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3. Tenancy law
4. Compensation for Damages – When Landlords Are Liable

Compensation for Damages – When Landlords Are Liable

Tenant’s Right to Compensation under § 536a BGB

In addition to rent reduction and reimbursement of expenses, tenants have a right to claim compensation for damages (§ 536a(1) BGB). This applies when a defect in the rental property causes damage to the tenant’s belongings — such as furniture, clothing, or electronics.

The key requirement is that the landlord is responsible for the defect, meaning they acted negligently or failed to fulfill their maintenance duties. Landlords are obligated to keep the property in a condition suitable for normal use throughout the tenancy.

Fault and Strict Liability

Generally, a landlord is only liable if the damage occurred due to their fault — for example, if they caused the defect or ignored it despite being informed.

However, if the defect already existed when the lease was signed, the landlord bears strict liability (known as Garantiehaftung). In such cases, they must compensate the tenant even without fault. This rule particularly protects tenants when the apartment was already defective at the beginning of the tenancy.

Landlord’s Delay and Self-Repair

If the landlord fails to remedy the defect within a reasonable time, the tenant can place them in default. This requires a written notice of the defect and a deadline for repair.

If the landlord still doesn’t act, the tenant may fix the problem at their own expense and demand reimbursement of costs (§ 536a(2) BGB). The tenant should clearly state in their written notice that, after the deadline, they will hire a repair service at the landlord’s expense.

Tenant’s Duty of Care

Tenants must also act carefully when arranging repairs. Before commissioning work, they should obtain multiple cost estimates and ensure the prices are reasonable. Hiring an overpriced contractor can be considered shared fault, reducing the tenant’s reimbursement claim.

All communication with the landlord — including notices, deadlines, and invoices — should be documented in writing. This documentation is crucial to successfully claim compensation in case of dispute.