Rent setting and deposit

The rules on rent setting are numerous and complex. Broadly speaking, there are two main systems governing rent levels: cost-based rent and the value of the premises.

Cost-based rent is calculated based on the operating expenses associated with the rental property, including taxes and duties, administration, insurance, and maintenance.

The “value of the premises” principle, on the other hand, means that the rent must be compared with the rent for similar properties, i.e. comparable housing in terms of location, size, and condition of maintenance.

Whether rent is to be set according to cost-based rent rules or the value of the premises depends, among other things, on the property’s location, whether it is part of a small property, when it was built, and whether it has undergone extensive modernisation.

At KROMANN Law Firm, we assist landlords in setting rent in accordance with the correct legal framework. We also represent both tenants and landlords in rent-setting disputes before the Rent Tribunal and the Housing Court.

Under Danish tenancy law, a landlord may require up to three months’ rent as a deposit and an additional three months’ rent as prepaid rent. Accordingly, both the deposit and prepaid rent depend on the agreed rent level.

CONTACT US TODAY

Contact KROMANN Law Firm on +45 8618 1102 and/or send an email to kontakt@advokatkromann.dk if you wish to receive advice on rent setting and deposit.

You can read more about related topics below.