Rights and obligations as a landlord: what § 536c BGB and tenancy law require

Kevin Celentano · 2026-10-13

Your tenant calls. Since yesterday, water has been leaking into the cupboard beneath the washbasin. Or they do not call, and you only discover when they move out that the area has been damp for months. Both cases lead to the same question. Who has to do what, and who pays?

Tenancy law allocates responsibilities fairly clearly. You owe your tenant a flat in good condition. The tenant owes you the rent, careful treatment of the property and prompt notification if something breaks. This notification duty is set out in § 536c BGB, and it often determines who ultimately pays for the damage.

We look at both sides, with statutory references, a process for dealing with defects and a calculation showing what a rent reduction and late notification mean in euros.

01The landlord’s obligations

The most important obligation appears in the very first section of tenancy law. You must hand over the flat in a condition suitable for the agreed use and keep it in that condition (§ 535 Abs. 1 BGB). Repairs are therefore generally your responsibility, unless the tenant caused the damage.

For a let owner-occupied-style flat within a jointly owned building, responsibilities are shared. The owners’ association handles the roof, façade and pipes forming part of the common property. Nevertheless, you remain responsible towards your tenant. You are their point of contact, not the association’s management company.

There are also obligations under state law. Smoke alarms are mandatory in all federal states; the respective state building regulations determine who installs and maintains them. Read more about energy performance certificates in our guide Energy performance certificates for landlords.

02The landlord’s rights

Your obligations are matched by clear rights. The most important is the rent itself. It is due at the beginning of the month, no later than the third working day (§ 556b Abs. 1 BGB).

Two rights are often overestimated. There is no right to inspect “once a year”. The Federal Court of Justice (BGH) requires a specific reason, such as a repair, a sale or re-letting (judgment of 04.06.2014, VIII ZR 289/13). And terminating a residential tenancy with ordinary notice always requires a legitimate interest, such as personal use. A good price for the vacant flat is not enough.

03The tenant’s rights and obligations

The other side mirrors your list. Understanding tenants’ rights makes it easier to recognise when a dispute is looming and when it is not.

The rent reduction takes effect automatically. The tenant does not have to apply for it, and you do not have to agree. According to the BGH, the calculation is based on the gross rent, meaning rent excluding service charges plus the advance payment for service charges (judgment of 06.04.2005, XII ZR 225/03). An insignificant impairment does not count (§ 536 Abs. 1 S. 3 BGB).

04§ 536c BGB: the tenant’s notification of defects

§ 536c BGB is short and has two subsections. The first sets out the duty, the second the consequences.

If a defect becomes apparent during the tenancy, the tenant must notify the landlord without undue delay. The same applies if protective action against an unforeseen danger becomes necessary, for example following storm damage, or if a third party asserts rights over the flat. In law, “without undue delay” means without culpable hesitation (§ 121 BGB). For a burst pipe, that means hours; for a sticking window, a few days.

If the tenant fails to notify you, there are three consequences (§ 536c Abs. 2 BGB):

1. They must compensate you for the damage caused by the failure to notify.
2. They cannot reduce the rent for the period during which you were unable to remedy the defect because you did not know about it.
3. They also lose their right to damages and to termination without notice because of the defect for that period.

The law does not prescribe a particular form. A phone call is enough. In a dispute, however, the tenant must prove that they notified you. A short email with a photo is therefore the better option for both parties.

05What happens when there is a defect: the process

Defects are the most common cause of tenancy disputes. But the process is always the same, and knowing it helps you manage it.

You should know about two exceptions. If the tenant already knew about the defect when the agreement was signed, they cannot reduce the rent because of it (§ 536b BGB). And rent reductions are excluded for three months during energy-efficiency modernisation (§ 536 Abs. 1a BGB).

06Worked example: the cost of a rent reduction and late notification

Take Frank. He lets a flat for 750 € excluding service charges plus 150 € in advance service charge payments, making 900 € gross. In January, the heating fails for ten days. The tenant reports the failure on the first day. We assume a rent reduction of 20 %. The name is fictional, and the figures are a worked example, not a forecast.

58 € is annoying, but manageable. Things become more expensive when a defect remains undetected for a long time. In the second part of the example, Frank’s tenant notices a damp patch on the bathroom wall but does not report it until six weeks later. During that time, water has spread behind the tiles.

We assume that an immediate repair would have cost 800 €. After six weeks, the cost is 3.200 €, because the tiles and screed need drying and replacing. Under § 536c Abs. 2 BGB, Frank can claim the additional damage of 2.400 € from the tenant if he can prove that the tenant knew about the patch and reported it too late.

In practice, proving this is the difficult part. The tenant will say they noticed nothing. A handover report when the tenant moves in and regular contact help establish later when damage occurred. Your building or escape-of-water insurer will also ask about the timing when damage occurs.

07§ 560 Abs. 4 BGB: adjusting advance payments

Many people look up this subsection because it becomes relevant after every statement of costs. Where advance payments have been agreed, either party may adjust them to a reasonable level following a statement by making a declaration in text form (§ 560 Abs. 4 BGB).

An example: if the statement shows costs of 2.040 € against advance payments of 1.800 €, a new advance payment of 170 € per month is reasonable. A flat-rate surcharge “just to be safe” is not. Our guide to operating cost statements explains how the statement itself must be structured.

08Common mistakes and risks for landlords

Most conflicts arise from missing documents and missed deadlines.

Then there are the risks that no obligation can prevent. Lost rent, vacancy after a tenant moves out and rising maintenance costs are part of every letting. Set aside a reserve for these, and assess an investment property using realistic costs rather than the best-case assumption.

09Further reading

• Operating cost statements
• Recoverable service charges under the BetrKV
• Holding a tenancy deposit
• Rent increases: caps and deadlines
• Notice periods in tenancy agreements
• Cosmetic repairs
• Eviction proceedings
• Property management: stress-free letting

10Sources

All sources accessed on 13.10.2026.

• § 535, § 536, § 536a, § 536b, § 536c BGB
• § 543, § 548, § 551, § 553, § 555a, § 555c BGB
• § 556, § 556b, § 560, § 562, § 569, § 573, § 573c BGB
• § 19 Federal Registration Act, § 80 Building Energy Act
• BGH, judgment of 06.04.2005, XII ZR 225/03 (rent reduction based on gross rent)
• BGH, judgment of 04.06.2014, VIII ZR 289/13 (right of inspection only with a specific reason)
• Worked examples: own calculation, as at 13.10.2026

Note: This guide provides general information and is not a substitute for legal advice on an individual case. All figures are worked examples with disclosed assumptions, as at 13.10.2026.