Fair rent for subletting in Sweden: A Bofrids guide

Renting out your apartment in second hand can be a good source of income, but it is important to know the rules that apply to setting a reasonable rent. Here we go through the Swedish Rent Tribunal's guidelines for both rental apartments and condominiums, so you avoid problems and can rent out safely in Sweden.

What does the term "reasonable rent" actually mean?

The term "reasonable rent" is central to Swedish rental law and aims to protect tenants from unreasonable rental terms, while giving landlords a reasonable return on their investment in Sweden. It is about finding a balance between these two interests. A rent is considered reasonable if it is not unreasonably high compared to the rent for equivalent housing in the locality. What is "equivalent" can include factors such as size, standard, location and any additional services included in the rent. The Swedish Rent Tribunal plays an important role in determining what is a reasonable rent in specific disputes. It is important to note that the rules differ depending on whether it is a rental apartment or a condominium in Sweden.

For rental apartments, the assessment of reasonable rent is primarily based on the use value principle. This means that the rent must correspond to the value of the home based on its characteristics and standard, compared to other similar apartments in the area. For condominiums, there is greater flexibility, but there are also limitations here. The landlord may include their costs for capital and operation, but the rent must not be unreasonably high under Swedish law.

How is reasonable rent calculated for a rental apartment in second hand?

When you rent out a rental apartment in second hand in Sweden, the use value principle applies to determine a reasonable rent. The use value is based on a number of factors that affect the apartment's attractiveness and usability. These factors include the apartment's size, floor plan, location within the property, standard (for example, material choices and appliances), sound insulation, access to common areas (such as laundry room and courtyard) as well as the property's general condition and service.

To determine the use value, you compare your apartment with other similar rental apartments in the area. The Swedish Rent Tribunal can make such a comparison if a dispute arises. It is important to remember that as a landlord, you cannot add to the rent simply because you think the apartment is worth more. The rent must reflect the objective use value. It is not allowed to charge a higher rent than you yourself pay to your landlord, unless you have made improvements to the apartment that have increased its use value (which must be approved by the landlord). If you rent out the apartment furnished, you can charge a small addition for this, but it should be proportionate under Swedish rental practices.

What rules apply to reasonable rent when renting out a condominium in Sweden?

When you rent out your condominium in second hand in Sweden, there is a little more flexibility in how you set the rent compared to a rental apartment. Here, as a landlord, you can take into account your own costs for the home. These costs may include:

• Capital cost: This is the cost you have to own the home, for example, interest on mortgage loans. You may include a reasonable return on your capital.

• Operating costs: This includes costs for electricity, water, heating, broadband, any parking space and other similar expenses.

• Fee to the condominium association: The monthly fee you pay to the association should also be included in the rent.

• Furnishing: If you rent out the apartment furnished, you can charge an addition for this.

It is important that you can specify and justify these costs if a dispute should arise. Even if you have the right to charge a rent that covers your costs, the rent must not be unreasonably high. The Swedish Rent Tribunal will make an overall assessment and compare the rent with similar condominiums in the area. If the rent is considered unreasonable, it can be lowered.

How to avoid disputes about reasonable rent for your Swedish property?

To avoid disputes about reasonable rent, it is important to be transparent and clear from the beginning. Here are some tips for expats in Sweden:

• Communicate openly: Discuss the rent with the potential tenant and explain how you have arrived at the amount.

• Document costs: Save all receipts and documents that support your costs for the home in Sweden.

• Compare with similar homes: Do research and see what similar apartments in the area are rented out for.

• Write a clear rental agreement: In the rental agreement, the rent must be specified, as well as what is included in the rent (for example, electricity, water, broadband).

• Be realistic: Set a rent that is reasonable and market-based. Do not try to make a lot of money on the rental, but focus on covering your costs in Sweden.

If you are unsure what is a reasonable rent, you can contact the Swedish Rent Tribunal (Hyresnämnden) for advice.

What happens if the tenant considers the rent unreasonable in Sweden?

If the tenant considers the rent unreasonable, he or she has the right to contact the Swedish Rent Tribunal to have the rent reviewed. The Swedish Rent Tribunal will then make an assessment of the rent and compare it with rents for similar homes in the area. If the Swedish Rent Tribunal considers the rent unreasonable, they can decide to lower the rent. The decision may apply retroactively, which means that the landlord may be required to pay back part of the rent that has already been paid. It is therefore important to be careful and set a reasonable rent from the start when operating in Sweden.

How does the location affect the rent and what counts as a good location in Sweden?

The location is one of the most crucial factors when it comes to rent setting in Sweden. An apartment located in an attractive area with good communications, proximity to service and entertainment, as well as a safe and pleasant environment, will naturally have a higher use value than an apartment in a less sought-after area. What is considered a good location can, however, be subjective and vary depending on the tenant's preferences.

Generally, the following factors contribute to an attractive location in Sweden:

• Proximity to public transport: Easy access to buses, subway or tram is important for many tenants in Sweden.

• Proximity to service: Access to grocery stores, restaurants, pharmacies and other important service facilities is an advantage.

• Safety: An area with low crime and good lighting is perceived as safer and more attractive in Sweden.

• Green areas: Proximity to parks and green areas is appreciated by many.

• Proximity to workplaces and schools: For many, it is important to be close to work or school.

It is important to take these factors into account when setting the rent. If your apartment has an attractive location, you can charge a higher rent, but it is still important that the rent is reasonable and proportionate according to Swedish standards.

Common questions

What happens if I charge too high a rent in Sweden?

If you charge too high a rent and the tenant turns to the Swedish Rent Tribunal, the Swedish Rent Tribunal can decide to lower the rent. You may also be required to pay back part of the rent that has already been paid. In the worst case, you may also risk being prosecuted for usury rent, which is a crime in Sweden.

Can I raise the rent during the rental period in Sweden?

For rental apartments, it is in principle not possible to raise the rent during the rental period, unless this is agreed in the rental agreement. For condominiums, you can in theory raise the rent, but it is important that you notify the tenant in good time and that the increase is reasonable and justified under Swedish law. If the tenant does not accept the increase, you can contact the Swedish Rent Tribunal to have the matter reviewed.

What counts as an "equivalent" home when comparing the rent in Sweden?

When comparing the rent, the Swedish Rent Tribunal takes into account a number of factors, including the apartment's size, floor plan, standard, location within the property, sound insulation, access to common areas as well as the property's general condition and service. You compare with other similar apartments in the same area within Sweden.

Can I charge a higher rent if I have renovated the apartment in Sweden?

If you have renovated the apartment and increased its use value, you can in theory charge a higher rent. For rental apartments, however, it is required that the renovation has been approved by the landlord and that the rent has been renegotiated with the tenants' association. For condominiums, you can take into account the renovation costs when setting the rent, but the rent must still not be unreasonably high according to Swedish regulations.