diff --git a/demo/app/app.bndrun b/demo/app/app.bndrun
index 89a27ca97..742ed2756 100644
--- a/demo/app/app.bndrun
+++ b/demo/app/app.bndrun
@@ -62,7 +62,9 @@ feature.openhab-model-runtime-all: \
 -runproperties: \
 	osgi.console=,\
 	osgi.console.enable.builtin=false,\
-	logback.configurationFile=file:${.}/logback.xml
+	logback.configurationFile=file:${.}/runtime/logback.xml,\
+	smarthome.configdir=${.}/runtime/conf,\
+	smarthome.userdata=${.}/runtime/userdata
 
 -runblacklist: bnd.identity;id='org.apache.aries.javax.jax.rs-api'
 
diff --git a/demo/app/runtime/icons/none.png b/demo/app/runtime/conf/icons/none.png
similarity index 100%
rename from demo/app/runtime/icons/none.png
rename to demo/app/runtime/conf/icons/none.png
diff --git a/demo/app/runtime/icons/present-off.png b/demo/app/runtime/conf/icons/present-off.png
similarity index 100%
rename from demo/app/runtime/icons/present-off.png
rename to demo/app/runtime/conf/icons/present-off.png
diff --git a/demo/app/runtime/icons/present.png b/demo/app/runtime/conf/icons/present.png
similarity index 100%
rename from demo/app/runtime/icons/present.png
rename to demo/app/runtime/conf/icons/present.png
diff --git a/demo/app/runtime/icons/switch-on.png b/demo/app/runtime/conf/icons/switch-on.png
similarity index 100%
rename from demo/app/runtime/icons/switch-on.png
rename to demo/app/runtime/conf/icons/switch-on.png
diff --git a/demo/app/runtime/icons/switch.png b/demo/app/runtime/conf/icons/switch.png
similarity index 100%
rename from demo/app/runtime/icons/switch.png
rename to demo/app/runtime/conf/icons/switch.png
diff --git a/demo/app/conf/items/demo.items b/demo/app/runtime/conf/items/demo.items
similarity index 100%
rename from demo/app/conf/items/demo.items
rename to demo/app/runtime/conf/items/demo.items
diff --git a/demo/app/conf/persistence/mapdb.persist b/demo/app/runtime/conf/persistence/mapdb.persist
similarity index 100%
rename from demo/app/conf/persistence/mapdb.persist
rename to demo/app/runtime/conf/persistence/mapdb.persist
diff --git a/demo/app/conf/rules/demo.rules b/demo/app/runtime/conf/rules/demo.rules
similarity index 100%
rename from demo/app/conf/rules/demo.rules
rename to demo/app/runtime/conf/rules/demo.rules
diff --git a/demo/app/conf/sitemaps/demo.sitemap b/demo/app/runtime/conf/sitemaps/demo.sitemap
similarity index 100%
rename from demo/app/conf/sitemaps/demo.sitemap
rename to demo/app/runtime/conf/sitemaps/demo.sitemap
diff --git a/demo/app/conf/smarthome.cfg b/demo/app/runtime/conf/smarthome.cfg
similarity index 100%
rename from demo/app/conf/smarthome.cfg
rename to demo/app/runtime/conf/smarthome.cfg
diff --git a/demo/app/conf/sounds/doorbell.mp3 b/demo/app/runtime/conf/sounds/doorbell.mp3
similarity index 100%
rename from demo/app/conf/sounds/doorbell.mp3
rename to demo/app/runtime/conf/sounds/doorbell.mp3
diff --git a/demo/app/conf/things/demo.things b/demo/app/runtime/conf/things/demo.things
similarity index 100%
rename from demo/app/conf/things/demo.things
rename to demo/app/runtime/conf/things/demo.things
diff --git a/demo/app/conf/transform/de.map b/demo/app/runtime/conf/transform/de.map
similarity index 100%
rename from demo/app/conf/transform/de.map
rename to demo/app/runtime/conf/transform/de.map
diff --git a/demo/app/conf/transform/en.map b/demo/app/runtime/conf/transform/en.map
similarity index 100%
rename from demo/app/conf/transform/en.map
rename to demo/app/runtime/conf/transform/en.map
diff --git a/demo/app/logback.xml b/demo/app/runtime/logback.xml
similarity index 90%
rename from demo/app/logback.xml
rename to demo/app/runtime/logback.xml
index 02413a533..0653c3a6e 100644
--- a/demo/app/logback.xml
+++ b/demo/app/runtime/logback.xml
@@ -1,4 +1,4 @@
-<configuration>
+<configuration scan="true" scanPeriod="30 seconds">
 
   <!-- defined a console append -->
   <appender name="STDOUT" class="ch.qos.logback.core.ConsoleAppender">
@@ -37,5 +37,6 @@
   </root>
 
   <logger name="org.eclipse.smarthome" level="INFO" />
+  <logger name="org.openhab.core" level="INFO" />
 
 </configuration>
diff --git a/demo/app/runtime/userdata/.keep b/demo/app/runtime/userdata/.keep
new file mode 100644
index 000000000..e69de29bb