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Rules and conditions for letting properties through Homerental.se

We are very pleased to welcome you to Homerental! Before you decide to sublet your residential property there are several things to consider. Here, we provide you with some useful advice and information to read through and think about.

You must have permission to sublet

When subletting your accommodation you must have the consent of your landlord or tenant-owners association. If the landlord refuses your request to sublet the property, you can contact the rent tribunal (hyresnämnden). The rent tribunal decides whether permission can be granted.

In the case of subletting a property under a protected tenancy (hyresrätt), there must be significant reasons for the sublet. Examples of significant reasons include age, hospital stays, studies, temporary work in a different location or specific family relationships - for example if you want to move in with a cohabiting partner but want to hold on to your apartment.

If you have a tenant-owner property, you can also rely on other reasons to sublet your property. For example, if it is difficult to sell the property or if you need to let it out to relatives who need accommodation.

Remember that not all landlords permit their properties to be let to companies. Request permission in good time and always ask for your approved permission in writing.

If you intend to let your detached house or terraced house, you do not need permission because as the property owner you can decided whether you want to let your house, how long you want to let it for and who the tenant is. You will still need an extract from the Swedish mapping, cadastral and land registration authority (Lantmäteriet) to prove that you are the property owner and you will also need identification documents for you and all property owners.

The Tenancy Act (hyreslagen) governs the letting of properties under a protected tenancy. Rental of one’s own residential property has been governed since 1 February 2013 by the law on letting of one’s own residential property.

https://lagen.nu/1970:994#K12

https://lagen.nu/2012:978

Rental amount

At homrental.se, everyone who mediates rental properties is registered as a rental agent and follows the provisions of the Real Estate Agent Act (fastighetsmäklarlagen, FML). Employees must act as impartial agents, which means that they cannot give advice or recommend rental amounts. There is a directive from the government and the rent tribunal to use as a basis for the relevant rent, you can read about it here: Rent tribunal on reasonable rent

Rental amount - protected tenancy

When you let a rented property, you need to charge a reasonable rent, which essentially means the same rent that you pay for the apartment. If the apartment is furnished, you can add a small amount for the furniture. The rent tribunal normally approves a surcharge of about 10-15 percent of the rent.

If a subletting tenant has paid an unreasonable rent, they can contact the rent tribunal and request to have the unreasonable portion of the rent to be repaid. Subletting tenants also have the right to have a reduction in the rent before the following rental period.

Unreasonable rents may need to be repaid up to one year in arrears, calculated from the date of the application. A tenant must apply no later than three months from the date they vacated the apartment, i.e. normally within three months from the date the lease contract expired.

Rental amount - privately-owned residential property (tenant-owner, owner occupied apartment, terraced house, detached house)

In the case of subletting a privately-owned property, the person subletting the property must charge a cost-based rent. This is calculated as a reasonable rate of return on the market value of the property per year, excluding monthly charges and any operating costs.

The relevant target value for the rate of return is currently four percent. 

Operating costs mean costs that the landlord letting the property incurs in order to maintain the property in the condition in which it was let. Examples of these costs are fees to the tenant-owners association, wear and tear of furniture or costs for electricity and broadband. Remember that the actually incurred costs should be covered.

If you let a furnished property, you are entitled to charge an amount for the furniture. The rent tribunal normally approves a surcharge of about 10-15 percent of the rent.

If the agreed rent significantly exceeds the capital costs and operating costs of the accommodation, the rent tribunal must reduce the rent if the tenant requests this. The landlord is not entitled to have the rent increased by the rent tribunal. There is also no option for the tenant to apply to have an amount repaid which they have paid in excess of the rental amount specified in the law.

Responsibility and rights when subletting

Even if you are subletting, as the primary tenant you have ultimate responsibility for your apartment. You are responsible for ensuring that the rent is paid on time and that the subletting tenant and their visitors behave properly.

