Rental

While, in principle, it is not unlawful to conclude a lease orally, it is always advisable, for evidentiary reasons, to reduce the lease agreement to writing and to obtain appropriate assistance in drafting it. This ensures compliance with statutory requirements and minimizes the risk of being placed at a significant disadvantage in the event of a subsequent dispute with the tenant, subtenant, or the authorities.

This applies even when leasing to your own child, as it is common for the parent property purchase initially occupied by your child to later be leased to another, potentially unfamiliar, tenant.

When renting to your child, tax considerations and, in some cases, consideration of reasonableness will often play a central role in determining the tenancy terms.

By contrast, when leasing to an unrelated party, the landlord will typically seek to maximize rent and ensure the highest possible level of security, whereas the tenant’s interests will often be opposed. Particularly in cities like Aarhus and Copenhagen, it is critical to ensure that a lease agreement with a third party can withstand scrutiny by the Rent Assessment Committee (Huslejenævnet). Proper legal advice and prudent measures can provide significant protection in this regard.

If your son or daughter plans to live in a parent property purchase apartment with a friend or partner, it is often most practical to establish a lease agreement with your child and a sublease agreement between your child and their co-tenant.

To prepare a lease or sublease agreement, we require the following information:

– Name and address of landlord and tenant

– Address and description of the property (e.g., two rooms, kitchen, and bathroom)

– Rent and deposit amount

– Desired lease period (we recommend a fixed term where justified)

– Condition of the property at commencement and termination of tenancy (we will align with applicable tenancy law)

– Any additional requirements (e.g., no smoking, no pets, prohibition on drilling into concrete walls, compliance with house rules, participation in garden maintenance or stairwell cleaning rotations, etc.)

Our fee for advisory services relating to tenancy matters and for drafting a lease or sublease agreement, in cases of leasing to one’s own children, is normally DKK 2,500 incl. VAT per tenancy agreement. This amount is deductible for the landlord. In cases of leasing to parties other than one’s own children, or in special circumstances, the fee may be subject to adjustment.