How much rent can you charge when renting out your home?

Setting the right rent is one of the most important decisions when renting out a property. It is also one of the most challenging. The rules depend on the type of property you are renting out. In this guide, we explain the rules that apply to rental apartments, condominiums, houses and holiday homes, how rent can be determined, and what you should consider when setting a reasonable rental price.


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Co-op apartments, houses and holiday homes

When renting out an apartment, house or holiday home, the Swedish Private Letting Act applies. The Act covers the rental of up to two privately owned homes and gives landlords considerable freedom to set the rent based on market demand, while still protecting tenants against substantially excessive rents.

In this section, we explain how rent setting works and what you should consider when determining your rental price.

How is the rent determined?

Compared with tenancy apartments, there is greater flexibility when setting the rent for privately owned homes. The Private Letting Act allows landlords to set the rent based on market demand while protecting tenants against substantially excessive rents.

When determining the rent, several factors may be taken into account, including:

  • The size of the property

  • Its location and neighbourhood

  • The property’s standard and condition

  • Whether it is furnished

  • Demand in the local rental market

  • Whether costs such as electricity, broadband or parking are included

There is no longer a statutory calculation model for determining the rent. Instead, the rent should be reasonable in relation to the property’s characteristics and the current market conditions.

Want to know how much your home could be rented out for? Use Samtrygg’s Rent Calculator to receive an estimate based on current market data and thousands of completed lettings.

Renting out up to two homes

The Private Letting Act covers the rental of up to two privately owned homes.

This means that you can, for example, rent out:

  • Your co-op apartment and a holiday home

  • Two co-op apartments

  • A house and a co-op apartment

without the second letting automatically becoming subject to the ordinary provisions of the Swedish Land Code.

If you rent out more than two homes at the same time, the ordinary tenancy legislation will generally apply instead.

How do I know what a reasonable rent is?

There is no statutory formula for calculating rent under the Private Letting Act. Instead, the rent should be based on an overall assessment of factors such as the property’s location, size, condition and current market demand.

A good way to determine a reasonable rent is to compare your property with similar homes in the same area and use Samtrygg’s Rent Calculator, which is based on data from thousands of completed lettings.

What happens if the rent is too high?

Although the Private Letting Act gives landlords considerable freedom to set the rent, tenants are still protected against substantially excessive rents. This means that the rent must not be set at an unreasonably high level in relation to the property and the market.

If a tenant believes that the rent is substantially excessive, it may be reviewed under the private residential lettings legislation. It is therefore important to set a rent that is reasonable in relation to the property’s standard, location and current market conditions.

Set the right rent – safely and easily

Setting the right rent from the outset increases your chances of quickly finding the right tenant and creates the best possible conditions for a successful long-term letting.

To find a rent that is both competitive and reasonable, use Samtrygg’s Rent Calculator. It is based on statistics from thousands of completed lettings and helps you estimate a rent that reflects today’s rental market.


Tenancy apartments

When renting out a tenancy apartment (hyresrätt) as a second-hand letting, the Swedish rental legislation requires the rent to be fair. As a general rule, the rent should correspond to the rent you pay to your landlord. If the apartment is furnished or includes costs such as electricity, broadband or parking, you may normally add reasonable supplements.

In this section, we explain what is meant by fair rent, the utility value principle, comparable apartments, furniture supplements and what may happen if the rent is considered too high.

Fair rent, the utility value principle and comparable apartments

Under the Swedish rental legislation, the rent for a tenancy apartment must be fair. This means that it should reflect the apartment’s utility value, in other words, the practical value the home has from a tenant’s perspective.

When determining the utility value, several factors are taken into account, including:

  • Size

  • Layout

  • Standard and condition

  • Location within the building

  • Access to an elevator, laundry room, parking and other shared facilities

  • Proximity to public transport and local services

The rent should also be comparable to the rent charged for similar apartments. Comparable apartments are homes with broadly similar characteristics located in comparable areas.

Not every feature has to be identical for two apartments to be considered comparable. For example, a slightly smaller apartment with a better layout may have the same utility value as a larger apartment with a less efficient layout. Likewise, certain advantages may compensate for disadvantages when comparing two properties.

