How many apartments are you allowed to rent out?

Renting out one or several apartments can be a good way to earn extra income or make use of a property that would otherwise stand empty. However, it can be difficult to know which rules apply. In this article, we explain what applies when renting out multiple apartments, whether they are rental units or condominiums.

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"Renting out your home can be a smart way to increase your income, but it is important to understand the rules. Guestit guides you through the process and ensures everything is done correctly."

If you own a condominium and want to rent it out, it is important to check your housing association’s regulations. Associations may have specific rules for subletting, but they cannot prohibit it entirely. They can, however, set conditions for when subletting is allowed.

You usually need approval from the board to sublet your condominium. The board may only refuse permission if there is a valid reason. This could be that the intended tenant is considered unsuitable or that the rental could disturb other residents. If the association denies your request, you can appeal the decision to the Rent Tribunal. The tribunal may grant permission if you have reasonable grounds and the association does not have a valid reason to refuse.

The private subletting act regulates rentals of homes owned by private individuals. The law applies to the rental of all or parts of a home used as the owner’s permanent residence. Under this law, you may charge any rent you choose as long as it is not significantly higher than what is considered reasonable.

What is considered reasonable depends on factors such as the size, location and standard of the home. If the tenant believes the rent is too high, they can contact the Rent Tribunal for a review.

There is no law limiting how many apartments you are allowed to rent out. You may rent out your condominium, your rental apartment or several units at the same time. However, you must follow the applicable rules. For rental apartments, you need permission from the landlord, and for condominiums, you need approval from the housing association.

Be aware that tax rules and other obligations may change depending on how many apartments you rent out. If you rent out many units, your activity may be classified as a business, which means additional rules apply.

When renting out one or several homes, it is important to understand the difference between private letting and commercial letting.

Private letting means renting out individual homes, such as a room in your own home or a separate apartment. Income from private letting is taxed as capital income, and certain deductions are allowed. The Private Subletting Act applies, which gives the tenant weaker protection than in standard rental agreements.

Commercial letting involves renting out on a larger scale, for example several homes or rental activity carried out professionally for profit. Income from commercial letting is taxed as business income and is subject to additional contributions and obligations. The full Rental Act applies to commercial letting, which gives tenants stronger protection.

The boundary between private and commercial letting is not always clear. It is not only the number of rented homes that matters, but also factors such as independence, duration and profit motive. If the Swedish Tax Agency considers that your rental activity meets the criteria for a business, it may be classified as commercial even if you only rent out a few homes.