Second-Hand Rental Agreement: Rules and Checklist for You

Renting out or renting a property in the second hand is common in Sweden, but it requires knowledge of the rules. A clear and correct second-hand rental agreement is the foundation for a smooth process, whether you are letting out your primary residence or seeking temporary accommodation. Without a proper agreement, both landlords and tenants risk legal disputes.

This article provides an in-depth guide to what a sub-lease agreement should contain, the applicable rules, and a practical checklist to ensure everything is done correctly.

Why a Written Second-Hand Rental Agreement is Important

While verbal agreements can be valid in some situations, it is strongly recommended to always draw up a written second-hand rental agreement. This is especially true for sub-letting, where the relationship between parties can be more complex than in a standard rental. A written agreement serves as proof of the agreement and reduces the risk of misunderstandings regarding terms such as rent, deposit, lease duration, and included furnishings.

Protection for Both Parties

For the landlord (the one who owns or primarily rents the property), the agreement protects against the tenant mismanaging the property, paying rent late, or using it in an unauthorized manner. For the tenant, the agreement secures the right to live in the property for the agreed period and ensures that the terms are clear. It's important to understand that even in second-hand rentals, many of the basic rules from the Swedish Land Code (Jordabalken) apply, which are designed to protect the tenant.

Key Rules for Second-Hand Rentals

Renting out in the second hand often requires permission from the primary landlord or the housing association. This is a fundamental rule that must not be circumvented. Failure to obtain permission can lead to the termination of the primary rental agreement, which in turn can negatively affect the second-hand agreement.

Permission from Primary Landlord/Housing Association

To rent out in the second hand, you as the primary tenant or housing cooperative owner generally need approval from your landlord or housing association. This is because the landlord has an interest in knowing who is actually living in the property. However, there are situations where you have the right to sub-let, such as during extended stays abroad or illness, but even then, notification and sometimes approval are usually required. Ignoring this can lead to problems.

Tenant's Rights and Obligations

The second-hand tenant has, in many respects, the same rights as a first-hand tenant. This includes the right to a property in good condition and that the rent is reasonable. The tenant is also obliged to pay rent on time and not disturb neighbours. It's important for the tenant to be aware of the rules for sub-letting.

Landlord's (Primary) Rights and Obligations

The primary landlord has the right to approve or deny a second-hand rental but cannot deny without reasonable cause if there are special reasons, such as moving abroad. The landlord also has a responsibility for the property's upkeep. The person sub-letting (the primary tenant) is directly responsible to the primary landlord for any damages caused by the second-hand tenant.

Checklist for a Good Second-Hand Rental Agreement

A solid second-hand rental agreement should cover all essential points to avoid future conflicts. Here is a checklist:

Basic Information

• Parties: Full names, personal/organization numbers, and contact details for both the lessor (primary renter/owner) and the second-hand tenant.
• Property: Address, apartment number, size (sqm), and which areas are included (e.g., storage, parking).
• Lease Term: Start and end dates. Whether the agreement is for a fixed term or indefinite. Clear information on notice periods.
• Rent: Amount, payment date, and how rent should be paid (e.g., bank transfer, Swish). Specify if costs for electricity, water, internet are included or additional.
• Deposit: Amount, when it should be paid, and under what conditions it will be refunded.

Terms and Conditions

• Furnishings: A list of furniture and fixtures included in the rental, preferably with a condition description. Photos are recommended.
• Use: Provisions on how the property may be used. For example, if smoking or pets are allowed.
• Maintenance and Repairs: Who is responsible for what. Minor maintenance usually falls on the tenant, while major repairs are the landlord's responsibility.
• Insurance: Who should have home insurance and what it should cover.
• Assignment: Conditions for if the second-hand tenant wishes to sub-let or assign the agreement.
• Inspection: The lessor's right to inspect the property with reasonable notice.

Legal Aspects

• Permissions: Confirmation that necessary permissions from the primary landlord/housing association have been obtained.
• Responsibility Allocation: Clarification of who is responsible towards the primary landlord.
• Termination: How termination should occur and the legal rules regarding notice periods.

FAQ: Common Questions About Second-Hand Rental Agreements

Can I rent out my property in the second hand without permission?

No, generally you must have permission from your landlord or housing association to rent out your property in the second hand. Renting out without permission can lead to the termination of your own rental agreement.

What is a reasonable rent for a second-hand rental?

The rent cannot be higher than what you yourself pay, plus a reasonable surcharge for furnishings and utility costs if they are additional. The Rent Tribunal (Hyresnämnden) can review if a rent is unreasonable.

What happens if the second-hand tenant doesn't pay the rent?

If the second-hand tenant fails to pay the rent, you as the primary tenant are still liable to your own landlord. You may then need to take action against your second-hand tenant, including terminating the agreement.

Can I as a second-hand tenant terminate the agreement whenever I want?

Yes, you have the right to terminate the agreement according to the terms stated in your second-hand rental agreement, and according to legal notice periods (usually three months for a tenant). If the agreement is for a fixed term, there may be limitations.

Who is responsible for damages to the property?

The person who causes the damage is responsible for it. If the second-hand tenant causes damage, they are responsible, but you as the primary tenant may be responsible to your landlord if you did not act to prevent or rectify the damage.