Rent reduction for commercial space: what is possible, what is not?

A defect can entitle you to a rent reduction for commercial premises too. Unlike in residential tenancy law, however, the reduction right can be largely restricted in the commercial lease. That is why the contract text comes first.

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For commercial space too, a defect generally reduces the rent (§ 536 BGB). In the commercial lease, however, the reduction right can be restricted by clauses, for example to a retention or a later reclaim.

Contracts often provide that payment is only made under reservation and the reduction amount is reclaimed later. Anyone who then reduces in full risks payment default and a termination.

What you should do now

1
1. Check the contract clauses
See whether and how the reduction right is restricted.
2
2. Report the defect
Report the defect in writing and set a deadline for remediation.
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3. Pay correctly
With a restricted reduction right, pay under reservation and reclaim what was overpaid.
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4. Secure evidence
Document the defect, the report and the impairment of business operations.

How to spot the scam

You reduce in full although the contract only allows payment under reservation.
The defect is not formally reported.
A termination threatens over an alleged payment default.

Frequently asked questions

Can I simply cut the commercial rent?

Only if the contract allows it. Many commercial leases restrict the reduction right and require payment under reservation with a later reclaim. Check the clauses before you cut, otherwise payment default threatens.

Which defects entitle you to a reduction?

Defects that significantly impair the fitness of the premises for the contractually assumed use, for example damp, heating failure or impermissible restrictions on use. The amount depends on the specific impairment of business operations.

What does 'payment under reservation' mean?

You pay the full rent but declare in writing that this is only provisional and subject to a reservation of reclaim. This way you avoid default and can later reclaim or offset the justified reduction amount.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.