What does it mean?
Lease renewal works differently depending on whether the agreement is for a fixed or indefinite term. Indefinite contracts are automatically renewed as long as neither party terminates — this is the main rule in Swedish tenancy law and a cornerstone of security of tenure. The tenant does not need to take any action to keep their dwelling.
Fixed-term agreements normally expire at the agreed date without notice, provided the contract term is shorter than two years. If the agreement has run for more than two years, termination notice is required even for fixed-term agreements, otherwise they are automatically extended indefinitely. The parties may also agree to extend by signing a new agreement. Upon renewal, the landlord may request a change in terms, but this requires a formal procedure.
Key Points
- Indefinite contracts renew automatically without any action
- Fixed-term contracts under two years expire without notice
- Fixed-term contracts over two years require notice to expire
- Landlord may request changes to terms upon renewal
- Security of tenure protects the tenant from unwanted termination
Practical Tip
If you have a fixed-term contract nearing its end, contact the landlord well in advance to discuss renewal. If the contract has run for more than two years, be aware that you likely have security of tenure and do not need to accept unreasonable new terms.
Legal Basis: 12:3 JB (fixed-term agreements), 12:45-46 JB (security of tenure)
Based on content from Bofrid's Knowledge Bank