There are many laws and regulations when it comes to renting out property, which makes most people uneasy and worried. The fact that these laws often vary depending on what type of residence is in question makes it all even more confusing. In this guide we explain everything you need to know when renting out your condominium (a residence that you own).
How high can the rent be when I rent out my apartment?
When you are renting out a condominium, you and your tenant have great freedom in deciding what rent should be, but the rent should not be higher than the capital costs + maintenance costs. The capital cost is the interest costs that you would have encountered if the residence was bought on maximum loans, and the maintenance costs are fees to the condominium association, power, wi-fi, etc. If the rent exceeds this sum then the rent tribunal can, by the tenants request, demand that the rent is lowered. The rules differ for subletting an apartment you are renting. You can read more about setting rents for both types of residences in our rent setting guide.
Can the rent on my apartment be lowered retroactively?
You cannot be ordered to retroactively repay the excess rent if you are renting out a condominium and taking too high a rent. However, your tenant can report you to the rent tribunal if the rent is irrationally high, and they can then demand that you lower rent. Rent reductions can only have retroactive effects for people subletting their apartments.
How long is the tenure period when voiding a contract?
In Sweden the rental period is undecided both when subletting or renting out condominiums if nothing else has been decided in the contract. However, if one wants to end the contract prior to the expiration date the following applies: For condominiums the tenure period is one month for the tenant, and three months for the landlord, regardless of the original length of the contract. These conditions cannot be nullified in the contract. You can learn more about tenure periods for sublets and condominiums. It can be nice to understand these rules prior to renting out one’s apartment. There is also a value in letting the tenant know about these tenure periods, mostly because they can’t be changed in the contract and apply to all.
Do tenants in a condominium have tenure after the contract ends?
Tenants in a condominium do not have tenure following the expiration of a contract. Tenure can be defined as the tenants right to remain in the apartment and avoid being thrown out directly after the contract expires. In other words, it protects the tenant from being thrown out onto the streets if they have not found a new place to live. However, if you are subletting your apartment you can be affected by tenure laws.
Am I allowed to rent out my condominium?
You can only be denied the right to rent out your apartment if it is done systematically as a business. This is now law due to a change in Swedish Condominium Law in July 2014, which states that one no longer needs “significant reason”, but only ”reason” to rent out ones condominium. This makes it much harder for condominium associations to deny owners rental permits. However, more strict laws are in place for subletting an apartment.