Renting Out Your Apartment Second Hand: Rules and Permissions

As a tenant, the desire to rent out your apartment second hand is more common than you might think. Perhaps you're going abroad to study, working in another city, or traveling for an extended period? Whatever the reason, it's crucial to know how to proceed correctly to avoid issues with both your landlord and your subtenant. This guide will provide you with everything you need to know to rent out your apartment second hand safely and legally.

Why Rent Out Second Hand?

There are several reasons why a tenant might need or want to rent out their apartment in the second hand market. The most common causes include:

• Temporary work or studies in another city: If you get a job or a study place that requires you to move to another city for a period, but you wish to keep your current apartment.
• Travel or stays abroad: Longer trips, volunteer work, or exchange programs abroad might lead you to want to rent out your apartment.
• Illness or other inability: In some cases, health reasons may necessitate leaving your residence for a time.
• Dual housing costs: If you've bought a new home but haven't sold your old one, second hand renting can be a solution to avoid paying double rent or mortgage costs.

Regardless of your specific situation, it's essential to follow the applicable rules for renting out an apartment second hand.

Landlord's Permission – A Must!

The absolute most important step before even considering renting out your apartment second hand is to obtain written permission from your landlord. Renting out without permission is a breach of contract and can lead to you losing your right of tenancy and, in the worst case, eviction from your apartment.

How to Apply for Permission

The application for permission should be made well in advance of your planned rental period. Contact your landlord (or the property owner if you live in a housing cooperative and are renting out your right of tenancy) and explain why you want to rent out and for how long. Be prepared to provide information about the intended subtenant, such as their name and contact details.

What Does the Landlord Require?

Landlords have the right to deny a second hand rental if they have a reasonable cause. Common reasons for denial can include:

• If the tenant cannot justify their need to rent out.
• If the intended subtenant seems unsuitable (e.g., payment remarks, previous disturbances).
• If the rent charged second hand is unreasonably high.
• If the rental is not for a fixed term.

If the landlord denies your application without a reasonable cause, you can turn to the Rent Tribunal (Hyresnämnden) for a review.

Important Rules for Second Hand Rentals

Once you have received permission to rent out your apartment second hand, there are several important rules and aspects to consider to ensure a smooth process for all parties.

Agreement with the Subtenant

Even if you have landlord permission, you need to establish your own rental agreement with your subtenant. This agreement should be in writing and clearly specify:

• The rental period (start and end dates).
• The rent amount (including any costs for electricity, heating, internet, etc.).
• Rules for common areas (if applicable).
• Notice periods.
• An inventory list (if the apartment is furnished).

It is important that the agreement complies with the Rent Act (Hyreslagen) as much as possible. As the primary tenant, you are not allowed to charge a higher rent than you yourself pay to your landlord (excluding costs for electricity and heating, which can be added).

Rent Level – What Can You Charge?

A common pitfall is charging the subtenant too high a rent. As a general rule, you cannot charge a higher rent than you yourself pay to your landlord. However, you can add a certain amount to cover costs for electricity, heating, water, and broadband if these are included in your own rent. If you charge an unreasonably high rent, your subtenant can request a refund from the Rent Tribunal.

Subtenant's Right of Tenancy

A subtenant has an indirect right of tenancy. This means that if your landlord terminates your primary tenancy agreement, your subtenant is entitled to compensation if they have to move out. If you yourself wish to terminate the agreement with your subtenant, you must follow the rules in the Rent Act regarding notice periods and reasonable grounds.

Insurance and Responsibility

As the primary tenant, you remain ultimately responsible for the apartment towards your landlord. Ensure you have home insurance that covers any damages your subtenant might cause. Also, inform your landlord that the apartment will be rented out second hand.

Frequently Asked Questions (FAQ)

Can I rent out my housing cooperative apartment second hand?

Yes, but just like with a rental apartment, permission from the housing cooperative's board is required. The rules are similar, and the board can deny permission if they have a reasonable cause. A common reason for denial is if the rental is for commercial purposes or for an extended period without a clear need.

What happens if I rent out without permission?

Renting out an apartment second hand without the landlord's or board's permission is a breach of contract. It can lead to your eviction from the apartment and loss of your right of tenancy. Your subtenant may also find it difficult to assert their rights.

Can I charge more rent than I pay myself?

No, as a general rule, you cannot charge a higher rent than you yourself pay to your landlord. However, you can add a certain amount to cover costs for electricity, heating, and broadband if these are included in your own rent. The Rent Tribunal can assess whether the rent is reasonable.

How long can I rent out my apartment second hand?

Second hand rentals must be for a limited period. Typically, rentals up to one year at a time are approved. If you need to rent out for longer, you usually need special permission from the Rent Tribunal, which is granted for strong reasons such as overseas service or prolonged illness.

What is an indirect right of tenancy?

An indirect right of tenancy means that if your primary tenancy agreement is terminated by the landlord, your subtenant is entitled to compensation if they are forced to move. It protects the subtenant from sudden terminations not caused by them.