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ECONOMY

Homeless to ‘skip’ long rental queues in capital

Some of Stockholm's homeless population are set to be offered permanent accommodation in the city centre, as part of efforts to help them reintegrate into society. But the move is a highly controversial one in the capital where there is a long queue for first hand rental contracts among tax-paying residents.

Homeless to 'skip' long rental queues in capital
There is a long queue for housing in Stockholm. Photo: Image Bank Sweden
Stockholm's Social Democrat-led City Council has announced that it wants to give more help to vulnerable people who have been unable to secure first hand rental contracts in the heart of the capital.
 
“This could be large families, homeless people, addicts,” Green Party councillor and social affairs spokeswoman Ewa Larsson told Swedish newspaper Dagens Nyheter.
 
She added that the move was designed to avoid concentrating these groups in social housing projects in the Stockholm suburbs.
 
“We'll take a greater responsibility, we want all locals to have an opportunity to stay in their city,” added housing commissioner Ann-Margarethe Livh.
 
The move builds on previous projects run by SHIS, a private organisation contracted by Stockholm City Council which already provides seven-year contracts to disadvantaged groups.
 
Under the new plans, some homeless people will be given permanent accommodation in existing and new apartment complexes run by SHIS, which currently takes responsibility for 2,300 apartments in 22 locations around the city.
 
“We provide help for all kinds of people – young, old, families, people with addictions or debt problems, who live alongside other Swedes in our accommodations, bridging the gap between housing provided by social services and the regular housing market,” SHIS spokesman Fredrik Jurdell told The Local.
 
“They pay the rent like everybody else, although sometimes that comes from benefits. What is different is that we have specially trained staff on hand, restaurants and reception areas – facilities that provide extra support for people who live there and makes the housing more acceptable to others in the neighbourhood,” he added.
 
According to Jurdell, giving some residents permanent contracts will help “ease the pressure” on individuals and families currently “limited to seven years” of secure accommodation in Stockholm.
 
“We are talking about giving more stability to people who have really struggled. For example giving a seven-year contract to a 60 or 70-year-old addict who has spent ten years on the streets and putting him an apartment on his own out in the suburbs…well it would be better if they were among others in a place where they can get support.”
 
But the move is a controversial one in a city where in some areas tax payers are facing a 20 year wait for rental accomodation. This has resulted in a strong subletting culture, with prices spiralling in recent years despite rules designed to cap rental increases.
 
However it is backed by Sweden's largest centre-right party, the Moderates, which led the previous government.
 
“We see it as a continuation of “housing first”, a similar project the Alliance worked with during our mandate,” it said in a statement emailed to The Local.
 
Asked if he understood complaints about the plans to give first-hand contracts to homeless residents, Jurdell told The Local: “It is a relevant question. I would say that our main task is still to act as a stopgap to help people before they can get back into the regular housing market. But for some groups they could spend years in the queue and still struggle to get a permanent contract because of their problems or because they don't have references, or because there are so few apartments available for very large families. So the changes will help with this.”
 
The announcement by Stockholm City Council comes a day after Sweden's Prime Minister Stefan Löfven unveiled his national strategy for tackling the housing crisis, pledging that 150,000 new homes would be built each year from 2016, in a move designed to help both Swedish and international workers.
 
“We have a major housing shortage in Sweden. Housing is a key part of the government's labour strategy,” he told a press conference.
 
“A housing shortage is one of the biggest obstacles to growth, such that people cannot move wherever they want,” he added.
 
While in many other European countries public housing is reserved for those on lower incomes, anyone can apply for this kind of accommodation in Sweden, which is usually maintained to a high standard. Both public and privately owned apartments are available to those who register with the city's housing service.
 
Around one in three Swedish adults lives in rented accommodation.
 
Most vulnerable adults in Stockholm are already offered some form of state-subsidised social housing, in line with national guidelines, but this is not always permanent and is often in suburbs outside the city centre.
 

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PROPERTY

INTERVIEW: ‘Most foreigners in Sweden don’t know they can get back excess rent’

In Sweden, people subletting apartments are not allowed to charge more in rent than they themselves pay. But foreign subtenants don't always know this. We asked Roland Sjölin, lawyer at the Swedish Tenants' Association, about how to get back excess rent.

