What Rent Should I Charge When Renting Out My Room in Denmark?

If you're a property owner in Denmark, or simply living in a property that has one or more too many bedrooms for you, you're likely pondering one key question: "How much rent should I charge?" – Deciding on the right amount of rent to charge can be a daunting task, but it's crucial for attracting the right tenants and ensuring a steady income.

Renting a room at your place is definitely a lucrative decision, but with it come many different factors to keep in mind, such as the rent amount, rental duration, the rental agreement, and even what kind of roommate or tenant you'd like to rent to! In this blog, we'll guide you through all the essential factors that play a role in setting the right price—from understanding the dynamics of your local real estate market to evaluating the specific features of your property.

Have a room you'd like to rent in Denmark? Make sure you list on Hemavi – we'll help you find a tenant with only a few clicks!

Legal Considerations for Renting out a Room in Denmark

As a landlord in Denmark, it's important to familiarize yourself with the various legal regulations that govern the rental market, especially if you are looking to rent out a room in your property. In some areas, particularly major cities, there are rental caps that limit the amount you can charge for rent, designed to keep housing affordable​​. The law in Denmark provides substantial protection to tenants, ensuring that rental contracts are fair and balanced. This includes stipulations that rent increases must be justified, either by linkage to the consumer price index or through significant improvements to the property​.

The amount you can charge for renting out a room in your property is influenced by whether the property is in a regulated or unregulated municipality. Regulated areas have specific rules on rent sizes and increases as stated in the "Boligreguleringsloven" (Housing Regulation Law), which are designed to keep rents at reasonable levels based on various factors like the property's location, size, and condition​. For properties in unregulated areas, rent should reflect the "value of the rented," meaning it should be comparable to similar properties in the area. This is generally determined by market rates rather than strict legal caps. However, if you're renting out just a room within your own home, the Danish Rent Act allows for somewhat different rules. Specifically, if it's the only tenancy you're offering in your home, the formal requirements like a move-in inspection can be more flexible, although it's still recommended for clarity and to prevent future disputes.

If you're renting out multiple rooms or units in the same property, you need to ensure that each rental rate is justified based on the individual characteristics and amenities of each room or unit. While there's no specific rule stating that a room must be rented out for a proportional amount of the whole property's potential rent, it is important that the rent charged is not unreasonably high compared to market standards and the provided facilities​.

Factors that Influence the Price of a Room Rental in Denmark

Location

In Denmark, urban locations like Copenhagen, Aarhus, and Odense see higher rental prices due to their dense infrastructure and amenities. For instance, in Copenhagen, rental prices can range from 12,000 to 18,000 DKK per month for a one-bedroom apartment in the city center. In contrast, similar accommodations in smaller cities or rural areas might cost significantly less. The presence of universities can further elevate rents, especially in areas close to campuses where students and academic staff seek housing. Properties near public transport, shopping centers, and other conveniences are also more sought after, justifying higher rental rates.

Size and Condition

The rental price of a room is significantly influenced by its size and condition. Generally, larger rooms with high-quality amenities can command higher rents. For instance, a well-maintained room in Copenhagen with modern facilities like a private bathroom might fetch anywhere between 5,000 and 7,000 DKK per month, depending on the exact location and size. Conversely, a smaller or less updated room in the same city could range from 3,000 to 4,500 DKK. Properties that offer additional luxuries, such as updated interiors or energy-efficient systems, can justify even higher prices due to their enhanced appeal and reduced utility costs.

Market Rates and Competition

To determine competitive rental rates in Denmark, it's crucial to research similar properties in your area using some online platforms for rentals as well as social media networks, primarily groups on Facebook. These platforms allow landlords to compare features such as size, condition, and proximity to amenities, helping to set a price that aligns with the current market. They provide real-time data and trends, ensuring pricing strategies are both competitive and fair.

Utilities

Including utilities in the rental price can attract more tenants and potentially justify a higher monthly rent. For example, a room rental that includes utilities like electricity, water, and heating might be priced at 5,000 DKK per month, whereas similar rooms without included utilities might rent for around 4,000 DKK, with tenants paying additional utility costs averaging 500-1,000 DKK per month depending on usage. Offering services like regular cleaning can also increase the rental value; for instance, adding a cleaning service might allow a landlord to charge an additional 500 to 800 DKK per month, depending on the frequency and extent of the service provided.

Furnishings

In Denmark, furnishing a rental room can significantly increase its market value. For example, a furnished one-bedroom apartment in Copenhagen might rent for approximately 13,000 to 19,000 DKK per month, compared to 10,000 to 15,000 DKK for an unfurnished equivalent. The quality and modernity of the furnishings play a crucial role in pricing; stylish, contemporary furniture can command a premium. This is because furnished rentals offer convenience, which is especially appealing to expatriates and students who may not wish to invest in furniture for short stays, thus allowing landlords to set higher rental rates.

Target Audience

Understanding the target audience is key to setting rental prices appropriately. Students and young professionals often look for affordability and convenience, preferring locations near universities or city centers with good public transport. Their budgets might range from 3,500 to 6,000 DKK per month for smaller, well-located accommodations. In contrast, families or older adults might prioritize larger, quieter residences in residential areas, valuing space and community facilities. Their budgets can be substantially higher, possibly ranging from 8,000 to 15,000 DKK per month, depending on the location and amenities. Catering to specific needs and budgets of these groups can maximize occupancy rates and rental income.

Conclusion

Ultimately, successful room rentals hinge on a balance of competitive pricing, legal compliance, and aligning with tenant expectations. By staying informed and responsive to the market and your potential tenants, you can ensure a profitable and smooth rental experience.

Remember, the size and condition of the room, along with extras like furnishings and utilities, significantly influence how much you can charge. Furnished rooms with included utilities often fetch a higher rent due to the convenience they offer. Additionally, targeting the right audience—whether they are students, young professionals, or families—is crucial for optimizing your rental strategy to match budget expectations and lifestyle needs.

Whether you’re a seasoned landlord or just starting, keeping these guidelines in mind will help you navigate the rental landscape effectively. Happy renting, and make sure you list your property on Hemavi to find compatible roommates!