Renting out an apartment in Stockholm can be a great business opportunity given the area’s popularity and high demand for rental housing. But before you go ahead with the rental, there are several important factors and details to consider. Here are some things to keep in mind when planning to rent out your apartment in this attractive Stockholm area.
1. Get approval from the condominium association
If you live in a condominium and plan to sublet the apartment, you must first get permission from your condominium association. Many associations are restrictive about subletting, and there may be specific rules about how long the rental can last, who can rent, and what conditions apply. It is therefore important to check the association’s bylaws and apply for permission well in advance.
2. Create a clear rental agreement
A written rental agreement is crucial to protecting both you and your tenant. In the agreement you should include:
Rent amount and payment date
Rent period (how long the rental lasts)
Responsibility for maintenance and repairs
Rules for terminating the agreement
What costs are included in the rent (e.g. water, electricity, broadband)
Rules for visits and possible extension of the rental period
By having a clear agreement, you reduce the risk of misunderstandings or disputes during the rental period.
3. Set a reasonable rent
The rent level for your apartment should be competitive and in line with market prices in Stockholm. If you set a rent that is too high, you risk not finding a tenant, while a rent that is
too low may mean that you do not receive the right compensation for your home. Look around at other apartments in the area to get an idea of what a reasonable rent is.
4. Avoid black renting
It is important that the rental is correct and complies with all laws and regulations. Make sure to write a proper rental agreement and that all transactions are made by bank transfer. Avoid accepting payment in cash or through black rental, as this can lead to serious legal problems. It is also important to report the rental correctly to the Swedish Tax Agency.
5. Do a thorough background check on the tenant
It is important that you as a landlord know your tenant and their background. A background check can include asking about previous rental references, checking credit information and ensuring that the person has a steady income. By doing this, you reduce the risk of problems, such as unpaid rent or damage to the apartment.
6. Consider insurance
Make sure you have valid home insurance and check that the insurance covers any damage to the apartment during the rental. The tenant should also have their own home insurance to protect their belongings. This is especially important if you are renting out furnished apartments, as it reduces the risk of damage or loss of property.
7. Maintain and prepare the apartment
To make the apartment more attractive to potential tenants, make sure it is well-maintained and in good condition. A clean and fresh apartment is more likely to attract good tenants and can justify a higher rent. Also consider offering furnished apartments if it suits your target group.
8. Be flexible with viewings
Being flexible when it comes to viewing the apartment can make it easier for potential tenants to find a time that suits them. The more viewings you have, the greater the chance of finding the right tenant. Plan for viewings in the evenings or weekends, to give interested tenants the opportunity to see the apartment.
9. Think about taxes and tax returns
When you rent out your apartment, you must declare income from the rental to the Swedish Tax Agency. You can rent out up to SEK 40,000 per year tax-free (if you rent out part of your home), but income exceeding this amount must be taxed. Make sure to keep track of your income and expenses to avoid tax problems.
10. Consider short-term rentals
If you plan to rent out your apartment short-term (e.g. via Airbnb), you should be aware of the rules surrounding this. Short-term rentals may be restricted in some housing associations and often require special permission if the rental is for periods longer than 14 days per year.