Renting out a property

• If you want to rent out more than five rooms and or to more than nine guests at the same time, you need a special permit.
• This is required under the Hotel and Guesthouse Operations Act.
• You apply for the permit through the Swedish Police Authority (Polismyndigheten).

Technical terms

• Hotel and Guesthouse Operations Act: The law that regulates when renting out is considered a hotel-style business and therefore needs a permit.

• It depends on how you rent out your home and how many people will live there.
• You may need:
  • a building permit, or
  • a permit for change of use (for example, if a garage or other building will be used as a home).
• Some areas have rules in a local development plan that can make a permit necessary.

Contact building permit services

• Call Citizen Service (Medborgarservice) on +46 921 62 000 to speak to a building permit officer.

Technical terms

• Building permit: Permission from the municipality to build or rebuild.
• Change of use: When a space starts being used for something different from what it was built for, for example a garage becoming a home.
• Local development plan (detaljplan): The municipality’s rules for how buildings and land may be used in a specific area.

• For longer rentals, it is a good idea to write a rental agreement.
• You can find good templates, for example on the Swedish Homeowners’ Association website (Villaägarnas Riksförbund).

Technical terms

• Rental agreement: A written contract between you and the tenant stating rent and conditions.

• Your condominium association decides whether you are allowed to rent out your home.

Technical terms

• Condominium association (bostadsrättsförening): The association that owns the building and sets rules for residents.

• You always need permission from your landlord to sublet.
• If you rent out without permission, you risk losing your lease.
• After you get permission:
• • you may not charge higher rent than you pay yourself
  • if you rent out furnished, you may add 15 percent to the rent

Technical terms

• Landlord: The person or company that owns the building and rents to you.
• Subletting: Renting out a home that you yourself rent.
• Furnished rental: Renting out with furniture included.

• Example: If you rent out a finished basement for SEK 4,000 per month all year, your total rental income is SEK 48,000 per year.
• The allowed deductions in that case total SEK 49,600, which is more than your income.
• So the entire rental income becomes tax-free in that example.
• If you change the use of a space that was not built for living, you may need to:
  • notify the building permit department, or
  • apply for a building permit
• Basement areas used as housing may also require different fire safety rules.

Technical terms

• Finished basement: A basement adapted for living.
• Building notification: A formal notification to the municipality when changes affect safety or use.

• Rent must be reasonable.
• Under the Swedish Tenancy Act (Hyreslagen), rent is not reasonable if it is clearly higher than rent for similar homes in the area.
• Rent must be set as a fixed amount.
• If you rent out furnished, you can charge a separate fee for the furniture.
• There are several calculators that help you estimate reasonable rent, for example on KalkyleraMera.se.

Technical terms

• Swedish Tenancy Act (12th chapter of the Land Code): The law that regulates rent and tenants’ rights.
• Reasonable rent: Rent that matches the level for similar homes.
• Use value (bruksvärde): The home’s standard, size, location, and overall attractiveness.

• For longer rentals, people often use cold rent.
• Cold rent means the tenant pays running costs such as:
  • electricity
  • heating
  • water
  • waste collection
  • broadband
• These costs are paid in addition to the monthly rent.

Technical terms

• Cold rent (kallhyra): Rent where utilities and running costs are not included.

• For longer rentals, it can be wise to ask for a deposit equal to a couple of months’ rent.
• If there is damage when the tenant moves out, you can settle costs before paying it back.
• This must be clearly written in the rental agreement:
  • how much the deposit is
  • when it is paid
  • when and how it is returned

Technical terms

• Deposit: A security amount paid in advance.

• You may need to pay tax when you rent out a private home such as:
  • a condominium
  • a house (villa or townhouse)
  • a rental apartment
• The tax depends on how much rent you charge.
• The Swedish Tax Agency website (Skatteverket) has more information and a calculator.

Technical terms

• Private home: A home you own or rent for personal living, not a business property.

• It varies between insurance companies.
• Some require an extra insurance add-on when you rent out.
• Do this:
  • check with your insurer what applies
  • require the tenant to have their own home insurance
  • ask for a copy of the insurance certificate showing the correct address

Technical terms

• Insurance add-on: Extra cover needed for specific situations.
• Home insurance: Insurance covering a person’s belongings and liability in their home.

• As a property owner, you must ensure the home is healthy to live in.
• You are responsible for:
  • good ventilation
  • protection against damp and moisture
  • keeping warmth in winter and a safe indoor temperature in summer
  • basic facilities for hygiene and household tasks
• If these standards are not met, you must fix the problems.

Technical terms

• Indoor environment: Air quality, temperature, moisture, and basic functions in the home.
• Ventilation: The system that supplies fresh air and removes stale air.

• If your property has drinking water from a private well, you may need to:
  • check water quality
  • register the drinking water system with the municipality
• If your property has a private sewage system, it must handle the number of people living there.
• If the system is too small, pipes may clog.
• Risk is reduced if the system is emptied more often.

Technical terms

• Private well: Your own drinking water source on the property.
• Private sewage system (enskilt avlopp): A sewage system not connected to the municipal network.
• Emptying sewage sludge (slamtömning): Removing sludge from the system.

• The space you rent out must be built and approved for living.
• Renting out a villa or apartment is usually straightforward.
• Converting a basement, attic, or garage into living space is more complicated, because fire safety requirements may be higher.
• You may need a building notification or a building permit.
• The space must meet current building rules for fire safety.
• A fire safety consultant can help you.

Smoke alarms and fire equipment

• Smoke alarms must be installed:
  • in every living room
  • in spaces you pass through to reach an escape route
  • at least one on each floor
• Fire extinguishing equipment must also be available.

Technical terms

• Fire safety: Measures that prevent fire and help people escape safely.
• Escape route: The safe way out of the building in an emergency.
• Fire safety consultant: A specialist who helps plan fire protection.

• Security of tenure protects the tenant.
• In some cases, it gives the tenant the right to stay even if the landlord wants to end the agreement.
• Rules vary depending on the type of home.
• The Swedish Courts website (Sveriges domstolar) explains what applies.

Technical terms

• Security of tenure: Legal protection that can make it harder to end a tenancy.