The ABC of renting

Fair rental practices require that a lease agreement always be made in writing. Contract models can be purchased at well-stocked bookstores. The agreement must be written in a clear and unequivocal manner. In addition, the lease agreement must list all appendices to the agreement. If the lease agreement includes appendices, they may not conflict with the lease agreement or the Act on Residential Leases (481/1995).

It is recommended that both contracting parties inspect the apartment and other premises associated with its possession when signing the lease agreement and terminating it, and record all observations concerning their condition. In many cases, the inspection performed at the end of the previous lease period serves as the starting point for the inspection in the new lease period. If the parties wish to alter the agreement later, the changes must be clearly recorded in the agreement.

Security provided by the tenant ensures payment of rent, proper care of the apartment, and other responsibilities related to the lease. For reasons of clarity, it is advisable to indicate in the lease agreement that security is provided to ensure the fulfilment of all obligations associated with the agreement. Security is requested before the keys are handed over and the tenant takes possession of the apartment. The lessor must store the security carefully and keep it separate from the security-holder’s other property for the duration of the lease period. Interest on monetary security shall be agreed upon at the start of the lease period.

The lessor may hold back only reasonable costs to cover damage that has actually resulted from the tenant’s neglect. However, the tenant is not responsible for the repair costs of small marks, dents, or similar instances resulting from normal wear and tear. The tenant may not refuse to make the final rent payments by invoking the security.

If there is no justification for using the security deposit, it shall be returned in full without delay as soon as the lease has ended and the apartment and related premises have been cleaned, the keys handed over, and the apartment inspected. If the lessor is justified in withholding some part of the security, the difference must be returned to the tenant without delay. The tenant must be notified of the withholding of security and reasons for it in writing or by e-mail, at the address indicated by the tenant. The tenant must also receive a written list of the costs resulting from the item(s) cited.

The most common method of terminating a lease agreement that is valid until further notice is to give notice on the agreement. When a lessor gives notice on a lease agreement, the legal period of notice in a lease that has been in force for less than one year is three months and six months when the lease has lasted for a year or longer. The tenant’s period of notice is one month, regardless of the duration of the lease.

According to the law, the period of notice is calculated from the last day of the calendar month during which the notice was received. However, the parties may also agree on the starting date of the period of notice in the lease agreement. According to the law, such notice must always be served in writing and verifiably – for example, by means of the tenant’s signature. An e-mail or an SMS message does not meet the legal requirements.