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HOUSING

What’s the difference between renting first-hand or second-hand in Sweden?

There are two rental systems in Sweden, and which option you use has an impact on the price you pay and how long you can stay.

What's the difference between renting first-hand or second-hand in Sweden?
The key difference is who you rent from, but it has wider implications. Photo: Tomas Oneborg/SvD/TT

You'll hear people talking about renting first-hand (första hand) or second-hand (i andrahand), and the key difference between the two is who you're renting from – but there are wider implications.

With a 'first-hand' rental contract, you rent directly from the landlord. That could be a municipality or a rental agency, but these properties are subject to state-regulated rent controls, which are intended to keep prices reasonable.

You can usually stay in these properties for as long as you like, provided you don't break the terms of your contract (for example by disturbing your neighbours or failing to maintain the property or pay rent). You pay bills like electricity on top of the fixed rent.

The catch is that these are generally allocated via a queue system: you sign up, in some cities pay a nominal fee each year and earn credits the longer you queue, which give you higher priority when a property becomes available. A national housing shortage means you might be waiting for many years or even decades before you're eligible for somewhere first-hand.

If you want to join the queue, it's worth shopping around. Queue times vary between municipalities, so a suburb of a large city might have a much shorter wait time, and you can sometimes find queues specifically for young people or retirees.

Second-hand renting is the Swedish term for subletting. 

In this case, you're not renting directly from the people responsible for the building, but you rent either from someone with a first-hand contract themselves (known as hyresrätt) or from someone who has bought their property (called bostadsrätt if it's an apartment).

The person you rent from needs to have the permission of the building's housing association in order to sublet (you should ask to see this) and most associations have a cap on how long the property can be rented out second-hand for – often a maximum of a year, sometimes with the possibility of extension.

Private individuals in Sweden are not allowed to rent out their accommodation solely for profit, so even though these aren't subject to rent controls there are still caps on how much your landlord charge you.

Rent must be 'reasonable', which means: basic rent (the amount the landlord pays if they are renting first-hand, a proportion of the total rent if you're lodging, or an estimate of the cost based on similar apartments if your landlord owns the apartment), an additional 10-15 percent if the apartment is furnished, fees for any other services included in the contract (internet, a parking space, electricity, TV, etc). If your landlord owns the apartment, they may also add on four percent of the home's market value to cover the 'cost of capital'.

In other words, it will cost more than a first-hand contract, especially if you rent from someone who owns their apartment in an expensive area rather than someone renting themselves. But as long as your landlord is following the law (which unfortunately isn't always the case) rent shouldn't be outrageously high.

Whether you're a first- or second-hand renter, you always have rights to certain basic standards, for example a comfortable temperature in the apartment, the right to water and heating, and the right to use the home (without your landlord entering unexpectedly) and have guests over. 

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RENTING

Five tricks Swedes use to avoid the long wait for rental apartments

The official waiting time for apartments in Stockholm, Gothenburg, and Malmö varies between three and eleven years. But Swedes have their own tricks for jumping the queue.

Five tricks Swedes use to avoid the long wait for rental apartments

There’s no requirement for landlords or renters to use the queuing systems run by the municipalities in the big cities, but most of the big ones do, the intention being to reduce corruption and increase fairness in the rental market. 

The Stockholm Housing Agency, or bostadsförmedlingen, has a queue between seven and eleven years long. Boplats Gothenburg has an average wait of 6.4 years, and Boplats Syd in Malmö has an average waiting time of nearly three years.

According to Kristina Wahlgren, a journalist at Hem & Hyra, Sweden’s leading rental property magazine, the system puts foreigners and recent arrivals to Sweden at a significant disadvantage. 

“It’s extremely difficult if you are from another country. You don’t have any contacts, and it’s quite difficult to understand if you haven’t grown up in this culture,” she says of the system. “There are some quite subtle aspects, and there’s vänskapskorruption [giving special advantage to friends]. ” 

Listen to a discussion about Swedish queue systems on Sweden in Focus, The Local’s podcast. 

Click HERE to listen to Sweden in Focus on Apple Podcasts, Spotify or Google Podcasts.

Obviously, the biggest advantage faced by locals in Sweden is that they normally joined the queue the moment they turned 17, so by the time they’re looking for an apartment as a young adult, they’re already near the front. 

