Leasing residential housing

Listen

Leases specify the rights and obligations of tenants and landlords. Without a lease, the legal rights of both sides are precarious.

The landlord and tenant are free to negotiate the rent amount, but according to the law the amount must be fair and reasonable towards both parties. Disputes over the rent amount can be referred to the Housing Appeals Committee

All information on rights and obligations regarding rent can be found here Renting helpline.

Leases

Leases should be done in written form and signed by both the landlord and the tenant (or their agent).

It is recommended to make an electronic lease and register it in the Rent Register.

Leases can have an indefinite duration or a fixed duration. Different rules apply to the termination of a lease depending on whether its duration is indefinite or fixed.

End of lease

Good to keep in mind:

In case of the rental unit being available for leasing after the current lease ends, the tenant has right of priority for at least one year after the end of the lease (there are however exceptions).
The landlord must ask the tenant with at least three months notice (30 days ef the contract is shorter than three months) whether they intend to use their right of priority.
The tenant may only remove fixed furnishings and the like, if he has paid for it himself.
The landlord may allocate the security deposit to the payment of unpaid rent.

Termination of a lease

Both parties may terminate a lease if it has indefinite duration, but in the case of a landlord who is not non-profit-driven, there must be legitimate reason for the termination. The period of notice varies depending on the type of housing and the lease duration. It is best to do this in writing and in a verifiable manner, for example by e-mail or registered letter and the reason for the termination must be stated.

Under normal circumstances, a lease with fixed duration cannot be terminated before its final date, unless there are specific reasons stated in the rental agreement. See further information here Renting helpline.

Rent amount

In the rent contract the rent amount must be clearly stated and how it may change over the duration of the contract. Temporary contracts made for a period shorter than 13 months cannot have the rent amount changed, such a by indexation, except in the case of non-profit companies.

The parties to the contract may request a change in the rent amount during the contract period if there are significant changes in the landlord‘s costs or if the rent amount is not comparable to similar properties.

Information on the rental market

Various information about the rental market can be found on the HMS web site. This includes monthly and annual reports on rental prices and rental market surveys.

Properties up for lease can be found on line with various rental agencies and in media advertisements.

Some municipalities offer apartments for rent on the general market as well as Social housing. The allocation of social housing depends on family circumstances, social circumstances and income and assets which need to be within certain limits. Contact your local municipality for advice on social housing.

Housing benefits

Housing benefits are monthly payments intended to assist people who rent residential properties. To be eligible for housing benefits, a lease must be registered electronically in the HMS Rent Register.

Special housing support

The municipalities provide special housing support in addition to housing benefits, to those living in difficult financial or social circumstances.

To find out more about your rights to special housing benefits, you need to contact the municipality of your legally registered address.

Rental income

Rental income is taxable. If a lease is registered in the HMS Rent Register, Information regarding rental amounts are automatically entered into the parties´ annual tax statement form. If the landlord is an individual, the rental income is taxed as capital income, otherwise as general income. See further information here Tax office.

Disagreement

In the event of a disagreement between tenants and landlords during the making, execution or end of the lease, the matter can be referred to the Housing appeals committee, free of charge.