New Ruling Confirms Legal Boundaries For Short-term Subletting

Illegal short-term letting is a widespread and growing problem in major Danish cities. This phenomenon undermines hotel competition and puts pressure on the housing market. A recent significant ruling in this area provides some guidance on the otherwise untried legal regime.

Background to the dispute

The case concerned seven residential leases let by City Apartment A/S to Dehn-A ApS. Dehn-A ApS had systematically and consistently offered these leases on “hotel-like terms” via the Booking.com website. This was despite year-round residency being agreed. City Apartment A/S proved to the court that no one had registered their residency at the properties. On this basis, the Copenhagen City Court ruled that this behaviour constituted a clear material breach of the lease agreements and the requirement for year-round residential use.