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BGH Weighs Eviction Over Profit-Making Sublet, Ruling Due in January

Judges signaled doubts that underletting should yield profits rather than merely reduce a tenant’s costs.

Overview

  • The Federal Court of Justice heard a Berlin case testing whether landlords may terminate leases when tenants sublet for gain, with a ruling planned for 28 January (Az. VIII ZR 228/23).
  • In the dispute, the tenant paid €460 cold rent but charged subtenants €962, arguing the fully furnished flat justified the premium and denying an intent to profit.
  • The Berlin Regional Court had upheld the landlord’s eviction claim after the Charlottenburg District Court initially rejected it, citing excessive profit and violations of rent-cap rules.
  • According to calculations referenced in court, the rent cap would have allowed at most €748 for the sublet, well below what was charged.
  • Tenant advocates highlighted the lack of clear rules for furnishing surcharges and said the Justice Ministry is preparing a draft law to regulate such add-ons.