A commercial tenant was allowed to reduce the rent by 30 percent because the premises were infested with vermin. The OLG Karlsruhe decided this with its judgment of June 21, 2022 (Case No.: 9 U 112/19).
Commercial rental law provides that a rent reduction by the tenant is possible if the rental object has a defect that prevents the rental property from being used as contractually agreed. However, the prerequisite is that there is a significant rental defect. Tenants should not decide lightly what level of rent reduction they consider appropriate. The decisive factor for the amount of the rent reduction is how significant the rental defect is. Furthermore, the landlord must be informed of the rental defect in advance, explains the commercial law firm MTR Rechtsanwälte, which advises tenants and landlords in commercial rental law.
In the case before the OLG Karlsruhe, a fashion store was infested with vermin, and the tenant subsequently reduced the rent. The landlord, however, did not agree, issued a summary dismissal, and filed a lawsuit for eviction and surrender of the commercial premises. While the lawsuit was successful in the first instance, the OLG Karlsruhe ruled in favor of the tenant in the appeal proceedings.
The OLG considered the dismissal to be unjustified. Due to the vermin infestation, the tenant was allowed to reduce the rent by at least 30 percent. The court explained that vermin in rented business premises constitutes a defect that significantly impairs the contractual use of the rental object. Especially since the tenant had to expect that customers would notice the vermin and the business could receive a bad reputation as a result. Further, there was also a fear of damage from gnawing. The suitability of the commercial rental premises for contractual use was thus reduced by at least 30 percent, according to the OLG Karlsruhe. The court made it clear that it does not matter what caused the vermin infestation or whether the landlord is responsible for it.
Experienced lawyers in commercial rental law can provide advice.
