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Could crowdfunding help solve Sweden’s housing woes?

An ambitious new project hopes to help solve Sweden's housing crisis as well as repopulate its countryside with the help of crowdfunding.

Could crowdfunding help solve Sweden's housing woes?
Tobias De Pessemier is trying to crowdfund solutions to Sweden's urban-rural divide and housing problem. Photo: Richard Gustafsson

Housing is one of the biggest talking points in Sweden at the moment. The Swedish union of tenants estimates that nine out of ten Swedes now live in a municipality with a housing shortage, while in capital city Stockholm, more than half a million are on the housing agency's waiting list for a rental apartment.

Meanwhile, Sweden's urban-rural divide is growing: the cities are booming while rural areas shrink. Two thirds of rural municipalities in Sweden have seen a population decrease since 1985.

According to Tobias De Pessemier, who moved to Sweden in 2012, the housing crisis is arguably “a myth” however, as there are “hundreds of thousands” of homes in the Swedish countryside without a permanent resident. To prove it, he is now crowdfunding a report looking into the number of empty houses in the Nordic nation and how to use them to help repopulate the Swedish countryside.

“The biggest problem the Swedish countryside is facing is empty housing,” De Pessemier told The Local. “In the last elections everyone said that what we need is more jobs in the countryside, but it's the contrary, we need people first. When there's people there will be jobs.”

“I live in the countryside, in the most beautiful village I think in southern Sweden. Of the nine houses around mine there are eight that stand empty – Statistics Sweden calls them fritidshus,” he adds.

Sweden's official stats agency Statistics Sweden defines a “fritidshus” as a small house where there is no one registered as living there. Their most recent statistics show that there were 575,384 such houses in Sweden as of 2015.

Those are only the smaller buildings. De Pessemier's hope is that through his crowdfunding campaign he will be able to research the total number of empty houses in Sweden full stop, and offer a solution for how to make sure more of them are occupied, particularly in the countryside.

It could be argued however that new generations simply don't see the countryside as an attractive place to live, and are instead drawn to the cities. De Pessemier counters that there are plenty willing to live outside of urban areas, but it isn't made easy enough for them.

“I had a small advert in a newspaper a few years ago with just three lines: 'Hi, we want neighbours'. Immediately I got 50 responses from people who wanted to move here. The next thing I did is I contacted every single house owner of the empty houses in the area. They all said 'no, we don't want to rent, we don't want to sell'.”

Reasons varied from the houses being in the family for several generations, to a reluctance to rent out holiday homes while they are not being used, he claims.

“Those houses are in the middle of the village – that's the best way to kill a village.”

As a solution, the media professional points to measures in both neighbouring countries and further afield which could be adopted, such as in Denmark, where if you do not live in a second home for at least 180 days per year, you are obliged to rent it out.

In northeast Spain meanwhile, the Catalan government passed a law in 2015 meaning that housing left unoccupied for more than two years without justifiable cause incurs a tax based on its size in square metres. As the size increases, the tax per square metre increases.

“The hope is to finally fund a proper research project into this. How many houses are we talking about? What do we start with? Taxation? Something else? What revenue could it bring to the government at the same time as solving the problem with empty houses in the countryside?” De Pessemier explained.

“On the one hand Sweden says it needs thousands of houses in the next few years, on the other, they're there.”

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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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