Lending Expensive Gear Among Friends: Documenting the Loan and the Return

Published by Adrian Vogel · Reading time: approx. 11 minutes · Last updated: October 2026 · Jurisdiction: Germany

Before you start: This guide is not legal or insurance advice. It summarises general rules on lending under German law. And it shows how to record a loan in OWNAMIC. Whether a given case is a loan in the legal sense depends on the circumstances. So does who pays for damage. Your contracts matter here too. In a dispute, a consumer advice centre (Verbraucherzentrale) or a lawyer can help.

In short:

• At the end, every loan has two confirmed entries with photos.
• You need an OWNAMIC account. The borrower does not.
• One entry takes about two minutes on your phone.
• OWNAMIC checks no insurance and drafts no lending agreement.

Why shared things need a shared overview is covered in Sharing is Caring – When Ownership Concerns More Than One Person. This article is about the tricky part. The drill goes over the garden fence. Two weeks later it comes back with a crack in the housing. Was that there before?

What you should know

Loan, rental or favour. Say you let someone use an item free of charge. German law treats that as a loan for use (Leihe, section 598 of the Civil Code, BGB). If you take money for it, it is a rental. Rentals have their own rules. A short, spontaneous handover can also be a mere favour. That is a friendly gesture without any contract. Signs of a contract include an agreed return date, a certain duration or a high value. A camera for a holiday or a trailer for a house move point strongly towards a loan.

What the rules on loans say, in brief:

• The lender is only liable for intent and gross negligence (section 599 BGB). Intent means on purpose. Gross negligence means ignoring the care needed to a very serious degree. If the lender fraudulently conceals a defect, meaning on purpose, they must pay for the damage the borrower suffers as a result (section 600 BGB). Do you know the saw's cable is damaged? Then say so.
• The borrower pays the usual costs of upkeep (section 601 BGB), such as consumables.
• Normal wear does not have to be paid for, as long as the borrower uses the item as agreed (section 602 BGB). Damage through carelessness is a different matter.
• The borrower may not pass the item on to others without permission (section 603 BGB). If they do, they are liable for damage that results. In some cases they are even liable for accidental damage, so even without their own fault.
• The item comes back after the agreed time or once its purpose has been served. Was nothing agreed, and nothing follows from the purpose? Then you can ask for it back at any time (section 604 BGB). If you unexpectedly need it yourself, you can end the loan (section 605 BGB).

Six months, and it is over. As the lender, you can claim compensation for damage to or changes in the item. But these claims become time-barred after six months (section 606 BGB). Time-barred means you can no longer enforce them. The period starts on the day you get the item back. Do you only notice damage the next time you use it in spring? Then you may already be too late. That is why the most important moment in lending is not the handover but the return.

Liability insurance does not pay automatically. If the borrower damages your item, that is a matter for their personal liability insurance (Privathaftpflicht). That is the insurance for damage you cause to others. And that is exactly where a common exclusion sits. Under many policy terms, damage to rented, borrowed or leased items is not covered. Some policies include it through an add-on. Then there is often a limit. And some things are excluded, for example wear and tear or excessive use.

Favours without a contract are a different case. Here German courts often assume an unspoken agreement: no liability for slight negligence. Slight negligence is a small moment of carelessness. But if the person causing the damage has liability insurance, it pays anyway. The Federal Court of Justice ruled this in 2016. What applies to you is in the terms of the lender's and the borrower's policies.

Trailers are vehicles. A car trailer needs its own motor liability insurance. Personal liability insurance generally does not cover damage from using a vehicle. This rule is called the petrol clause (Benzinklausel). Damage to the trailer itself is only covered by comprehensive cover (Kasko), if there is any. Kasko is insurance for damage to your own vehicle. Also check whether the borrower's driving licence covers the car and trailer together.

What a lending agreement should cover. You do not need a form. A chat message or a note is enough, as long as it covers these points:

• which item, with serial number and complete accessories
• its condition at handover, ideally with photos
• what it is needed for and when it comes back
• whether it may be passed on to others
• who pays for consumables (saw blade, drill bits, lamp, fuel)
• what happens if it is damaged, and whether the borrower's liability insurance includes borrowed items

OWNAMIC records most of these points directly on the item. The borrower confirms them with one click.

Step 1: Record the item

First, set up a collection for everything you lend out:

1. Tap Plus and, under Manual, choose Template.
2. Choose "Tools" and name the collection something like "For lending".
3. Keep Power Tools. Use Add your own to add, say, "Electronics" for the projector and camera.
4. Tap Create Structure.

