diff --git a/README b/README
index e54c5d6efb8..8807e5cfe49 100644
--- a/README
+++ b/README
@@ -69,11 +69,10 @@ REQUIREMENTS:
         create additional symlinks in /dev/disk/ and /dev/tape:
           CONFIG_BLK_DEV_BSG
 
-        Required for PrivateNetwork= and PrivateDevices= in service units:
+        Required for PrivateNetwork= in service units:
           CONFIG_NET_NS
-          CONFIG_DEVPTS_MULTIPLE_INSTANCES
         Note that systemd-localed.service and other systemd units use
-        PrivateNetwork and PrivateDevices so this is effectively required.
+        PrivateNetwork so this is effectively required.
 
         Required for PrivateUsers= in service units:
           CONFIG_USER_NS
@@ -119,6 +118,9 @@ REQUIREMENTS:
         isn't. The next best thing is to make this change through a modprobe.d
         drop-in. This is shipped by default, see modprobe.d/systemd.conf.
 
+        Required for systemd-nspawn:
+          CONFIG_DEVPTS_MULTIPLE_INSTANCES or Linux kernel >= 4.7
+
         Note that kernel auditing is broken when used with systemd's
         container code. When using systemd in conjunction with
         containers, please make sure to either turn off auditing at
diff --git a/src/core/namespace.c b/src/core/namespace.c
index e1a9d7a92dc..e030a575973 100644
--- a/src/core/namespace.c
+++ b/src/core/namespace.c
@@ -525,7 +525,7 @@ static int clone_device_node(const char *d, const char *temporary_mount) {
         if (r < 0)
                 return log_debug_errno(errno, "mknod failed for %s: %m", d);
 
-        return 0;
+        return 1;
 }
 
 static int mount_private_dev(MountEntry *m) {
@@ -582,12 +582,12 @@ static int mount_private_dev(MountEntry *m) {
                 }
         } else {
                 r = clone_device_node("/dev/ptmx", temporary_mount);
-                if (r < 0)
+                if (r != 1)
                         goto fail;
         }
 
         devshm = strjoina(temporary_mount, "/dev/shm");
-        (void) mkdir(devshm, 01777);
+        (void) mkdir(devshm, 0755);
         r = mount("/dev/shm", devshm, NULL, MS_BIND, NULL);
         if (r < 0) {
                 r = -errno;