German Federal Court rules against profitable subletting

The German Federal Court of Justice (BGH) has ruled that tenants cannot use their legal right to sublet as a means to generate profit from property they do not own. In a case originating in Berlin, a tenant was found to have sublet a two-room apartment for significantly more than his own rental costs, effectively doubling the rent.

The court determined that a tenant's legitimate interest in subletting, as defined under § 553 BGB, does not extend to making a commercial profit. While subletting remains permitted for purposes such as reducing personal living costs during absences or life changes, doing so without landlord consent for financial gain can lead to eviction.