The Federal Court of Justice (Bundesgerichtshof) has made a decision on the apportionability of renovation costs incurred as a result of modernisation measures in a rented flat.
The defendants are tenants of a flat in an apartment building owned by the plaintiff in Görlitz. In January 2007, the plaintiff announced in writing the installation of water meters and a rent increase of € 2.28 per month based on this. The defendants then informed the plaintiff that the installation would only be tolerated if the plaintiff paid an advance for the re-wallpapering of the kitchen which would become necessary as a result. The plaintiff complied with this demand, but explained that these were also apportionable modernisation costs, which was why the rent increase would be correspondingly higher. After the installation of the water meter, the plaintiff apportioned the total costs in accordance with § 559 (1) of the German Civil Code (BGB), resulting in a monthly increase of € 2.79. The plaintiff then paid the amount apportionable to the wallpapering costs. The defendants did not pay the partial amount of € 1.32 each, which was attributable to the advance on wallpapering costs, for 24 months. The Local Court granted the claim for payment of €31.68 plus interest and reimbursement of legal fees. On appeal by the defendants, the Regional Court dismissed the action.
The plaintiff's appeal against this was successful. The VIII Civil Senate of the Federal Court of Justice, which is also responsible for residential tenancy law, ruled that the landlord has to bear the costs of renovation work. Civil Senate of the Federal Court of Justice (BGH), which is also responsible for residential tenancy law, ruled that the landlord may pass on the costs for renovation work that becomes necessary as a result of modernisation measures to the tenants pursuant to Section 559 (1) of the German Civil Code (BGB). This also applies if the costs are not incurred by the landlord hiring a tradesman, but by the tenant carrying out the work himself and having the landlord reimburse the expenses in accordance with Section 554 (4) of the German Civil Code (BGB).
Judgment of the Federal Supreme Court of 30 March 2011 - VIII ZR 173/10
Lower courts:
AG Görlitz - Judgment of 14 January 2010 - 4 C 336/09
LG Görlitz - Judgment of 23 June 2010 - 2 S 9/10
Source: Press release of the BGH
Goldberg Attorneys at Law 2011
Attorney at Law Michael Ullrich, LL.M. (Information Law)
Specialist lawyer for information technology law (IT law)
E-mail: info@goldberg.de
