Renting out your accommodation can feel daunting. There are many things to consider, and the rules can be complex. But don't you worry! You will find everything there is to know in this guide, and if you have any questions, we are one message away. Let us guide you through the process!
- Which laws apply to rentals?
- Apply for a rental permit
- Set a reasonable rent
- Rental insurance
- Allowed notice periods
- Tenure protection ("besittningsskydd")
- Pay taxes
This article is about long-term rentals. For information on vacation homes look here!
Which laws apply to rentals?
There is no need for you to read through any legal texts, but you might wonder which legislation actually governs housing rentals. There are mainly two laws that affect the relationship between tenant and landlord. These are the Act (2012:978) on Rental of Owned Property, commonly referred to as the Private Rental Law ("Privatuthyrningslagen"), and Chapter 12 of Jordabalken, colloquially known as the Tenancy Law ("Hyreslagen").
Tenancy Law ("Hyreslagen")
The Tenancy Law (Chapter 12 of Jordabalken) is a comprehensive legislation that constitutes the fundamental legal text for all residential rentals. If you are subletting a rental apartment or several owned properties as part of a business (e.g., you are a property owner renting out first-hand contracts), you should adhere to the Tenancy Law.
Private Rental Law ("Privatuthyrningslagen")
The Private Rental Law is an addendum to the Tenancy Act, that makes certain exceptions for individuals renting out their own property (e.g., bostadsrätt, villa, äganderätt) connected to rules on rent setting, rental permits, and notice periods. The Private Rental Act was introduced in 2012 to facilitate the subletting of owned properties. Generally speaking, rental apartments (hyresrätter) are more heavily regulated than owned properties.
Note that if an individual rents out several owned properties, all except the first rental are regulated by the Tenancy Law. The same applies when renting out multiple rooms to different tenants.
When you have decided to sublet your property, you might have to get permission from the condominium (if renting out a "bostadsrätt") or the property owner (if subletting a "hyresrätt"). Renting out without a permit can lead to problems later on.
If you are renting out a condominium
If you are renting out a condominium ("bostadsrätt"), you need permission from your housing association. Since an amendment to the Condominium Act in 2014, it is more difficult for your housing association to deny you a permit. In practice, permission can only be denied if the subletting is for "business purposes". Read more about permission to sublet here.
If you are subletting a rental apartment
If you are subletting a rental apartment ("hyresrätt"), you need permission from your landlord. The Tenancy Law states that you are entitled to permission if there are "significant reasons" for the subletting. Examples of such reasons could be work/studies in another location, age, illness, an extended stay abroad, or living with a partner. Read more about permission to sublet here.
If you are subletting a house, "äganderätt" or shared space
In these cases, no permit is required.
Set a reasonable rent
When you rent out a property, there are some rules deciding how high the rent is allowed to be. These rules vary depending on whether you are renting out a property you own (only one) or subletting a rented apartment ("hyresrätt").
If you are renting out a property you own
If you are renting out a house or an apartment you own, the Private Rental Law will govern how high rent you can charge. In these cases, you are allowed greater flexibility to agree on rent together with your tenant since the rules allow for quite high rent. Read more about rent setting here.
If you are subletting a rented apartment
For rented apartments ("hyresrätter"), the principle of utility value ("bruksvärde") applies. This limits the maximum rent you can charge to the same rent you pay yourself, plus fixed operating costs and an additional 15 percent if the apartment is furnished. If the rent exceeds this amount, the tenant can request that the rent be retroactively reduced by the rent tribunal. Read more about rent setting here.
Most home insurance policies do not cover damages that may occur in the property during a rental. Red wine stains on the sofa, marks on the kitchen counter, and scratches on the floor are all examples of damages that are unlikely to be covered by your regular home insurance.
To protect yourself from such damages, we have introduced a special Rental Insurance, which is included when you sublet your property through Blocket Bostad. Read more about Rental Insurance.
Allowed notice periods
When you rent out your property, it's important to know the termination periods that apply if either you or the tenant want to end the agreement before the end of the rental period. These termination periods cannot be waived. However, you can of course agree on something else with your tenant when time comes for a termination.
Notice periods for owned property
When renting out a property you own (according to the Private Rental Law), the tenant has a notice period of 1 month, and the landlord has a notice period of 3 months. These termination periods cannot be waived, which is essential to be aware of.
Notice periods for rented apartments
When subletting a rented apartment, the Tenancy Law applies and different termination periods apply depending on the length of the rental period:
- If the rental period is up to two weeks, the notice period is 1 day.
- If the rental period is up to three months, the notice period is 1 week.
- If the rental period is longer than three months, the notice period is 3 months.
Tenure protection ("besittningsskydd")
In most cases, you have absolutely nothing to worry about:
When renting out owned property
When renting out a property you own, the tenant does not have any tenure protection. This means they are not protected against eviction when the rental period is over. In other words, the law will be on your side if the tenant were to refuse to move out at the end of the rental period.
When subletting a rented apartment
When subletting a rental apartment, tenure protection applies to the subtenant only after the rental period has lasted for more than two consecutive years. This means that after the rental period has exceeded two years, the subtenant is protected against immediate eviction when the rental period is over. Tenure protection can be waived through a separate agreement.
When renting out a property, you may need to pay taxes on the rental income. You are entitled to a standard deduction of 40,000 SEK per year and per property, as well as some other deductions. Taxation of rental income falls under the capital income category with a tax rate of 30%. You can read more about taxation here.