Landlords of rental properties in so-called small house properties (max 6 rental properties) are, after the judgment, significantly better protected against having the rent reduced.
On June 21, 2023, a judgment was delivered in the housing court in Randers regarding a case in a small house property concerning the rent amount. The case was brought by three tenants, each of whom brought a case against their landlord claiming that the rent was too high. As the tenants wanted to have the rent reduced, the tenants had the burden of proving that the rent was too high.
Proof that the rent is too high is provided in such cases by documenting the rent for comparable rental properties in large properties (7 or more rental properties) where the rent is determined on a cost basis. The requirements for these comparable rental properties have not been great, as the tenants have sometimes been able to have the rent reduced simply by being able to refer to one or just a few rental properties where the rent was lower.
Advokat (lawyer) Jens Jacob Halling has put a stop to this, as with this new judgment he has obtained the Housing Court’s word that, despite the tenants having presented a number of comparable rental properties, they had not met the burden of proof, as the Housing Court followed Advokat Jens Jacob Halling’s submissions that it is only possible to have the rent reduced if the tenant has presented comparable rental properties that are:
- ”regulated”, which means that the rental property must be cost-determined regulated according to section 23 of the Danish Rent Act
- ”tried”, which means that the rental property can only be used as a comparable rental property if the rental property has been brought before the rent tribunal or housing court, which has made a decision on the rent amount, and
- ”current”, which means that the comparable rent must be documented at the same time as the tenants demand that the rent be reduced for the disputed rental property, and why comparable rental properties where the agreed rent is of an older date, as a starting point, cannot be used as evidence.
Two of the three tenants appealed the cases to the High Court, which dismissed their cases, which is why there are now final decisions that can be used by landlords as protection against having the rent reduced, but which also makes it necessary to agree on a correct (high) starting rent, as well as to agree on and carry out net price index regulation of the rent, as the requirements for increasing a too low agreed rent can also be expected to be tightened accordingly.
