The regulation
Block leasing 2026: what the new rules mean for property owners
The block leasing reform took effect on 1 July 2026. Apartments may now be block leased for corporate housing, co-living and other clearly defined groups of residents. Here is what changed, what the rent tribunal reviews, and what a block lease looks like in practice.
The reform is based on the inquiry SOU 2025:65.
What block leasing is
Block leasing means a property owner leases several apartments together to a single tenant, who in turn sublets them to the residents. The owner has one counterparty and one agreement instead of many individual tenancies.
Since the reform, block leasing is permitted for three categories:
- Corporate housing — homes for company employees
- Co-living homes
- Other clearly defined groups of residents
What changed on 1 July 2026
- Commercial letting operators may act as intermediary between owner and resident. This was previously restricted.
- Indirect security of tenure can be contracted away.
- For corporate housing, the subtenant's security of tenure can be contracted away without review by the rent tribunal.
- Agreements can be extended on unchanged terms.
- Exemption from the frontman rules: a company affiliated with the owner may act as block tenant.
- The block tenant may charge subtenants rents above the utility value rent, provided they are reasonable.
What the rent tribunal reviews
The rent tribunal retains its review role. The review now focuses on the purpose of the letting and on the credibility of the operator.
- Purpose: what the apartments will actually be used for.
- Operator credibility: experience and ability to carry the commitment.
- Industry bodies may submit statements in the review.
- Inexperienced operators may receive time-limited permits.
What it means for you as a property owner
Vacancy risk moves
The rent is agreed and paid whether or not an individual apartment is empty. The risk sits with the block tenant.
One counterparty instead of many
One agreement, one invoice, one contact. Instead of separate tenancies per apartment.
Agreements in years, not months
Block leases run over longer periods, which makes net operating income something you can plan around.
What a block lease looks like in practice
This is how our arrangement works at Guestly Homes.
- We block lease 15–20 apartments from you as one block.
- The agreed rent is paid every month, regardless of occupancy.
- The apartments are used as corporate housing for vetted corporate guests.
- Guestly handles operations, cleaning and the guests. You keep ownership.
Common questions about block leasing
Would you like to see how this would look for your portfolio?
We review the portfolio together and show what a block lease would mean in practice.
This page is an overview of the regulation, not legal advice. Every arrangement should be reviewed with your own legal counsel.