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10% increase in the rent! is it legal in Sweden?

Sudden increase in the rent from March 2013

Pooya
post 20.Feb.2013, 11:12 AM
Post #1
Location: Gothenburg
Joined: 28.Nov.2008

Hi,

I have rented a 72 KVM apartment in Herkulesgatan from Feb 2013 for 6 746 SEK per months. now the landlord send me a mail which says the new rent for March is 7 436 SEK ! which is 10% increase in the rent.

He told me by the time of signing the contract the rent will be increased but he said, he doesn't know at the amount.

I have been leaving in Sweden since 2007 and the rent was normally increased 3% each year for my previous apartments but 10% in not normal in my eyes !!!!

Is it legal ? it's more than the inflation rate !

I have a second hand white contract.

What would you do in these condition ?

thanks a lot for your help
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PDX
post 20.Feb.2013, 11:15 AM
Post #2
Location: Stockholm
Joined: 2.Aug.2011

The law has been just changed to allow for the second hand renters to include capital costs in the rent (such as loan interest etc). Hence, entirely justifiable.

~~~PDX~~~
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Kibiri
post 20.Feb.2013, 11:37 AM
Post #3
Joined: 1.Jun.2008

Afaik, the new law is valid for contracts that are signed after it came into effect. Depending on the exact dates, it may not be relevant for the OP.
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Essingen
post 20.Feb.2013, 01:43 PM
Post #4
Joined: 2.Nov.2008

If that is Herkulesgatan in the centre of Stockholm, it a complete bargain at the new rent.
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intrepidfox
post 20.Feb.2013, 02:31 PM
Post #5
Location: Gothenburg
Joined: 18.Jul.2012

Your rent is really expensive. I live on the same road in a house and only pay 5500
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Yorkshireman
post 20.Feb.2013, 04:01 PM
Post #6
Joined: 22.Nov.2011

Whatever does it say in your contract for renting? If you only started renting this apartment in Feb 2013, and within a month the rent is raised!. It doesn't matter what the landlord said, it is what is in the contract.

Just with regards rent in general...

If you are renting 2nd hand, and it is an apartment that is in a BRF, then it is indeed possible that the rent goes up since the law change came into effect in Feb that allowed a larger rent to be charged by private owners who rent out bostadrätt apartments. Since it is so new, it is difficult to judge how much rents are rising ...initial indications was around 20% for new contracts.

If you are renting 1st hand then again, currently there are test cases where it was agreed between building company owners to take advantage of the rules for rent setting that allow a higher rent to be charged according to location etc... So, as a test in certain areas they have increased rents by between 10-20% and waiting for test cases to be brought to Hyresnämnden (if not already) by tenants, to test how solid this move is. If they are challenged and win, then expect in more preferable areas that even 1st hand rents start to move upwards more substancially in the future. Of-course, it is also expected that in bad locations there should be rent reductions ...yeah right! biggrin.gif

Is your rent increase legal ...depends what is in your contract, but percentage increases are not controlled by legislation ...you can always challenge the rent setting... but be prepared, it is more likely that one loses with recent changes.
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Pooya
post 20.Feb.2013, 06:10 PM
Post #7
Location: Gothenburg
Joined: 28.Nov.2008

Thank you a lot ... It's really appreciated.

I signed the contract on 12-12-18 (before 2013). And El and Internet is not included.

I have attached a scan of the contract ( without names ) .

I recently understand that apartment has got a storage room also that he didn't give it to me. ( but perhaps is included in the rent )

I called him and said my max rental budget is 7 000 SEK ( He wanted 7 436 SEK ). if you want more I'm out . No matter what I will find somewhere else in one month.

He said let me think we will talk later...

I think 7 000 SEK is also too much because the apartment was unfurnished and without parking or storage room.

what do you think ?
 
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Gardian
post 20.Feb.2013, 06:51 PM
Post #8
Joined: 16.Jun.2012

I agree, your rent is very expensive and 10% increase is really too much considering the high rent for the for the apartment in first place. and there is no base whatsoever for the owner to increase it like that, and you have all the right to say no for 10% and maybe you can accept the regular annual 3%. increase.

I know a friend of mine who rented an apartment in the one the most expensive areas in stockholm as second hand (three bedrooms) and he contracted (7400K), In January 013 the company sent him a letter to increase 3% which is basically 220 krona. the letter stated the increase is what the municipality agreed along with owner company.

it obvious that the owner is taking an advantage since you are new in the country and there is a lot greedy people in this country. but again I would advise you to look for a cheaper apartments , and be careful with next contract you have to get an advise from people who know the loopholes in sweden's legal contracts.
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Gardian
post 20.Feb.2013, 06:51 PM
Post #9
Joined: 16.Jun.2012

I agree, your rent is very expensive and 10% increase is really too much considering the high rent for the for the apartment in first place. and there is no base whatsoever for the owner to increase it like that, and you have all the right to say no for 10% and maybe you can accept the regular annual 3%. increase.

I know a friend of mine who rented an apartment in the one the most expensive areas in stockholm as second hand (three bedrooms) and he contracted (7400K), In January 013 the company sent him a letter to increase 3% which is basically 220 krona. the letter stated the increase is what the municipality agreed along with owner company.

it obvious that the owner is taking an advantage since you are new in the country and there is a lot greedy people in this country. but again I would advise you to look for a cheaper apartments , and be careful with next contract you have to get an advise from people who know the loopholes in sweden's legal contracts.
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PDX
post 20.Feb.2013, 06:53 PM
Post #10
Location: Stockholm
Joined: 2.Aug.2011

Well, it's still a bargain and if you do not want it, someone else will take it. It's just a fact... I paid double that a few years ago in Göteborg, but it was furnished apartment in an old house right in the centre.

~~~PDX~~~
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Yorkshireman
post 20.Feb.2013, 07:28 PM
Post #11
Joined: 22.Nov.2011

QUOTE (Gardian @ 20.Feb.2013, 06:51 PM) *
and there is no base whatsoever for the owner to increase it like that, and you have all the right to say no for 10% and maybe you can accept the regular annual 3%. increase.

Unfortunately, many people do not realise that the law for rented apartments reasonable rents was changed a little while ago ...when setting rent the landlord can use location as a higher weighting factor than other factors, which can now out-weight the original similar type apartment. It can also be used to increase rents, this is something fastighetsägerasförening is testing right now, they have selected several areas where they will test by pushing up rents as a test by between 10-20%. There are cases waiting to be processed by Hyresnämnden on this very matter.

However, this looks like it is a 2nd hand rental of a rented apartment, which means that the rent should be tied to the rent that the 1st hand contract owner is paying, plus the additional charges ... if you can find out what the 1st hand contract owner is paying then compare ...could be they have quite a high charge for cleaning the stairs!!! (I noticed there was a charge for that included in the rent).

The rent does indeed seem reasonable for the size apartment and location, so if there is a difference, it isn't that much. You can always pass it to Hyresnämnden, since you have a contract with 9 months duration, then there isn't much to lose by passing it to Hyresnämnden to check. They will just ask the landlord (who you rent from) to justify the amount etc.
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Pooya
post 20.Feb.2013, 10:23 PM
Post #12
Location: Gothenburg
Joined: 28.Nov.2008

I talked again with him tonight and he said that , it was a mistake and the new rent is 6 960 and not 7 436 SEK.

So I decided I will stay till the end of contract and will see if I can get a first hand contact by then on Boplats.se

thank you from everyone who contributed to this topic and hope it will help others as well.
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