Permission for subletting
You need to have permission for subletting your apartment.
Information on the Lease Act
What is a sublease?
Rental agreement
Even an verbal agreement to rent a property is legally binding.
Responsibility during the rental period
The landlord – the primary/firsthand tenant or the condominium owner – is ultimately responsible for the property during the rental period.
Regulations for terminating the contract and security of tenure
Regulations for terminating rental agreements, as well as information about security of tenure.
The Lease Act
What is a sublease?
Subletting refers to the process where the individual holding the primary or original lease for a rental apartment rents it out to another person. Subletting can also involve a private property owner, such as the owner of a condominium, owned apartment, or house. renting out their property to someone else. Legally speaking, the latter scenario does not strictly qualify as subletting. Nevertheless, it is common to use this term in everyday conversation.
Whether you are subletting, or renting, a residence second hand, it is crucial to be familiar with the relevant rules and regulations. Regulations differ based on whether it is a condominium or a rental apartment, including differences in notice periods and provisions regarding security of tenure.
Permission for the rental
What are the rules for renting out?
For subletting a property you need to have permission.
If you are subletting a rental apartment, you should obtain permission from your own landlord. If permission is denied you have the option to turn to the rent tribunal and apply for their approval instead.
If the subletting involves a condominium (bostadsrätt), permission must be obtained from the housing cooperative (bostadsrättsföreningen). In this scenario, you can also apply to the rent tribunal if permission is denied.
Legal reasons to sublet may include illness, work/studies in another location, or a trial cohabitation situation.
Anyone who sublets a rental apartment without permission may face the potential loss of their lease, while a tenant-owner (bostadsrättshavare) may risk having the right to the residence forfeited.
For subletting a villa, the owner decides.
Rental Agreement
Having a written agreement provides numerous benefits
A verbal agreement to rent a residence is legally binding. Nevertheless, a written contract offers a significant advantage as it allows you to document the agreed-upon terms, such as rent, rental duration and any other conditions.
A lease agreement must be established in accordance with the tenancy legislation.
There are two distinct laws that may be applicable.
If it is a sublease of a rental property, the Lease Act (Chapter 12 of the Land Code) applies. If the landlord owns the property being rented—such as a house, a condominium, or a cooperative apartment – the lease will be governed by the Private Lease Act.
As the name suggests, the Private Lease Act does not apply to leases involved in commercial activities. If a private individual rents out two apartments, the Private Lease Act will only apply to the first lease. If more than two properties are rented out, it is considered a commercial activity, and all leases fall under the Lease Act.
The tenancy legislation – both the Lease Act and the Private Lease Act – has been designed to safeguard the tenant. Consequently, the legislation includes mandatory provisions aimed at benefiting the tenant. This implies that the parties are free to negotiate between themselves, but they are not allowed to offer the tenant conditions that are less favourable than those mandated by the law. If what is agreed upon is less advantageous for the tenant compared to what the law stipulates, the tenant can always claim that the legal rule should apply. However, the parties are free to agree on terms that are more favourable to the tenant.
Reasonable rent
What is considered a reasonable rent depends on the type of residence
When subletting a rental apartment, you are generally not allowed to charge a higher rent than what you pay to the landlord. However, for a furnished apartment, a surcharge of 10-15% for the furniture is accepted. Additional charges can also be made for other inclusions, such as electricity or broadband, but only up to the actual costs.
The tenant has the right to apply to the rent tribunal to have an unreasonable rent reduced. The tribunal may also decide that the excess part of the rent should be retroactively refunded for up to 2 years.
When subletting a condominium, the landlord can charge a rent that is based on the property’s expenses and value. The cost consists of two parts – capital cost and operating cost. The rent charged must not be significantly higher than the landlord's combined capital cost and operating cost.
The capital cost is a lump sum and is calculated as a reasonable annual return rate on the market value of the property. An interest rate of 2 percentage points above the central bank's reference rate is considered acceptable. The return rate is an estimated cost of having the capital tied up in the property. Whether the landlord has a loan on the property doesn’t matter.
