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Rental changes from January 2024

Red leaves on a vine across a red brick wall. Photo by Johan Larsson.

Following a new decision by Lund University, LU Accommodation will update its rental model to a more standardized student accommodation model. Further rental increases due to inflation have been postponed until August 2024.

Rental changes 2024

New rental model

LU Accommodation will change to an 11 month rental model, where the yearly rent for almost all accommodations* will be distributed over 11 months rather than the full 12. This means that rent for July is not charged for tenants staying across the summer (NB. tenants must have moved in more than 2 months before the free rental month to qualify).

Effectively, this will mean an increase in rent for the other 11 months of approximately 9,09%. This change will bring LU Accommodation in line with standard practice for student accommodations in Sweden.

*Tenants at Michael Hansen, Östra Vallgatan, and Måsvägen are not affected, as they already have 9, 10, and 11 month rental models respectively.

Yearly increase of rent

Additionally, the facility owners, who are LU Accommodation's landlord, normally increase their rents in January each year, following the inflation levels from year to year. Last year this increase was approximately 10,85%. This year is projected to be lower, as inflation has levelled out, but we have still not received the exact numbers. Normally LU Accommodation adjust their rents to follow that set by the facility owners.

Total rent increase and postponement

Since the new rental model will put financial strain on our tenants during January to June 2024, Lund University has decided to postpone the inflation-based rental increase to August 2024. Any tenants staying across the summer will experience an additional rental increase in August, but will also not have to pay rent for July.

The yearly rent will thus not change until August 2024, but the monthly rent will increase by 9,09% from January 2024.

The new rent has been e-mailed to all tenants, and will be visible on the rental invoice published in December.

Shortened cancellation period

We are aware of the financial strain that many of our tenants are operating under. We are equally aware that some tenants may wish to cancel their contract early due to this change of rent model.

For that reason, we have temporarily shortened the cancellation period to one (1) calendar month. Any tenant affected by the new rental model can choose to cancel their contract during November 2023, the contract will then end on 31 December 2023. This shortened cancellation period will only be in effect during November 2023.

 

2023-10-31

LU Accommodation