What is a fair rent when subletting?

Knowing whether the rent is fair can be difficult, especially when you are renting a home through a sublease. The rules differ depending on the type of property you are renting. For tenancy apartments (hyresrätter), the Swedish Rental Act still applies, meaning the rent must be based on the apartment’s utility value and be considered fair. For co-op apartments, houses and other privately owned properties, the Private Residential Lettings legislation provides greater freedom to set the rent based on market demand. At the same time, tenants remain protected against significantly excessive rent.

In this guide, we explain the rules that apply to different types of housing, how rent is assessed, and what you can do if you believe the rent is unreasonably high. The guide is based on Samtrygg’s experience from thousands of completed rentals and our ongoing dialogue with both tenants and landlords across Sweden.


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Co-op apartments, houses and holiday homes

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

In this section, we explain how rent is determined and what you can do if you believe the rent is unreasonably high.

How does rent setting work?

For privately owned properties, landlords have greater freedom to set the rent than when subletting a tenancy apartment. Under the Private Residential Lettings legislation, the rent should reflect market demand while tenants remain protected against significantly excessive rent.

This means that the rent may vary depending on several factors, including:

  • Property size

  • Location and neighbourhood

  • Standard and condition

  • Furnishing

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

  • Market demand

There is no statutory formula for calculating rent under the Swedish Private Letting Act. Instead, the rent is assessed based on the property’s characteristics and the current market conditions.

How do I know if the rent is fair?

As a tenant, it can be difficult to determine whether the rent is fair. A good first step is to compare the property with similar homes in the same area.

Keep in mind that rents may vary even between similar properties. Factors such as furnishing, condition, the property’s location within the building and what is included in the rent can all affect the price. By comparing several similar homes, you will get a better understanding of what constitutes a fair rent.

What happens if the rent is too high?

Although the Swedish 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 you believe the rent is significantly excessive, you can have it reviewed. During the review, factors such as the property’s location, condition, size and the current market situation will be taken into account. If the rent is found to be significantly higher than what is considered reasonable, it may be reduced for future rental periods. If you suspect that the rent is substantially above the market level, it is therefore important to take action.

Unlike the rules for tenancy apartments, the possibilities for retroactive repayment are more limited under the Private Residential Lettings legislation. Instead, the focus is on ensuring that future rent is set at a reasonable level.

How to determine whether the rent is fair

Before signing a tenancy agreement, it is a good idea to compare the rent with similar properties in the same area. This will help you assess whether the rent appears to be at a reasonable level.

Keep in mind that a high rent does not automatically mean it is unfair. Factors such as location, condition, furnishing and market demand can all influence the price.

All landlords on Samtrygg are in contact with us before their properties are published. Thanks to our experience from thousands of completed rentals and our ongoing dialogue with both tenants and landlords, we have a strong understanding of how the Swedish rental market works in practice. This helps create a transparent marketplace where you can easily compare properties, rents and rental terms before signing a tenancy agreement.


Tenancy apartments

If you are subletting a tenancy apartment (hyresrätt), your landlord may generally charge the same rent that they themselves pay for the property. If the apartment is furnished, or if costs such as electricity, broadband or parking are included in the rent, certain additional charges may be permitted.

In this section, we explain what is meant by fair rent, the utility value principle, comparable apartments and the escalation rule. You will also find examples of how the rent can be calculated and what you can do if you believe you are paying too much.

Fair rent, the utility value principle and comparable apartments

Under the Swedish Rental Act, the rent must be fair. For tenancy apartments, this means that the rent should reflect the property’s utility value – in other words, the practical value the home provides from a tenant’s perspective.

When assessing 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 amenities

The rent should also be comparable to that of similar apartments. Comparable apartments are homes with broadly similar characteristics located in comparable areas.

The apartments do not need to be identical to be considered comparable. For example, a slightly smaller apartment with a more efficient layout may have the same utility value as a larger apartment with a less practical floor plan. Likewise, certain advantages may offset other disadvantages when apartments are compared.

Example of factors affecting the utility value

Suppose you want to assess whether the rent is fair for a tenancy apartment with the following characteristics:

  • Size: 50 m²

  • Year built: 2001

  • Layout: One bedroom and one living room with a separate kitchen

  • Floor: 3 of 6

  • Condition: No repairs needed

  • Sound insulation: Yes

  • Elevator: Yes

  • Laundry room: Yes

  • Garbage chute: No

  • Storage space: No

  • Property management services: Yes

  • Parking: 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 have the same utility value.

In most cases, the rent your landlord pays already reflects the apartment’s utility value, as it has normally been negotiated between the property owner and the Swedish Union of Tenants (Hyresgästföreningen).

The Swedish Courts provide more information about the factors considered when determining the utility value and how comparable apartments are assessed.

Furniture and additional costs

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

The landlord may also charge for costs directly related to the property, such as:

  • Electricity

  • Gas

  • Internet

  • Parking

  • TV services

These charges should reflect the landlord’s actual costs.

Calculating the rent for a tenancy apartment – an example

If the 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 may be calculated as follows:

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

Have you paid too much? You may be entitled to a rent reduction and repayment

If you believe the rent is higher than what can be considered fair, you can apply to the Rent Tribunal (Hyresnämnden) to have the rent reviewed.

If the Rent Tribunal finds that the rent has been too high, you may, in some cases, be entitled to repayment of the part of the rent that constitutes an overcharge. The Tribunal may also order that the rent be reduced for the remainder of the tenancy. Repayment may cover rent paid up to one year before the application.

Example of repayment of excess rent

If you have paid SEK 11,000 per month for a property where the fair rent is determined to be SEK 9,000 per month, and you have lived there for eight months, you may be entitled to repayment of:

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

Read more about the rules on repayment here.

The escalation rule

In some cases, the rent for a tenancy apartment may increase following a major renovation or a rent negotiation. If the increase is substantial, it may be introduced gradually over several years instead of taking effect immediately. This is known as the escalation rule.

The purpose of the escalation rule is to give tenants time to adjust to a significant rent increase. Instead of applying the full increase at once, the rent is increased in stages over a specified period.

If the tenancy apartment you are subletting is subject to a phased rent increase, you are entitled to pay the same reduced rent as the first-hand tenant. The landlord may therefore not charge the final, fully increased rent before it actually comes into effect.

Example of the escalation rule

Suppose the utility value rent for an apartment is SEK 8,000 per month and the rent is increased by 10% following a major renovation. To avoid a substantial increase all at once, the increase is phased in over five years.

  • Original rent: SEK 8,000/month

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

  • Escalation 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 the apartment during the third year, you should therefore pay SEK 8,480 per month, not the final rent of SEK 8,800 per month.

Learn more about the escalation rule here.


 

Further reading

If you would like to learn more about rent setting and subletting in Sweden, the following resources provide additional information from public authorities and other relevant organisations:




Reviewed by a lawyer.
Last updated: 1 July 2026