§ 19

At the time of entering into the lease agreement, the rent must not be set at an amount exceeding what can cover the property's necessary operating expenses, cf. § 24, and the return on the property's value, cf. § 25. For tenancies that have been improved, a calculated improvement increase may be added to the rent as per the first sentence, subject to subsection 2.

Stk. 2.At the time of entering into the lease agreement, the rent for tenancies that have been comprehensively improved must not be set at an amount exceeding the rental value according to § 42, subsections 2 and 3, subject to subsections 3-6, § 21, subsection 1, and § 161, subsection 3. A tenancy is considered comprehensively improved if improvements according to the principles in § 128 have significantly increased the rental value, and the improvement cost either exceeds 2,280 DKK per m² or a total amount of 260,738 DKK. Improvements must be completed within a period of 2 years and must not be covered by § 129, subsection 1, in the previously applicable law on renovation, cf. Consolidated Act No. 385 of 4 August 1983, the previously applicable law on urban renewal and housing improvement, cf. Consolidated Act No. 820 of 15 September 1994 with subsequent amendments, the previously applicable law on private urban renewal, cf. Consolidated Act No. 49 of 1 February 1996 with subsequent amendments, the previously applicable law on urban renewal, cf. Consolidated Act No. 260 of 7 April 2003 with subsequent amendments, and the law on urban renewal and city development. The amounts in the second sentence are set at the 2021 level and are adjusted annually, cf. § 204, subsection 1. Upon re-letting, the amounts applicable at the time of the improvements are used.

Stk. 3.Before a tenancy can be comprehensively improved as per subsection 2, the rent tribunal must, through inspection, ascertain that the tenancy is in a condition that allows for a significant increase in rental value at the time of inspection. The rent tribunal must conduct the inspection within 4 weeks of receiving the request. The tribunal must send its decision to the landlord no later than 2 weeks after the inspection. The decision is valid for 3 years.

Stk. 4.Subsection 2 only applies if at least 5 years have passed since the last control change regarding the tenancy or the property in which the tenancy is included. A control change occurs in the following situations:

1)One or more physical or legal persons acquire by agreement, gift, or enforcement of a pledge or other security, or otherwise, at least 50% of the ownership share of the tenancy or the property in which the tenancy is included.

2)A direct or indirect transfer or assignment of controlling influence over the legal entity or entities owning the tenancy or the property in which the tenancy is included.

3)A change of at least 50% of the actual ownership of the legal entity or entities owning the tenancy or the property in which the tenancy is included.

4)A direct or indirect transfer or assignment of the right to at least 50% of the economic return from the tenancy, the property in which the tenancy is included, or the legal entities that directly or indirectly own the tenancy or the property in which the tenancy is included.

5)A direct or indirect transfer or assignment of the right to at least 50% of an increase in value of the tenancy, the property in which the tenancy is included, or the legal entities that directly or indirectly own the tenancy or the property in which the tenancy is included.

6)The conclusion or assignment of one or more agreements that one or more parties have the right to carry out a transfer or transition that would constitute a control change under items 1-5 if the agreement(s) were executed either alone or in conjunction with an already executed disposition.

7)The conclusion or assignment of a conditional agreement on deferred direct or indirect transfer of the tenancy or the property in which the tenancy is included, if the execution of the conditional agreement would entail a control change under items 1-6.

8)The execution of one or more dispositions not covered by items 1-7, but which achieve a similar effect.

Stk. 5.The following situations are not covered by subsection 4:

1)Leasing and re-leasing of tenancies that before 1 July 2020 met the conditions for leasing under § 5, subsection 2, of the previously applicable law on temporary regulation of housing conditions, cf. Consolidated Act No. 929 of 4 September 2019, or both meet the conditions for leasing under subsection 2 and are subsequently re-leased, when the first re-leasing is not done within a 5-year period after a control change, cf. subsection 4, which has not yet expired.

2)Control change occurring through inheritance under the Inheritance Act or by remaining in undivided possession under § 26 of the Inheritance Act or in both cases equivalent foreign rules. Advances on inheritance are covered by subsection 4 regardless of the first sentence.

3)Control change occurring through the execution of one or more intra-group transactions.

4)Control change occurring through the conversion of a cooperative housing association's, a housing stock company's, or a housing share company's property into a rental property and all subsequent resales, when the cooperative housing association, housing stock company, or housing share company was established before 1 July 2020.

5)Control change occurring concerning homes located in a property where the owner or a previous owner within a period of 2 years has carried out and incurred expenses for energy improvements excluding maintenance, cf. § 128, concerning the part of the property used for residential purposes, amounting to at least 3,012 DKK per m2 gross floor area for this part of the property. The improvements in the first sentence must not be covered by the law on urban renewal and city development except for the previously applicable Chapter 6 a, cf. Consolidated Act No. 144 of 21 February 2020. The investment requirement in the first sentence must be met at the time of leasing under subsection 2. Amounts used to meet the first sentence cannot be included in the calculation of the amount requirement under subsection 2. The amount in the first sentence is set at the 2021 level and is adjusted annually, cf. § 204, subsection 1.

6)Control change occurring concerning homes located in a property where the owner or a previous owner has carried out energy improvements to an extent that the property has achieved a placement on the energy rating scale that is three levels above the placement applicable from 1 July 2020. § 9 does not apply.

Stk. 6.Subsection 2 only applies to tenancies in properties that, at the time of leasing, have achieved a placement at level A-C on the energy rating scale under the law on promoting energy savings in buildings, and for tenancies in properties where the owner has carried out energy improvements to an extent that the property has achieved a placement on the energy rating scale that is two levels above the placement applicable from 1 July 2020. The requirement in the first sentence must be met at the time of leasing under subsection 2. Notwithstanding the first sentence, subsection 2 applies to tenancies in properties that are protected under the law on the preservation of buildings and urban environments.