Helmer Tieben. Your lawyer in Cologne

If the rented property is defective, the rent is reduced by operation of law (Section 536 of the German Civil Code - BGB). This applies to commercial property leases just as it does to residential space. The decisive difference lies elsewhere: in a commercial lease, the right to a rent reduction may be restricted contractually – even in standard terms and conditions. For residential space, this is excluded. Many commercial tenants therefore reduce their rent trusting in a right that their own contract has effectively curtailed – thereby risking summary termination for rent arrears. Note: This article serves for general information and does not replace individual legal advice. Whether and to what extent a reduction is justified depends on the specific defect and the specific contract. Have this checked by a lawyer before reducing the rent. At a glance The reduction occurs by operation of law. It does not need to be declared – but it must be justified. Section 536(4) BGB only protects residential tenants from deviating agreements. In commercial tenancy law, a restriction is therefore fundamentally possible, even in standard contract terms. The limit: The tenant must not be deprived of every opportunity to reclaim overpaid rent. An unjustified or excessive reduction leads to rent arrears – and thus potentially to summary termination without a warning. Anyone who knew about the defect at the conclusion of the contract loses the right to a reduction (Section 536b BGB). Anyone who fails to report it is liable for damages.

Author: Solicitor Helmer Tieben · Last legal review: August 2026 €240,000. That is how much money is at stake when you sign a ten-year commercial lease with a monthly rent of €2,000. With a rent of €3,000, it is €360,000. This is not an abstract scenario, but the everyday reality for restaurateurs, retailers, doctors, agencies and trades businesses. Despite this, many business owners sign the contract presented to them by the landlord without having it checked. That is understandable: the premises are right, time is pressing, the landlord has other interested parties. But it is a mistake that is difficult to correct later – because in commercial tenancy law, you are not protected by the statute, but only by the contract. Note: This article serves as general information and does not replace individual legal advice. Commercial leases are complex, and every contractual situation is different. Have your specific contract reviewed by a lawyer before signing. Procedure for contract review Initial contact and preliminary assessment. You briefly outline the situation to us: type of premises, planned use, term, time pressure. We will tell you whether and to what extent a review is advisable. This preliminary assessment is free of charge. Submission of documents. You send us the draft contract and associated appendices by email. Review. We analyse the draft clause by clause and compare it with current case law and