SHARE
COPY LINK
For members

LIVING IN SWEDEN

How to get your money back if you’ve been paying too much rent in Sweden

The cost of sublets in Sweden has soared over the past decade, so what should you do if you think you've been overcharged?

How to get your money back if you've been paying too much rent in Sweden
An apartment building in Solna. Photo: Janerik Henriksson/TT

Rent controls apply to many properties in Sweden, but in cities the queues for these so-called first-hand contracts are so long that many are left relying on sublets or ‘second-hand’ rentals, especially if you are an international resident who has not been able to save up points in the queue system.

The cost of these second-hand rentals has soared over the past decade, but what many do not know is that strict rules apply to how much a landlord subletting a first-hand rental is allowed to charge the person renting their apartment – and that you can get money back if you have been overcharged.

So what should you do if you think you have been paying too much rent?

Make sure you keep all documents relating to the apartment. Photo: Tomas Oneborg/SvD/TT

First of all, you could try to just talk to your landlord. It is often the case that they’re not aware of the rules themselves, and perhaps you can work out a compromise without sparking a conflict.

The second step, if you happen to be a member of the Swedish Tenants’ Association (Hyresgästföreningen), is to ask them for help. If not, you should turn to the Swedish Rent and Tenancy Tribunal (Hyresnämnden) which is the court in charge of any rental disputes. Filing a complaint with the tribunal is free of charge.

Make sure you have documents showing how much you have been paying. Never rent an apartment without signing a lease that states how high the rent is, save your bank statements for proof that you have been paying the rent, and never pay anything in cash without getting a receipt for your money.

You need to file a complaint with the tribunal within three months of moving out of the apartment in order to claim money back. Sweden tightened its rental laws in October 2019, which means that if the tribunal decides that you are in the right, you can be reimbursed for excess rent dating as far back as two years.

If the tribunal rules you are entitled to money back, but you are not getting it, you should turn to Sweden’s Enforcement Authority (Kronofogden), which is responsible for chasing up unpaid debts.

RECOMMENDED READING:

It is also possible to file a complaint with the tribunal while still living in the apartment, in which case the tribunal will set the terms for your future stay in the apartment and lower the rent to reasonable levels.

What qualifies as reasonable rent (skälig hyra) depends on the type of accommodation and exactly what is included in your agreement. But for a hyresrätt (an apartment that the landlord is renting as part of a first-hand contract, rather than owning it themselves) the sum should not be much higher than the landlord’s own rent if the apartment is unfurnished, as Swedish law forbids making a profit from subletting.

More commonly, the apartment will be furnished, in which case the landlord is allowed to add around 10-15 percent to the second-hand rent, depending on exactly what is included. Things such as electricity, broadband or heating may also be factored in, depending on who pays the bills.

Note that if you are renting a bostadsrätt (an apartment owned by your landlord), the rules are slightly different, because in this case they have the right not only to cover their own costs but also to cover their mortgage and financing. This means that if the apartment is in an expensive area, they can charge a lot.

You can still dispute the rent while living in the apartment, but in this case you are not able to get any rent back retroactively, only get your future rent lowered. But since your landlord has the right to cut the lease short with three months’ notice, it may be less of a hassle in the end to try to find a new apartment.

Member comments

  1. Where I work, a high % of coworkers hold permits. Paying them the threshold level means that more experienced non-permit holders will make less than them. There is a concern within management that those who do not require work permits will leave the company. This, of course, would make this company even more reliant on work-permitted, foreign labor. Politicizing this policy seems harmful for Swedish businesses and economy.

Log in here to leave a comment.
Become a Member to leave a comment.
For members

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.

SHOW COMMENTS