Second-Hand Rental Agreement: Rules and Tips for Landlords

Renting out your property in the second hand can be a way to earn some extra money or ensure your home isn't empty while you're away. Regardless of the reason, it's crucial to understand the rules surrounding second-hand rentals and to establish a clear second-hand rental agreement. This guide is for property owners planning to sublet their apartment or house.

Why Rent Out in the Second Hand?

There are several reasons why a property owner might choose to rent out their home. Perhaps you're working abroad for a period, studying in another city, or simply want supplementary income. Regardless of the situation, it's important to understand that second-hand rentals are not without rules and obligations. To ensure a safe and legal rental, a well-written second-hand rental agreement is fundamental.

Permission from Landlord or Housing Association

Before even considering writing a second-hand rental agreement, you must ensure you have permission to sublet. If you live in a rental apartment, you need permission from your landlord. For housing cooperatives (bostadsrätter), the association's statutes apply, and board approval is usually required. Subletting without permission can lead to you losing your own right to occupy the property.

Rental Apartments

As a tenant, you have the right to sublet your apartment if you have justifiable reasons and the landlord's consent. Justifiable reasons can include illness, studies elsewhere, work elsewhere, military service, or cohabiting elsewhere. The landlord can only refuse if there's reason to believe the tenant won't manage the apartment acceptably, or if the landlord has other valid grounds for refusal.

Housing Cooperatives

As a housing cooperative owner, you need the association's approval to sublet your cooperative apartment. The association can only deny a sublet if there's reason to believe the prospective tenant won't manage the property acceptably, or if the sublet is not beneficial to the association.

What Should a Second-Hand Rental Agreement Include?

A clear and legally sound second-hand rental agreement is your best protection. It should contain the following points:

Parties

Full names, personal identification numbers, and contact details for both you as the landlord and your tenant.

The Property

Address, apartment number, number of rooms, living area, and any additional spaces (e.g., balcony, storage).

Rental Period

Clearly state whether it's a fixed-term or indefinite rental. For second-hand rentals, fixed terms are most common. Specify the start and end dates.

Rent and Deposit

State the monthly rent, what it includes (e.g., heating, water, electricity, internet), and any deposit amount. The deposit should be refunded upon move-out if no damages have occurred.

Notice Period

Even if the agreement is fixed-term, there may be rules regarding termination. Follow legislation and any agreed-upon terms.

Property Rules

Specify rules regarding smoking, pets, further subletting (if the tenant wishes to sublet), and other important provisions.

Inventory List

If furniture or other equipment is included, a detailed inventory list should be attached.

Important Rules for Renting Out a Property

Establishing a second-hand rental agreement is only part of the process. Several important rules must be followed for a smooth rental:

Rent Level

You cannot charge an unreasonably high rent. The rent for the second-hand rental cannot exceed your own rent or operating costs (for housing cooperatives). If you rent out a housing cooperative, you can charge a rent equivalent to your own monthly fee plus reasonable compensation for operations and maintenance.

Insurance

Ensure your home insurance covers subletting. Check the terms carefully, as many insurance policies do not cover damages that occur during a second-hand rental.

Tenant Conduct

You, as the primary tenant or owner, are ultimately responsible for your tenant's conduct. If the tenant misbehaves, it can have consequences for you.

Taxes

Income from second-hand rentals may be taxable. If you rent out a villa or a small house, you can make a standard deduction. For rental apartments and housing cooperatives, there are also rules on how much you can charge in rent without having to pay tax on the surplus.

Second-Hand Rental Agreement Template

Several second-hand rental agreement templates are available online, for example, from the Tenants' Union (Hyresgästföreningen) or the Swedish Association of Public Housing Companies (SABO). However, it's important to adapt the template to your specific situation and understand all clauses before signing. A good template is a starting point, but it doesn't replace the need to read and understand the agreement.

Frequently Asked Questions

Can I charge a deposit?

Yes, you can charge a deposit as security for potential damages or unpaid rent. However, the deposit must be reasonable and refunded when the tenant moves out and the property is in good condition.

How long can I rent out in the second hand?

If you are renting a property in the second hand and have received permission from the landlord, the agreement can be for a limited time. The law states that a fixed-term agreement running longer than two years shall be considered indefinite from the start. For housing cooperatives, there are no general time limits beyond what the association decides.

What happens if the tenant doesn't pay the rent?

If the tenant fails to pay the rent, you have the right to terminate the agreement. You may need to apply for eviction through the Enforcement Authority (Kronofogden). It's important to act quickly and follow the formal procedures.

Can I, as the landlord, terminate the agreement early?

Yes, under certain circumstances. If the tenant misbehaves, for example, by not paying rent, disturbing neighbors, or damaging the property, you may have the right to terminate the agreement early. However, you must follow the formal termination rules.

What is the difference between subletting and having a lodger?

In subletting (andrahandsuthyrning), one person rents out their entire property to another person. With a lodger (inneboende), one person rents out a room or part of their property while still living there themselves. The rules and requirements differ between these two forms of occupancy.