Renting out your home while on exchange or a long stay abroad: how to handle your apartment safely and correctly

What are the rules on renting out when I leave Denmark for a period, and how do I keep a steady income?

Going on exchange abroad, but want to keep your home in Denmark? This is a very common situation for students and young professionals.

Many want to avoid losing money while they are away, losing their place in an attractive area or being left without a home when they return. That is why many choose to sublet or rent out their home temporarily while they are away. It can be a good solution, but only if it is handled correctly from the start.

The biggest problem is often that many underestimate how many things actually need to be in place. It is not just about finding someone who wants to live there for 4, 6 or 12 months. It is also about the rules on subletting, a written agreement, the landlord’s right to object, tax on rental income, day-to-day operations, contact during your stay and what happens if something goes wrong while you are abroad.

The good news is that there is a sensible way through it. If you plan in good time and structure the process properly, you can often keep your home, cover part of your costs and leave with far more peace of mind.

When does it make sense to rent out during a stay abroad?

It makes particular sense to look into temporary rental or subletting if you already know that your stay abroad is limited in time. The rules in the Rent Act (lejeloven) on subletting the whole apartment are aimed at exactly the situations where the absence is temporary, and study stays are mentioned directly as an example. For tenants of a residential apartment, the starting point is that the whole apartment can be sublet for up to 2 years when the absence is due to, for example, a study stay, illness, a business trip or a temporary transfer.

That makes the solution relevant for:

• students on exchange for one semester
• students spending a whole academic year abroad
• people on an internship or traineeship
• employees on a temporary stay abroad
• homeowners who want to keep their home in Denmark while they are away for a limited period.

It is important, though, to distinguish between whether you rent the home, own it, or live in a co-op apartment (andelsbolig). The rules and the practical requirements are not necessarily the same in all three situations. For tenants, subletting is regulated by the Rent Act. For owners and co-op members, there may also be articles of association, association rules, loan terms or other matters that need to be clarified separately.

If you rent your home: what do the rules on subletting say when you go on exchange?

The key point is that a tenant of a residential apartment, as a starting point, has the right to sublet the whole apartment for up to 2 years when the absence is temporary and due to, among other things, a study stay. This is the most important legal key for many who want to go on exchange and keep their apartment in Denmark.

But the right is not unlimited. The landlord can object to the sublease in certain situations. This applies, among other things, if the property has fewer than 13 residential apartments, if the total number of people in the apartment would exceed the number of habitable rooms (beboelsesrum), or if the landlord otherwise has reasonable grounds to object to the sublease. The sublease must also be in writing, and the landlord must have a copy of the agreement before the sublease period starts.

This is exactly where many people go wrong. They think that “I am only away for a semester” automatically means everything is fine. It does not. Temporary absence helps you legally, but it does not excuse you from doing things correctly. If you do not make a proper agreement or do not give the landlord the necessary material, you can create problems for yourself that only show up when you are on the other side of the world.

Temporary absence is not the same as “I will see how it goes”

An important detail in the official rules is that the absence must be tied to a specific period. The Ministry of Social Affairs and Housing (Social- og Boligministeriet) states that it is not temporary absence if the person simply wants to use the time to consider whether to move out permanently. This means that a genuine exchange, where you know how long you will be away, is far easier to handle correctly than a vague plan with no clear date for coming back.

The difference matters, also when you communicate. When you look for a subtenant or ask for approval, you are in a much stronger position if you can document that the stay is limited in time and that you expect to return to the home after the period.

Your CPR registration, address and departure are often overlooked

One of the biggest pitfalls is your address in the Danish Civil Registration System (CPR, also called folkeregistret) and registering your departure. Borger.dk states that you must register your departure if you will be staying abroad for more than 6 months. If your stay is shorter than 6 months, you can in some cases ask the municipality to keep you registered as resident in Denmark, but this requires that you have full use of the home. Borger.dk says directly that the home may not be sublet, lent or rented out if you want to stay registered as resident in Denmark on that basis.

This is a point many people misunderstand. They see subletting as a practical solution but forget that it can affect their address registration. If you want to sublet the whole home and keep your residence registration at the same time, you can quickly end up with rules that do not fit together. This needs to be clarified early, not the week before you leave.

If you are leaving for more than 6 months, you must as a rule register your departure. If you have Digital Post, practical matters or contact with the authorities that need looking after, you can also consider a digital power of attorney or another practical solution, so that someone in Denmark can help you if something comes up. Borger.dk has an official self-service for digital powers of attorney.

Tax on rental income while on exchange

Renting out while on exchange is not just about tenancy law. It is also about tax. The Danish Tax Agency (Skattestyrelsen) distinguishes between different rental situations, including whether you rent out a home you live in yourself or a home you do not live in, and whether the rental is short or long-term. The Tax Agency states, among other things, that renting to the same person for 4 months or more counts as long-term rental in this context, and that there are different methods for calculating the taxable income, including the standard deduction (bundfradrag) and the accounting method (regnskabsmæssigt fradrag) where relevant.

