BGH Ruling: Unauthorized Renovation Does Not Automatically Justify Termination

Renovated without permission — can your landlord terminate the lease?

You modernized your bathroom, removed a kitchen wall, or rerouted plumbing — all at your own expense, all to improve your home. But you didn't ask the landlord first. Now they're threatening termination.

A recent ruling by Germany's Federal Court of Justice (BGH) shows: it's not that simple for the landlord.

What the BGH decided (VIII ZR 274/23)

The case: A tenant had been living in a 3-room Berlin apartment since 1972. Over the years, she completely renovated the bathroom — new drywall, wall-hung toilet, daylight slits — and remodeled the kitchen by removing a partition wall and relocating water connections. The new owner demanded full restoration and issued both an extraordinary and an ordinary termination.

The result: The BGH rejected the termination. The reasoning contains several points that matter for many tenants.

5 key takeaways for tenants

1. No general right to renovate — but no automatic termination either

Tenants generally may not make structural changes, not even for modernization (§ 535 Abs. 1 BGB). However, whether a violation justifies termination always depends on the specific circumstances. There is no automatism.

2. Previous landlord's tolerance counts

If the former owner knew about the renovations and didn't object, this weighs into the assessment. A new owner cannot simply ignore that changes were tolerated for years.

3. Self-funded improvements are protected

Under § 539 Abs. 2 BGB, tenants may remove and replace fixtures they installed at their own expense. This strengthens the tenant's position when improvements were self-financed.

4. Property value increase weighs against termination

When renovations objectively increase the property's value — such as a modern bathroom replacing 1970s fixtures — the balance tips in the tenant's favor.

5. Good faith limits restoration demands

The BGH clarified: under the principle of good faith (§ 242 BGB), it may be unreasonable to demand immediate restoration — especially for renovations that have existed for years and improved the apartment.

What this means in practice

• Renovated without permission? That's a breach of contract, but it doesn't automatically lead to termination.
• New owner threatening you? Check whether the previous owner knew about the changes. That significantly weakens the termination claim.
• Long-term tenant with personal investment? The longer the tolerance, the higher your investment, and the better the condition of the work — the harder it is for the landlord to terminate.

Important: Not a green light for unauthorized work

This ruling does not mean tenants can freely renovate. The BGH explicitly confirmed there is no general right to make structural changes. But it does mean: if it has already happened, the landlord must consider the specific circumstances — and termination is far from guaranteed.

Does this apply to you?

Have you made changes to your apartment and your landlord is reacting? Or has a new owner suddenly made demands? MieterHelfer helps you assess your situation — free and in seconds. Just describe what happened and get an initial orientation based on current case law.