Operating costs refer to the expenses the landlord incurs to be able to rent out the residence in its existing condition. This may include fees to the housing cooperative, costs for electricity and broadband, or for furniture wear and tear (if the residence is furnished). Operating costs are not calculated as a lump sum but are linked to the landlord's actual expenses.
Rental duration
Responsibility
The landlord – the primary/firsthand tenant, or condominium owner – is ultimately responsible for the property during the rental period. It’s the landlord’s duty to ensure that the tenant behaves responsibly, does not cause disturbances, and pays the rent on time. In relation to the subtenant, the landlord is responsible for maintaining the property in a fully usable condition, ensuring it remains habitable and in an acceptable state throughout the rental period.
The tenant, likewise, is obligated to maintain the property property, which entails being cautious and ensure that no unnecessary damage occurs. However, the landlord should anticipate normal wear and tear, which refers to damage that may occur through the normal use of the property.
If the tenant causes damage that's not just from regular use and is due to carelessness or neglect, they have to compensate the landlord for it. This also applies to damages caused by individuals in the tenant's household or invited guests. It’s up to the landlord to prove that the tenant caused the damages and that they fall outside of what can be considered normal wear and tear.
Rules for termination
What rules apply to rental apartments?
For rental apartment:
For a rental apartment: If a sublease is set up for a specific period, such as one year, the landlord cannot terminate the agreement prematurely, unless the tenant has committed a contractual breach (for such terminations, a specific procedure applies, and seeking expert advice is recommended). Essentially, the landlord is bound for the entire duration of the contract
The tenant always has the right to terminate the lease, and the notice period in this case is 3 calendar months. This rule is mandatory and applies regardless of what the parties have agreed upon (although a shorter notice period for the tenant can be agreed upon).
This rule also applies regardless of whether the lease agreement is set up for a specific period or indefinitely.
A lease set up for an indefinite period must always be terminated in order to expire. In this case, both parties have the right to terminate the agreement with a 3-calendar-month notice period.
A lease agreement set up for a specific period can, in certain cases, be converted into an indefinite agreement. This occurs if the agreement is not terminated by the end of the rental period, even though termination is required (which applies to all agreements with a rental period exceeding 9 months) and the agreement lacks a provision on the effect of a failure to terminate.
Rules for termination
Which rules apply for a condominium/house/owner-occupied apartment?
Condominium/House/Owner-occupied apartment:
Condominium/House/Owner-occupied Apartment: If letting out a condominium, an owner-occupied apartment, or a house, it is common to have the agreement set up for a specified period, such as for one year. Fixed-term agreements will automatically cease the end of the rental period, without either party needing to terminate it.
Both the landlord and the tenant have the right to terminate the agreement prematurely. This right is unconditional, which means that no specific reasons are required to terminate the contract.
The tenant has the right to terminate the agreement with a notice period of 1 calendar month. The notice period for the landlord is longer, being 3 calendar months.
An indefinite agreement concerning a condominium or house continues until terminated by either party. The same notice periods apply here, meaning 1 calendar month for the tenant and 3 calendar months for the landlord.
All of this is governed by the Private Lease Act. Note that the Private Lease Act only applies if the owner of the property is an individual; otherwise, the Lease Act will apply. Another requirement is that the owner does not rent out any other residence (see above under Lease Agreement).
Security of tenure
It is possible to voluntarily waive the security of tenure through an agreement
A tenant with a first-hand contract for an apartment normally retains the right to stay in the property even if the landlord terminates the agreement. This is commonly known as “security of tenure”.
The security of tenure can be waived on a voluntary basis. Note that the waiver must be made in a separate agreement with the landlord, and – in most cases – be approved by the rent tribunal. However, in some situations, the waiver applies without the need for approval from the rent tribunal. More information about security of tenure is available from the Swedish Courts
In the case of subletting a rental apartment, the security of tenure is not as strong as in a first-hand contract. The subtenant does not obtain security of tenure until after 2 years, and the protection applies only against the primary tenant, not in relation to the landlord.
When renting a tenant-owner apartment or a house from the owner you don’t get any security of tenure, provided that the rental is covered by the Private Lease Act.
