They rent apartments for 300 euros, then sublet them for 1,200: Serbs who do this could go to prison

Foto: Pixabay

Sweden has decided to crack down on "second hand" apartment renting, and send those who engage in the practice to prison.

The decision will apply to citizens of Serbia living in Sweden, and who commit this offense not too rarely. Thus an apartment whose market rental price is realistically 300 euros is often sublet for several times more money, so the figure goes up to 1,300 euros.

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Jail term is just one of the measures Sweden plans to put in place to regulate the real estate market, while the law on rentals is set to take effect on October 1. Anyone found subletting without permission, at the same time collecting rent that is too high, will be guilty according to a law that goes into effect next month, and could result in offenders being sent to prison for up to two years.

Previously, such conduct was not a criminal offense and was largely sanctioned by termination of contract and early repayment of obligations.

One of the reasons for this move is the lack of housing on the market, and additionally, the fact that available apartments are not being used properly.

Scams are therefore common throughout Sweden, especially in areas where this shortage is pronounced, such as Stockholm.

Photo: Promo

We spoke to M.J., who has lived in the Swedish capital for many years, and who told us that his experience confirms that the problem lies with a small number of rentals but also of owned apartments.

All this has affected the rental procedure which is quite complicated because in Sweden, a person can buy an apartment - but when they do, what they actually buy is the right to live in that apartment, and a stake in the company that owns the building.

In addition, each building has a tennats' board that is a legal body and owns that building.

When a person buys an apartment in that building, he or she purchases a share in that board and therefore becomes a part of it. Conditionally speaking, they becomes the owner.

"When the owner wants to rent an apartment in the building firsthand, they has to ask their co-owners, that is, the company, the tennants' board, to allow them to let the apartment. When they do, a contract is signed with the person who is renting and that's how apartments are rented firsthand, usually for a year," says M.J.

This term is respected because every year one has to ask the board again if the apartment can be rented.

"However, what often happens is that the person who rented the apartment from the owner sublets it. Then prices double, there is so much demand for apartments that the ones that would otherwise cost about 300, 400 euros are rented for 1,200, 1,300," M.J. tells us.

Previously, when such behavior was discovered there would only be a warning, with the loss of contracts and evictions, but now these persons will be eligible to go to prison.

Our source points out that this law will not be easy to implement and will take time, precisely because of the lack of resources.

(Vesna Bjelic)