Can you rent out individual rooms in residential apartments?

Introduction

In a response to the housing committee, the minister of social affairs and housing addressed the issues that can arise when renting out individual rooms in a residential apartment instead of renting out the entire apartment. Here is an overview of the main issues.

The problem

Can a landlord rent out a residential apartment as separate rooms with individual leases? Renting out the entire apartment with a single lease can also cause problems, especially regarding move-in and move-out processes and deposit handling, but this topic is not covered here. Obligation to reside The housing legislation requires that properties designated as year-round residences in a local plan or previously used as residential apartments must be used for year-round habitation by at least one person. The owner of a residential apartment cannot rent out rooms individually without the municipal council’s consent. Even if the obligation to reside is fulfilled, if the apartment has previously been rented out as a whole unit or used by the owner, switching to renting it out as individual rooms requires the municipality’s approval. This rule also applies to newly built homes designated as year-round residences in the local plan. Whether the municipality grants consent depends on the local housing situation. However, a resident who lives in the apartment can rent out or sublet individual rooms without restrictions.

Rent amount

Renting out individual rooms is referred to as “club rooms” in rental law. The rent for these rooms is set according to the rules for the property where the apartment is located, which can be complex. The rental law rules can vary depending on the property’s history, and it often requires further investigation. Generally, it is not always advantageous to rent out an apartment as individual rooms, especially if the rent needs to be cost-based. Individual rooms cannot be rented out at market rates, even in newly constructed buildings.

BOLANDO’s comments In addition to the need for municipal consent and rent-setting restrictions, there can be other legal challenges when renting out individual rooms. If services are offered to tenants, it may be considered hotel operations, which are not covered by rental law. This requires several conditions to be met. It is important to clarify the legal aspects before starting the rental process to ensure that the expected return can be achieved. Lack of consent from the municipality can lead to injunctions and fines, and tenants can bring cases about rent and rental terms to the rent tribunal. The response from the minister of social affairs and housing can be found on the parliament’s website.