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Wednesday, January 28

German court rules against profit from subletting 

When a tenant asked for more than double his cold rent from a subletter, his landlord evicted him, a decision held up by the Federal Court of Justice.

IMAGO / Sabine Gudath

Wednesday, January 28

The Federal Court of Justice (BGH), Germany’s highest civil court, decided on Wednesday that a tenant may not profit from subletting. That means, if you sublet your apartment, the rent cost cannot exceed its own expenses. The presiding judge, Ralph Bünger, made it clear that the only legitimate interest of a tenant while subletting should be to cover the housing-related expenses and not to make a profit.

This ruling came from a specific case in Berlin of a landlord who terminated a rental contract because the tenant had profitably sublet his apartment while spending time abroad. The 43-year-old tenant asked for 962 euros per month for a 65-square-metre, two-room flat, even though cold rent was only 460 euros. This means that he asked for more than double his true rent.

However, the ruling raises the question of how much should be charged for furnishings. The tenant argued that he had provided his subtenants with a fully equipped apartment, including a TV, sound system and dishwasher, which made up for the extra cost. 

Currently, Germany has no reasonable model for taking furniture and goods into sub-rental consideration, a fact confirmed by the German Tenants’ Association. Therefore, the Federal Ministry of Justice is currently planning to outline legal rules for a furnishing surcharge.

Still, the Federal Court of Justice rejected the tenant’s review, and their eviction judgment is final.