Sweden tightened its rules on subletting in October 2019, introducing a maximum two-year jail sentence for people found guilty of overcharging their tenants.
The landlord who is first to be prosecuted under the new laws is a man in his 40s, according to Hem & Hyra which was first to report on the case.
He was paying 6,527 kronor in monthly rent for the apartment in Hässelby, northern Stockholm, and the law states that a secondhand tenant or subletter should only be charged around 10-15 percent more than this (to cover bills and furniture). Instead, he allegedly charged at least two tenants 10,500 kronor.
The rules for people who own their apartment and sublet it are slightly different, since the base amount can be calculated based on what it would cost to get a new mortgage on the apartment, which means that subletting from someone who owns their apartment is often more expensive than subletting from someone who rents.
The case in Hässelby came to light after neighbours informed the property owner last winter that there were a lot of non-residents coming to and from the apartment.
Then, the company that owns the apartment asked one neighbour to keep a log of who was living in the apartment and when moving companies were seen, which they then provided to police. Additional evidence included the advert for the sublet on classifieds site Blocket as well as text messages between the subletter and his tenants. The man denied the allegations when questioned by police.
As well as overcharging for the monthly rent, the charges allege that the landlord had not requested permission to sublet from the housing company, which is compulsory in Sweden. Secondhand tenants should always ask to see proof of this permission being granted, as well as a breakdown of the costs, to guard against illegal sublets.
The punishment for illegal sublets can include fines or even a jail sentence for the landlord, of up to two years.