What happens if you rent out your apartment illegally?
By Olof Kernell • November 25, 2025
Renting out your apartment can be a good way to earn extra money, but it is important to do it the right way. Renting out “illegally”, meaning without permission from your landlord or housing association, is against the law and can have serious consequences. In this article, we explain what applies, what risks you take if you rent out your apartment illegally, and how to do it legally instead.
Quote:
"Think about the risks before renting out illegally. It can be expensive and may even cost you your home."
"Think about the risks before renting out illegally. It can be expensive and may even cost you your home."
What illegal letting means
Illegal letting means renting out your apartment without approval from your landlord or housing association. This applies to both long-term subletting and short-term rentals. If you rent out your apartment on a long-term basis, you must always have permission from your landlord.
If you own a condominium, you must get approval from the housing association. Even short-term rentals can be regulated, and some housing associations do not allow them at all, while others have strict rules about how many days per year you can rent out. It is important to find out what rules apply to your specific home before renting it out.
Read more: What is short-term letting?
Risks of renting out illegally
Renting out your apartment illegally may seem simple and tempting, but it is important to know the risks. Here are some of the consequences you could face:
- Termination of tenancy: If you rent out a rental apartment without permission, you risk having your contract terminated. The landlord has the right to end the contract immediately, which means you may lose your home. If you rent out your condominium illegally, the housing association may terminate your membership, which can force you to sell your apartment.
- Repayment of rent: If you charge an unreasonable rent, you may be ordered to repay the excess amount. The Rent Tribunal can require repayment for up to two years.
- Fines or prison: Since 1 October 2019, illegal subletting is a criminal offence in Sweden. The penalty can be fines or up to two years in prison.
- Tax offences: Income from rentals must be declared to the Swedish Tax Agency. If you rent out illegally and do not declare the income, you can be convicted of tax fraud.
- Liability for damages: If your tenant causes damage to the apartment, you may be held financially responsible for repairs.
Consequences for the person renting illegally
There are also significant risks for the person who rents an apartment illegally. Without a legal rental contract, the tenant has no formal protection. This can lead to financial loss or other problems. The person renting out may suddenly increase the rent or refuse to fix issues in the apartment.
If the landlord or housing association discovers the illegal rental, the person living there may be forced to leave on short notice, even if they pay rent. It can also make it harder to find housing in the future, as many landlords avoid renting to people involved in illegal subletting.
What to do instead
If you want to rent out your apartment, it is important to do it legally. By choosing a legal alternative to illegal renting, you protect yourself from risks and contribute to a safer and more transparent housing market.
Here are some options:
- Apply for permission to sublet: If you rent your apartment, you can apply for permission from your landlord to sublet. If you own a condominium, you also need approval from your housing association.
- Use Guestit for short-term letting: If you want to rent out your apartment furnished for short periods, Guestit is an excellent option. Guestit helps you find guests, manage bookings, and take care of all the practical work involved.
Är du bostadsägare?
Hyr ut din bostad med Guestit och börja tjäna pengar idag.