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[BUSINESS] · Germany · 2 sources

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Bundesgerichtshof rules against profitable subletting

The German Federal Court of Justice (Bundesgerichtshof) has ruled that tenants cannot use their legal right to sublet as a means to generate profit from someone else's property. The court decided that a tenant's interest in subletting is only considered legitimate under § 553 BGB if the sublet rent covers the tenant's own housing-related expenses.

In a specific case from Berlin, a tenant was attempting to sublet a two-room apartment for 1,100 euros per month, which was more than double his original net cold rent of approximately 497 euros. The court ruled that seeking to make a profit through subletting can lead to the termination of the main lease, as the tenant cannot claim a legitimate interest when the sublease is used as a business venture without the landlord's consent.

Entities

Bundesgerichtshof · Frankfurt · Marcus Gwechenberger