The Federal Court of Justice ruled that profitable subletting of residential premises is prohibited when the tenant earns a profit exceeding his own housing-related expenses.
Karlsruhe judges announced this on Wednesday. In the particular case, a tenant had sublet his two‑room flat in Berlin for a higher amount than he himself paid in rent, without the landlord’s permission.
The appellate court had granted the landlord’s claim for eviction after the tenant sublet the apartment while he was abroad. The Federal Court dismissed the tenant’s appeal and upheld the appellate court’s judgment. The landlord’s termination of the lease was deemed valid, as the tenant had fundamentally breached his contractual obligations.
The court clarified that a legitimate interest in subletting exists only if the tenant wishes to retain the apartment in the event of a significant change in his living circumstances. Profit‑making is not covered by this rule. The decision also takes into account the interests of the subtenants, who should be protected from inflated rents.