Moving to Denmark Forums

Denmark Information · Joined: 21 Oct 2006 Posts: 17 Home Country: denmark

HOUSING IN DENMARK

GENERAL

Danish properties are large and prices are relatively low compared to other European countries

Property prices
Most international companies are situated in Copenhagen and the environs, and consequently many expatriates live there. However an increasing number of international companies are setting up businesses in other regions. As a case in point several international IT companies have set up in North Jutland.

Property prices in Copenhagen are low compared to many other European cities such as London, Paris, Brussels and Frankfurt. This applies in particular to rental properties, but the prices for owner-occupied properties are also generally below the price level of other capitals.
While a 100 m2 flat in London costs around DKK 5.6 million (2002), a similar flat in Copenhagen costs approximately 39% of this. A flat in Paris costs approximately 59% of a London flat (source: www.copcap.com).

Neighbourhood
Most Danes speak English. It is therefore easy for foreigners to get in contact with the Danes. Many foreigners in Denmark are happy to learn Danish. Apart from the fact that it makes it easier to talk to people, it also makes it easier to become integrated into the Danish society.
At first many Danes may seem somewhat reserved. The reason is that most Danes are rather protective of their private life and respect the privacy of others as well. They will rather keep to themselves than risk being perceived as obtrusive. If you make an effort, you will discover that the Danes are very forthcoming, open and tolerant.

Large properties
Denmark has about 5.3 million inhabitants living in approx. 2.5 million properties. This corresponds to averagely 2.1 persons per property. Danish properties are among the largest in Europe. A property for a family with children typically has apart from common rooms such as living room(s), kitchen, utility room, hall and one or more bathrooms a room for each child as well as a bedroom for the parents. Many properties also have a study.

Housing standards are very high. Danes are known for spending a lot of money on interior design. Many Danes find quality of life in having a nice house in which the family thrives.

REQUIREMENTS FOR RENTING A PROPERTY

If you wish to rent a property, there are certain requirements you have to fulfil:

* The property must be used on a permanent basis. You must live in the property for at least 180 days per calendar year or 4 days a week

* The address must be filed with the national registration office. This presupposes a residence certificate (EC/EEA nationals) or a residence and work permit (non-EC/EEA nationals). The address must be filed with the national registration office

Nordic nationals who are in Denmark for a period of maximum 6 months, do not have to register at the national registration office provided, they fulfil the requirement of living in a property on a permanent basis.

TEMPORARY HOUSING

If you have not found a permanent place to live before you and your family move to Denmark, or if the place you have found is not available at once, temporary housing can be a solution. Averagely, an expatriate family need temporary housing for 1-3 months.

Possible temporary housing is:

* Hotel

Many hotels have, besides the ordinary hotel rooms, furnished flats. In many cases you can get a lower price, if you live in the same hotel for a long period

* Furnished housing

Through property rental agencies you can rent temporary furnished housing till you move into a permanent property. Some companies have properties at their disposal for expatriates and their families

PROPERTY TYPES

99% of all expatriates choose to rent a property, especially if their stay in Denmark is of short duration. You may choose to buy your own property or to buy a share, but that depends on your financial situation and the duration of your stay.

House
Most people in Denmark live in single-family houses of one or more stores. If you rent a house, you have the right to use the house as long as you observe the conditions in the tenancy agreement.

Flat
When you rent a flat, the conditions in the tenancy agreement regulate the tenant’s right of use. If you buy a flat, you become owner in the same way as if you bought a house.

Co-operative and pro rata
When you buy a property in a co-operative property association, you do not own the property. You become a member of the co-operative property association, and you own a share of the association’s assets. You acquire the right to using a specific property in the association. When you buy a pro rata property, you become co-owner of the whole building.

Weekend cottages
Many Danish weekend cottages are in good condition and furnished for winter use. However, you may only live in a weekend cottage all year round if the cottage has permanent residential status. Legislation and local authorities regulate the use of weekend cottages during the winter.

Lots
If you buy a lot with the intention of building your own house, there are regulations prescribing the maximum size of the house. Before buying a lot, you should therefore contact the local technical authorities for information about the building permit regulations.

RENTING A PROPERTY

There are two types of rental properties:

* Private rental properties

Expatriates usually choose private rental property because a quick taking over is normally standard procedure. Properties are usually rented through rental agencies or solicitors

* Public rental properties

The majority of public rental properties are built and subsidised by the state. There are often long waiting lists which make this kind of public housing less of an option for expatriates

Facilities
The facilities of rental properties vary considerably, and you should check whether the property meets your requirements regarding e.g. parking and washing facilities, outdoor surroundings and rules about pets.