INTERVIEW: 'Most foreigners in Sweden don't know they can get back excess rent'

More and more of the people asking the Swedish Tenants’ Association, Hyresgästföreningen in Swedish, for help with excess rent are foreigners, Sjölin told The Local in an interview.

“The problem is that if you’re coming from another country, and you’re subletting an apartment, you’re probably not familiar with the rules in Sweden, because in other countries, it might be okay to overcharge your tenants.” 

He said that clients from India in particular seeking help from the association were now “very common”. 

“Many people come here to work as engineers in the IT sector and then have to rent somewhere,” he said, adding that as a group Indians appeared to be “very aware of their rights.”

Sweden’s rental sector is heavily regulated, with first hand contracts negotiated between landlords and the Tenants’ Association, and the rent that can be charged for second-hand contracts limited to only a small fraction above what the first-hand renter pays. 

“You’re not allowed to make any profit subletting an apartment in Sweden,” Sjölin explains. “You can only charge the subletting tenant the same rent as you [the first-hand tenant] are paying to your landlord, and then you can add the costs for internet and electricity, and perhaps a parking lot, if that is included.” 

Tenants’ Association lawyer Roland Sjölin. Photo: supplied.

You can also add a påslag or “markup”, if you are renting out the apartment fully furnished, but this cannot exceed more than 15 percent of the rent. 

That doesn’t mean that most landlords follow the law. The competition for rental apartments, especially in Stockholm, is so intense, that unscrupulous sublet landlords often try to get away with charging well over the legal amount, charging what is known in Sweden as ockerhyra, or “excess rent” and hoping that their tenants are too desperate to complain.  

What many foreigners do not realise is that even after the rental period is over, they can still get back any excess rent they have paid by applying to the Rental Board or Hyresnämnden, which functions like a court judging rental disputes. 

“If you have the evidence then it’s fairly easy,” Sjölin said. “I get a new case every second week on repayment of unfair rent, and I think that I win most of them.” 

“Nowadays, you can get paid back excess rent up to 24 months back in time, so people tend to get more money,” he added. “In some cases, they can get 200,000 kronor. In other cases, perhaps it’s only 30,000 kronor or 60,000 kronor. It depends on how long you have rented the apartment, and how excessive the rent you’ve been paying has been.”

The first step is to establish what would have been a fair rent, either by asking your landlord what they themselves pay directly or by checking with the Tenants’ Association.

“Because we negotiate most rents in Sweden, we normally know what the firsthand rent is,” Sjölin explained.

Then you need to collect together your evidence.

“It’s a good thing to have a written contract and also papers from your bank showing that you paid rent every month, and perhaps photographs of the apartment, so the rental board can get an idea of the apartment you were renting and what would be a fair rent, and also the termination for the contract so you can show the court how long you’ve been living in the apartment.” 

But Sjölin underlined that since Sweden has free burden of evidence, none of this is essential. 

“Even if you’ve been paying in cash, if you have witnesses who can testify what you were paying each month, you still have a chance of getting your money back. It’s a bit more tricky, but I’ve won two cases like that this year.” 

People in Sweden, he explained, tend to wait until the rental period is over before seeking to get paid back excess rent rather than challenging their landlord while they are still living in the apartment. 

“You don’t have any legal protection for your home for the first two years, so if you bring the matter up with the person you’re renting the apartment from you risk losing your contract and having to move out, so most people wait until they’re supposed to move anyway,” he said.

If you apply to the rental board for a refund close to the day you move out, you can then make your landlord pay back all excess rent paid in the 24 months leading up to the date you contacted the rental board.

If you are a member of the Tenants’ Association, you can contact them and ask for help with your application, but there are also specialist companies, like Orimlig Hyra AB who will buy your case off you and give you a refund within 48 hours, saving you a long wait in exchange for a cut of the money reclaimed. 

Sjölin said that the rental board normally took about 8 months to come to a judgement, but that if the person with the first hand contract appeals, that could extend the waiting time by between six months and a year.

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