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4. Subletting Permission – Tenant and Landlord Rights Explained

Subletting Permission – Tenant and Landlord Rights Explained

Landlord’s Permission for Subletting

Subletting means that a tenant rents out part of their apartment or a single room to another person. This is common in shared apartments but generally requires the landlord’s approval.

An exception applies to close family members, spouses, or registered partners. They are not considered subtenants under the law. In such cases, a written notification to the landlord is sufficient – no approval is needed.

Tenant’s Right to Approval under § 540 BGB

Tenants have a legal right to sublet approval if, after signing the lease, a legitimate interest arises (§ 540 BGB). Such an interest may exist if the tenant:

• experiences financial hardship (e.g., due to unemployment)
• wants to move in with a partner or friend
• is away for work for an extended period and wants to rent out part of the home

Courts generally recognize these as valid reasons, provided there are no serious concerns about the subtenant.

Reasons for Denying Subletting

A landlord may only refuse subletting if there are justified reasons, such as:

• Overcrowding of the apartment
• The subtenant is unreasonable or unreliable (e.g., poor behavior or bad credit)
• Subletting would cause economic or personal hardship for the landlord

Without such reasons, the landlord must grant permission. While approval can be given verbally, a written confirmation is recommended for legal protection.

Subletting Without Permission

If a tenant sublets without the landlord’s consent, this may justify immediate termination of the lease. However, the landlord must first issue a formal warning and allow the tenant to end the sublet arrangement.

Important: If the landlord should have granted permission based on the tenant’s legitimate interest, a termination is invalid. In that case, the tenancy continues.

Rent Increase for Subletting

A landlord may link their consent to subletting to a reasonable rent increase only if the additional occupant significantly increases costs, such as in an inclusive rent arrangement where utilities are covered.

In most cases, however, tenants pay for utilities themselves, so no extra costs arise for the landlord. Therefore, demanding higher rent as a condition for consent is usually not permissible.