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Announcing a rent reduction in writing in Germany

If the flat has a significant defect, rent is reduced by law. To use this right without risk, take two steps: report the defect and announce the reduction.

Updated August 2026 · 5 minutes read

Tenant in a scarf holding a thermometer next to a cold, broken radiator

The legal basis

If a defect significantly impairs use, rent is automatically reduced for that period (§ 536 BGB). But you must report it promptly (§ 536c BGB). See reporting a defect in writing.

How much?

There are no fixed tables; courts decide case by case. Guide values: heating failure in winter often 20–100%, mould in living rooms 10–50%, construction noise 10–30%. Calculated on gross rent including service charges.

Bank transfer slip, calculator and a rent reduction letter on a table
Better to reduce cautiously and pay under reservation than withhold too much.

The safe route: pay under reservation

Reducing too much creates arrears — from two months' rent, termination without notice looms. Safer: pay the full rent under reservation and reclaim later, or reduce a cautious amount.

Sample text

Dear [landlord],
by letter of [date] I reported the defect [description]. It has not been remedied. I am therefore reducing the rent from [month] by [percent]% (€[amount]) until fully remedied. [Alternatively: from now on I pay rent only under reservation.] Please remedy the defect by [date].
Yours sincerely

Template: rent reduction letter. Send with proof, e.g. Einwurfeinschreiben.

Note: This article is not legal advice.

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