Sub-leasing a rented apartment or locally known as renting second-hand is only allowed if the property association agree and they usually want a fairly good reason for allowing it. Even lending the apartment to someone without charging rent requires permission. Renting out a room while still occupying the apartment does not require anyone’s permission.
With leases in popular areas being so hard to come by tenants will sub-let if they are going abroad for a year, moving to study or work for a year or two and are not willing to give up their lease.
Sub-letting without permission can lead to pretty harsh consequences and a mother of two recently discovered. While it has been alleged that she sub-leased the entire apartment two of her tenants have stated in the Rental Tribunal that they were only renting a room.
When the case was appealed and went to the High Court the housing association produced two of her neighbours who witnessed that families lived in the apartment, making it impossible for her to also have lived there. The High Court ruled, based on their claims, that she was to be evicted immediately and lose all rights to the apartment.
The original owner, Stockholmshem sold this block of apartments in 2008 to the occupants. Those owner-occupiers are now able to sell this woman’s apartment at market price, substantially improving the financial status of the corporation, potentially also benefiting Stockholmshem.