German courts set limits on smoking in rental apartments

German tenancy law permits smoking inside a rented flat, but recent court rulings define clear limits. The Federal Supreme Court (BGH) upheld a landlord’s right to deduct damages from a tenant’s security deposit when cigarette smoke caused severe yellowing of ceilings, walls and doors, indicating that ordinary wear‑and‑tear was exceeded.

In Bremen, a district court granted a non‑smoking tenant a 20% rent reduction after smoke from a neighbor’s balcony and apartment continuously entered his unit, making the windows unusable. The court classified the persistent smoke as a rental defect, confirming the tenant’s right to lower rent and demand removal of the nuisance.

The BGH also ruled that landlords may impose time‑based smoking bans on balconies, requiring smokers to respect designated periods while allowing neighbors to breathe smoke‑free air. These decisions clarify when tenants may be held financially liable and when landlords must act to protect non‑smoking residents.