But even for new arrivals in Sweden, it’s possible to wait a much shorter time if you know the tricks, says Wahlgren, who has been nominated for Sweden’s Guldspaden journalism prize for an investigation into how Malmö finds housing for homeless people. 

Kristina Wahlgren, a reporter for the Hem & Hyra newspaper. Photo: Hem & Hyra

1.  Apply for more expensive new-build apartments to start off with 

If you’ve got a good enough salary, and are willing to pay high rent for your first few years in Sweden, this can make it easier to get an apartment, as there is less competition for more expensive, new-build apartments, Wahlgren says.

“If you’re willing to pay high rent, then you can get an apartment within a couple of months [in Malmö]. If you want a cheaper apartment, it can take years. So it’s quite a big difference.”

2. Rather than wait for your perfect apartment, take what’s available and then swap 

The rules recently got a little stricter, but it’s still relatively easy to swap between apartments once you have a first-hand contract. There’s even a website, Lägenhetsbyte, which acts as an interface. 

This means, if you use the method above, and decide to rent a more expensive new-build apartment with a shorter queue, you can then downgrade to a cheaper apartment with someone who is after somewhere newer and swankier.

Rental queues are also shorter in less desirable areas of Sweden’s cities. For example, the waiting list in Norra Hissingen in Gothenburg is only five years, half what it is in Majorna. It can be quicker to make do with living in a relatively dreary area, and then swap with somewhere better, than to insist from the start on an apartment in your dream location. 

“If you can’t wait for the right department, just take the one that you get, then you can keep on looking and when you do have a lease, you can change the lease with someone else,” Wahlgren says. 

To change apartment, you need to have a so-called “acceptable reason”, such as needing a bigger or smaller apartment. With any luck, your landlord should accept the swap. If they refuse you can challenge their decision at your local hyresnämnden or “rental tribunal”.  

3. Use the tricks for contacting landlords directly  

Landlords in Sweden are not required to use the municipal rental queues to find their tenants, and if a suitable tenant presents themselves just as an apartment becomes free, they may prefer to take someone they know.

This is particularly the case with the smaller, private landlords. It’s possible to find lists of private landlords online, such as here. But Wahlgren recommends putting in a bit of legwork.

“One way to find who owns an apartment block, is to just go around and check on the buildings for the names of the landlords, and look in the stairwells for the number of the landlord’s agent.” 

Once you have the number, you have to ring both regularly, at least once a month, and also strategically. 

“It’s important to call at the right time,” Wahlgren says. “Because normally apartment rentals end at the turn of the month, so that’s when you’re going to call. You don’t call on the 15th, you call on the 31st or the 1st of the month.”

4. Exploit all the friends and contacts that you have 

When someone hands in their notice on a rental agreement, they may try to shorten their notice by finding a replacement for the landlord, or they might find a replacement simply as a favour. This is why it’s important to ask your friends and work colleagues if they know of any apartments becoming free. 

“If they use the municipal queue, they have to follow the rules. This way, they can choose their own tenants,” Wahlgren says of the appeal of this to landlords. “If you’re a nice person, you might be able to just talk your way into an apartment.” 

5. Be a student 

“If you’re a student, there are special housing companies in the university cities, different foundations that rent out apartments,” Wahlgren says. But then you have to study.” 

Illegal ways of getting an apartment

All of these ways of getting a rental apartment are legal, but there are some ways of getting a rental apartment more quickly which are not.

1. Paying a fee

You may also find landlords or intermediaries on websites such as Blocket, who ask for a one-off payment to jump a rental queue, or get a rental apartment. This is illegal. “You can lose your money, you can lose the apartment, and in the worst case, you can go to prison,” warns Wahlgren.

2. Getting an illegal subtenancy 

It’s perfectly legal to rent out your rental apartment to someone else for a period, if you have a valid reason for doing so and your landlord agrees. But such is the pressure to get housing that a market has sprung up in illegal subletting. Before signing a contract for a sublet, make sure that the landlord who owns the property has agreed to it. 

3. Bribing someone running the queue 

There have been cases of people working for municipalities logging into the housing queue and altering it, either as a favour to their friends, or for money. This is fairly rare, and in the unlikely event that someone offers to do this for you, it’s best to decline. 

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