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KI-Symbolbild: Unrenovierte Altbauwohnung mit verblasster Mustertapete, abgenutztem Fischgrätparkett, Kachelofen und hohem Sprossenfenster.
Decision aid Letting Germany

Letting unrenovated: plan condition, compensation and cosmetic repairs together

Decide before re-letting what condition you hand over and how agreed compensation fits. The article explains the strict BGH standard and shows why an arbitrary rent reduction is not a secure contractual solution.

Automatically translated – the German version is legally binding. Show original (German)

Published
19 Oct 2026
Research as of
17 Oct 2026
Applies to
Germany
For whom
Everyone
Article ID
WX26-03-DE-016

The previous tenant has moved out and several walls show clear signs of wear. You want to relet the flat in Germany promptly. An interested party would paint themselves if they receive a rent reduction. That can be a sensible negotiation point, but it requires more preparation than any arbitrary discount alongside an unchanged contract form.

First determine what you are actually handing over

The statutory starting point in § 535 BGB is the surrender and maintenance of a condition suitable for contractual use. A general renovation clause must additionally withstand the relevant legal scrutiny; § 307 BGB contains the standard for unreasonable disadvantage through General Terms and Conditions (Allgemeine Geschäftsbedingungen). [BASIS] [AGB]

Our practical recommendation: Inspect the empty flat before making a commitment and describe the visible decorative works room by room. Components needing repair, moisture or technical defects should not simply be classified as “painting work”. A rent reduction for decoration does not replace professional clarification of another defect.

What the BGH requires for unrenovated handovers

In judgment VIII ZR 185/14 of 18 March 2015 the BGH deals with the standard-form transfer of ongoing cosmetic repairs in flats handed over unrenovated or in need of renovation. Without adequate compensation it does not withstand the described control standard. The decisive factor is the overall impression; insignificant signs of wear are disregarded. [BGH]

The judgment therefore does not say that every used flat must be completely repainted. Nor does it automatically validate any clause in the case of a freshly painted flat. This article specifically considers the initial decision before a new letting, not a comprehensive clause review and not a later judicial dispute over an already running contract.

Compare two routes before agreeing

You can organise the necessary decorative works yourself before handover. Then extent, timing and the actual state of completion must align. A signed contract with a planned renovation promise is not yet evidence that the agreed work will be completed at key handover.

Or you can consider an unrenovated handover with appropriate compensation. The BGH describes, for example, a temporarily reduced or waived rent as possible compensation. The performance must actually compensate the disadvantage in question. That does not produce a universally valid number of free rent weeks for every flat. [BGH]

Our editorial recommendation: Compare the same scope of work in both routes. Which surfaces require preparation, what materials are needed and what usage restriction will arise at the start? A low materials bill does not automatically reflect the entire work. Have the concrete compensation and the associated contractual arrangements examined by an expert before signing.

A fictitious conversation with a comprehensible decision

In the fictional case Leonie offers a flat whose living room and hallway would clearly need refurbishment. She initially offers a flat-rate half month of free rent. The interested party points out that she would have to complete the works before moving the furniture and would need to organise assistance for that.

Both record the actual scope and obtain an appropriate cost estimate. Leonie now compares her own prior commissioning with a concretely described compensation solution. The initially mentioned monthly fraction is not treated as a legal standard. The case does not decide an appropriate level of compensation; it shows which information is still missing with a spur-of-the-moment discount idea.

Recognise the agreed solution at handover

Record the actual condition, agreed services and their timing so that they remain comprehensible later. A blanket protocol line “taken over in proper condition” does not state previously discussed old traces. Photograph the condition factually and avoid other people’s personal documents in images.

The decision also addresses evidential issues: different presentation and burden of proof rules are described for the alleged unrenovated initial condition and for appropriate compensation. [BGH] Documentation does not make an ineffective clause effective, but it can avoid contradictory memories. Your useful outcome is therefore a coherent handover and contractual framework with checked compensation, not a later hope that a small discount will solve all renovation questions.

Sources and context

Created with the help of AI and editorially reviewed. General guidance only; not individual legal, tax or financial advice. Errors and later changes are possible.