The property must be kept at a good standard and be professionally cleaned when the subletting tenant moves in. In turn, the tenant has an equivalent responsibility on the day they move out of the property.  

As the landlord, you are not entitled to enter the apartment without permission. The only time the landlord is entitled to have immediate access to the apartment is to carry out necessary inspections or improvement works. This could be to inspect smoke from a fire or a suspected water leak.

If, as the landlord, you spend time abroad during the rental period, you should have a contact person in Sweden to represent you and to provide assistance if any problems should arise in the property. Make sure that you have a written authorisation for this and that it has been submitted to the property owner or tenant-owners association.

Rental agreement and Homerental - you can have help with the following

Homerental.se helps draft lease contracts and gathers together all the necessary documents, such as the approval to sublet, identification documents and title documents.

The lease contract is drawn up in two identical copies, one of which is retained by the landlord and the other by the tenant. All contract copies are always signed by both parties. If required, separate deposit agreements will be drawn up.

No rent or any deposit are paid until a lease contract is signed by both parties. The deposit is usually paid at the same time as the first month’s rent and is refunded when the tenant moves out of the property after it has been inspected successfully and the rental period expires.

Fixtures and inspection of the property - when you let a furnished property

If the property is let furnished, as the landlord you should draw up an inventory of the furniture and fixtures in the apartment. Any damage to the apartment and fixtures should also be noted in an inspection report.

The tenant signs the inventory when they move in and confirms the stated condition of the fixtures. An inspection report should also be signed.

At the end of the tenancy, it is the responsibility of the landlord to check the fixtures, inspect the property and acknowledge and approve in an inspection report signed by both parties that the tenant has taken appropriate care of the fixtures. Ensure that both parties receive a copy of the signed inventory and the inspection report.

The tenant is liable for damage or loss of fixtures or to the property unless they can show that they or any person for which they are responsible did not cause the damage.

What happens if your property is damaged

The tenant must take good care of the apartment during the rental period, which also means that they must take care of any furniture and fixtures. The tenant is liable to compensate for all damage caused by their fault, negligence or neglect. This also applies to any person belonging to the tenant’s household, a visitor or another person that the tenant houses in the property or who is present to carry out work on behalf of the tenant. The level of caution required by the tenant depends on the condition of the property, the purpose of the let, the general condition of the block and similar factors.

However, there are exceptions to the tenant’s liability. A property is subject to wear and tear from normal usage. General wear and tear will result in defects over a certain period of time, which can be viewed as damage. The tenant is not liable for this type of damage that is caused by normal wear and tear. The tenant is also not liable for damage caused by accidents.

The party claiming that another person has caused damage, in this case the landlord, must usually be able to prove their claim. As the landlord, you usually only have the option to prove that there was no damage when the tenant moved in, but it was there when they moved out. Disputes over whether damage occurred during the rental period or was already there when the tenant moved in can largely be prevented if the condition of the apartment is documented when the tenant moves in. Therefore, it is important to carry out an inspection on the moving-in day. The landlord is usually responsible for this inspection and for documenting it.

Waiver of security of tenure

If your rental apartment is let for longer than two years to the same person, it is important to complete the form “Agreement on waiver from security of tenure”. This provides you as the landlord with additional security.

Security of tenure means that the tenant is entitled to continue residing in the property even if the landlord attempts to terminate the lease contract. In other words, a tenant who has rented the property for longer than two years may be entitled to have their contract extended. This does not mean that a tenant who sublets for more than two years has the right to take over the primary lease contract. This is only possible if the primary tenant has given notice to terminate their tenancy and the landlord has approved the subletting tenant and signs a primary lease contract with the subletting tenant.

Forms related to the security of tenure are available from the rent tribunal. The agreement is valid for four years from the date it is entered into. The rent tribunal is not required to accept the agreement if the lease contract terminates within four years and it is not a commercial let. Disputes related to security of tenure are settled by the rent tribunal.