Example of factors affecting the utility value

Assume you want to assess the fair rent for a tenancy apartment with the following characteristics:

  • Size: 50 m²

  • Year built: 2001

  • Layout: Two rooms and a kitchen

  • Floor: 3 of 6

  • Condition: No repairs required

  • Sound insulation: Yes

  • Elevator: Yes

  • Laundry room: Yes

  • Garbage chute: No

  • Storage: No

  • Property management services: Yes

  • Parking space: No

  • Close to public transport: Yes

A comparable apartment does not need to have exactly the same characteristics. For example, a slightly smaller apartment with a better layout may still have the same utility value.

In most cases, the first-hand rent you already pay reflects the apartment’s utility value, since it has normally been negotiated between the landlord and the Swedish Union of Tenants (Hyresgästföreningen).

You can find more information about the utility value principle and how comparable apartments are assessed on the website of the Swedish Courts.

Furnished properties and additional costs

If the apartment is rented out furnished, it is common to add a furniture supplement to the rent. There is no statutory percentage, but the Rent Tribunal (Hyresnämnden) has often accepted an increase of approximately 10–15% for fully furnished apartments.

You may also charge for costs that are directly connected to the property, such as:

  • Electricity

  • Gas

  • Internet

  • Parking

  • TV services

These charges should correspond to your actual costs.

Calculate the rent for a tenancy apartment – an example

If your first-hand rent is SEK 8,000 per month, the apartment is fully furnished, and internet (SEK 200/month) and parking (SEK 900/month) are included, the rent could be calculated as follows:

(SEK 8,000 × 1.15) + SEK 200 + SEK 900 = SEK 10,300 per month

Avoid charging excessive rent

Setting the correct rent from the outset is important. If you charge an unreasonably high rent when renting out a tenancy apartment, the consequences can be significant.

The tenant may apply to the Rent Tribunal (Hyresnämnden) for a review of the rent. If the rent is considered excessive, the tribunal may order it to be reduced. The tenant may also be entitled to retroactive repayment of overcharged rent for up to one year.

Charging an excessive rent may also put your first-hand tenancy agreement at risk. In serious cases, unlawful subletting combined with charging excessive rent may result in fines or even imprisonment.

By setting a fair rent from the beginning, you reduce the risk of disputes, repayment claims and other serious consequences.

Read more about the rules on repayment here.

Example of repayment of overcharged rent

If you have charged SEK 11,000 per month for an apartment where the fair rent is assessed to be SEK 9,000 per month, and the tenant has lived there for eight months, the repayment may amount to:

(SEK 11,000 − SEK 9,000) × 8 months = SEK 16,000

Phased rent increases

In some cases, the rent for a tenancy apartment may increase following a major renovation or a negotiated rent increase. If the increase is substantial, it may be introduced gradually over several years rather than taking effect all at once. This is known as a phased rent increase.

The purpose of phased rent increases is to give tenants time to adjust to a significant increase in rent. Instead of applying the full increase immediately, the rent is raised gradually over a specified period.

If you rent out a tenancy apartment that is subject to a phased rent increase, your tenant is entitled to the same reduced rent that you pay. You may therefore not charge the future full rent until it has actually come into effect for you.

Example of a phased rent increase

Assume that the utility value rent for an apartment is SEK 8,000 per month and that it increases by 10% following a major renovation. To avoid a sharp increase, the adjustment is phased in over five years.

  • Original rent: SEK 8,000/month

  • New rent after the increase: SEK 8,800/month

  • Phase-in period: 5 years

  • Annual increase: 2%

After three years, the rent has increased by a total of 6%:

SEK 8,000 × 1.06 = SEK 8,480 per month

If you rent out the apartment during the third year, you may therefore charge SEK 8,480 per month, not the final future rent of SEK 8,800 per month.

Read more about phased rent increases here.

 


Further reading

Would you like to learn more about rent setting and the rules governing private residential lettings in Sweden? The following resources provide additional information from public authorities and other relevant organisations:

 

Reviewed by a lawyer.
Last updated: 1 July 2026