TENANCY AGREEMENT

When renting a property, a tenancy agreement must be drawn up. Authorised tenancy agreements are available e.g. in bookshops. You should pay attention to any underlined text and additions to the authorised tenancy agreement - this may be conditions that diverge from the Rent Act and which may make things worse for the tenant. The authorised tenancy agreement only allows for deviations from certain parts of the Act, however.

It is not possible to arrange conditions that are more burdensome on the tenant than prescribed in the Rent Act.

Subletting
If you sublet a property, you should make sure that the owner gets a copy of the new tenancy agreement with your name in it before the agreement takes effect. The new tenant can claim a sublease of at least 2 years, but it is possible to arrange a different period of time which satisfies both parties. The tenancy agreement must state the beginning and the end of the sublease.

Renting a room
A tenancy agreement is also required when you rent a room. All arrangements concerning the use of the room must show in the agreement. It must be clear, e.g. whether you have to pay for extra heating and electricity, whether you may use the kitchen and the bathroom, if you are allowed to keep a pet and if you have access to washing and drying facilities.

DEPOSIT

The owner can claim a deposit equivalent to 3 months’ rent. The deposit is the owner’s security for any expenses related to the tenant’s moving out of the property, e.g. repair, breach of contract, excess heating consumption etc.

The owner may also claim a maximum of 3 months’ prepaid rent. For the months before the end of a tenancy, the prepaid rent can substitute the normal rent.

A tenant should always remember to get a receipt each time he pays a deposit, prepaid rent or standard rent. If the owner refuses to give a receipt, it is possible to pay via a bank or by cheque, which will give you the necessary documentation of payment.

GENERAL STATE

The general state of properties at taking over varies considerably. According to the Rent Act, however, it is the owner’s duty to make sure that the tenancy is in a good and safe condition at taking over. The property should be clean, the windows undamaged and all exterior doors equipped with locks in working order and belonging keys.

Inspection report
Some owners arrange an inspection when you move in at which point both parties check the property together. If you want to, you can make an inspection report. As tenant you do not have to sign the report if you disagree with its contents or if the report does not correspond to the wording of the tenancy agreement. Perhaps the property is not freshly painted, even though it says so in the agreement – or perhaps you have to provide a cooker and a refrigerator yourself without it being mentioned in the agreement.

Faults and defects
No later than 14 days after moving in, the tenant should inform the owner in writing of any faults and defects, including those you do not wish to be repaired or mended.

Faults and defects could e.g. be cracks in the basin or skirting boards not freshly painted, even though it says so in the tenancy agreement. If you have signed an agreement obliging you to maintain the cooker, sanitation etc., it is advisable to make sure that they are in good condition.

In case you do not bring the faults and defects to the owner’s notice, there is a risk that you become personally responsible for paying the repair when you move out.

Documentation
It is a good idea to keep a copy of the letter about the faults and defects and to send the letter by registered mail. In that way you can document what you have written and that the owner has received your letter. You can also take pictures of the property as proof of the faults and defects when you move in.

RIGHT OF USE

When you take over the tenancy, you have a right of use over the property. The owner cannot claim a copy of the keys and can only get admittance to the property in the following cases:

* When it is absolutely necessary, e.g. when something has to be repaired

* When the owner, after due notice, needs to carry out work in the property, e.g. improvements

* When you are moving out of the property and new tenants want to see the place

In all types of tenancies you should observe the rules of good conduct and order, e.g. rest hours, rules of placing bicycles or keeping pets.

EXPENSES

A tenant normally pays a fixed sum every month for living in the property. The rent varies depending on the size of the property, where it is situated and its condition. The rent is not deductible. In addition to the rent, there are consumption taxes, e.g. heating and electricity as well as possible expenses for a shared antenna or multi-use cable network.

If the tenant accepts an obligation - small or large - to maintain the property, the rent will be reduced correspondingly. Such an arrangement should be settled with the owner.

If the rent is raised, the tenant is normally given 3 months’ notice in writing. The notice should include information about the amount of the raise, the reason for it, and also inform the tenant that he can make objections within 6 weeks. If the notice does not contain this information, the raise is invalid.

Heating
Heating expenses are divided according to the reading of a radiator meter or gross floorage. If the heating expenses are determined by reading, you should be present to make sure the reading is correct. In many rental properties payment on account is common practice. Once a year, you will usually receive the heating accounts showing the actual consumption compared to the payments made.

Electricity
Electricity expenses are usually paid directly to the electricity company as payment on account based on an expected consumption. Normally, the electricity-meter is read once a year. If the payments exceed the consumption, the money is refunded.

INSURANCE

With a household insurance you are insured against damage on and disappearance of practically all household effects as a result of fire, burglary or water.

