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

Are you tired of living in alone in big apartment and want to earn some extra cash by renting out your extra room? Or maybe you have a spare room that you want to rent out to foreign travelers or perhaps students that are visiting Sweden?

Whatever the reason, there's no denying that renting out a room in your apartment or house can be a lucrative side hustle. But before you start advertising your room online though, you'll obviously want to know what you can legally charge for rent. In this blog, we'll dive into the ins and outs of determining your rent for a room in Sweden so you can rent out with confidence. When you have determined what rent you can charge, we recommend finding the perfect using Hemavi. Hemavi is free to use and you will get matched with a roommate that is perfect for you. Trust us when we say that you won't be disappointed!

First things first, let's talk about the law.

The good equation for determining how much you can charge a tenant for renting a room is simple. Start by considering how much rent you pay for the entire place, and from that, calculate how much the rent is per square meter. You can then multiply that amount by the size of the room your tenant will be renting. For example, if your rent is 10,000 SEK for a 100sqm apartment, and the room you're renting out is 30 sqm, then a reasonable rent to charge would be 3,000 SEK.

But, there are more things to considered than the actual area of the room. The next step is to factor in the shared spaces in your home - all the areas your tenant will have access to, such as the kitchen and the bathroom. Building upon the example above, if the shared areas in your apartment are also 30 sqm, it would be reasonable to charge your tenant 1,500 SEK for them (half the amount, since it's a common space between the 2 of you - 10,000*0.3 then divided by 2). The total rent you can charge in this case then amounts to 4,500 SEK. If the room you're renting out is furnished, you can charge from 10 to 15 percent extra for it, bringing the total in this specific example to 4,950 SEK to 5,175 SEK.

The guidelines above can help you figure out how much rent to charge. It is important to be aware that if you decide to rent a room in your home for more than is deemed reasonable (for example 7,000 kr in the example above), your tenant can always report to the Swedish 'Hyresnämnd' that they are paying a too high rent and they could actually be entitled to a refund of all the excessive rent. However, the possibility of these retroactive repayment does not apply to rooms that are rented out in condominiums or houses. Instead, it can be ruled that the tenant will have to pay less rent in the future to compensate instead.

So how do you determine what rent you should charge for your room?

Even with all those calculations, it's important to remember that the market will dictate what people are willing to pay for a room in your area. So while you may be able to charge a high rent, it may not be realistic if other rooms in your area are going for a lower price. We always advocate the following approach to determining whether the rent you're trying to charge is reasonable, and we recommend you to look at factors such as the following when determining rent:

Location, location, location

The location of your place will play a big role in determining the rent you can charge. This is because different locations in Sweden have varying levels of demand for rental properties and amenities, which can impact the cost of living. In areas with high demand, such as central Stockholm, rental costs tend to be higher compared to areas with lower demand. This is because renters in these areas are willing to pay more for access to better schools, job opportunities, transportation, shopping and entertainment options. The proximity to green spaces, parks and lakes can also play a role in determining the rental cost of a room in Sweden.

Size of the room

The size of the room will also affect the rent you can charge. The size of a room is one of the most important factors in determining the rent amount in Sweden. Larger rooms tend to command higher rental prices due to the extra space and comfort they offer. However, other factors such as location, amenities, and the overall condition of the property also play a role in determining the rent amount. In densely populated urban areas, for example, smaller rooms may command higher prices due to their proximity to amenities and services. Ultimately, the size of a room must be considered in conjunction with other factors to arrive at a fair and reasonable rent amount.

Amenities

Properties that offer a higher level of amenities, such as a private bathroom, kitchen facilities, or access to shared spaces like a living room or laundry room, tend to command higher rental prices. Other amenities such as high-speed internet, on-site parking, or security features can also affect the rent amount. However, it's important to consider the trade-off between the cost and the value that each amenity provides. You should also be mindful of the needs and preferences of the typical renter in your area, as certain amenities may be more attractive to some renters than others. Ultimately, the right mix of amenities can help attract high-quality tenants and increase the overall value of the rental property.

Competition

Check out what other rooms in your area are going for. This will give you an idea of what the market is willing to pay for a room like yours. One of the best ways to determine a fair rent is to conduct a market analysis. This involves researching what other landlords are charging for similar properties in the same area. You can use online rental platforms, such as Hemavi, to compare prices, or reach out to other landlords for information.

Once you've taken these factors into consideration, you can set your rent. However, it's important to remember that the rent you set should cover all of your costs, such as utilities and any repairs or maintenance you may need to do.

What other factors should I keep in mind when renting out my room?

It's also a good idea to review your rent on a regular basis, especially if you've made any improvements to your room or if the rental market in your area has changed. You may find that you can charge more or less rent based on these changes.

One thing to keep in mind when renting out your room is that you'll be responsible for paying taxes on the rent you receive. In Sweden, you'll need to report the rent you receive on your tax return and pay income tax on it. So be sure to keep accurate records of all your rent payments and expenses so you can report them accurately.

Now that you know what you can charge for rent, it's time to start advertising your room! No matter where you choose to list your room online (We, of course, recommend Hemavi!), be sure to take high-quality photos and write a detailed description of your room and its features. You may also want to consider offering a discount for longer stays or for booking during off-peak times to attract more tenants.

When negotiating the rent with potential tenants, it's important to be transparent and fair. You should explain why you have set the rent at a certain level and be open to negotiating with the tenant if they believe the rent is too high. Additionally, you should be clear about what is included in the rent, such as utilities, and what is not included. This will help to avoid any misunderstandings and will ensure that both you and the tenant are happy with the agreement.

Once you’ve found a good tenant, it’s always a good idea to sign a roommate agreement.

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

Draft, edit and sign your own digital lease agreement in under three minutes through Hemavi. Our agreements were prepared by property lawyers, are legally sound, and fully customizable for apartments, rooms, houses or subletting. Simply choose your contract, fill in the information, and sign it online!

Conclusion

Renting out a room in Sweden can be a great way to earn extra cash. Determining the rent for a room in Sweden can be a complex process, but with a little research and some negotiation, you can set a fair and reasonable rent that works for both you and your tenant.

Always keep in mind the location, size, state, and amenities of the room, as well as what other landlords in the area are charging. Additionally, be transparent and fair in your negotiations, and be mindful of any restrictions on rent increases in Sweden. By following these tips, you can ensure that you're getting a fair return on your investment and that your tenant is happy with the agreement. Just remember to keep accurate records and pay taxes on your rent, and you'll be on your way to being a successful room rental entrepreneur!

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.