🛠️ Defects, cosmetic repairs, handover and return

When the tenant may reduce the rent, what applies to renovation clauses and how you secure handover and return.

defects rent reduction cosmetic repairs (Schönheitsreparaturen) handover protocol return limitation period renovation

In brief

If there are defects, the tenant may reduce the rent. They can only do so if the defect restricts use by more than an insignificant amount.

Draw up a protocol at handover. It shows the condition.
Renovation clauses in standard-form contracts are often invalid, especially if the flat was handed over unrenovated.
Claims for damage become time-barred six months after the flat is returned.

Step by step

Document the conditionRecord the condition and meter readings at handover in the protocol, with photos.
Fix defects quicklyHave reported defects fixed promptly.
Check clausesHave renovation clauses checked before use.
Secure the returnCheck the condition at return and assert claims within the limitation period.

Deadlines

6 months

Limitation of the landlord's claims for compensation for changes or deterioration; starts when the rented property is returned§ 548 Abs. 1 BGB

3 months

Rent reduction is excluded for up to three months for measures under § 555b Nr. 1 (energy-efficiency modernisation); not for heating replacement under Nr. 1a§ 536 Abs. 1a BGB

Watch out – common mistakes

If use is only insignificantly reduced, the rent is unaffected.
The tenant must report defects (§ 536c BGB); failing to do so can cut their claims.
Quota clauses (Quotenabgeltungsklauseln) are invalid (BGH, judgment of 18 March 2015, VIII ZR 242/13; also VIII ZR 21/13). Passing cosmetic repairs on to the tenant where the flat was handed over unrenovated, without reasonable compensation, is invalid (BGH, VIII ZR 185/14).
Rent reduction percentages were not researched here.

In depth · legal basis, figures and practice – for advisers and professionals

Rent reduction, § 536 BGB

If the rented property has a defect that removes its suitability for contractual use, the tenant is exempt from paying rent; if suitability is merely reduced, they only have to pay an appropriately reduced rent. An insignificant reduction is disregarded. For a period of three months the reduction is excluded to the extent that suitability is removed or reduced because of a measure under § 555b Nr. 1 (energy-efficiency modernisation); this does not apply to heating replacement under § 555b Nr. 1a. Agreements to the contrary to the tenant's disadvantage are invalid for housing.

Cosmetic repairs

According to the case law of the BGH, quota clauses (Quotenabgeltungsklauseln) are invalid (judgment of 18 March 2015, VIII ZR 242/13; also VIII ZR 21/13). Judgment VIII ZR 185/14 concerns passing cosmetic repairs on to the tenant where the flat was handed over unrenovated without reasonable compensation for the tenant; this is invalid.

Return and limitation, §§ 546, 548 BGB

The tenant must return the rented property after the tenancy ends; if they have let a third party use it, the landlord can also demand its return from that party. The landlord's claims for compensation for changes or deterioration become time-barred in six months from return.

Who is responsible

Haus & Grund
Expert (condition, damage)
Amtsgericht (local court)

Quick questions

Worum geht es bei „Defects, cosmetic repairs, handover and return“?

When the tenant may reduce the rent, what applies to renovation clauses and how you secure handover and return.

Which deadlines and figures matter?

6 months: Limitation of the landlord's claims for compensation for changes or deterioration; starts when the rented property is returned (§ 548 Abs. 1 BGB)
3 months: Rent reduction is excluded for up to three months for measures under § 555b Nr. 1 (energy-efficiency modernisation); not for heating replacement under Nr. 1a (§ 536 Abs. 1a BGB)

What should I do first?

Document the condition: Record the condition and meter readings at handover in the protocol, with photos.
Fix defects quickly: Have reported defects fixed promptly.
Check clauses: Have renovation clauses checked before use.

What do I need to watch out for?

If use is only insignificantly reduced, the rent is unaffected.
The tenant must report defects (§ 536c BGB); failing to do so can cut their claims.
Quota clauses (Quotenabgeltungsklauseln) are invalid (BGH, judgment of 18 March 2015, VIII ZR 242/13; also VIII ZR 21/13). Passing cosmetic repairs on to the tenant where the flat was handed over unrenovated, without reasonable compensation, is invalid (BGH, VIII ZR 185/14).

Evidence

Bundesministerium der Justiz, Gesetze im Internet, § 536 BGB, retrieved 20 September 2026
Bundesministerium der Justiz, Gesetze im Internet, §§ 546, 548 BGB, retrieved 20 September 2026
Bundesgerichtshof, judgments of 18 March 2015, VIII ZR 242/13 (also VIII ZR 21/13) and VIII ZR 185/14, retrieved 20 September 2026

As of

September 2026 · Sources and method

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