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What to keep in mind when renting out property to refugees in Sweden

Many Swedish residents are interested in opening their homes to Ukrainians fleeing war. But there are some important rules to make sure you follow if you're planning on doing so.

What to keep in mind when renting out property to refugees in Sweden
File photo of an apartment building in Malmö. Photo: Johan Nilsson/TT

As a rule, housing a refugee in your home for a short amount of time is not an issue, as long as you have a suitable property, according to Fredrik Aldmo, a lawyer at Familjens Jurist.

“Think about the fact that it needs to be good for the person who will be moving in with you, so the property is suitable for them to live in,” Aldmo told TT newswire. “If you live in a four-room apartment then, of course, you can house a family, but if you don’t have a lot of space then maybe you should think about whether it’s really a good idea,” he said.

Rental properties

On a purely legal level, everyone has the right to let someone live in their home without asking for permission, whether you rent the property or own it. This is also the case if you live in a bostadsrätt, an apartment or house where you legally own the right to live in the property, rather than the property itself. 

At the same time, it’s important to understand that you, as the owner or first-hand tenant, are always legally responsible for any damage or other issues that arise in the property.

Additionally, you can’t rent out a rental property second-hand without the landlord’s permission. If you don’t continue to live in the apartment yourself, then it counts as a second-hand rental, and you need permission from the landlord — whether you charge rent for the property or not. 

“Even if I were to rent out my apartment to a family without charging anything, my landlord might have their own views on that. In that situation, it’s really important that you have written permission where it states that the family will be renting,” Aldmo said.

If you’re planning on renting out your rental property second-hand for a longer period, consider negotiating to remove besittningsskydd from your tenants’ contract. This is a form of legal protection which automatically becomes valid after two years, giving renters the right to remain living in the property even if the landlord asks them to move out.

Once besittningsskydd is activated, tenants can only be forced to move out for a small number of special reasons, such as if they don’t pay rent on time, cause damage or problems with neighbours, or if the property needs to be renovated or demolished.

Bostadsrätter

For bostadsrätter you will need permission from the housing association if you wish to rent out your property second-hand, whether you plan on charging the tenant or not. However, if people will be moving in to live in your property with you, you do not need permission.

“The problem there is that, according to the law on bostadsrätter, you can’t move someone into your apartment if it might have a noticeable effect on the housing association or on residents, which could be the case if there are a lot of people in the apartment or a lot of activity in the stairwells,” Aldmo said.

Aldmo’s advice is to always contact your landlord or housing association first, and also to draw up a rental contract with details on how long the person should live there, how much the rent will be per month, and what will be included.

It is also illegal to charge a higher rent for second-hand rentals than what you already pay, plus an additional fee for furniture which cannot be greater than 15 percent of the rental cost, as well as other real additional costs (for example, internet and energy costs).

If you rent out a room, the rent must be proportional to the rent you pay for the apartment as a whole. Otherwise, you could lose your right to stay in the apartment and be forced to move out.

Bostadrätt owners and property owners risk being liable to repay fees if the rent they charge is considered to be unreasonably high. If you are a property owner, you should also make sure there are not too many people in the property, both from a fire safety standpoint and to make sure there isn’t too much noise.

Insurance

You should also take a look at your home insurance, and see whether new people moving into the property or second-hand tenants will affect your premium.

The Migration Agency does not offer private homes to refugees looking for housing, and does not give any form of economic benefit to those who house refugees.

There are also special rules for children under 18 who arrive in Sweden without a parent or guardian, people wishing to help children must contact the social services in their municipality, as they are responsible for support, housing and schooling.

The Swedish Red Cross recommends that those wishing to help do so via an organisation, so there is support and sufficient checks on both the refugee and the person offering their home. Those who choose to house refugees in their own homes should think carefully about how the agreement will work in practice, the Red Cross says.

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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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