Based on your question, I am assuming that this is replacement for an EXISTING tenant who wants their carpet or paint done. I am not sure if you are the landlord or the tenant, but the logic of the answer works either way. It is MUCH LESS EXPENSIVE to keep an existing tenant than it is to find a new one. And as a tenant, it is MUCH EASIER to stay where you are than to move.
If I were the tenant asking for those repairs/ upgrades, I would approach it like this: "I'm happy here in my property, but the carpet/ paint is looking worn. Perhaps, instead of me moving, we could arrange something where you buy the paint and carpet, and I pay for the labor. Then I'll sign a new 1 year lease, and deduct 1/6 of the labor cost from each of the next 6 months rent.
If I were the landlord, I would suggest that the tenant paint/ recarpet the property with his choice/ your approval of colors and materials, and deduct the cost from his rent on a monthly basis after signing a new lease.
To me, this is win/win: The landlord keeps a good long term tenant, and the tenant gets to stay in their home while enjoying pride of ownership. And a happy tenant tends to be a better tenant overall.
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The Unit shall be painted at the owners discretion, if the paint was well taken care of and is clean and in good fair condition he is not obligated to repaint, this would be considered cosmetic.
As long as the rental is habitable and safe for humans cosmetics are unenforceable.
The implied warranty of habitability does not cover cosmetic or aesthetics.
GREEN VS SUPERIOR COURT
That is how many people look at that kind of thing. It is not about the time frame, it is about the condition. When the condition requires replacement whether it is at 1 year or 25 it needs to be done. Until then, it serves its purpose.
It's at the discretion of the landlord. How often does it need to be replaced? Maybe more frequently than 7 years. Maybe less so. I expect that "7 years" is just some rule of thumb someone suggested somewhere. Or else it was some average based on some (possibly unreliable) survey.