The Federal Court of Justice ruled that profit‑making subletting of residential property is prohibited when a tenant earns more from the arrangement than his own housing costs.
The decision was announced by judges in Karlsruhe on Wednesday. In the particular case, a tenant in Berlin had subletted his two‑room apartment without permission for a price higher than the rent he himself paid.
An appellate court had already granted the landlord’s request to evict the tenant after the tenant had sublet the flat during an overseas stay. The Federal Court dismissed the tenant’s appeal and confirmed the appellate ruling, stating that the landlord’s termination was effective because the tenant had substantially breached his contractual obligations.
The court clarified that a legitimate interest in subletting exists only when a tenant wishes to keep the apartment in the event of a significant change in his living circumstances. The pursuit of profit is not covered by this exception. The ruling also took into account the interests of subtenants, who should be protected from excessively high rents.
