Top German court rules subletting for profit illegal

Tenants in Germany are not allowed to make profit by subletting their apartment without consent, the Federal Court of Justice ruled on Wednesday.

The legitimate interest of a tenant in subletting is to cover housing-related expenses, not to create the opportunity to make a profit, the Karlsruhe-based court said.

The case regarded a landlady who terminated her tenant's contract because he sublet his one-bedroomed flat in Berlin "for profit."

The 43-year-old charged €962 ($1,150) per month for the 65-square-metre flat, despite paying only €460 in rent himself.

The tenant argued that he had left the flat fully furnished, including a television, sound system, dishwasher and washing machine.

Germany's tightly regulated rental market includes a loophole for furnished flats, allowing private owners and housing companies to hike prices.

The German Tenants' Association warns that there are no reasonable models to calculate how furniture and household goods should be included in rent costs.

The Justice Ministry in Berlin is currently planning legal rules for the furniture surcharge.

The Federal Court of Justice rejected the tenant's appeal, meaning his eviction notice is final. However, the court did not rule on the question of furnished flats.