Black Market Rental Contracts
Land Code Ch. 12, § 55e (extortionate rent), Criminal Code Ch. 9 (fraud)
What does it mean?
Black market contracts (svartkontrakt) are illegal rental agreements where the apartment is rented out without permission, often at grossly inflated prices. This can involve unauthorized subletting at extortionate rent, or contracts that entirely lack legal basis. Black market contracts have increased in step with the housing shortage, and occur nationwide but are most common in major cities. The person renting illegally lacks legal protection and can lose their home at short notice.
For the person subletting illegally, it is unlawful and can lead to forfeiture of their own lease. Extortionate rent — charging rent that substantially exceeds the legal level — can also be criminal. The tenant paying excessive rent has the right to claim back the amount exceeding reasonable rent. Despite the risks, black market contracts are common because the housing shortage creates desperation that unscrupulous actors exploit.
Key Points
- Illegal rental agreements without permission, often at extortionate rent
- The tenant lacks legal protection — no tenure security, no notice period
- The subletter risks losing their own lease for unauthorized subletting
- Extortionate rent can be criminal — the tenant can reclaim the overpayment
- Has increased significantly due to the housing shortage, especially in major cities
Practical Tip
Never rent without a written contract and verification that the person has the right to sublet. Ask to see the first-hand lease and the landlord's approval for subletting. If you've paid extortionate rent, you can retroactively claim back the excess through the Rent Tribunal.
Legal Basis: Land Code Ch. 12, § 55e (extortionate rent), Criminal Code Ch. 9 (fraud)
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