When letting a private residential property, there is no security of tenure unless you let several different residential properties at the same time.

http://www.hyresnamnden.se/Besittningsskydd/Besittningsskydd---Bostad/

http://www.hyresnamnden.se/Blanketter/

Rental period and notice period - how it works

The lease contract can be valid for an indefinite period or a fixed period. In general, notice of termination must be given for a lease contract to be terminated.

Privately-owned property - first lease

Circumstances can change quickly for a tenant who is subletting a property. Therefore, the tenant has the right to terminate the lease contract at the end of the month that occurs at the earliest one month after notice of termination is given.

A situation may also arise in which you, as the landlord, need to use the rented property. For this reason, the landlord also has the right to terminate the lease contract, regardless of the agreed rental period, at the end of the month that occurs at the earliest three months after notice of termination is given.

A tenant who rents a privately-owned property does not have the right to have the lease contract extended against the wishes of the landlord. This applies regardless of the duration of the lease. If the tenant gives notice to terminate the lease, the tenant is obliged to move at the end of the notice period. When a lease contract concluded for one year expires, the tenant is obliged to move without the need for the landlord to give notice of termination.

A lease always expires at the end of a month.

Properties under a protected tenancy and your own residence - other leases (and subsequent leases)

Unless a longer notice period has been agreed, the notice period for lease contracts applicable for an indefinite period is until the end of the month that occurs soonest after three months from the notice of termination, when the lease concerns a residential apartment. Lease contracts applicable for an indefinite period must always be terminated by giving notice.

Lease contracts can also be concluded for a fixed period. These contracts expire at the end of the rental period unless otherwise agreed. However, if the lease has existed for more than nine consecutive months, notice must always be given for the contract to terminate.

If notice is given to terminate a lease contract for a fixed period, and no longer notice period has been agreed, the termination will take place no later than:

  1. One day in advance if the rental period is no longer than two weeks,
  2. One week in advance if the rental period is longer than two weeks but no longer than three months,
  3. Three months in advance if the rental period is longer than three months and it concerns a residential apartment.

For lease contracts that run for a specific period, the landlord is usually bound by the lease contract throughout the lease period for properties under a protected tenancy. In contrast, a tenant can always give notice to terminate the lease contract at the end of the month that occurs no later than three calendar months after the notice is given. This applies regardless of whether the lease contract is for a fixed or an indefinite period or if another notice period has been agreed.

A lease always expires at the end of a month.

When notice is given to terminate a lease contract

Notice to terminate a lease contract must usually be given in writing. The notice to terminate must be sent by registered letter to the address when the landlord is registered. The notice to terminate must include the moving date and must be signed.

Taxation of rental income - which rules apply

If you have let a private residential property, for example your detached house, your holiday home or your tenant-owner apartment, it may mean that you need to pay tax on the rent. The same applies if you have let a residential property that is under a protected tenancy.

You are permitted to make some deductions from the payment, i.e. the rent, which you receive for letting the property.

However, remember that you must always make a standard deduction. Starting from the income year 2013, the standard deduction is SEK 40,000. The standard deduction applies per year and property. For example, if you and your spouse let out your jointly-owned holiday house (in which you each have a 50% ownership share), each of you can deduct SEK 20,000 (SEK 40,000 x 50 percent).

You can find more information about taxation rules for property rental on the Swedish Tax Agency’s website.

Advice - help your tenant to take care of your property

The more information you provide about your property and how to take care of it, the easier it is for your tenant to take care of the house or apartment and, if applicable, its garden. Provide instruction manuals for the TV, fridge, freezer, washing machine, tumble dryer and other domestic appliances as well as the heating system in the property. It is a good idea to provide a pack of advice on how to take care of both the inside of the property and the garden - and include the general rules that apply to the block of flats or the residential area that the tenant should know. The advice pack should be in English because most tenants come from abroad.

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