diff --git a/docs/changelog.rst b/docs/changelog.rst
index 24bc7682..c7f1aeee 100644
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -16,6 +16,11 @@ Bug fix release.
   to remove "file" from the :confval:`stream/protocols` config, and then
   proceed startup. (Fixes: :issue:`1248`, PR: :issue:`1254`)
 
+- File: Adjust log levels when failing to expand ``$XDG_MUSIC_DIR`` into a real
+  path. This usually happens when running Mopidy as a system service, and thus
+  with a limited set of environment variables. (Fixes: :issue:`1249`, PR:
+  :issue:`1255`)
+
 
 v1.1.0 (2015-08-09)
 ===================
diff --git a/mopidy/file/library.py b/mopidy/file/library.py
index 691020b4..d477d109 100644
--- a/mopidy/file/library.py
+++ b/mopidy/file/library.py
@@ -108,12 +108,15 @@ class FileLibraryProvider(backend.LibraryProvider):
                 media_dir_split[0].encode(FS_ENCODING))
 
             if not local_path:
-                logger.warning('Failed expanding path (%s) from '
-                               'file/media_dirs config value.',
-                               media_dir_split[0])
+                logger.debug(
+                    'Failed expanding path (%s) from file/media_dirs config '
+                    'value.',
+                    media_dir_split[0])
                 continue
             elif not os.path.isdir(local_path):
-                logger.warning('%s is not a directory', local_path)
+                logger.warning(
+                    '%s is not a directory. Please create the directory or '
+                    'update the file/media_dirs config value.', local_path)
                 continue
 
             media_dir['path'] = local_path