• Daniel Hofmann

New renovation rules for landlords and tenants


The rental market in Germany, is as you would expect, governed by rules and regulations. Sometimes more in favour of the landlord, other times more in favour of the tenant. So the new legislation on who has to pay for renovation is changing the landscape somewhat. 


So what as been decided?


The VIII. Civil Senate of the Federal Court of Justice (Bundesgerichtshof) in Germany decided in two rulings last week, that if a tenant moved into an unrenovated property and was not contractually made responsible for updating the renovation condition of the property and the condition of the property has deteriorated during his/her tenancy, the landlord will now have to go halves for the cost of updating.


In order words, if, through normal everyday living in the property the renovation condition of the property has, as one would expect, deteriorated and is in need of an update, the tenant and the landlord are equally responsible for covering the cost of renovation. The tenant will have to pay half the cost because the made improvements were not part of the initial contractual agreement and therefore lead to an upgrade in the rental conditions.