What is right of possession?

Security of tenure, also known as right of possession, is a protection for the tenant which means that they have the right to stay in the apartment even if the landlord asks them to leave. This protection is designed to ensure that tenants feel secure in their accommodation. However, there are some rules and exceptions to this tenancy protection that it is good if you who plan to rent out your apartment / premises keep track of!

Security of tenure for first-time buyers

If a tenant is given a first-hand lease, they will have strong security of tenure from the first day they rent the apartment. However, the tenant can lose this protection if they misbehave, for example by not paying the rent, neglecting the apartment, unauthorized subletting or breaking the lease.

Security of tenure for subletting

If you sublet a rental property to a tenant for a period of more than 2 years, the tenant will have a security of tenure against you. This simply means that you cannot terminate the contract at any time. However, the security of tenure no longer applies if you decide to move back into the rental property. In the case of subletting, it is usually possible to agree to waive the security of tenure, which is done in a separate document alongside the rental agreement. This usually also needs to be approved by the Rent Tribunal to be valid.

Security of tenure for tenant-owned apartments, houses and lodgers

When a person rents a condominium, a house or lives with someone, they have no security of tenure.

Indirect security of tenure when renting premises

When a company or person rents premises, there is something called indirect security of tenure. This means that if the tenant has rented the premises for more than 9 months and the contract has not been terminated within that time, the tenant has indirect security of tenure on the premises. This means that the landlord can still give notice and the tenant has to move out of the premises, but they will usually receive financial compensation. The landlord can then receive financial compensation in the form of an annual rent, as well as compensation for moving costs, business losses and loss of property value.

Is it possible to contract away security of tenure?

Yes, in many cases the indirect security of tenure can be waived in a separate document to the rental agreement. This must clearly state that the tenant waives his/her security of tenure and it needs to be approved by the Rent Tribunal. If the lease is shorter than 5 years, it does not need to be approved by the Rent Tribunal. The more limited the lease, the more likely it is that the waiver of security of tenure will be approved by the Rent Tribunal.

When you rent out your apartment or premises through us, you can always rely on us to know all the rules about renting and help you with the whole process. We help you draw up rental agreements and handle the application for termination of security of tenure for you if necessary. Do not hesitate to contact us if you have any questions. We will be happy to help you!

Important links from Soxbo: Renting out apartments to companies | Apartment Östermalm | Right of possession

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