Seeking a profit from subletting does not establish a legitimate interest under section 553(1) of the German Civil Code.
The dispute
A tenant sublet a flat without permission for considerably more than their own housing-related expenses. The landlord gave notice after a warning.
The decision
The Federal Court of Justice upheld the termination in the circumstances of this case. A tenant has no statutory entitlement to consent for subletting that aims to generate profit beyond recovering their own housing expenses.
Practical relevance
Ordinary subletting remains possible where a legitimate interest exists. Landlords and tenants should distinguish between reducing housing costs and pursuing an independent profit.