Friday, September 26
How much is too much to charge on a sublet?
Berlin’s housing market is notoriously tight, and dubious subletters are only making it worse. By exploiting old contracts, some tenants charge far above their own rent, pocketing the difference. Now Germany’s highest court is preparing to set a precedent.
In Charlottenburg, one tenant had secured a good deal. Since 2009, he had been paying €460 a month for his flat, at a time when the district’s average rent was €9 per square metre. But when he sublet the apartment, he charged €962 – more than double his own rent – and made a monthly profit of around €500. When the landlord uncovered this, he issued an eviction notice. The tenant has challenged the decision, and the case is now headed to the Federal Court of Justice (BGH) in Karlsruhe. Judges there will decide whether tenants risk losing their homes if they profit from subletting.
The dispute is not only about the right to sublet, but also about unfair pricing. Under Berlin’s rent index, which sets limits on what can be charged, the maximum legal rent should have been €748.
At the heart of the case lies a simple question: what is subletting for? Is it meant to allow tenants to cover costs while abroad or temporarily away, or can it legitimately serve as a source of profit? Whatever the ruling, the outcome is likely to shape subletting rights across Germany.
