- 10%The rent limit in small properties
The rent tribunal in Copenhagen can only reduce the rent if it is more than ten per cent too high.
- 1992or laterFree rent in newer houses
If the house was taken into use after 31 December 1991, the rent can be agreed freely.
- 12monthsBusiness rental
If you rent out a house you do not live in for at least 12 months, it is taxed as business rental.
How much rent may I charge for a house?
It depends on how many homes the property had on 1 January 1995 and when it was taken into use. Under the Rent Act, a house on its own plot is as a rule a property of its own (§ 8). In Copenhagen, the rules for small properties apply when the property had six or fewer apartments on that date, and the rent may then not be substantially higher than for comparable apartments with cost-based rent.
The rent tribunal can only reduce the rent if it is more than ten per cent too high. You cannot base the rent on your own costs for loans and shared expenses, and the tribunal does not compare with prices in property listings. If the house is furnished, that is taken into account, but you cannot agree a separate payment for the furniture.
Source: City of Copenhagen: Six or fewer residential apartments in one property (in Danish)
Read about rent adjustmentWhen can the rent be agreed freely?
When the house was taken into use after 31 December 1991. You and the tenant can then agree the rent freely, and it can only be reduced if it is unreasonable. If you want to be able to adjust the rent along the way, you must agree that it is adjusted in line with the net price index.
The rent can be set freely by agreement between the parties in the following tenancies: 1) Tenancies of residential apartments in properties taken into use after 31 December 1991.
Source: City of Copenhagen: Apartments with free rent (in Danish)
Can the rent tribunal approve the rent in advance?
Yes. In Copenhagen you can apply if you own the house yourself, it is the only home you rent out, and you have not already signed a lease. The tribunal must be able to inspect the house, and if it is to be rented out furnished, you send a list of the contents with your application. The approval is binding: the tenant cannot have the rent reduced as long as the house is in the same condition as when the tribunal saw it.
Source: City of Copenhagen: Pre-approved rent (in Danish)
Who must maintain the house and the garden?
If nothing else is agreed, you as the landlord. You must keep the property and the rented premises in proper repair, and the tenant only has to maintain locks and keys. You can agree that the tenant takes over the maintenance, for example of the garden, but anything the tenant is to maintain beyond locks and keys must be written into § 11 of the lease.
§ 112 cannot be departed from by agreement to the detriment of the tenant, except for an agreement that the tenant takes over the duty of maintenance.
Source: the guidance to standard form A, 10th edition (in Danish)
How is the rent from a house I do not live in taxed?
If you rent out the house for at least 12 months and do not live in it yourself, the Danish Tax Agency treats it as business rental. The profit is personal income, and you must keep accounts. You can deduct, among other things, property taxes, maintenance, insurance and the membership fee for the homeowners’ association, and you do not pay property value tax (ejendomsværdiskat) for the time the house is rented out as a business.
According to the Tax Agency’s practice, in the first three years of ownership you can deduct refurbishment of at most 35 per cent of the annual rental income for a rented-out one or two-family house.
Source: Danish Tax Agency: Renting out a home you do not live in yourself (in Danish)
Read about tax deductions when renting outThis page is general information and not legal or tax advice. The rules can change, and your situation may be different. The rent rules here are those of the City of Copenhagen, so if the house is in another municipality, check its own rules.