Subletting: What Does the Law Say About Short-Term Rentals?

Subletting your home, especially for shorter periods, has become increasingly common. But what does the law actually say about short-term subletting in Sweden? There are specific rules to follow, and these often differ from those applicable to longer-term sublets. This article provides an in-depth review of the legal aspects, offers practical advice, and clarifies the distinctions to help both landlords and tenants navigate the housing market.

Basic Rules for Subletting

In Sweden, subletting is primarily regulated by the "Land Code" (Jordabalken) and the "Tenancy Act" (Hyreslagen) for private rental of dwellings, as well as the "Housing Cooperative Act" (Bostadsrättslagen) for housing cooperatives.

Permission from Landlord or Housing Cooperative

To legally sublet your home, permission is usually required. For rental apartments, the landlord must give their approval. For housing cooperatives, the board of the cooperative makes the decision. Subletting without permission can lead to the termination of the contract, for both you as the primary tenant or cooperative member and for your subtenant.

Requirement for a Reasonable Cause

The landlord or housing cooperative can only deny permission if there is a "cause" for it. Common reasons might include the subtenant not being deemed suitable, the rent being unreasonably high, or the subletting risking disturbing neighbors. For short-term rentals, the reasons might differ slightly, with a temporary absence from the home often being more readily accepted than a permanent sublet.

What Constitutes Short-Term Subletting?

There is no exact legal definition of "short-term subletting" in Sweden. Generally, short-term rentals refer to periods of up to a few months, for example, during a vacation, a study period abroad, or temporary work in another location. This differs from longer-term rentals that can last for several years.

Rentals via Platforms like Airbnb

Short-term rentals via platforms like Airbnb, Booking.com, or similar services have become very popular. These "rentals via Airbnb" situations often fall under the rules for short-term subletting. It is important to check both your rental agreement and the housing cooperative's bylaws, as many cooperatives have specific rules regarding this type of rental. Some cooperatives only allow it for a limited time per year, while others may have stricter prohibitions.

Temporary Dwelling Rental

A "temporary dwelling rental" can also include renting out a room or part of your home while you continue to live there. This is often easier to get approved, provided the subtenant is suitable and no disturbances occur. Here, it is important to clearly specify the terms in the rental agreement.

Short-Term Rental Regulations – Key Aspects

When it comes to "short-term rental regulations," there are several points to be aware of:

Rental Agreement

Even for short-term rentals, it is important to have a written rental agreement. The agreement should clearly state the rental period, rent amount, what is included (furniture, electricity, internet, etc.), and any specific rules applicable to that particular rental. This protects both the landlord and the tenant.

Rent Level

The rent for a short-term rental must not be unreasonably high. For rental apartments, the subtenant cannot pay more than the primary tenant or cooperative member themselves pays in rent, plus a certain surcharge for furniture and operating costs. For housing cooperatives, the rules are slightly more flexible, but an excessively high rent can still be considered unreasonable.

Taxes

Income from subletting must be declared. For short-term rentals, especially via platforms like Airbnb, there may be specific rules regarding how much can be earned tax-free. If limits are exceeded, taxes may be payable on all or part of the income. It is important to familiarize yourself with the Swedish Tax Agency's (Skatteverket) rules for renting out property.

"Renting out a summer cottage"

Although "renting out a summer cottage" is not directly about subletting a permanent residence, it follows similar principles regarding contracts and taxation. If you own a summer cottage and rent it out, it is important to have a clear agreement and declare any income.

Practical Advice for Landlords and Tenants

For Landlords:

1. Seek permission: Always contact your landlord or housing cooperative to get approval.
2. Draft an agreement: Use a written rental agreement that clearly specifies the terms.
3. Set a reasonable rent: Avoid charging an unreasonably high rent.
4. Declare income: Be aware of tax rules and declare your income.
5. Insurance: Check your home insurance to see if it covers subletting.

For Tenants:

1. Check the agreement: Ensure you have a written agreement and that it is clear.
2. Pay the correct rent: Verify that the rent is reasonable according to current regulations.
3. Be aware of the rules: Understand that you are subletting and that there are limitations.
4. Report issues: If problems arise, contact the landlord and, if necessary, the Rent Tribunal (Hyresnämnden).

### FAQ

Can I sublet my apartment without permission?

No, in most cases, permission from your landlord or housing cooperative is required. Subletting without permission can lead to the termination of your own contract.

How long can I sublet "short-term"?

There is no exact legal limit, but generally, periods up to a few months are considered short-term. Longer rentals may have different rules.

What happens if I rent out via Airbnb without permission?

If your landlord or housing cooperative has not approved the subletting, it can lead to the termination of your rental agreement or membership in the cooperative.

Can I charge any rent I want for short-term rentals?

No, the rent must not be unreasonably high. For rental apartments, you cannot charge more than your own rent plus a reasonable surcharge for furniture and operating costs.