Rental Giant Charged for 60,000 DKK Room Scheme

Femi A.

Writer

January 31, 2026
1:57 am

A Danish housing rental platform has been reported to police for charging individual renters up to 14,000 kroner per month for single rooms in shared apartments, resulting in total monthly rents exceeding 60,000 kroner. Frederiksberg Municipality accuses the company of operating illegally without proper permits, while the company’s founder maintains they are simply helping people find housing in Copenhagen’s tight market.

LifeX Faces Criminal Complaint Over Room Rentals

Frederiksberg Municipality has taken the dramatic step of filing a criminal complaint against LifeX, a rental platform that operates by leasing individual rooms in large shared apartments across Copenhagen and Frederiksberg. The municipality claims the company is renting out rooms without the required permits.

According to Mayor Michael Vindfeldt, LifeX has been renting individual rooms illegally. The platform typically offers furnished rooms in large apartments shared by five to ten residents, with each person paying more than 10,000 kroner monthly. In some cases, the combined rent for a single apartment exceeds 60,000 kroner per month.

Warning Ignored, Action Taken

Back in November, Frederiksberg Municipality warned LifeX that they would face a police complaint if they failed to apply for proper authorization to rent out rooms in their owned properties. The company never submitted such an application, prompting the municipality to follow through with the threat.

Vindfeldt argues that LifeX’s business model undermines the foundation of the housing market. By renting individual rooms at elevated prices, ordinary people are eventually priced out of the city, he explains. Even if people are willing to pay these high rents, the practice is not acceptable when it breaks the law, according to the mayor.

A Legal Gray Zone

Copenhagen Municipality is closely monitoring the situation. While they have not filed their own complaint, they acknowledge that LifeX operates in a legal gray zone. In a written response to city representative Astrid Aller from the Socialist People’s Party, the municipality’s Technical and Environmental Administration stated that this business concept appears difficult to prosecute when there is only one collective lease contract for the entire apartment.

The municipality noted that LifeX occupies an undefined position as an intermediary between property owners and actual users, making it unclear what enforcement options are available.

Tenant Organizations Demand Stronger Rules

The Danish Tenants Association (LLO) has been vocal in its criticism of LifeX. Director Claus Højte describes the case as important because it sends a clear signal to the market that rental practices must follow the rules, even when packaged as community living or flexibility.

LLO is calling for better tools for municipalities to combat rental platforms that deliberately exploit legal loopholes. Municipalities should be able to demand lease contracts and proof from landlords and owners that they have not converted family apartments into room rentals, Højte suggests. Without such powers, cases become nearly impossible to handle.

Previously, the left-wing party Enhedslisten proposed five specific measures aimed at stopping housing speculation and circumvention of rental laws. These include banning the division of family apartments into individual rooms without government approval, tightening rental laws, stopping speculative rentals disguised as service packages, strengthening municipal supervision, and building more affordable public housing.

How LifeX Justifies Its Model

LifeX founder and director Ritu Jain strongly disagrees with the accusations. She started the company to help people who struggle to find housing in Copenhagen and Frederiksberg, she explains. Jain says she is saddened and surprised by the criticism, noting that people need housing and her company is trying to provide it.

She insists that LifeX does not rent out individual rooms but rather co-living arrangements. Therefore, they do not need municipal permission. Jain adds that her company is trying to establish a positive dialogue with municipalities to show how they can help address the housing crisis.

The Business Model Explained

LifeX’s approach involves renting large apartments that most individuals cannot afford on their own due to high deposits and upfront costs. The company pays three months’ rent and a security deposit, then subleases the apartments as shared living spaces. According to Jain, this model makes it possible for housing seekers to move into furnished apartments that also include cleaning services.

When asked whether people could simply form their own shared housing arrangements without LifeX and pay lower rent, Jain responded that few people can afford the initial costs. Her company provides an opportunity to rent a room in a furnished, serviced apartment. She claims LifeX earns a three percent margin after renting and subleasing properties.

Since 2017, LifeX has acquired or converted more than 100 apartments in Copenhagen and Frederiksberg. Today, over 400 people live in their properties, many of them foreigners and expats.

Concerns About Market Distortion

Critics argue that LifeX’s pricing model distorts the rental market by setting artificially high rent levels. By bypassing traditional rental price regulations and packaging rent with additional services like furniture and cleaning, the company effectively circumvents rent control mechanisms.

Meanwhile, the municipality and tenant organizations worry that family apartments are being broken up into individual room rentals, reducing the availability of housing for families and contributing to a less diverse urban population. The practice also makes it harder for average earners to find affordable housing in central Copenhagen and Frederiksberg.

Interestingly, professor Hans Henrik Edlund from Aarhus University has described the model as a clear circumvention of the law, characterizing the arrangements as dormitory-style rooms rather than genuine co-living communities.

What Happens Next

The police complaint now moves forward, and authorities will determine whether LifeX has violated housing regulations. The outcome could set an important precedent for how similar rental platforms are regulated in Denmark. If LifeX is found to be in violation, it could face fines and be required to obtain proper permits or cease operations in Frederiksberg.

For now, both Frederiksberg and Copenhagen municipalities are watching closely. Copenhagen has acknowledged that the case highlights gaps in current legislation and enforcement capabilities. As a result, political parties are pushing for legal reforms to close loopholes and give municipalities stronger tools to combat exploitative rental practices.