Östermalm is one of Stockholm’s most exclusive and sought-after districts, known for its elegant condominiums, luxurious shopping streets, and proximity to both nature and the city’s vibrant pulse. If you’re considering renting out your condominium in this popular area, there are several factors to consider. This article provides an overview of what’s involved in renting out a condominium on Östermalm, including market prices and regulations.
1. Demand for Condominiums on Östermalm
Östermalm is one of Stockholm’s most prestigious and centrally located neighborhoods, meaning the demand for condominiums is very high. The area attracts both international and Swedish tenants, including business professionals, diplomats, young professionals, and families. If you’re planning to rent out your condominium, this is an area where you can expect a large pool of serious tenants, but also a level of competition for the most desirable apartments.
The high demand means renting out a condominium on Östermalm is likely to be a great opportunity, but it’s important to stay informed about the rental market and competition to set the right price and find the right tenant.
2. Rental Prices for Condominiums on Östermalm
Rental prices for condominiums on Östermalm are generally higher than in many other parts of Stockholm, reflecting the area’s status and attractiveness. Here is an approximate price range for renting out condominiums in the area:
- 1-Bedroom Apartment (2 rooms): Rental prices for a one-bedroom apartment on Östermalm typically range between 18,000 and 30,000 SEK per month, depending on the size, location, and condition of the apartment.
- 2-Bedroom Apartment (3 rooms): Renting a two-bedroom apartment can cost between 25,000 and 40,000 SEK per month. Prices may be higher for more luxurious apartments or those with additional features like a balcony or a good view.
- 3-Bedroom Apartment (4 rooms): A three-bedroom apartment on Östermalm can range from 35,000 to 50,000 SEK per month, or more, depending on the apartment’s size, location, and renovation level.
It’s important to note that rental prices can vary based on the apartment’s proximity to central locations such as Strandvägen, Stureplan, or Djurgården, which tend to have higher rent than apartments located further away from these central landmarks.
3. Regulations for Renting Out Condominiums
When renting out your condominium on Östermalm, there are specific regulations and laws you must follow:
- Approval from the Housing Association: One crucial part of renting out a condominium is obtaining approval from your housing association. Many associations
have strict rules about subletting, including limits on how long the apartment can be rented out and under what conditions. - Rental Agreement: It’s essential to have a clear and written lease agreement that outlines all the important aspects of the rental, such as the rent amount, rental period, maintenance responsibilities, and rules for terminating the lease. A proper agreement helps minimize the risk of disputes.
- Fair Rent: By law, you are not allowed to charge an unreasonable rent for your condominium in a sublet situation. The tenant has the right to request a review of the rent if they believe it is too high. To ensure fairness, the rent should be set at a level consistent with the current market rates.
- Short-Term Rentals: If you plan to rent out your condominium on a short-term basis via platforms like Airbnb, be aware that rentals longer than 14 days per year may require special approval from your housing association or rental tribunal.
4. Benefits of Renting Out a Condominium on Östermalm
Renting out a condominium on Östermalm has several advantages:
- High Demand: Due to the prestigious location and the area’s appeal, there is consistently strong demand for rental properties. This makes it easier to find a reliable tenant and secure stable rental income.
- Exclusivity and Prime Location: Condominiums on Östermalm offer exclusive living with close proximity to some of Stockholm’s best restaurants, cafes, shops, and cultural venues. For tenants, this provides an attractive and comfortable lifestyle.
- Green Spaces and Nature: In addition to the bustling city life, Östermalm is close to large green spaces like Humlegården and Djurgården, offering tenants a nice balance between urban living and nature.
- Excellent Transport Links: The area has excellent transport links with the subway, buses, and cycling paths, making it easy to get to other parts of Stockholm. This further adds to the area’s appeal for potential tenants.
5. Conclusion
Renting out a condominium on Östermalm can be both a profitable and practical solution for those looking to capitalize on the high demand for rental properties in the area. By following the legal guidelines and staying updated on market prices, renting out your condominium can be a successful and secure venture. Whether you own a one-bedroom apartment or a larger three-bedroom property, Östermalm offers great potential for finding reliable tenants in this exclusive and centrally located neighborhood.