When you create a property listing on BoligPortal, you need to specify the different amounts you charge in connection with the rent – including prepaid rent and the first month's rent.
The first month's rent covers the initial rent payment that the tenant needs to make. If the tenant moves in mid-month, this amount may be less than the rent the tenant will pay going forward.
Prepaid rent, on the other hand, covers the rent for the last months before the tenant moves out. If the tenant has paid prepaid rent upon moving in, they will not have to pay rent for the last 1-3 months of the rental period.
What is prepaid rent?
Prepaid rent is an amount that covers the last rent payments in the rental period - for example, the last 3 months before the tenant moves out of the property.
Prepaid rent is your security during the notice period
Prepaid rent is your security to ensure that rent is paid when the rental contract is terminated. Therefore, your tenant will not have to pay rent as usual during this period, as you will instead use the prepaid rent.
However, it is entirely optional whether you want to charge prepaid rent, If you do not wish to charge prepaid rent, simply enter the amount as '0', when you create the listing.
You may charge a maximum of 3 months' prepaid rent
To comply with the rental law's provisions for prepaid rent, you may charge an amount equivalent to a maximum of 3 months' rent, excluding utilities.
For example, if the rent is 5,000 DKK excluding utilities, you can charge a maximum of 15,000 DKK in prepaid rent. In this case, your tenant will not pay rent for the last 3 months they live in the rental property.
Remember to stop the collection when the tenant terminates the rental contract
If you have charged prepaid rent, remember to stop your rent collection for the number of months you have charged prepaid rent. If you collect rent via BoligPortal, you can stop the collection by following this guide.
If you have not charged prepaid rent, simply collect rent as usual up to and including the month your tenant moves out.
What is first month's rent?
The first month's rent is an amount that, unlike prepaid rent, covers the rent payment for the first month.
First month's rent can vary depending on the move-in date
If the rental agreement begins on the 1st of the move-in month, the first month's rent will be equivalent to the monthly rent.
If the rental agreement begins in the middle of a month, you can choose to charge a reduced amount for the first month's rent – for example, half of the monthly rent.
You simply agree on the specific amount directly with the tenant.
What is move-in price?
The move-in price is the amount listed on your property listing that the tenant must pay to move into your rental.
Both the prepaid rent and the first month's rent are included in this amount. The total move-in price depends on the amounts you specify when creating a listing.
If you need help on how to specify the various amounts during the listing creation, we recommend reading point 5 in this guide.
In the above example, the tenant must pay 48,775 DKK to move into the rental. This amount includes 9,695 DKK for the first month's rent and 9,695 DKK for 1 month's prepaid rent.
Once the tenant has paid this amount, they will not need to pay the first and last month's rent, as this is already covered in the move-in price – the amount the tenant has paid in advance along with the deposit.
In Denmark, there are regulations regarding how landlords can charge rent, including prepaid rent for water and heating.
According to the Danish Rent Act (Lejeloven), as a landlord, you are only allowed to charge prepaid rent without utilities. You cannot charge prepaid amounts for utilities such as water, heating, electricity, or other consumption-related costs.
These regulations are not set by us at BoligPortal but are a result of the Rent Act. Therefore, we recommend contacting a housing lawyer or another legal institution if you have specific questions about the provisions in the Rent Act.
Why is prepaid consumption not allowed?
Water and heating consumption are considered variable costs that landlords cannot charge in advance.
Instead, these expenses must be billed on an ongoing basis, based on actual consumption through an advance payment (aconto).
Your tenant must pay for water, heating, and other consumption-related costs regularly as advance payments along with rent. These advance payments must be reasonable in relation to expected usage and must be adjusted annually.
In other words, you as a landlord can only require prepaid rent, not for water, heating, or other consumption.
According to the Rent Act (Lejeloven), you can charge a maximum of three months' rent as prepaid rent. You can choose to charge 0, 1, 2, or 3 months' rent in advance, but no more than that.
Remember, you are not allowed to charge advance payments for utilities as prepaid rent.
If your tenant does not take over your rental property on the first of the month, you can easily compensate them by, for example, charging a reduced rent for the first month.
For example, if your tenant moves in on the 14th of the month, you can simply charge them half of the rent for that month. Just remember to specify this in the rental contract.
Read more about how to state the first month's rent in the rental contract here.