If you are renting a home in Sweden it is very important to know what is a reasonable rent and how much rent the landlord is actually allowed to charge. According to the law for private renting, reasonable rent is calculated differently for tenancies (hyresrätt) and condominiums (bostadsrätt). Let’s look a bit more into the whole thing.
First of all, there is a maximum threshold for how much rent in Sweden a landlord can take. This is due to the fact that a private individual can’t let his/her property second-hand with a ”for profit” purpose. However, it´s not unusual that landlords charge a much higher rent than they are allowed. Therefore, you should make sure to do some research on what the reasonable rent for that particular property is.
Rental rules for tenancy (hyresrätt)
For those who sublet a tenancy (hyresrätt), it is good to know that a reasonable rent is the rent that represents the property’s use value. This means that the person renting out the accommodation can take the same rent that they would have paid in the first place, and then add a cost if the home is furnished and if other benefits are included in the rental.
If the home is furnished, the landlord may add around 10-15% to cover wear and tear. Other benefits for which the landlord may make a mark-up are, for example: household electricity, gas, parking space, Internet etc unless these are not already included in the basic rent that the landlord themselves has in the first place. This can be added to the rent because the benefits are linked to the apartment and the tenant can take part in them.
In addition to this, the lessor may not add anything more to the rent!
Rental rules for residential rental of condominiums (bostadsrätt)
These rules also apply to houses, villas, terraced houses, apartments and rooms and are less strict than the rules for tenancies. For the rent to be considered reasonable, it must correspond to the lessor’s capital and operating costs.
By capital cost is meant an annual rate of return, often 4%, of the home’s market value. Operating costs include, among other things, fees to the condominium association, costs for electricity, broadband, water, wear and tear on furniture, etc. as well as other costs associated with running the home.
What can I do if I’m paying too much rent in Sweden?
If you feel that you have paid too much in rent, based on what is considered reasonable there are a few things you can do.
- Start by contacting Hyresnämnden (the Rent Tribunal) to have your case heard. This can be done in different ways:
- If you are a member of Hyresgästföreningen (the Tenant’s Association) you can get legal help in pursuing your refund claim.
- You can also turn to private lawyers who charge for their services.
- You can also choose to pursue the claim on your own in court, it costs nothing but can take time and effort.
- In order for you to get money back, it is important that there is proof of what has happened. Make sure you have the following documentation:
- A subcontract or something equivalent that shows that there has been a tenancy relationship between you and the person from whom you have rented the apartment.
- Something that shows what the first-hand rent is, it could be a first-hand contract or notice from the property owner.
- It must also be possible to show what the you have actually paid during the period. This could be, for example, receipts or documentation of transfers via bank or Swish.
- Make sure you send in your claim at the latest 3 years after you have left the rental. The Rental Tribunal can decide on reduced rent and/or repayment of rent up to two years back counted from the time when the application was sent. Note that this is only in cases of tenancy rentals.