Good advice when subletting

There are a number of things that you should keep in mind when subletting your home. Bostad Direkt recommends all of our customers to read the following good advice before entering into a subletting contract.

  • Approval to sublet

    You always need your landlords or condominium associations approval when subletting. This is very important as you might otherwise be forced to evict your tenant without notice. Apply for approval in advance and demand to get it in writing.
    The landlord cannot decline your approval if you have specific reasons, such as:

    • - Temporary studies or work in a different city.
    • - Moving in with someone during a trial period.
    • - Military service.
    • - Long hospital stay or other health/rehabilitation reason.

    If the apartment is a condominium, you can also use different reasons for your subletting, such as having bought the apartment to use when you are retired. If your landlord declines to grant you approval you can contact the Rent Tribunal, Hyresnämnden, to try the matter in court.

    Hyresnämnden i Stockholm
    www.hyresnamnden.se

  • Rent level

    The rent you may charge when subletting is governed by Hyreslagen if you have a rented apartment and by Lagen om uthyrning av egen bostad (”Privatuthyrningslagen”) if you are subletting a condominium, owned apartment or a villa.

    Rented apartments

    The rent should be the same as the rent you are paying yourself. This is a new law that has been in effect since the 1st of October 2019.

    If the apartment is sublet fully furnished, an added rent of up to 15% is usually approved based on the condition and value of the furniture. Other fees, such as electricity and broadband, may be charged at the same cost that you have paid for it.

    Any rent levels that are suspected to be too high can be reported to Hyresnämnden to try the matter in court. This report can be made regardless of whether the tenant is an individual person or a company.

    Read more at (Swedish) https://www.fastighetsagarna.se/aktuellt/nyheter/2019/tuffare-regler-mot-svarthandel-och-otillaten-andrahandsuthyrning-infors-1-oktober/

    Privately owned housing (condominium, owned apartment, villa)

    When subleasing privately owned housing, the landlord may charge a cost-based rent. The rent should match a reasonable return on capital for the market value of the house per year, plus fees and costs for wear and tear. Guidelines for property values can be found at Svensk mäklarstatistik.

    Rent levels for privately owned housing may also be tried in Hyresnämnden, but they cannot force an increased rent level or a retroactive return of rent payments for any contracts signed after the 1st of February 2013.

    The law regarding subleasing of privately owned housing can be found here (Swedish)

    Hyresnämnden – Upplåtelser enligt lagen om uthyrning av egen bostad..

  • Your responsibilities as a landlord

    When subleasing, you still maintain the main responsibilities for your apartments, such as making sure your rent is paid on time and that your tenant conducts themselves well. We recommend that you handle your own rent invoices to make sure that they are paid on time. Your tenant pays their rent through Bostad Direkt each month.

    The apartment should be held to a good standard and be fully usable and well cleaned when the tenant moves in. The tenant is responsible to ensure that they clean before they move out. The tenant has exclusive rights to the apartment, which means that you as a landlord do not have the right to enter the apartment without the tenant’s approval. If you keep a set of keys for the apartments, this must be stated in the contract. The only time you may enter the apartment without notice is to check on a potential fire or a suspected water leakage.

    If you are going to live abroad during the tenancy period, it is important that you grant power of attorney to someone in Sweden so they can represent you and receive contract terminations. The power of attorney must also be sent to the owner of the property or the condominium association. The tenant must take care of the apartment and pay their rent in time. The tenant is also responsible to make sure that anyone living in the apartment does not disturb their neighbours or act inappropriately. If a tenant does not pay their rent on time or disturbs the landlord has the right to cancel the leasing agreement.

  • Leasing agreements etc.

    All contracts that you receive from Bostad Direkt will follow the Swedish Rent Law, Hyreslagen.

    The rent must be fixed with exception for running costs such as heating, electricity or water.

    A deposit is paid together with the first rent and returned after the lease if there are no outstanding rents or other damages to the property.

    All deposits are securely stored by Bostad Direkt to guarantee a safe deposit handling. Bostad Direkt also guarantees that you get your rent on time, regardless of whether your tenant has paid or not.

  • Inventory list and survey

    You should create a list of everything in the apartment when you sublet your apartment furnished. The list should contain descriptions of all items and their condition, as well as space for any existing damage your tenant notices when they move in. Your tenant is responsible for any further damage to furniture and inventory, unless they can prove that they themselves or anyone they are responsible for did not cause the damage.

    We recommend that you add production year to each entry in the list to further simplify any claims. When moving in a survey should also be conducted to document the state of the apartment and any existing damage to it. Survey protocol and inventory list templates can be downloaded while logged in to bostaddirekt.com.

    At the end of the lease, you must conduct a new survey and approve the condition of any inventory as well as the apartment. Both parties should sign and keep a copy of the inventory list and survey protocol.

  • Relinquishing the right of possession

    If you are subletting your rental apartment longer than two years to the same tenant we recommend you to fill in the form “Överenskommelse om avstående från besittningsskydd” (Agreement to relinquish the right of possession). The right of possession means that a tenant in general has the right to extend their lease at will. Any disagreements are settled by the Swedish Rent Tribunal. Even if a tenant has stayed in the apartment for over 2 years, they do not have the right to become the new first-hand tenant.

    Any agreements on relinquishment that go on for longer than 4 years must be approved by the Rent Tribunal. Forms for these agreements can be found at www.hyresnamnden.se.
    When subletting a house or a condominium apartment that you won there is no right of possession unless you are also subletting several other apartments at once.

  • Terminations and lease periods for condominiums and houses

    Landlords subletting through Bostad Direkt can always terminate their leasing contracts by sending an e-mail to foretag@bostaddirekt.com.

    Indeterminate lease period:

    • - The tenant may terminate the agreement at the end of a month following at least one month’s notice. A landlord may terminate the agreement at the end of a month following at least three months’ notice.

    Determinate period with a set end date:

    • - The lease ends at the set end date.
    • - The tenant may terminate the agreement at the end of a month following at least one month’s notice. A landlord may terminate the agreement at the end of a month following at least three months’ notice.
  • Terminations and lease periods for leased apartments

    All corporate clients can terminate their leases by sending an e-mail to foretag@bostaddirekt.com.

    Lease periods can be an indeterminate time or set with a final date. All leases normally need to be terminated. The following termination times from the Swedish Rental Law are considered to be minimum times.

    Indeterminate lease period:

    • - Both parties may terminate the agreement at the end of a month following at least three months’ notice.

    Determinate period with a set end date:

    • - Lease periods of nine months or shorter. The agreement ends at the set end date without termination. If a termination time has been agreed upon the agreement must be terminated in advance.
    • - Lease periods longer than nine months. All agreements must be terminated at least three months in advance.
  • Taxation of rental income

    If you have sublet a property you must declare your rental income on the form Uthyrning m.m. (Hjälpblankett). The rules regarding taxation of rental income can be read on the Swedish Tax Agency website. You can also contact the Swedish Tax Agency by calling 0771 567 567.