Second Hand Rental Agreements: What Does the Law Say?

Renting out or renting in the second hand is a common way to solve housing needs in Sweden, but it also involves specific legal aspects that are important to know. A second hand rental agreement must follow certain rules to be valid and to protect both the original tenant (who becomes the sub-landlord) and the new tenant (sub-tenant). This article provides an in-depth review of what Swedish legislation says about sub-letting.

Basic Principles of Sub-letting

According to the Swedish Land Code (Jordabalken), Chapter 12, the starting point is that a tenant cannot transfer their right of tenancy to another person without the landlord's consent. However, there are exceptions, especially concerning sub-letting. To rent out one's dwelling in the second hand, permission from the landlord is normally required. If the landlord denies permission, the tenant can turn to the Rent Tribunal (Hyresnämnden) to obtain permission, provided there are grounds for it.

Grounds for Sub-letting

Common grounds that may be accepted by the Rent Tribunal include:

• Work Commuting: If the tenant needs to move to another location for work.
• Studies: If the tenant is going to study in another location.
• Illness or Old Age: If the tenant needs to move to a care facility or another dwelling for health reasons.
• Extended Stay Abroad: If the tenant is going to stay abroad for an extended period.
• Trial Cohabitation: If the tenant wants to try living together with a partner in another dwelling.

It is important to apply for permission well in advance and to be able to support your grounds with relevant documentation.

The Second Hand Agreement – Important Points to Include

Once permission for sub-letting has been granted, or if the landlord has approved it, the next step is to draw up a written second hand rental agreement. This agreement should clearly regulate the terms of the rental and protect both parties. Here are some important points to include:

• Parties: Full names and personal/organization numbers of both the sub-landlord and the sub-tenant.
• Rental Property: Address, apartment number, and any specification of what is included (e.g., storage).
• Rental Period: Start and end dates for the rental. If the agreement is indefinite, this must be stated.
• Rent: The amount of the monthly rent, what is included (heating, water, electricity, broadband), and when it is due.
• Notice Period: By law, the notice period is three months for both parties, but this can be agreed differently in certain cases, though with some limitations.
• Usage Rules: How the apartment may be used, e.g., prohibition of further sub-letting or commercial activity.
• Condition and Maintenance: Description of the apartment's condition at the beginning of the rental and the division of responsibility for maintenance and repairs.
• Insurance: Who is responsible for home insurance.

It is also important that the person sub-letting does not charge a higher rent than they themselves pay to their landlord. Any surcharges must be reasonable and cover actual additional costs, such as broadband or furnishings. Charging an unreasonably high rent can lead to the agreement being invalidated or the tenant being entitled to a refund.

Rights and Obligations of the Sub-tenant

The sub-tenant essentially has the same rights and obligations as a primary tenant towards the sub-landlord. This includes the right to live in the apartment for the agreed period, the right to an acceptable standard, and protection against unreasonable evictions. The sub-tenant is obliged to pay the rent on time, take good care of the apartment, and follow the established rules.

An important aspect is that the sub-tenant has no direct relationship with the original landlord. All contractual relationships and disputes occur between the sub-landlord and the sub-tenant. If the sub-tenant misbehaves, the sub-landlord may need to take action, which in the worst case could lead to the primary lease also being terminated.

Rights and Obligations of the Sub-landlord

The original tenant, who is sub-letting, still retains their primary lease and thus the primary responsibility towards the original landlord. This means the tenant is responsible for:

• The rent to the original landlord being paid on time.
• The apartment being well-maintained and no disturbances occurring.
• Any damages caused by the sub-tenant being rectified.

The sub-landlord has the right to get their apartment back when the rental period ends, provided the agreement has been terminated correctly. If the sub-tenant does not move out, the sub-landlord may need to take legal action to regain possession.

Common Problems and How to Avoid Them

• Unauthorized Sub-letting: Renting out without permission from the landlord or the Rent Tribunal is a breach of contract that can lead to the termination of the primary lease. This is a common reason why people lose their homes.
• Unreasonable Rent: Charging excessively high rent is not permitted. Check what applies to surcharges on rent.
• Lack of Maintenance: Both sub-landlords and sub-tenants must ensure the apartment is well-maintained. A poorly maintained apartment can lead to costs and problems.
• Disturbances: If the sub-tenant disturbs neighbors, it can lead to problems for both the sub-landlord and the sub-tenant.

FAQ: Common Questions about Second Hand Rental Agreements

Can I charge more rent than I pay myself?

No, generally you cannot charge the sub-tenant a higher rent than you pay your landlord. However, you may add a reasonable surcharge to cover potential additional costs, such as furnishings or broadband. The surcharge should be reasonable in relation to the cost.

What happens if my sub-tenant doesn't pay the rent?

If the sub-tenant does not pay the rent to you, despite you having a valid second hand rental agreement, you are responsible towards your landlord. You must pay the rent yourself. If the problem persists, you may need to terminate the sub-tenant's agreement and, as a last resort, turn to the Enforcement Authority (Kronofogden) for eviction.

Can I sub-let my condominium (bostadsrätt)?

Yes, it is possible to sub-let a condominium, but it requires permission from the housing association's board. The rules are similar to those for rental apartments, where the association has the right to deny permission if there are grounds.

How long can I sub-let for?

Sub-letting is usually done for a limited period, for example, one year at a time. If you wish to continue sub-letting after the agreed period, you typically need to obtain extended permission from the landlord or the Rent Tribunal.

What is the difference between assignment and sub-letting?

In an assignment of a tenancy, the entire right of tenancy is transferred to a new person, who then becomes the direct tenant of the original landlord. In sub-letting, the original tenant retains their primary lease and rents out the apartment to someone else. This is an important distinction that affects the responsibilities.