The insurance premium depends on the amount you want to insure your effects for. The different insurance companies have defined amount intervals, and you choose the interval that matches the value of your household effects.

It is the owner’s responsibility to take up the insurance of the building.

MAINTENANCE

The exterior and interior maintenance is the owner’s responsibility, unless otherwise is written in the tenancy agreement. The tenant is normally only obliged to maintain locks and keys.

If the owner is obliged to carry out the interior maintenance of a residence, the rent must include a yearly amount of DKK 34 per square meter (year 2002) earmarked for that purpose. The amount can be raised once a year, but a written 3 months notice is required. Objections can be brought before the rent assessment committee.

Once a year, the tenant should receive information about the amount available on the maintenance account.

If a tenant chooses to take over the "interior maintenance", it should show in the tenancy agreement. Interior maintenance includes painting of ceilings and woodwork, paperhanging and/or painting of walls as well as varnishing of floors. To pay for the repair, you can make arrangements with the owner and take money from the maintenance account if there is any.

Improvements
You must not make any improvements unless it has been accepted by the owner. If you want financial compensation for your improvements, you must have a written agreement before starting the improvements. The improvements can be e.g. energy saving measures or new sanitation.

Installations
Usually you are entitled to make standard installations of e.g. a phone, washing machine, dishwasher and fridge, but you always have to inform the owner before making the installations. The owner might oppose the installations, if the electricity and drainage capacity of the property are not adequate to handle the installations.

You may install a radio or television antenna in the property according to the owner’s instructions. If a shared antenna or multi-use cable network has already been installed, the owner can oppose your installation if the programme you want is already available via the existing installation.

As a tenant you are liable for any damages caused by your own installations.

NOTICE

If the tenant gives notice to terminate the tenancy, it must be done in writing 3 months in advance. Alternative arrangements in the tenancy agreement concerning notice should be observed. You should send the notice by registered mail to ensure documentation for receipt. If the tenant decides to move out before the expiration of the notice period, the owner is obliged to try to find a new tenant.

In principle, it is not possible to give notice to a tenant to terminate the tenancy unless the owner himself wishes to live in the property. In that case, the due notice is one year.

It is also possible to terminate the tenancy if the house needs rebuilding or if you as a tenant do not observe good conduct and order. In that case, the due notice is 3 months.

If you fail to pay the rent or heating expenses on account, the owner can terminate the tenancy. The owner’s notice to terminate the tenancy should always be in writing and inform the tenant about the reasons for the notice. Furthermore, the notice should draw the tenant’s attention to the fact that objections must be made within 6 weeks

PRICES

Price depends on location
The price of rented accommodation depends on whether it is a flat or a house, furnished or non-furnished, its location, size, condition and the length of the lease.

For flats, prices range from DKK 6,000 plus expenses (water and heating) for an ordinary 1-2 room flat to approximately DKK 25,000 for the top end of the market. Houses range from DKK 10-12,000 plus expenses to DKK 40,000 per month.

Live splendidly in an estate or stately home
The broad possibilities for working from home allow for a more untraditional solution: to live in idyllic and peaceful surroundings in one of Denmark's estates or stately homes. Many Danish estates and stately homes are rented out to private persons at prices starting at DKK 6,000 per month plus expenses. The list includes Gisselfeld Estate, Halsted Abbey, Tranekær Estate, Sanderumgaard, Vemmetofte Abbey, Hagenskov Estate and Bregentved Estate.

Accommodation provided by your company
Companies often rent accommodation for their expat staff. There are several reasons for this. Sometimes the landlord demands it because it gives him more security. Sometimes it is simply the company's policy to provide accommodation for its employees. But in most cases the reasons are tax-related.

The company can rent accommodation to employees if they use it as their home for the full year, that is if they live there for at least 180 days per year, on average at least four days per week, and register with the Danish civil registration authority.

The rent is part of the salary
In some cases, the company pays part of its employees' rent. This is part of the salary.

If you receive a fixed monthly sum to cover all or part of your rent, this sum will be regarded as taxable income and will be taxed according to Danish tax regulations.

If your company provides you with free accommodation, you will be taxed on a market value determined by the tax authorities, usually significantly lower than the actual rent. For example, a 100-120 m2 flat in Copenhagen with all modern conveniences costs DKK 144,000 per year to lease (DKK 12,000 per month). The market value determined by the tax authorities, on the other hand, is DKK 53,000 (DKK 4,416 per month).


Regions South America North America Middle East Europe Eastern Europe Asia Pacific Africa Countries Spain Netherlands Ireland France England Others Contact Us Advertise with Us Policy Denmark News Send This Page