German Federal Court Prohibits Profitable Subletting ModelThe German Federal Court of Justice (BGH) has delivered a decisive ruling concerning the practice of subletting apartments for profit. The property owner objected to the arrangement, terminated the tenant's lease, and the dispute escalated to the nation's highest civil court. However, the court clarified that subletting should not serve as a means for tenants to generate personal profit. The case centered on whether tenants could legally charge a higher sublet rate than their own rent, particularly when offering a fully furnished apartment. Instead, the court ruled that the substantial difference between the original rent and the sublet rate, regardless of the apartment's furnishings, constituted an impermissible profit.

Source: The Munich Eye January 28, 2026 15:38 UTC