Renting an Apartment with a First-Hand Contract: Benefits and Requirements

What is a First-Hand Contract?

Renting an apartment with a first-hand contract means you sign an agreement directly with the property owner or landlord. This is the most sought-after type of rental agreement in Sweden, as it gives you the strongest possibility to live there as long as you wish and, in some cases, to transfer the contract.

Benefits of a First-Hand Contract

The advantages of renting a home with a first-hand contract are numerous and significant. The primary benefit is security. You have a direct agreement with the landlord, which provides strong tenant protection. This means the landlord cannot terminate your contract arbitrarily; it usually requires you, the tenant, to be grossly negligent, for example, by not paying rent or causing serious disturbances.

Another major advantage is the ability to influence your living environment. With a first-hand contract, you often have more freedom to wallpaper, repaint, or make other minor changes to the apartment, provided you restore it to its original condition upon moving out or if specific rules are in the contract. You also avoid the uncertainty that can come with second-hand contracts, where you depend on the first-hand tenant's agreement and approval.

Furthermore, a first-hand contract can be a stepping stone for future living situations. In some municipalities and housing companies, it may be easier to obtain loans or other benefits if you can present a stable first-hand contract. It is also easier to get a first-hand contract if you wish to sublet, as you have the right to do so (with the landlord's approval).

Requirements for Obtaining a First-Hand Contract

Securing a first-hand contract is not always easy, especially in major cities where demand is high. Landlords have different requirements, but some common ones include:

• Income Requirements: Most landlords require you to have a stable and sufficiently high income to afford the rent. Often, an annual income requirement of at least three to four times the annual rent is stated. Sometimes, they may also require you to have permanent employment.
• Credit Check: A credit check is standard. The landlord wants to ensure you have no payment defaults or debts that could affect your ability to pay rent.
• References: Some landlords may ask for references from previous landlords to verify that you have been a responsible tenant.
• Number of Occupants: There may be rules regarding how many people can live in an apartment based on its size.
• No Payment Defaults: This is one of the most common requirements. Payment defaults can be a barrier to obtaining a first-hand contract.

How to Find an Apartment with a First-Hand Contract

Finding an apartment with a first-hand contract requires patience and strategy. Here are some tips:

• Register with Housing Agencies: Many municipalities have their own housing agencies where you can accumulate points or queue for a contract. The longer you are on the waiting list, the better your chances.
• Monitor Private Landlords: Large private property owners often have their own websites where they advertise available apartments. Be prepared to act quickly when an apartment becomes vacant.
• Network: Tell friends, family, and colleagues that you are looking for housing. Sometimes, available contracts can appear through connections.
• Be Flexible: Be open to different areas and apartment sizes if possible. Sometimes, it may be easier to get a contract in a less popular area.

First-Hand Contract Regulations and What Applies

The regulations surrounding first-hand contracts in Sweden are primarily governed by the Swedish Land Code (Jordabalken). A first-hand contract is an agreement between you and the landlord. It specifies the rent, notice period, and other conditions. The notice period is usually three months for you as a tenant, but can be longer for the landlord depending on the contract's duration and type.

If you wish to sublet your apartment, which is a common situation for those with a first-hand contract, landlord permission is required. This also applies if you want to swap apartments with someone. Subletting without permission can lead to the loss of your first-hand contract.

FAQ

What is the difference between a first-hand and a second-hand contract?

A first-hand contract is an agreement directly with the property owner, while a second-hand contract is an agreement with someone who is already renting the property in the first instance. The first-hand contract offers stronger rights and security.

Can I get a first-hand contract if I have payment defaults?

It is very difficult. Most landlords require that you have no payment defaults.

How long does it take to get a first-hand contract?

It varies enormously. In major cities, it can take many years to get a contract through a municipal housing agency, while it can be quicker with private landlords if you are lucky and meet their requirements.

Can I transfer my first-hand contract?

Under certain circumstances, yes. However, it requires the landlord's approval, and there are specific rules for estates and cohabiting partners/spouses.

What happens if I cannot pay the rent?

If you cannot pay the rent, you risk being evicted from your home. It is crucial to contact your landlord immediately if you experience payment difficulties to try and find a solution.