Renting Out a Room in Sweden: Long-Term vs Short-Term

So, are you considering renting out a spare room in your home in Sweden? As the cost of living rises, particularly in big cities such as Stockholm, Gothenburg, and Malmö, a lot of people are turning to renting out rooms in their apartments or houses to make a bit of extra cash.

Renting out a room can be a great way to earn some extra income, but it's always important to weigh the pros and cons of renting out a room short or long-term. In this blog, we'll discuss the advantages and disadvantages of both short-term and long-term rentals in Sweden, so you can make an informed decision that suits your goals and your particular situation. Whether you're looking for steady income and less maintenance or higher income potential and more flexibility, we've got you covered. So, let's dive in and explore which option is best for you!

If you want to rent out a room in your apartment or house and love a smooth rental process, you can create a free room ad on Hemavi and avoid unnecessary stress when finding the best roommate.

Long-term Rentals

A long-term rental is typically defined as a lease agreement that lasts for six months or more.

Benefits of Long-term Rentals

• Steady income: With a long-term rental, you can count on a steady stream of income for an extended period of time. This can help you budget and plan for the future much easier.
• Less maintenance: Because the renter will be living in the room for an extended period of time, they are more likely to take care of it and keep it clean. This means less work for you as a landlord.
• Lower turnover costs: Finding a new tenant can be time-consuming and expensive. With a long-term rental, you won't have to worry about turnover as often, which can save you money and energy in the long run.

Drawbacks of Long-term Rentals

• Limited flexibility: Once you sign a long-term lease agreement, you are committed to renting out the room for the entire duration of the lease. If you need the room for personal use or want to change your rental strategy, you'll have to wait until the lease expires or wait through the notice period.
• Potential for problem tenants: If you end up with a tenant who doesn't pay rent on time or causes damage to the property, you may be stuck with them for the better or the worse.

Short-term Rentals

Short-term rentals are typically defined as rental agreements that last less than six months.

Benefits of Short-term Rentals

• Higher income potential: Short-term rentals can often command a higher daily or weekly rate than long-term rentals. If your room is in a desirable location and/or you offer extra amenities, you may be able to charge a premium price for the room you are renting out.
• More flexibility: With short-term rentals, you have more control over when the room is available for rent. This can allow you to use the room for personal use or change your rental strategy more frequently.
• Less risk of problem tenants: Because the rental period is shorter, there is less risk of getting stuck with a problem tenant. If a renter causes issues, you can simply decline to rent to them again in the future.

Drawbacks of Short-term Rentals

• More maintenance: With short-term rentals, you'll need to clean and prepare the room for new renters frequently. This can be time-consuming and may require you to hire cleaning staff or perform the cleaning yourself
• Lower occupancy rates: Depending on the demand for short-term rentals in your area, you may experience periods where the room is empty and not generating any income.

Things to Consider when Renting out a Room in Sweden

Notice Period

The notice period in Sweden for a room rental is different depending on if the length of the rental period is less than 3 months. If the length of the contract is less than 3 months (but longer than 2 weeks), the notice period will be 2 weeks for the landlord. However, if the rental period is 3 months or longer, the notice period is 3 months.

Contract Renewal

If the rental agreement defines a lease period of longer than 9 months, the contract is automatically extended unless terminated. What this means is: if you’re renting out a room in your property for 10 months, and want your tenant to leave, you have to give them an official notice of termination 3 months before you want them to move out – otherwise, your tenant’s contract is automatically extended.

For a shorter rental period, such as 8 months, the rental agreement will expire automatically when the lease period is concluded.

Rental Agreement

The rental agreement is arguably the most important document when it comes to renting out a room in Sweden. It sets expectations for the landlord and tenant, and defines all their responsibilities and duties. It is a legally binding document that can be used to resolve any disputes, and therefore should include all the details of the rental.

Where can I find a good template for a room rental agreement?

Hemavi offers digital rental contracts created by legal experts for room rentals in Sweden, where you can easily add an inventory list, etc. We also have a team that is always here to help you with your rental. It doesn't get any simpler than that!

Conclusion

Whether you choose to rent out a room long-term or short-term in Sweden depends on your current situation. Long-term rentals provide you with a steady income and less maintenance work, but offer limited flexibility and potential for problematic tenants. Short-term rentals offer higher income potential and more flexibility, but require more maintenance and may experience lower occupancy rates. Ultimately, it's important to weigh the pros and cons of each approach and choose the one that best fits your needs.

If you want to rent out a room in your apartment or house and love a smooth rental process, you can create a free room ad on Hemavi and avoid unnecessary stress when finding the best roommate.

Are you renting out a room in Sweden?

Check out our Ultimate Guide to Writing a Room Rental Agreement in Sweden – it tells you everything you need to know about room rentals and their lease agreements in Sweden.