German Federal Court rules against profitable subletting

The German Federal Court of Justice (BGH) has ruled that tenants cannot use the legal right to sublet as a means to generate profit from property they do not own. The court decided that a tenant's legitimate interest under § 553 BGB does not extend to charging more than what is necessary to cover their own housing-related expenses.

The ruling stems from a case in Berlin where a tenant sublet a two-room apartment for significantly more than his original rent—more than double the amount—during an extended period abroad. Because the subletting was deemed a commercial endeavor rather than a way to reduce personal living costs, the landlord was permitted to seek eviction.