In practice, this means you should not settle for thinking: “The rent I get covers my own rent, so it will be fine.” That is not a tax principle. Payment for electricity, water, heating and internet can also matter in the calculation, and which model is best depends on your type of home and your specific situation. The Tax Agency itself points out that the rules are not the same for owners, co-op members and tenants.

If you want to do it properly, clarify the tax before you set the rent and sign the agreement. Otherwise you risk optimising for the wrong numbers.

How to handle the rental correctly before you leave

The best solution is almost always to work with a fixed process. An exchange is a busy time with visas, travel plans, housing abroad, exams and moving. That makes it tempting to take shortcuts. But this is exactly where mistakes happen.

The first step is to clarify what type of home you have and which rules apply to you. If you are a tenant, start with the rules on subletting and check whether anything could give the landlord grounds to object to the sublease. If you are an owner or co-op member, look into the articles of association, any consents required and the financial consequences.

The next step is to set the period precisely. The clearer your start and end dates, the easier it is to document that the stay is temporary. It also makes the search for the right tenant more realistic, because you can target people who are actually looking for a home in exactly that period.

Then the agreement needs to be in place. For subletting, the agreement must be in writing, and the landlord must have a copy before the sublease period starts. Outside classic subletting, too, a written agreement and clear documentation are simply good practice. The rental period, payment, deposit, utilities, furniture, access, maintenance and moving out must be clearly described.

Finally, you need to sort out the day-to-day operations. It is not enough to hand over the keys. Who answers the phone if something breaks? Who handles questions about heating, internet or the washing machine? Who can turn up in person if there is damage, or a problem with the neighbours, access or installations? Having a local contact person is not a legal requirement in itself, but in practice it is one of the most important ways to reduce risk when you live in another country. This recommendation is a practical assessment, not a legal rule.

How do you find the right tenant during a stay abroad?

Many focus too much on speed and too little on fit. But when you rent out temporarily while on exchange, the fastest tenant is rarely the best one. The right solution is usually a tenant who suits the period, understands that the home is only available for a limited time and is comfortable with clear terms.

The ideal match is often someone who is in a temporary situation themselves: a student on an internship, a visiting researcher, an employee on a project assignment, someone between two permanent homes or someone else looking for a home for exactly a limited period. That reduces the risk of conflicting expectations when moving in and out. This is a practical recommendation based on how rental works, not a rule from the authorities.

It is also wise to think about documentation. Identity, the purpose of the stay, the timeline and expectations for how the home will be used should be clarified early. The better you can qualify the tenant, the less likely it is that you end up with a bad solution while you are away.

Which mistakes are the most common?

The first big mistake is thinking that verbal agreements are enough. They are not. When you are on exchange, distance is a risk in itself. That is why the agreement must be precise and in writing.

The second mistake is ignoring the landlord or the property manager. If you are a tenant and do not handle the sublease correctly, you can create a situation where the sublease is challenged.

The third mistake is overlooking the national register and registering your departure. It can seem like a technical detail, but it is not. Borger.dk is very clear that staying registered as resident during a stay abroad of less than 6 months requires full use of the home, and that the home may not be sublet or rented out in that situation.

The fourth mistake is tax. Many only find out late that the finances do not look the way they expected once tax and deductions are included correctly.

The fifth mistake is not having the day-to-day operations in place. When something goes wrong, it usually goes wrong at a bad time. That is why it is a bad idea to leave without a plan for access, contact, service and emergencies.

Why many choose help with management while on exchange

The exchange itself is often demanding enough. If you also have to handle the sublease, communication, the contract, practical questions, any problems and your return, it quickly takes more time than expected.

That is exactly why professional help can make sense. Not just to “find a tenant”, but to manage the whole process more safely. This applies especially if:

• you will be away for 4 to 12 months
• you cannot turn up in person yourself
• you want to minimise the risk of mistakes
• you want documentation and processes in order
• you want to come home to a home that is still in good shape.

Using a property manager is not a legal requirement. But operationally it is often the most robust solution, because you depend less on individual people and improvisation.

A practical model that works

The best model for most people looks like this:

First, clarify the rules for your specific type of home. Next, set a precise rental period. Then find a tenant who suits the period and the home. Then draw up a clear written agreement. Before you leave, make sure there is documentation, a handover, a copy for the landlord where needed and a local emergency plan. Finally, sort out tax, your address registration and practical powers of attorney.

It sounds simple, but that is exactly the point: when the process is clear, the risk falls significantly.

Our view: keep your home, but do it right

Renting out or subletting your home while on exchange can be a really good solution. For many, it is the best way to keep an attractive home in Denmark, reduce ongoing costs and come home without having to start over on the housing market. The Rent Act gives tenants a real option to sublet temporarily during, among other things, a study stay, but it requires the sublease to be handled correctly and that you also have your CPR registration, departure, tax and day-to-day operations in order.

The bad version is to leave and hope it works out. The good version is to plan it as a project: clarify the rules, find the right tenant, make the right agreement and make sure someone can look after the home while you are away.

If the goal is peace of mind, it is not enough that the home is “lent out”. It has to be handled properly.

Disclaimer

This article is general information and cannot replace specific legal or tax advice. The rules depend on, among other things, whether you are a tenant, owner or co-op member, and on your specific housing and tax situation.