Second-Hand Rental Agreement: What Applies to Subletting?

Renting out your home in the second hand, or renting one yourself, is more common than ever. Whether you are a landlord or a tenant, it is crucial to be aware of the rules surrounding a second-hand rental agreement. A correctly drafted agreement protects both parties and prevents future disputes. This article provides a comprehensive guide to what applies to subletting in Sweden, focusing on legal aspects, rights, and responsibilities.

What is Subletting?

Subletting means that a person holding a first-hand rental contract rents out all or part of the dwelling to someone else. This can happen for various reasons, such as extended stays abroad, studies in another city, or if one wants to earn some extra money from an unoccupied property. However, it is important to distinguish between subletting and having a lodger, where the latter involves the first-hand or second-hand tenant remaining in the dwelling and renting out a room.

Permission for Subletting – A Necessity

Before even considering renting out in the second hand, obtaining permission is absolutely necessary. For housing cooperatives (bostadsrätter), permission is usually required from the cooperative's board, while for rental apartments (hyresrätter), permission is needed from the original landlord. Renting out without proper permission can lead to the termination of the first-hand contract, meaning both the person subletting and the person renting in the second hand lose their home.

Requirements for Permission

To get permission to sublet, there must be a justifiable reason. Common reasons that are accepted include:

• Extended illness.
• Studies or work in another location.
• Conscription or other military service.
• Extended stay abroad.
• Trial cohabitation with a partner.

The tenant (the one wishing to sublet) bears the burden of proof that a justifiable reason exists. The landlord or housing cooperative has the right to deny permission if the reasons are not deemed sufficient, or if the intended second-hand tenant is not considered suitable.

Second-Hand Rental Agreement – The Central Document

Once permission is granted, the next step is to draw up a second-hand rental agreement. This agreement governs the relationship between the person subletting (the second-hand landlord) and the person renting (the second-hand tenant). It is important that this agreement is clear and comprehensive to avoid misunderstandings.

Key Points to Include in the Agreement:

• Party Details: Full names, personal identification numbers, and contact information for both the sublessor and sublessee.
• Property Address: Specific address, apartment number, and any storage rooms or parking spaces included.
• Rental Period: Start and end dates for the sublet. If it is a sublet for an indefinite period, notice periods must be specified.
• Rent: The rental amount, what is included (heating, water, electricity, internet, etc.), and when the rent is due.
• Security Deposit: If a security deposit is to be collected, the amount and the conditions under which it will be refunded.
• Dwelling Rules: House rules, any restrictions (e.g., smoking, pets), and how the dwelling should be maintained.
• Termination: Conditions for termination, including notice periods that must comply with current legislation.
• Damages and Maintenance: Responsibility for damages that occur during the sublet and who is responsible for ongoing maintenance.
• Equipment: A list of furniture and other equipment included in the sublet.

It is strongly recommended to use a standard template for second-hand agreements, often available through organizations like the Tenants' Association (Hyresgästföreningen). This ensures the agreement meets legal requirements and protects both parties.

Tenant Rights and Responsibilities

As a second-hand tenant, you have largely the same rights as a first-hand tenant, provided the sublet is legal and has proper permission. You have the right to a dwelling that is in good condition and meets the agreed-upon terms. You also have the right to undisturbed possession of the dwelling during the contract period.

Your responsibilities include paying rent on time, taking good care of the dwelling, and following the applicable rules. You do not have the right to sublet the dwelling further to a third party without permission.

Landlord Rights and Responsibilities

As a sublessor, you have the right to receive rent on time and that your property is well-maintained. You also have the right to get the dwelling back in the same condition as you handed it over, excluding normal wear and tear. However, you must follow the rules for subletting and not charge an unreasonably high rent.

A common misconception is that you can charge a higher rent in the second hand. According to the Tenancy Act (Hyreslagen), you as a sublessor cannot charge a rent that is higher than what you yourself pay for the dwelling, plus a reasonable compensation for furniture and operating costs if these are included. If you charge an unreasonably high rent, it can lead to the agreement becoming invalid or you having to refund the difference.

Common Problems and How to Avoid Them

• Subletting without permission: This is the most common and serious violation. Always ensure you have written permission from your landlord or housing cooperative.
• Unreasonable rent: Do not charge more than you yourself pay plus a reasonable markup. Check what applies to your specific situation.
• Unclear agreement: Ensure the second-hand rental agreement is detailed and covers all aspects of the sublet. Use standard templates if needed.
• Lack of maintenance: Both the sublessor and sublessee have responsibility for the dwelling's condition. Communicate about any issues and address them promptly.

Things to Consider When Subletting

Subletting can be a good solution, but it requires diligence and knowledge. By following these tips and ensuring you have a correct second-hand rental agreement, you can ensure a safe and smooth process for everyone involved. Remember to always check specific rules with your landlord or housing cooperative.

FAQ

Can I charge more rent than I pay myself?

No, generally you cannot charge a rent higher than your own rent plus reasonable compensation for furniture and operating costs. The Tenancy Act regulates this to prevent unreasonable profit from subletting.

What happens if I sublet without permission?

If you sublet your dwelling without the necessary permission from the landlord or housing cooperative, you risk losing your first-hand contract. This can lead to both you and your second-hand tenant being left without a home.

Do I need a written second-hand rental agreement?

Yes, it is strongly recommended to always have a written agreement. Although verbal agreements can be legally binding, a written agreement is crucial for clearly specifying terms and avoiding future disputes. It serves as proof of the agreement.

What is the difference between having a lodger and subletting?

In subletting, you rent out the entire or a larger part of the dwelling and move out yourself. When having a lodger, you remain in the dwelling and rent out a room to the lodger. The rules and permission requirements can differ between these two forms of occupancy.

How long can I sublet for?

There is no general time limit for how long one can sublet, but permission is usually granted for a limited period, for example, one year at a time. If the reasons for subletting persist, the permission can be extended. It is the landlord or housing cooperative that decides on the duration of the permission.