heating and hot water, making a gross total of €990. The heating fails on 10 January. The tenant reports it the same day. Drawing on published decisions, we assume a reduction of 60%. The name and figures are fictional; the calculation is an example, not a prediction.

In Option A, Petra calls out an emergency repair service on the day the problem is reported and provides fan heaters. The heating is working again after three days. In Option B, she waits for her regular contractor, who is not available until twelve days have passed.

Waiting nine days costs Petra €172.46 in rent. An emergency call-out surcharge is often of a similar order, but leaves the tenant happier and avoids disputes over the percentage and duration. In a cold week in January, a court may also go higher than 60%.

For tax purposes, a lower rent reduces your rental income, while repair costs are deductible as income-related expenses. The tax on rental income calculator shows what you are left with.

06How to respond to a defect notification as a landlord

If the tenant reduces the rent by significantly too much, arrears arise. According to case law, the tenant bears the risk if they misjudge the amount. Nevertheless, basing termination of the tenancy solely on an excessive reduction is a delicate matter, because the appropriate percentage will only be established during court proceedings. Have a lawyer specialising in tenancy law review this step.

07Risks and limitations

A rent reduction is not the only risk associated with a defect. If you are responsible for the defect or fail to remedy it in time, the tenant may also claim damages or, once you are in default, arrange for the defect to be remedied themselves and recover the cost from you (§ 536a BGB). If there is a health hazard, the tenant may, in extreme cases, terminate the tenancy without notice.

A rented-out condominium flat brings an additional complication. If the cause lies in the common property, the management and the owners’ meeting decide on the repair. The landlord alone nevertheless bears the rent reduction. Before buying, therefore, check the minutes of owners’ meetings for recurring defects such as heating failures or damp.

For insured damage, such as damage caused by escaping mains water, residential buildings insurance or landlord insurance may cover some of the lost rent, depending on the policy and maximum cover period. Check your policy before a loss occurs. Find out more in the guide to insurance for landlords.

The table is no substitute for assessing the individual case. Many rulings are decades old and concern particular circumstances. For your calculations as a property investor, the priority is therefore a maintenance reserve that allows repairs to be carried out without delay.

08Further reading

• Rent reductions for mould: table of rulings for landlords
• Rights and responsibilities as a landlord
• Property handover report
• Insurance for landlords
• Invalid clauses in tenancy agreements
• Glossary: rent reduction

09Sources

• §§ 536, 536a, 536b, 536c, 555b BGB, § 906 BGB, gesetze-im-internet.de, accessed on 14 October 2026
• BGH, judgment of 6 April 2005, XII ZR 225/03, and judgment of 13 April 2011, VIII ZR 223/10 (gross rent)
• BGH, judgment of 24 March 2004, VIII ZR 133/03 (floor-area discrepancy)
• BGH, judgment of 29 April 2015, VIII ZR 197/14, and judgment of 29 April 2020, VIII ZR 31/18 (neighbourhood noise)
• Lower-court decisions as listed in the collection of rulings at mietrecht.de/mietminderungstabelle, accessed on 14 October 2026
• Keyword data: Semrush, Germany database, as at 14 October 2026

Please note: This guide provides general information and is not a substitute for legal advice on an individual case. The percentages in the table reflect decisions in individual cases and are not binding figures.