The Federal Court of Justice (BGH) has made a landmark decision for landlords with its ruling of January 28, 2026. Tenants who sublet parts of their apartment without the landlord's permission to make a permanent profit risk immediate termination of their lease.
The Case Facts
In this specific case, a tenant sublet two rooms of her rented 3-room apartment to subtenants. The problem: the sublet rent charged was significantly higher than the total rent she paid to the landlord herself. She thus generated a monthly net profit from subletting the rooms, while she herself hardly lived in the apartment anymore. The landlord found out about the commercial subletting and terminated the lease agreement without notice, or alternatively, with ordinary notice.
The BGH Decision
The BGH confirmed the legality of the termination. The judges clarified that although tenants can have a legitimate interest in subletting under certain conditions (e.g., financial emergency, separation) (in accordance with § 553 BGB), this legitimate interest expires as soon as the subletting is carried out primarily with an **intent to make a profit** that goes beyond merely covering one's own warm rental costs.
"A legitimate interest in subletting does not exist if the tenant generates a systematic surplus through subletting and thereby creates their own source of income at the expense of the owner." — Federal Court of Justice, January 2026
Practical Tips for Landlords
In order to react as a landlord in a legally secure manner to unauthorized subletting, we recommend the following steps:
- Check Lease Agreements: Ensure that your lease agreement contains a clear clause making any subletting subject to the landlord's written consent.
- Withhold Consent: If profit generation is present (e.g., ads on platforms like Airbnb or inflated shared apartment room prices), you have the right to prohibit the subletting.
- Issue a Warning: Document the violation (e.g., screenshots from online portals, witness statements from neighbors) and warn the tenant in writing with a short deadline.
- Issue Termination: If the tenant does not react or continues the unauthorized subletting, you are entitled to ordinary or, in serious cases, extraordinary termination without notice.
Conclusion
This ruling significantly strengthens the rights of property owners. Living space must not be misused by tenants to generate commercial profits without agreement. As your property management company, we keep an eye on such developments and support you in the legally secure enforcement of your ownership rights.
Note on source: This article is based on the landmark decisions of the Federal Court of Justice (BGH) on unauthorized subletting via online portals and the landlord's rights of termination. The content was carefully analyzed by the ImmoLevia editorial team, independently formulated, and prepared in a practical way for our readers.