The German Federal Court of Justice (BGH) has resolved a dispute over profit from subletting apartments. Tenants are now officially prohibited from profiting from subletting their rooms or apartments. The decision sets an important precedent for the entire country.
The case began in Berlin, where a tenant of a two-room apartment was paying the landlord EUR 460 per month and charging subtenants EUR 962. Furthermore, the subletting was done without the landlord's consent.
After learning about the fraud, the landlord terminated the contract. The court sided with the landlord, confirming that subletting should not be a source of profit. In addition, the rent set by the tenant significantly exceeded the legal limit for the area (Mietpreisbremse).
In large German cities, where there is a housing shortage, the practice of “subletting“ is widespread.
Main conclusions from the court's decision:
- Profit prohibited. The purpose of subletting is to help the tenant keep their home while they are away, not to profit from the price difference.
- Risk of eviction. Illegal subletting and inflated prices are now grounds for terminating the main contract.
- Rights of subletting. People who rent through agents can now legally challenge inflated prices, citing this court precedent.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg