Renovating, refurbishing, modernizing – that's why the distinction is important for owners!

Owners are responsible for maintaining their property in good condition. Additional construction work can also save them money. Renovating, refurbishing, and modernizing also makes sense when selling a property. But what exactly is what? Property owners, in particular, should understand the differences.

Renovation, refurbishment, and modernization measures not only need to be carried out within specific timeframes, partly due to legal requirements, but also offer significant advantages for owners when selling or renting their property. Some measures increase the property's value and are therefore worthwhile for sellers or landlords. Real estate agents can provide valuable advice and support to owners in this process, including assistance in finding qualified professionals.

renovation

Renovation involves removing signs of wear and tear. The aim is to beautify and maintain the property, but only superficially. In tenancy law, renovation work is referred to as cosmetic repairs. These are stipulated in Section 28, Paragraph 4, Sentence 3 of the Second Ordinance on Calculation of Rent (II. BV). This includes, among other things, all interior painting and wallpapering. It is important that landlords stipulate cosmetic repairs in writing in the tenancy agreement. Otherwise, the landlord must bear the costs of the renovation after the tenancy ends. All owners, including those who live in the property themselves, can have the costs of damage covered by insurance.

Renovation

Renovation is more than just maintaining a property. It involves restoring functionality and modernizing it. However, it's not a sustainable, value-enhancing measure. Renovation work should also be carried out by experienced professionals who possess the necessary expertise. Typical renovation work includes asbestos removal or repairing a leaky roof. Landlords are not permitted to pass on renovation costs to tenants while the tenancy is in effect. Owners who want to sell their property can demand a higher selling price through renovations. However, costs and benefits should be carefully weighed. Owners can seek advice from a real estate agent in this regard.

modernization

Here, the property is brought up to modern standards. This results in a sustainable increase in the property's value. These measures justify higher prices for houses and apartments. Modernizations are far more expensive than renovations and cannot be carried out by the owner. Landlords can pass on some of the costs to their tenants. Owners also have the option of applying for a modernization loan. This loan is earmarked for specific purposes and is only granted to property owners. Modernizations include, among other things, legally mandated fire safety upgrades and energy-efficient improvements.

Do you have questions about renovation or construction work before selling? Contact us!

You can find more information here:

https://www.t-online.de/heim-garten/bauen/id_65429256/sanieren-modernisieren-renovieren-was-ist-der-unterschied-.html

https://www.rnd.de/bauen-und-wohnen/rechte-bei-sanierung-mieter-mussen-nicht-auf-einer-baustelle-leben-3XSLGUMLXA4FY4F3XP4KH4SNP4.html

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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