Then record each item with Detail shots. That means up to five pictures of one object:

1. Overall view
2. Type plate with serial number
3. Accessories laid out: case, batteries, charger, remote, cables, lens cap
4. Existing signs of use: scratches, dents, worn spots
5. For electronics, the item switched on, for example the projector's picture on the wall

Under "What the photo cannot show", enter brand, model, purchase price and condition. Then open the object and check the fields:

• Serial Number: it turns "a camera" into exactly your camera.
• Condition: for example "Very Good" or "Good". The field shows the current state. The history of the condition comes from the events in steps 4 and 5.
• Description: this is where accessories and lending rules go. Everyone in the Shared Space will see the description. For example: "With case, 2 batteries, charger. Please bring your own drill bits. Return with the battery charged. Do not lend on."

With Upload File you attach the purchase receipt and the User Manual. Only you see them. OWNAMIC never shows documents in a Shared Space. If the borrower needs the manual, send it to them directly.

Step 2: Create a Shared Space

A Shared Space shows friends or neighbours what they can borrow. And whether it is currently lent out.

1. In the sidebar, open Shared Spaces and tap New space.
2. Enter a Name such as "Tools among neighbours". As the Description, "What we lend each other" works.
3. Include financial data stays off. OWNAMIC then removes purchase prices and estimates before anything is sent. Your neighbours see the things, not what they cost.
4. Switch on Share status. Then everyone can see whether an item is currently lent out.
5. Switch on Share events if members should see the loans. OWNAMIC never shows attachments.
6. Tap Continue. Under Contribute objects, tap Collection.
7. Tick "For lending" and tap Select. Its contents come along.

Step 3: Invite and contribute to each other

1. Under Invite people, enter the Email address and tap Invite. Invitees are Viewers.
2. Tap Copy message and send it yourself. OWNAMIC never contacts anyone on your behalf.
3. Tap Done, then Go to space.

A space holds up to five members, you included. Whoever is invited taps Accept. They can then show their own gear with Contribute your objects. The result is a shared inventory. Every item carries the name of the person it belongs to.

One detail that is easy to miss: for objects of other members, Show status and Show events start off. Each person switches them on for their own items. They use the slider icon Display settings on the object.

Step 4: Record the loan and have it confirmed

Your neighbour is at the door. This is how you record the handover on your phone in two minutes:

1. Open the item and tap Add Event.
2. Under Status & location, choose Lent.
3. "When was it?" shows today. Tap More details and enter an Event Name such as "Lent to Christoph".
4. The Description holds the purpose, return and accessories: "For pruning the fruit trees. Back on Sunday. With case, 2 batteries, charger."
5. Leave the amount empty if no money changes hands. An amount would be shown to the borrower when signing and sealed with the entry.
6. Tap Save.
7. Under Attach a photo or document (optional), tap Take Photo. Photograph the item now, before handing it over. An event holds up to three attachments.
8. Under Confirm event, choose Have this confirmed by a third party.
9. Under Who should sign? (optional), enter something like "Christoph, neighbour". Tap Create signing link.
10. The link is shown exactly once. Pass it on with Copy link. Or let your neighbour scan it straight away with Show QR code. Then tap Done.

Your neighbour sees the item, the entry and the photos on their phone. They see them exactly as they will be sealed. They need no account. They enter their email address and tap Send me a code. Then they confirm with Confirm this entry. If they are signed in to OWNAMIC with a confirmed address, Sign with my account email is enough.

After that the entry is sealed. Neither the entry nor its photos can be changed, not even by you. That is why you take the photos before you create the link. The link is valid for 14 days. Only one request runs per event. In the Shared Space the item now shows as Lent.

Confirm it yourself? Under Confirm it yourself, you can also seal the entry on your own with Confirm with my account. That records that the entry has not changed since. But it remains your own statement. For a handover, the borrower's confirmation carries more weight.

Step 5: Record the return, with the condition

The item comes back. Now take two minutes before it disappears into the cellar.

1. Check it while the borrower is still there. Are the accessories complete? Are the housing, cable, lens and tyres all right? Does it work?
2. On the item, tap Add Event and choose Returned.
3. Under More details, enter an Event Name such as "Returned by Christoph".
4. The Description holds the condition: "Complete, works, no new damage." Or: "New crack in the housing on the left, battery 2 missing."
5. Tap Save. Then use Take Photo to photograph the condition at return. Use the same angles as at the loan.
6. Tap Create signing link and have the borrower confirm, as in step 4.

The item now carries two sealed entries. The first shows who took it when and in what condition. The second shows how it came back. In the Shared Space the Lent status has gone again.

Step 6: If something is broken

• Record the damage. If the damage is visible at the return, it goes into the "Returned" entry. If it only shows up later, create a Damage Report with Add Event, with photos and the date. It can be confirmed too, by the borrower or by an assessor.
• Update the condition. Set the Condition field to, for example, Damaged.
• Talk. Put the photos from the loan and the return side by side. Most disputes end before they begin.
• Clarify the insurance. The borrower asks their liability insurer whether borrowed items are covered. You give them the entries with photos, serial number and receipt as a PDF via Export. The PDF only lists attached files. Send the receipt separately.
• Record the repair. If the item is repaired, record a Repair. Enter the amount and attach the invoice. The workshop can confirm the entry.
• Keep an eye on the deadline. Six months after the return, claims may be time-barred.

