FINNISH BUY TO LET MARKET
The rental prices in Finland are determined by the market and the agreement between the parties. The parties cannot agree to allow the landlord unilaterally to increase the rent during the contract's validity, unless the parties have agreed the grounds on which the rent may be increased.
However, rent can be linked to an index such as cost of living index, or a combination of an index and an additional clause stipulating a minimum adjustment to ensure an annual increase of rent. (1)
There are two kinds of tenancy agreements:
1. tenancy agreements that are valid until further notice (toistaiseksi voimassa oleva vuokrasopimus)
2. fixed-term tenancy agreements (määräaikainen vuokrasopimus)
The rent security deposit usually equals two months' rent. The deposit can be worth three months' rent at the most. The sum must be returned at the end of the rental relationship, provided the tenant has fulfilled his/her obligations.(1)
A tenancy agreement that is valid until further notice will only end once either the tenant or the landlord terminates it.
Such arrangements are normally terminated by giving notice. For a tenant, the notice period is always one calendar month.
For a landlord, the length of the notice period depends on how long the tenancy agreement has been in force. If the tenancy agreement has been in effect for less than a year, the notice period is three months. If the tenancy agreement has been in effect for more than a year, the notice period is six months. There shall be a valid reason for termination of the contract from the landlord side.
These notice periods cannot be changed (either reduced or extended) in the contract or agreement.
In accordance with the RESIDENTIAL TENANCIES ACT, Landlord has the right to revoke the tenancy contract in following cases:
- The tenant fails to pay their rent. Such a decision can be justified by a failure by the tenant to pay their rent for two months.
- The Landlord may also terminate the lease when it is transferred, or the apartment or its part is otherwise transferred to another party in breach of legislation or the tenant fails to pay an agreed collateral security. In situations referred to in this chapter, there is no need to warn the tenant; rather, the tenant lease can be immediately terminated.
Grounds for terminating a tenant relationship requiring a warning are preceded by:
- The use of the apartment for other uses or in other ways as agreed in the contract.
- The tenant or their guests lead a life that disrupts others.
- The tenant takes poor care of the apartment.
- The tenant breaches against what has been stipulated in order to maintain health or order. If the tenant above, in Section 2 or 4, has acted in a highly blameworthy manner, no warning is necessary (2)