Subletting in the Third Hand: Rules and Risks 2024

Subletting in the third hand means you are renting out an apartment that you yourself rent, to a second-hand tenant. This can seem like an attractive solution for both those who want to earn some extra money and those who need housing quickly, but it is surrounded by strict rules and potential risks. Understanding these rules is crucial to avoid problems.

What does subletting in the third hand entail?

When we talk about subletting in the third hand, it means that the original tenant (the one with the first-hand contract) rents out the apartment to someone (the second-hand tenant), who in turn rents it out further to a third party. However, this is not permitted without permission.

In practice, the most common scenario is that the first-hand tenant rents out their apartment to a second-hand tenant. Subletting in the third hand, meaning the person renting in the second hand rents it out further, is significantly more complicated and rare. For this to be legal at all, permission is required from both the original landlord and the person renting in the first hand.

Conditions for subletting in the third hand

To legally sublet in the third hand, permission is almost always required. The person with the first-hand contract must first obtain permission from their landlord to sublet in the second hand. Subsequently, the second-hand tenant must get permission from the first-hand tenant to sublet in the third hand. This is a complicated process that is rarely approved, especially by large landlords.

The most common reasons why landlords might approve second-hand subletting (which is a step before third hand) are:

• Work or studies in another location: If the tenant temporarily has to live elsewhere.
• Illness or old age: If the tenant needs to move to a care facility.
• Extended stay abroad: If the tenant plans to be away for a longer period.

Subletting in the third hand is extremely uncommon and requires all involved parties, including the original landlord, to give their explicit consent. Permission is often difficult to obtain.

Rules and legislation regarding third-hand subletting

The Tenancy Act (Chapter 12 of the Land Code) regulates second-hand subletting. Although the law primarily focuses on second-hand subletting, the principles are the same for third-hand subletting – permission is required.

If you sublet in the third hand without permission, you risk serious consequences. The first-hand tenant can lose their contract, and the third-hand tenant may also be forced to move out without notice.

Third-hand contract rules

A third-hand contract is essentially an agreement between the second-hand tenant and the person who will rent in the third hand. This agreement is legally weak unless permission from the original landlord exists. Without permission, the agreement is invalid and can lead to problems for all parties.

If permission is granted, the contract should clearly specify:

• Rental period
• Rent amount (must not be higher than what the second-hand tenant pays to the first-hand tenant, plus reasonable compensation for furniture and utilities if furnished)
• Termination rules
• Responsibility for damages

It is important to understand that the person renting in the third hand does not have the same strong protection of possession as a first-hand tenant.

Risks of subletting in the third hand

Subletting in the third hand involves significant risks for all parties involved.

Risks for the first-hand tenant (the one with the contract)

• Contract termination: If the landlord discovers unauthorized second-hand or third-hand subletting, the first-hand tenant can have their contract terminated.
• Financial responsibility: The first-hand tenant remains ultimately responsible for the apartment and the rent, even if someone else lives there.
• Problems with the second-hand tenant: If the second-hand tenant misbehaves or fails to pay rent, it can affect the first-hand tenant.

Risks for the second-hand tenant (the one subletting in the second hand)

• Illegal subletting: If the subletting occurs without permission, it is illegal. The second-hand tenant may be forced to move out on short notice.
• Lack of protection of possession: Even with permission, the second-hand tenant has weaker protection of possession than a first-hand tenant.
• Problems with the third-hand tenant: If the third-hand tenant causes damage or fails to pay rent, the second-hand tenant may become liable.

Risks for the third-hand tenant

• Immediate eviction: If the subletting is not approved, the third-hand tenant can be evicted without notice.
• Lack of security: Absence of legal protection and uncertainty about their housing.
• Difficulty recovering deposit: If problems arise, it may be difficult to recover any deposit paid.

Consequences of subletting in the third hand without permission

The consequences of subletting in the third hand without permission can be severe. The first-hand tenant risks eviction and may face difficulties obtaining new rental contracts in the future. The person renting in the second hand and subletting further can also face repercussions from their landlord. The third-hand tenant can end up in a vulnerable situation without formal housing. Therefore, it is extremely important to always obtain the necessary permissions.

What to do if you have problems?

If you find yourself in a situation where you are subletting or renting in the third hand and encounter problems, there are a few steps you can take.

If you sublet in the third hand and the tenant doesn't pay

If you are the second-hand tenant and your third-hand tenant fails to pay the rent, you are still obligated to pay the rent to the first-hand tenant. You should immediately try to resolve the situation with your tenant. If that fails, you may need to take legal action to have the person move out, but this can be complicated and costly.

If you rent in the third hand and your landlord (second hand) misbehaves

If you are the third-hand tenant and experience problems with your landlord (the second-hand tenant), such as lack of maintenance or exorbitant rent, your situation is difficult. Since your contract is not approved by the original landlord, you have limited legal options. Try to communicate the problem in writing and seek advice from the Tenants' Association (Hyresgästföreningen).

If you are the first-hand tenant and your contract is threatened

If you have sublet in the second or third hand without permission and your landlord discovers it, you may face termination. It is important to act quickly. Try to communicate with your landlord, explain the situation, and apologize. If possible, try to terminate the unauthorized subletting immediately. Seek legal advice if you receive a formal notice of termination.

Frequently asked questions about subletting in the third hand

### Can I sublet in the third hand without permission?

No, subletting in the third hand without permission from both the first-hand tenant and the original landlord is not permitted under Swedish tenancy law. It can lead to the first-hand tenant losing their contract and the third-hand tenant being forced to move out immediately.

### What is the difference between second hand and third hand subletting?

Subletting in the second hand means the first-hand tenant rents out their apartment to a second-hand tenant, with the landlord's permission. Subletting in the third hand means someone who is already renting in the second hand rents out the apartment further to a third party. This requires an additional permission from the first-hand tenant and often also from the original landlord.

### What happens if I sublet in the third hand and get caught?

If you, as the first-hand tenant, are caught with unauthorized third-hand subletting, you risk being evicted from your apartment. The person renting in the third hand may be forced to move out without notice. It is therefore crucial to always have permission.

### Can I charge more rent to the third-hand tenant?

No, you cannot charge a higher rent to the third-hand tenant than what you yourself pay to the first-hand tenant, plus reasonable compensation for furniture and utilities if the apartment is furnished. Usurious rent is illegal.

### Is it difficult to sublet in the third hand?

Yes, it is generally difficult to sublet in the third hand. It requires permission from multiple parties, and many landlords are reluctant to approve this type of subletting due to the increased risks and complexity. It is significantly more common and easier to obtain permission for second-hand subletting.