Common Mistakes with Rent Reduction – And How to Avoid Them

The Most Common Mistakes with Rent Reduction

Rent reduction is a powerful right – but if you implement it incorrectly, you risk eviction due to rent arrears. Here are the most common mistakes and how to avoid them.

Mistake 1: Not Documenting the Defect

Without evidence, you'll be in a weak position in case of a dispute. In the worst case, the landlord simply denies the defect.

How to do it right:

• Take photos and videos with dates
• Measure and describe the affected area
• Name witnesses if possible
• Measure and log room temperature (for heating problems)

Mistake 2: Not Informing the Landlord

Under § 536c BGB, you must inform the landlord about the defect without delay. If you fail to do so, you not only lose your right to reduction but may even become liable for damages.

How to do it right:

• Written defect notice by registered mail or email with read receipt
• Describe the defect precisely and attach photos
• Set a deadline for remediation (typically 14 days)

Mistake 3: Setting the Reduction Too High

If you reduce your rent by 50% when only 10% would be appropriate, you risk rent arrears. After two months' arrears, the landlord can terminate without notice.

How to do it right:

• Use comparable court rulings as guidance
• When in doubt, reduce slightly less rather than too much
• Alternative: pay the full rent under reservation and reclaim the difference later

Mistake 4: Not Setting a Deadline

Many tenants inform the landlord but forget to set a specific deadline for remediation. Without a deadline, the landlord can argue they still needed more time.

How to do it right:

• Set a reasonable deadline (usually 14 days)
• For urgent defects (no hot water, burst pipe): shorter deadline or demand immediate action
• Announce that you will reduce the rent after the deadline expires

Mistake 5: Paying Full Rent for Too Long

Some tenants pay the full rent for months despite a defect – out of fear or ignorance. While this isn't "wrong" in a legal sense, you're leaving money on the table.

How to do it right:

• Pay under reservation – write "Payment under reservation of reclaim due to rental defect" in the payment reference
• Reclaim overpaid rent retroactively – the right to reclaim expires after 3 years

Mistake 6: Communicating Verbally Instead of in Writing

Verbal agreements are hard to prove. In case of a dispute, it's your word against theirs.

How to do it right:

• Keep all communication in writing
• Use emails or registered mail
• If a phone call takes place: summarize the content in writing and have the landlord confirm via email

Summary: Document, report in writing, set a realistic deadline, reduce appropriately. Follow these four basic rules and you're on solid legal ground.