Why is a large part of the housing market in Denmark rent-controlled?

In Denmark, the rental market is rent-controlled to ensure a fair cost of living for everyone. A rent-controlled is created to make sure the people who rent housing doesn’t spend the major part of their disposable income on housing.

In a market without rent-controlled housing, the cost of purchasing real-estate goes up and the social mobility goes down. That’s why we believe it is important to enforce the regulations.

Which building are rent-controlled?

As a rule of thumb, all buildings built before 1992 are rent-controlled. There are some exceptions such as if the building was previously used for commercial real estate and has been converted to housing. Or if you’re renting a ‘loft apartment’ where the apartment was previously used for storage and has been converted – this has to be written in your contract.

If you want to check what year your building is from, enter your address on this site and look at the year after it says ‘opført’.

Check your building
Expense based pricing

Expense based pricing is one of the two ways the rent is calculated. This method lets a landlord gather all the costs they have of operating and maintaining the home and add a 7% interest on their investment on top. Typically this would let a landlord charge about 6700-7500kr for a 100 square meter apartment in Copenhagen.

 

As a tenant you’re, in most cases, eligible for a back-payment for up to 36 months since you moved in.

Comparable pricing

Comparable pricing is our name for ‘lejedes værdi’ in Danish – also commonly referred to as 5.2. This method is less objective than the ‘expense based’ method, as it relies on the “market price” set by the individual municipality and their ‘House of tenants’. This pricing model is only allowed for renovated and modernized apartments.

 

Typically you’re allowed to charge about 11.500 for a fully and newly renovated 100 square meter apartment in Copenhagen/Frederiksberg. Though in most cases it should cost around 10.000kr.

 

As a tenant you’re eligible for a back-payment of excess rent as long as you file a case within 12 months of you moving in.

Smaller buildings and other exceptions

If your building consists of less than 7 apartments, then the pricing methodology known as 29c applies. This pricing methodology is a subjective pricing methodology, where your apartment gets compared to what it would cost if the building was priced using ‘expense based pricing’. The landlord in most cases, don’t have to provide a budget.

 

This rule also applies to apartments in buildings with more than 6 apartments, if the owner of the home in 1995 owned less than 6 apartments. Meaning, if your building was owned by a professional landlord a that time this probably doesn’t apply, but if a private individual owned it, then it’s most likely priced using 29c.

Calculate your legal rent
Want our help?

If you want to find out if you’re overpaying for rent-controlled housing we’ve made a calculator for you. This is based on previous verdicts from the ‘House of tenant’s.

Our fee for helping you out is 30-50% of first year’s savings. And you only pay if we can help you out. Interested?

Calculate your legal rent

Rent Hero Aps

Løgstørgade 2, 1. sal

2100 København Ø

Email: hi@renthero.dk