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PROPERTY

Can they stop me renting out my flat?

I own an apartment in Stockholm, which I have been renting out since the beginning of the year, when I moved back to the UK. Now, the board of my apartment building (the bostadsrättsförening), says they will no longer permit me to rent it out from January. Do they have the right to stop me renting out my own apartment? Matt, London.

Can they stop me renting out my flat?

With a seemingly permanent shortage of rental apartments in Sweden’s large cities, apartment owners can find a ready market if they want to rent out their properties. But they might also find themselves on the wrong side of their housing association – and on the wrong side of the law.

Matt’s problem is rooted in the fact that there is no legal ‘buy-to-let’ market in Swedish apartments. Private landlords exist, but they usually own whole buildings rather than individual apartments.

The crux of the issue is that Matt doesn’t technically own his apartment. He owns a ‘bostadsrätt’ – effectively a share in the housing association (bostadsrättsförening) that owns the building. His ownership of that share is connected to the right to live in that apartment, but the housing association’s board retains a lot of power over what he can do with it.

Living in a bostadsrätt only gives you the same right to rent out your apartment as you would have if you yourself were renting. The law sees both forms of renting as a form of subletting or ‘andrahandsuthyrning’.

So, if you are going to rent out your bostadsrätt, the first thing you must do is ask the board. The board should approve your request if you are temporarily living elsewhere because you are working or studying abroad or in another part of Sweden, you are carrying out military service or you are living with your partner for a trial period.

If the board does not grant you permission, you may appeal to a regional rent tribunal (hyresnämnden). These tribunals are courts and their decisions have force of law. If Matt intends to come back to Sweden in the medium-term he should, on the face of it, have a good case for getting the decision of his housing association overturned.

Ulric Hoij, legal advisor at the Swedish Property Federation (Fastighetsägarna), which represents the interests of property owners, says that rent tribunals will usually find in favour of people who want to rent their apartments out “for a couple of years.”

If Matt has moved back to the UK for good, he will have a hard time getting the tribunal to decide in his favour. If the tribunal finds against him and he fails to come to a deal with the housing association, the association could ultimately force a sale of his apartment.

But why are Swedish housing associations so reluctant to allow apartment owners to rent their flats out? Ulric Hoij says it is usually out of a belief that tenants will be less willing to participate in the running of the building:

“It can make it hard to get enough board members or to get people along to the spring and autumn cleaning days. This makes renting a particularly sensitive topic in buildings with few apartments.”

There are other things worth thinking about before you rent out your apartment: for instance, it is your responsibility to ensure that you find a responsible tenant. If your tenant causes disturbances, the housing association could hold you responsible. It also remains your responsibility to pay your service charge and discharge other duties to the housing association.

You should also remember that you are obliged to charge a rent that is in line with rents locally. Rent tribunals may order landlords to refund rents that are substantially higher than those charged for council-owned apartments in the same area.

Renting out your apartment could become easier in the medium term. The Swedish government plans to allow owner-occupied apartments (‘ägarlägenheter’). Under proposals under consideration, people will have a greater number of rights over how they dispose of their apartments, and will be able to decide for themselves whether to rent them out. Initially, only new-build apartments will be owner-occupied. In the long-run, however, many observers expect that it will also be made possible to convert older apartments to owner-occupied status.

Do you have a question about the practicalities of living in Sweden? Then drop us a line at [email protected].

PROPERTY

How to ensure your French property is insured for storm damage

Storm Ciaran’s property-wrecking passage through France - with another storm forecast for the weekend - may have many people wondering how comprehensive their insurance cover is. 

How to ensure your French property is insured for storm damage

In the wake of Storm Ciaran, thousands of property owners in France are preparing insurance claims – with initial estimates of the bill for damage between €370 million and €480 million.

Home insurance is compulsory in France, whether you own the property you live in or you rent – and it must include some level of storm damage cover. 

Check also to see if your insurance provides cover in case of a declaration of a catastrophe naturelle.

The garantie tempête (storm guarantee) covers damage caused by violent winds. What constitutes a ‘violent wind’ varies from contract to contract, but there appears to be a widespread consensus of agreement on wind speeds over 100km/h.

In most insurance contracts, this covers damage caused by the storm and within the following 48 hours – so you’re covered if, for example, a tree weakened by the storm comes down within that period and damages your property.

Be aware that, while the storm guarantee automatically covers the main property, it generally only covers any secondary buildings and light constructions – such as a veranda, shed, solar panels, swimming pool or fence – if they are specifically mentioned in the contract. 

The same is true of any cars damaged by debris. A basic insurance contract might not include storm damage, so it is always worth checking.

Damage must be reported to your insurer as quickly as possible. The deadline for making declarations is usually five days after any damage is noticed. This is especially important for second home owners, who may not be at the property when the damage occurs. 

In some cases – such as in the aftermath of Storm Ciaran – insurers may extend the reporting period. But under normal circumstances, it’s five days after the damage has been discovered.

What happens next

To make a claim, the first thing to do is contact your insurer by phone or email. Your insurer will take you through the next steps, but usually you have to send in a declaration – which should include an estimate of any losses and for any repairs, with evidence where possible, such as photographs and any receipts for purchases. 

Your insurer may also request proof of wind intensity, which can be provided for example by a nearby weather station.

The insurance company may appoint an expert to come and assess the damage, so make sure to keep damaged property safe until they arrive, as well as all invoices for any urgent repair work. 

What if you’re a tenant?

If you rent your property, you must report any damage inside the accommodation to your insurer and also notify your landlord so that they can file their own claim. 

In the case of a co-propriete, you must declare damage inside the accommodation to your insurer, while the trustee sends his own declaration to the collective insurance (which sometimes covers the private areas) .

How long does it take for claims to be settled?

Payment of the compensation provided for by the “storm guarantee” depends your home insurance contract. After the insurer has estimated the amount of damage, compensation is generally paid between 10 and 30 days following receipt of the insured’s agreement.

What if we got flooded?

In the case of flooding, you may have to wait for a natural disaster order to be issued. 

Catastrophe naturelle

The ‘state of natural disaster’ is a special procedure that was set up in 1982 so victims of exceptional natural events, such as storms, heavy rain, mudslides and flooding, as well as drought, can be adequately compensated for damage to property.

The government evaluates each area and deems whether it qualifies for the status of catastrophe naturelle (natural disaster). 

Essentially once a zone is declared a natural disaster, victims can claim from a pot of funds created by all insurers. If the zone is not declared a disaster, insurance companies are under no obligation to pay out. 

Under a “state of natural disaster” residents are covered for all those goods and property that are directly damaged by the phenomenon, in this case storms.

It applies to residential or commercial buildings, furniture, vehicles and work equipment that are already covered by insurance policies.

Homes must be already covered by a multi-risk insurance policy for the status of natural disaster to count.

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