Common mistakes

• Photos after the link. A sealed entry accepts no more photos. Photograph first, then create the link.
• Accessories not written down. The missing second battery only stands out if the list names it.
• A return "in passing". If you put the item away unchecked, you may only notice damage after the six months have run out.
• Passing on not settled. One sentence in the description is enough.
• Assuming liability cover. Whether borrowed items are covered is in the policy terms, not in your gut feeling.

What OWNAMIC does not do here

• No bookings, no calendar, no return reminder. A Shared Space shows what is there and whether it is lent out. When you ask for it back is up to you.
• The borrower records nothing on your item. Members only view other people's objects. The owner always adds the events.
• No billing, no deposit. Money, a deposit or a cake is something you settle yourselves.
• No contract template. OWNAMIC records the item, its condition and what was agreed. It does not draft a lending agreement.
• A signature is a simple electronic signature. That is the most basic form of digital confirmation. It shows that the named address confirmed exactly this state. It does not show that the content is true or who is legally liable.
• OWNAMIC does not check insurance.

Checklist to take with you

• "For lending" collection set up
• Every item recorded with detail shots, serial number, condition and accessories
• Lending rules written into the description
• Purchase receipt and user manual attached
• Shared Space without financial data, with status shared
• Friends or neighbours invited, display settings checked
• For every loan: "Lent", photos, signing link
• For every return: check, "Returned", photos, signing link
• Own liability insurance checked: are borrowed items covered?

Read on: Sharing is Caring – When Ownership Concerns More Than One Person · Like a service book, only for everything you own · Who owns what in a flatshare?

The German version of the in-app help on Shared Spaces has a video walkthrough of all this. It is called "Werkzeug unter Nachbarn" (tools among neighbours, 4 minutes, in German). Sandro lends his ladder to Christoph. Each has their own account. Christoph confirms the loan and the return. You open the help on the Shared Spaces page with Help & Explain.

Sources

• Section 598 BGB (typical duties under a loan, German): https://www.gesetze-im-internet.de/bgb/__598.html
• Section 599 BGB (liability of the lender, German): https://www.gesetze-im-internet.de/bgb/__599.html
• Section 600 BGB (liability for defects, German): https://www.gesetze-im-internet.de/bgb/__600.html
• Section 601 BGB (maintenance costs, German): https://www.gesetze-im-internet.de/bgb/__601.html
• Section 602 BGB (wear of the item, German): https://www.gesetze-im-internet.de/bgb/__602.html
• Section 603 BGB (use in accordance with the contract, German): https://www.gesetze-im-internet.de/bgb/__603.html
• Section 604 BGB (duty to return, German): https://www.gesetze-im-internet.de/bgb/__604.html
• Section 605 BGB (right to terminate, German): https://www.gesetze-im-internet.de/bgb/__605.html
• Section 606 BGB (short limitation period, German): https://www.gesetze-im-internet.de/bgb/__606.html
• Rechtsanwalt Krau: Section 602 BGB, wear under a loan (German): https://rechtsanwalt-krau.de/602-bgb-abnutzung-bei-der-leihe/
• Rechtsanwalt Krau: Section 603 BGB, use in accordance with the contract (German): https://rechtsanwalt-krau.de/603-bgb-vertragsmaessiger-gebrauch-leihe/
• Rechtsanwalt Kotz: Private loans and liability for damage (loan or favour, limitation; German): https://www.ra-kotz.de/leihvertrag-privat-haftung-sachschaeden.htm
• Finanztip: Damage done as a favour (Federal Court of Justice, VI ZR 467/15; German): https://www.finanztip.de/haftpflichtversicherung/gefaelligkeitsschaden/
• Allianz: Damage to borrowed items in personal liability insurance (German): https://www.allianz.de/recht-und-eigentum/privat-haftpflichtversicherung/schaeden-an-geliehenen-sachen/
• ERGO: Damage to borrowed items (German): https://www.ergo.de/de/Ratgeber/reise_und_freizeit/schaeden-geliehenem
• HUK-Coburg: Trailer insurance (German): https://www.huk.de/fahrzeuge/kfz-versicherung/anhaenger-versicherung.html
• Deutsche Handwerks Zeitung: The petrol clause and when it applies (German): https://www.deutsche-handwerks-zeitung.de/?p=151354

Whether borrowed items are covered by liability insurance differs from policy to policy. The legal notes are general rules. They do not replace advice on an individual case.