§ 4-3. After 2.5 years the rent can be adjusted to market level
After at least two and a half years, the landlord (utleier) — or you — can demand that the rent be adjusted to the "prevailing rent": what the market level actually is for similar homes (boliger). You are entitled to six months' notice, and at least one year must have passed since the previous adjustment.
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
The text of the law (unofficial translation)
If the tenancy (leieforhold) has lasted for at least two years and six months without any change in the rent other than that which may be demanded under § 4-2, either party may, without notice of termination (oppsigelse), put forward a demand that the rent be set at the prevailing rent at the time of implementation for the letting of similar rented premises (husrom) on similar contractual terms. When setting the rent under the first sentence, a deduction shall be made for the part of the rental value that is due to the tenant's (leier's) improvements and efforts.
An adjustment of the rent under the first paragraph may be implemented no earlier than six months after a written demand for it has been made, and no earlier than one year after the previous change in the rent was implemented.
If the parties do not agree on what the prevailing rent is, either of them may demand that it be determined in accordance with the provisions of § 12-2.
What does this mean?
CPI adjustment (§ 4-2) is about keeping the rent in step with price increases. Prevailing rent adjustment is about something else — bringing the rent to the actual market level.
What is prevailing rent? It is not the highest anyone pays, and not the lowest. It is an average of what similar homes are actually let for, taken across a broad range of tenancies. It is more stable than the current market at any given moment.
When can you demand it? Either party can demand a prevailing rent adjustment after at least 2.5 years. This means the landlord can adjust upwards if the market has risen more than the CPI — but you can also demand that the rent be lowered if you have paid above the prevailing rent for a long time.
Six months' notice. The demand for a prevailing rent adjustment must be made in writing. The adjustment takes effect no earlier than six months after the demand. You have plenty of time to prepare.
Your improvements do not count against you. If you have renovated the bathroom with your own money, the value of those improvements must not be included in the calculation of the prevailing rent. It is your effort, not the landlord's.
Disagree about what the prevailing rent is? Either party can demand that a valuation panel (takstnemnd) determine it under § 12-2. It is a faster and cheaper process than ordinary court proceedings.
Examples
Eva has lived in the flat for three years and paid NOK 9,000 a month — price-adjusted once. Now the landlord demands that the rent be adjusted to the prevailing rent, which he believes is NOK 12,500. Eva disagrees with the calculation. They both demand that a valuation panel determine what the prevailing rent actually is. The panel sets it at NOK 10,800. That is the new rent — six months after the demand was made.
Marius has paid NOK 14,000 for a flat for three years. The market has fallen in his neighbourhood. The prevailing rent is now NOK 11,500. Marius can demand that the rent be adjusted down to the prevailing rent. The landlord cannot refuse.
Common mistakes
- Thinking that the prevailing rent is always higher than the current rent. Not necessarily — it is an average, and it can go either way.
- Forgetting that your own improvements must not be counted. If you have put work into the home, make sure to document it and make it known in any valuation process.
- Thinking that six months is a negotiation deadline. It is a minimum period — the adjustment cannot take effect until six months have passed.
What should you do?
If you receive a demand for a prevailing rent adjustment: Look into the market rent in the area by checking ads on Finn.no and contacting the Rent Disputes Tribunal (Husleietvistutvalget). If you disagree with the landlord's figures, say so in writing and, if necessary, demand a valuation panel. Remember — you have six months to prepare either way.
Frequently asked questions
Can the landlord use the prevailing rent rules to double my rent?
- Protection against unreasonable rent (leieprisvern): when is the rent unlawfully high or unlawfully increased?
- Living in the same flat for a long time: rights that carry more weight over time
- Can the new owner raise the rent straight away?
- The landlord has not raised the rent in three years: can he make up for all of it at once?