Are tenants allowed to make a profit from subletting a flat in Germany?

It is perfectly legal to sublet your flat in Germany – as long as you've got the green light from your landlord or property manager (Hausverwaltung).

But are you allowed to make money from this? And if so how much?

These are some of the questions Germany’s Federal Court of Justice (BGH) has been considering following a high profile case where Abdur-Rahman El-Khadra, a tenant in Berlin, charged more than double his own rent to a subletter.

The 42-year-old tenant is fighting to keep his lease after his landlord took him to court for subletting his two-room flat for €962 a month, while he pays just €460.

The case has drawn national attention amid Germany’s worsening affordable-housing crisis, which affects large cities like Berlin.

READ ALSO: How to sublet your apartment in Germany

What does the tenant say?

In an interview with German news agency DPA, El-Khadra, who lives in the 65-square-metre apartment with his partner, said he didn't set out to make a profit on the sublet.

"It wasn't my intention to make money from it,” he said, arguing that he charged a higher price because the apartment was fully furnished for the subtenants. The flat included some homemade furniture, a TV, sound system, dishwasher and washing machine. 

To decide on the rental cost, the industrial engineer said he created a spreadsheet and looked at what his belongings were worth. But he added that this was difficult because "there are no reasonable calculation models" in Germany for how furniture and household goods can be factored into the rent.

El-Khadra said he also looked at other sublets nearby to see how they were advertised and noticed: "We were among the cheapest."

El-Khadra had sublet the apartment while he was abroad, initially with the landlord's permission. Due to the Covid pandemic, he had to stay in Central America longer and informed his landlord that he wanted to continue subletting the flat.

According to the Berlin Regional Court, which initially handled the case, the landlord did not respond at first. However, El-Khadra says after two years he suddenly received a notice of termination. 

El-Khadra's lawyer, Sophie Thürk, argues the decisive factor is whether the tenant has a legitimate interest in subletting. She said this is clearly the case here because her client wanted to keep his apartment during a stay abroad, and had left personal belongings behind.

What the tenant then negotiates with the subtenants is solely their business, Thürk said, adding: “The landlord has nothing to do with the sublease."

The landlord's representative, Siegfried Mennemeyer, said the landlord has no objections to a sublease enabling the main tenant to pay his rent. “The question is whether you can turn it into a profit model," Mennemeyer said. 

What are German courts saying?

The Berlin Court ruled that the surcharge was disproportionately high – especially since the landlord did not receive a share of the income. The court also said the sublet price went against rent control laws. For both of these reasons, the landlord does not have to allow the subletting, the court ruled.

Whether tenants in Germany can profit from subletting – and under what conditions – has yet to be clarified by the Justice Court.

Presiding Judge Ralph Bünger on Wednesday called it a "highly interesting question" that affects landlords, tenants and subtenants alike, particularly in view of the strained housing market across German cities. 

Bünger suggested that current laws and rulings suggest the purpose of subletting is to allow the tenant to hold onto their apartment while they are away and not to make a profit. 

However, the court plans to issue a ruling on January 28th 2026.

READ ALSO: Tenants have the right to sublet rooms in Germany, court rules

What do tenants associations say?

Tenants associations say that making a profit on sublets is exploitative.

Sabine Schuhrmann from the German Tenants' Association said many people in Germany do not voluntarily live in sublets; they have to because they cannot find an apartment of their own. 

"This plight of apartment seekers is being exploited by the ‘profitable subletting’ model," she said.

But Schuhrmann noted there are currently no legal rules governing furniture surcharges or stipulations that sublets should not be higher than the main tenant's rent.

To address this gap, the Justice Ministry is preparing a draft law that aims to set clear limits on furniture surcharges and specify what amount is permissible.

“When tenants sublet, they themselves become landlords and must adhere to the same legal rules that apply to landlords,” said Schuhrmann.