LejLet.nu

Renting Out an Ejerlejlighed: What You Need to Know

Short answer: Yes, as a general rule you may rent out your ejerlejlighed, and the owners' association can't ban ordinary, longer-term letting without every owner's consent. But the rent isn't necessarily yours to set: in a regulated municipality it depends on when the building was taken into use, and on how many flats it had on 1 January 1995.

Karen has inherited her mother's ejerlejlighed (condominium apartment) in Aalborg. She doesn't want to sell it just now, but it shouldn't sit empty either, so she's considering renting it out. She's allowed to – but three questions are worth sorting out before the listing goes live: what can the ejerforening (owners' association) decide, can she set the rent herself, and can she get the flat back if she wants to move in herself later?

The right to rent out is yours by default

As the owner of an ejerlejlighed, you have, as a general rule, the right to rent it out – that follows from owning the home. Restricting that right normally requires the consent of every owner in the association, because it interferes with each owner's control over their own flat. A general meeting can't simply vote it through by ordinary majority.

One exception is worth knowing: if your association follows the new standard bylaws for owners' associations (normalvedtægten), the general meeting can restrict short-term letting – lets of 30 days or less at a time – by a qualified majority. Even with a ban, you may still let short-term up to 4 times and for no more than 30 days in total per calendar year, provided you notify the board no later than when each let begins (section 30(2) of the standard bylaws). A ban on ordinary, longer-term letting still requires every owner's consent.

What the owners' association can – and can't – decide

Even though the association typically can't forbid you from renting out, its bylaws can set requirements for how it's done – for example that as the owner you're liable for your tenant following the house rules. If you let the whole flat, the standard bylaws require you to notify the board of the letting, its length and the tenant's name and contact details no later than when the tenancy starts (section 30(1) of the standard bylaws). So also check your association's own bylaws before you create a listing.

The association must also arrange the building's energy labelling and give it to you free of charge. The energy label must appear in your listing, whatever the flat's size.

Can you just set the rent however you like?

This is where most ejerlejlighed landlords go wrong. The rules on cost-based rent (omkostningsbestemt husleje) – historically in the boligreguleringsloven (the former Rent Control Act), today in chapter 3 of the Danish Rent Act (lejeloven) – can apply even when you let out just one ejerlejlighed. They apply in regulated municipalities – most of them – and what matters is the building's age and size:

The building the flat is inThe rent
Taken into use after 31 December 1991Can be agreed freely (lejeloven section 54)
7 or more flats on 1 January 1995The cost-based rent rules typically also apply to your flat
6 or fewer flats on 1 January 1995The small-building rule: the rent must not significantly exceed the rent for comparable cost-based leases (section 32)

In an unregulated municipality, the rent is instead set by "det lejedes værdi" (the rental value) – what comparable homes in the area cost. If you set the rent too high under the rules, the tenant can have it reduced and in some cases reclaim rent they've overpaid. The municipality can tell you whether it's regulated, and huslejenævnet (the local rent tribunal) decides if you disagree. The tenant's side of the story is covered in Is Your Rent Too High?.

Can you get the flat back?

The safest route is a fixed-term lease with a specific reason, such as a temporary job elsewhere. If you want to terminate a tenant so you can move back in yourself, there are extra requirements for an ejerlejlighed (lejeloven section 172, no. 4): the lease must have been signed after the building was divided into condominium apartments, the tenant must have been told at the start of the tenancy that it's an ejerlejlighed and that you can terminate because you want to live there yourself, and you must have lived in the flat yourself before. The termination must also be reasonable, given both parties' circumstances.

If you owned the flat when the lease was signed, and you don't own any other rented-out owner-occupied or cooperative homes, you can instead terminate under section 170, no. 3, if you want to live there yourself. Either way, the notice period is at least 1 year. See Rent Out Your Home Temporarily – and Get It Back.

Practical steps before you create a listing

  • Read the owners' association's bylaws for any conditions on letting, and notify the board no later than when the tenancy starts.
  • Find out whether the rent is regulated before you set a price.
  • Get the energy labelling from the owners' association.
  • Use Typeformular A, 10th edition (the standard authorised lease form), and write any fixed term and the reason for it in section 11.
  • Keep the deposit to at most 3 months' rent and prepaid rent to at most 3 months' rent – and never more than the rent due in the tenant's notice period (lejeloven section 59).

How this connects to LejLet.nu

If you list your ejerlejlighed as an apartment on LejLet.nu, the listing wizard rejects a deposit or prepaid rent that on its own exceeds 3 months' rent. But whether the rent can be set freely at all is your own responsibility to have sorted out before you click "Publish listing".

Sources

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