Renting out a property, whether it's a house, apartment, or a room, requires private individuals to establish a legally binding document. This document, a rental agreement, protects both you as the landlord and your tenant. Knowing how to write a rental agreement for private individuals is therefore fundamental to avoid future conflicts and misunderstandings. In this guide, we will go through the most important steps and points you should include to create a clear and correct agreement.

Step-by-Step Guide: Writing a Rental Agreement for Private Individuals

A well-written rental agreement lays the foundation for a good relationship between landlord and tenant. It clarifies expectations and obligations for both parties.

Step 1: Identify the Parties and the Property

The first step when you need to write a rental agreement for private individuals is to clearly identify who is entering into the agreement and what is being rented out. Provide the full names, personal identification numbers (or organization numbers if applicable), and contact details for both the landlord (the person who owns or has the right to rent out the property) and the tenant.

Then, describe the property thoroughly. State the address, apartment number (if any), number of rooms, living area, and any common areas included (e.g., storage room, parking space, garden). If a room is being rented out in a property where the landlord also resides, specify this clearly.

Step 2: Determine Rental Period and Notice Period

Clearly state how long the agreement is valid. Is it a fixed-term agreement (with an end date) or an indefinite-term agreement (running for an unspecified period)?

Fixed-term agreement: If you choose a fixed-term agreement, ensure there is a reason for the fixed term (e.g., you will move back yourself, plan to sell the property, or intend to renovate). According to the Act on Rental of Private Residential Property (1993:398), a fixed-term agreement shorter than three years (for an apartment) or shorter than two years (for other types of residential property) can be terminated by the tenant with one month's notice. As a landlord, you can only terminate the agreement prematurely if there are special grounds, which is usually not the case in private rentals.
Indefinite-term agreement: An indefinite-term agreement runs for an unspecified period and can be terminated by either party. The notice period is normally three months for the tenant and three months for the landlord. However, if the landlord is a private individual renting out a private residence, special rules apply. If the agreement is for an indefinite term and not fixed-term, the tenant always has the right to a notice period of at least three months. For the landlord, the notice period is three months if the agreement is for an indefinite term. If the agreement is fixed-term but extends beyond three years (or more), the same notice period applies as for an indefinite-term agreement.

Be sure to specify the notice period in the agreement, even if it follows the legal minimum requirements. Also, state how the termination should be made (written notice is recommended).

Step 3: Set the Rent and Payment Terms

The rent is one of the most important points. State the monthly rent amount. Also, specify what is included in the rent. Does it include electricity, water, heating, waste disposal, internet, or cable TV? If not, specify what the tenant is responsible for and any additional costs.

Also, state when the rent is due, typically in advance on the last banking day of the month preceding the month the rent applies to. Provide the bank account number to which the payment should be made. It is also wise to include terms for potential rent increases. For private rentals, there are no statutory rules on how often or how much the rent can be increased, but it's good to have an agreement on this, for example, that the rent can be adjusted annually in accordance with the CPI or other index.

Step 4: Regulations for Deposit and Advance Rent

It is common to request a deposit or advance rent. A deposit is a security for the landlord in case the tenant causes damage to the property or fails to pay the rent. Advance rent is rent paid in advance for a certain period.

Deposit: Clearly state the deposit amount and the conditions under which it will be refunded. Usually, the deposit is refunded after moving out, minus any costs for damages caused by the tenant or unpaid rent. It is important to specify what can be deducted from the deposit and that it should not exceed a certain amount, often equivalent to 1-3 months' rent.
Advance Rent: If you request advance rent, specify how many months it applies to and when it should be paid.

Step 5: Condition of the Property and Maintenance Responsibility

Describe the condition of the property at the time of move-in. It is a good idea to draw up a separate inspection report noting any existing damages or defects. Both the landlord and tenant should sign this report.

Also, clarify who is responsible for what regarding maintenance and repairs. Normally, the tenant is responsible for ongoing supervision and minor maintenance, while the landlord is responsible for major repairs and maintenance of the property. If you are renting out a furnished property, you should also include an inventory list of furniture and items included, as well as their condition.

Step 6: Rules for Subletting

If the tenant wishes to sublet the property, or if you as the landlord wish to sublet (which is uncommon but occurs), this must be regulated. For private rentals, the landlord's written consent is usually required for subletting. Clearly state if this is permitted and under what conditions.

Step 7: House Rules and Orderliness

Include provisions on how the property should be cared for. This may include rules regarding smoking, pets, noise levels, and waste disposal. If there are specific house rules for the property (e.g., in a housing cooperative or rental building), these should be attached or referred to in the agreement.

Step 8: Other Conditions and Attachments

There may be other conditions relevant to your specific rental. This could involve insurance (who is responsible for home insurance?), rules for renovations or painting, or what happens in case of non-payment. If you are using a rental agreement template for private individuals, ensure it covers all your needs. Attach relevant documents such as inspection reports, inventory lists, and any house rules.

Summary

Writing a rental agreement for private individuals doesn't have to be complicated, but it requires diligence. By following these steps and ensuring all important points are included in the agreement, you create a secure and clear foundation for your rental. A clear rental contract for private letting reduces the risk of disputes and ensures that both you and your tenant feel secure.

FAQ

What is the difference between a deposit and advance rent?

A deposit is a security for the landlord that is refunded after the rental period, minus any costs for damages or unpaid rent. Advance rent is rent paid in advance for a specific period and is offset against the ongoing rent.

Can I use a template for a rental agreement as a private individual?

Yes, there are many rental agreement templates for private individuals available online. However, make sure the template is up-to-date and covers all relevant aspects for your specific rental. It is always best to adapt the template to your own needs.

What happens if the tenant does not pay the rent?

If the tenant fails to pay the rent, you as the landlord can terminate the agreement. It is important to follow the formal requirements for termination. In case of non-payment, you can also apply for a payment order from the Enforcement Authority (Kronofogden) to collect the debt.

How to Write a Rental Agreement for Private Individuals