Rent out during Eurovision? Then you can lose the apartment

Eurovision is just around the corner and for many it can be a chance to earn an extra income by renting out their home. But you have to be careful and keep an eye on what applies – otherwise it could cost you dearly.

Margaretha Söderström is communications manager at MKB Fastigheter, which dominates a third of the rental market in Malmö – and their message is crystal clear.

– It is not allowed to rent out during Eurovision and we would never approve such an application. It’s too short a time and we don’t allow renting for hotel operations at all, she says.

That being said, there may be those who try anyway.

– I understand that it can seem tempting, but you should be aware that you risk losing the lease and being forced to move.

EIA has a special group which deals with “unfair tenancies” withdrawing over 1,000 tenancies over the past five years. In addition to looking for ads online themselves, they rely on tips from their surroundings and neighbors.

– It could be that the wrong name is written on the door, that the mail is being returned or that something else is wrong, says Margaretha Söderström.

Roger Höög, federal lawyer at The tenant association, says that prices for all types of accommodation rose as soon as it became clear that Eurovision ended up in Malmö.

– There is full pressure on all fronts, we can see that in the advertisements, says Roger Höög and warns that those who take usurious prices may be liable for repayment.

There are also those who get around possible rental freezes by renting to residents, as it does not require a permit, according to Roger Höög.

However, he urges caution.

– I think it should be assumed that checks are carried out and that the large property owners are sitting and checking the Block, says Roger Höög.

Kenny Fredman is Social Policy head of the interest organization Bostadsrätterna, which gathers around 9,700 housing associations. In order to sublet, a member must apply for permission from their board, and there have been a number of questions about Airbnb before Eurovision, he says.

Some associations have issued information to residents that they refuse applications to rent out.

– Generally speaking, condominium associations are skeptical of short-term rentals, says Kenny Fredman.

According to law, there are a number of factors that allow the board to give approval to subletting, and this includes, for example, trial cohabitation, longer stays abroad and studies in another location.

– Short-term rental to make money is not a valid reason. The reason why condominium associations adhere to what the law states is about having a safe place to live without strangers staying in the house, says Kenny Fredman.

He adds that of course there may be associations that are more generous.

There are also factors to take into account when renting condominiums. It should be a cost-based rent, where based on the market value you add a couple of percent to the Riksbank’s reference interest rate. There are also monthly fees, operating costs and any additional fees.

– The same method of calculation applies to short-term rentals. The lessor may simply divide the monthly rent by the number of days in the month. But then it is often without the association’s permission, think Airbnb, and the “second-hand tenant” may not care but pays the advertised rent, says Kenny Fredman.

And that can be good to keep track of the insurance.

For those who rent out their home, the usual insurance usually covers any damage that may occur, according to Jenny Rudslätt who is Head of Claims at IF.

– But from time to time there are situations where it has been vandalized and destroyed and your rights are limited if you have given someone permission to stay in your home, she explains.

It can also become problematic if things disappear.

– If you let people stay in your home, you cannot then claim that someone unauthorized was there and stole, if you let someone in you run the risk of someone stealing, says Jenny Rudslätt.

During Eurovision, many come people from other countries, which can make the background check more difficult, according to Jenny Rudslätt.

Incidents that can lead to the compensation being reduced are, for example, lack of care when someone forgets to turn off dripping water.

– It can be that you want to direct the insurance towards the person who rents, then it applies that that person has insurance with home protection.