Subletting a co-op apartment — how to work out a fair rent

How fair rent is calculated for co-op apartments

Fair rent for a co-op apartment is traditionally calculated from two main components: capital cost and operating cost. Unlike rental apartments, where the primary rent forms the basis, the rent for a co-op apartment is based on the property’s market value and the monthly fee to the housing association. Since 1 July 2026, for a letting under the Private Letting Act, which normally applies (Chapter 1, § 3), the Rent Tribunal assesses fair rent primarily by comparison with the rent for similar private rentals — the cost-based calculation below serves as a guiding starting point.

Capital cost

The capital cost represents the return the owner could have received if the capital tied up in the property had been invested elsewhere. The calculation is based on the property's current market value (estimated selling price) multiplied by the Riksbank reference rate plus a reasonable surcharge of typically 2 percentage points.

Operating cost

The operating cost consists of the monthly fee paid to the housing association. The fee covers costs such as heating, water, property maintenance and other shared expenses in the association.

Furnishing surcharge

If you let furnished, it is reasonable to allow for a furniture surcharge. For a co-op apartment no statutory percentage exists — 15% is the ceiling for subletting a rental apartment and is used here only as a benchmark. Since 1 July 2026 the level is decided instead by what similar furnished homes let for.

Additional costs

If you let under the Private Letting Act, which normally applies to a co-op apartment you own, the rent must be stated as a fixed amount in the agreement (Chapter 2, § 1). Internet, parking and the like therefore go into the fixed rent. Only utilities metered individually for the tenant — such as electricity, heating, hot water and water — may be charged by actual consumption.

Permission for subletting

As a co-op owner, you need the board's consent to sublet the whole apartment (Bostadsrättslagen Chapter 7, § 10). It is for the board to decide whether to give it. If the board refuses, you can turn to the Rent Tribunal, which shall grant permission if you have reasons for the letting and the association has no justified cause to refuse (Chapter 7, § 11). Reasons may include:

• Temporary work or studies in another city
• Trial cohabitation
• Illness
• Renting to a close relative
• Extended stay abroad

The Rent Tribunal (Hyresnämnden) makes an independent assessment of your application. Any permission is limited to a set period, and the Tribunal’s decision can as a rule not be appealed (Chapter 11, § 3 of the Bostadsrättslagen). Simply wanting to earn rent on the apartment is not an accepted reason.

Partial rental

You can choose to rent out only part of your co-op apartment, for example a room. The calculator then works out a share by area — if you let 30 m² of a 90 m² apartment, that is one third of the cost-based level. It is only a starting point: under the Private Letting Act the rent for a room is compared with what similar rooms let for, not with a share of the whole home’s rent (Govt. Bill 2025/26:187 p. 139). Note that subletting part of your apartment while you continue to live there generally does not require board permission (Bostadsrättslagen Chapter 7, § 8), unlike subletting the entire apartment.

Notice periods

If you let a co-op apartment you own yourself, the Private Letting Act (privatuthyrningslagen, 2026:772) normally applies. Since 1 July 2026 the notice period is three months for both parties, counted to the next turn of the month (Chapter 6, §§ 1–2). The former one-month tenant notice disappeared when the Act (2012:978) on renting out your own home was repealed — that act still governs agreements entered into under it before 1 July 2026. A fixed-term agreement ends on the agreed date without notice, but the tenant may always terminate it early on three months’ notice. Notice must as a rule be given in writing; the tenant may give notice orally if you confirm it in writing (Chapter 6, § 7). Note that the housing type alone does not decide which act applies: if you regularly let more than two homes, let for holiday purposes or let through a company, the Rent Act (Chapter 12 of the Land Code) applies instead, even to a co-op apartment (Chapter 1, § 3 of the Private Letting Act; for a company, Chapter 1, § 1). The tenant may then also acquire security of tenure — after two consecutive years (Chapter 12, § 45, first paragraph, point 1, of the Land Code). Where the letting is for holiday purposes, nine months may also come into question (point 2); how the two limits interact for a sublease is not clear-cut, so plan for the shorter one.

Tax on rental income

Income from subletting a co-op apartment is taxed as capital income at 30%. You are entitled to a standard deduction of 40,000 SEK per property per tax year, plus a deduction for the monthly fee to the association for the let part and period — excluding any part that is a capital contribution (kapitaltillskott) — and for the association’s subletting fee.