(edit title) Escrow accounts in Sweden For a rent deposit - how to open one? Options

[elk200]

Hey everyone,

I will rent a flat from the owner, and he asked for a deposit of 1 monthly rent. He has never rented out before (it's a new flat) and is not sure if he should just take my money directly or if there is a possibility to put it in a secure account with a bank which he could only access if I were to miss my contract obligations. (I'd prefer that, of course, and he would be fine with it.)

Are such accounts possible, and if so, what are they called and where can we open one?

Thanks!

[John.Smith]

That is a little out of the norm. Typically you and the landlord sign a contract and the contract stipulates that a deposit of part thereof be repaid upon cessation of the contract so long as all terms are met and adhered-to.
An Escrow is administered by a Notary Public, court of law or solicitor and has associated fees. The cost of going this route is too expensive for a rental deposit.

If you or the landlord breaches the contract then you will have to work it out between yourselves.

[Bender B Rodriquez]

Deposit is quite out of the norm itself. It is not very common to pay deposit at all for a rental apartment, thus escrow accounts are practically unheard of. The closest I can think of is "klientmedelskonto" which is regularly used for businesses such as law firms and real estate agents to hold client related funds.

[Shibumi]

I have rented 3 different furnished apartments in Stockholm in the past 5 years and one month's rent as a security deposit has been standard each and every time. Every rental I visited through Bostad Direkt had 1-2 month's worth of rent as deposit. This is not at all unusual (at least not for furnished apartments, I don't know about unfurnished). The amount is transferred to the landlord's account and returned to the renter at the end of the contract minus any charges for property damage beyond wear & tear. I have never had any issues with this. I paid the deposit and first month's rent to the landlord the same day I got the keys and received my full deposit back every time.

As stated above, one month's rent amount is not enough to justify the cost of an escrow account. As long as the rental situation you are looking at is legitimate and above board (e.g. no cash in hand arrangements, standard signed rental contract, you've independently checked that the landlord has the BRF's permission to rent to you, etc.) then you have to trust him/her with the deposit money. Keep in mind that once you are living there, you have the upper hand, so I wouldn't worry about the deposit unless there are other red flags that have you concerned.

[Fair Trial]

If you can Transact in Euros, then you can use Europe's leading Escrow Service - Transpact.com.

It costs only €3.49 per party per transction, and is fully automated and secure, and EU Government regulated.

[elk200]

An Escrow is administered by a Notary Public, court of law or solicitor and has associated fees. The cost of going this route is too expensive for a rental deposit.

Yes, after some research it looks like that is the case in Sweden. But there are countries in Europe where rental deposits are paid into a separated and secure third-party account (some of them even yielding a return to the tenant!).

If you or the landlord breaches the contract then you will have to work it out between yourselves.

I hope there is a court I could go to, or is there not?

[elk200]

If you can Transact in Euros, then you can use Europe's leading Escrow Service - Transpact.com.It costs only €3.49 per party per transction, and is fully automated and sec ... (show full quote)

If you can Transact in Euros, then you can use Europe's leading Escrow Service - Transpact.com.

It costs only €3.49 per party per transction, and is fully automated and secure, and EU Government regulated. ... (hide full quote)

Helpful advice, thanks! Are there such services that are available in Swedish, too? I think the landlord would much prefer that.