Overview

• Germany’s Federal Court of Justice is hearing whether landlords can terminate leases when tenants sublet at a profit, with a decision timing not yet indicated.
• In the case at issue, the tenant charged €962 to subtenants while paying €460 base rent and did not share proceeds with the landlord.
• The Berlin Regional Court had upheld the landlord’s eviction claim, finding profit-oriented subletting and a breach of rent-cap rules sufficient grounds, reversing a lower court.
• According to references in the proceedings, no more than €748 would have been permissible under the Mietpreisbremse, and there is currently no statutory formula for furniture surcharges.
• The tenant denies an intent to profit and cites unclear valuation of furnishings, while the German Tenants’ Association warns the model exploits renters facing scarce housing options.