A guide to Renting out your property
Here is some advice if you are thinking about renting out a room or an apartment:
1. Get permission to let
If you wish to let one or several rooms in your apartment to a lodger, you don’t need permission from the property owner/landlord. If you sublet the entire apartment to someone who will be using it independently, you need permission from the property owner/landlord. Subletting without permission can lead to you losing your contract. If your property owner/landlord doesn’t agree to allow you to sublet, you may in some cases get a permit from the Regional rent tribunal (Hyresnämnden).
2. Decide how much rent you should charge
In Sweden, determining rent is not a matter for market forces. Regardless of costs and demand, it is not allowed to charge too high sums. BoPoolen.nu is operated by the Lund University Student Unions’ Association (LUS) to help students, and we strive for good and reasonable agreements for all parties. The rent level needs to be reasonable according to the law. BoPoolen considers SEK 4200 kr/month a reasonable price for a furnished room in Lund, including electricity and internet.
3. Decide on the time period for the contract
If you want to let a room or apartment for nine months or less, the rental period can be set in the contract and no period of notice is necessary. The tenant must move out at the agreed date. It is although possible to agree upon a period of notice, and the contract must then be terminated in accordance with this.
If you want to let for longer than nine months, the contract needs to be terminated with a period of notice. You can read more about period of notice here.
4. Create an ad on BoPoolen
Write a short text about the apartment or the room you wish to let. It is important for the person looking for housing to know whether the room is furnished, if the rent includes electricity and internet, how large the room is, and so on. If you are letting outside of Lund it might be a good idea to include som information about the distance to Lund and public transportation. Create an account on BoPoolen.nu and upload your ad. It is easy and completely free of charge!
5. Check the section "Find tenant"
Students looking for housing can write a short description about themselves and what kind of housing they are looking for. You will find these housing ads under the headline Find tenant. Check in and see if you find anyone who fits what you are looking for in a tenant.
6. Enter into a lease agreement
When you have found your tenant, it is important that you sign a lease agreement that contains all the conditions for the rental. You are welcome to save/print and fill out BoPoolen’s contract templates - they contain everything that is important to agree upon. Don’t forget the two appendixes "List of furniture and fittings" and "Defects and damages". When the contract is signed, a normal arrangement is for the first month’s rent to be paid at the turn of the month before the tenant moves in. If you wish to ask for a deposit, BoPoolen recommends a deposit of maximum one month’s rent.
7. Important to consider
Protection of tenancy - If you are subletting your apartment for a longer period than two years, protection of tenancy could become relevant. It means your tenant no longer has to move out without grounds if you wish to terminate the contract. If you want to rent out for a longer period of time, but be able to move back to the apartment whenever you wish, you and your tenant should agree on them abstaining from the protection of their tenancy.
Insurance - Your home insurance normally does not cover a tenant who is subletting, nor does it cover the belongings of a lodger. Make sure the person renting gets their own home insurance. We recommend that you contact your insurance company to see what requirements they have.
8. Declare your earnings
Earnings from subletting or letting of housing should be declared as capital income and is taxed at 30 %. It is not allowed to make your own tax deductions, but starting 2013 a template deduction of SEK 40 000 per year per private housing property, tenant-owned apartment or rental apartment is allowed. You may also make deductions for the amount you yourself is paying in rent for the rented room or apartment. If you rent out a self-owned house, you may instead make deductions for a further 20 % of your rental earnings. You can read more at the Swedish Tax Agency's website here.
9. Do you have other questions about subletting?
If you need more advice or have any other questions, you are always welcome to contact us!