Renting Out in Second Hand: Rules and Tips for Secure Letting

Renting out your property in the second hand market is a common way to either generate extra income or ensure your home doesn't remain empty when you're away. Whether you own your home or rent it in the first instance, there are specific rules and conditions that must be followed for the rental to be legal and secure for all parties. This guide provides a comprehensive overview of what you need to know when planning to rent out in the second hand market.

Prerequisites for Second Hand Rentals

Before you even consider advertising your property, it's crucial to understand the basic requirements. These differ depending on whether you own your home (e.g., a housing cooperative or a house) or if you are a tenant yourself and wish to sublet your rented property.

Housing Cooperatives and Rental Properties

If you own a housing cooperative (bostadsrätt), the cooperative's bylaws govern how you can rent out in the second hand market. Most cooperatives require written permission from the board to sublet. It's important to apply for this well in advance, as the board has the right to refuse if they deem there are grounds for it. Common reasons might include the prospective tenant not being deemed suitable, or the subletting contradicting the cooperative's purpose.

Even if you rent your home in the first instance, you need written permission from your landlord (usually a municipal housing company or a private property owner) to rent it out in the second hand market. Renting out without permission can lead to the loss of your right of possession and, in the worst case, termination of your lease.

Considerations for Second Hand Letting

Once you have obtained the necessary permissions, it's time to prepare for the actual rental. A clear and legally sound rental agreement is the foundation for a secure second hand letting.

Second Hand Rental Agreement

A written rental agreement is not only recommended; it's often a requirement from the landlord or housing cooperative. The agreement should clearly specify:

• Parties: Full names and personal/organization numbers of both the lessor and the lessee.
• Property: Address, apartment number, number of rooms, and living area.
• Rental Period: Start and end dates of the rental. Specify if it's a fixed-term rental.
• Rent: The rent amount, what is included (heating, water, electricity, internet, etc.), and when the rent is due.
• Deposit: If a deposit is taken, specify the amount and the conditions for its return.
• Notice Period: As per law, but can be further specified in the agreement.
• Property Rules: House rules, smoking, pets, etc.

It's important that the rent is not unreasonably high. Rental laws have regulations regarding this, and if the rent is set too high, it can be invalidated. Compare with similar properties in the area to set a reasonable rent.

Property Inspection

Before the tenant moves in, and when they move out, a joint inspection of the property should be conducted. Document any damage or wear and tear with photos and notes. This protects both you as the lessor and the lessee from disputes regarding the property's condition.

Insurance

Check that your home insurance covers second hand rentals. Some insurance companies require you to take out an additional insurance or a specific rental insurance. The tenant should also have their own home insurance.

Permissions and Applications for Second Hand Rentals

The process of obtaining permission to rent out in the second hand market is central. As mentioned above, having this in writing is crucial.

Application to Landlord/Housing Cooperative

Your application to the landlord or housing cooperative should be in writing and include information about who you plan to rent to, for what period, and why you need to rent out. It's advisable to attach a draft rental agreement. Be prepared for them to request additional information, such as a credit check on the prospective tenant.

The Rent Tribunal (Hyresnämnden)

If your landlord or housing cooperative denies you permission to sublet, and you believe you have reasonable grounds, you can apply for permission from the Rent Tribunal (Hyresnämnden). However, this is not common for private rentals and usually applies to situations where there are special reasons, such as extended stays abroad.

Common Pitfalls to Avoid

Renting out in the second hand market might seem straightforward, but there are several common mistakes that can lead to problems.

• Renting without permission: This is the most common mistake and can lead to immediate termination of your own lease or being forced to sell your housing cooperative share.
• Unclear rental agreement: A deficient agreement can lead to disputes over everything from rent amounts to property damage.
• Unreasonable rent: Charging a rent significantly higher than the market rate can be invalidated, and you may have to repay the difference.
• Failure to inform: Ensure that both your landlord/housing cooperative and your tenant are fully informed of the terms.

By following these tips and ensuring you have all the necessary permissions and a proper rental agreement, you can rent out in the second hand market securely and legally. Remember that good communication and transparency are key to a successful rental.