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Tenancy Law · Court decision of 28.01.2026

Federal Court: Subletting for profit does not create a legitimate interest

A tenant cannot demand permission to sublet solely in order to earn a profit beyond their housing-related expenses.

JudgmentBGH · VIII ZR 228/23
Key takeaway

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.

Case reference and full-text accessBGH · VIII ZR 228/23 ↗These articles provide general information and are not a substitute for advice on a specific case.
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