How to rent a home in Finland

Altogether 34% of the Finnish population live in a rental home, and the popularity of rental housing has increased steadily. If you are moving to Finland and looking for a suitable housing option, rental housing is a good place to start. The supply of homes is diverse and living in a rental home is easy.

Rental housing is common in Finland in all age and income groups. For example, more than 60% of under-40s have chosen to live in a rental home. Finnish legislation on rental housing is clear, and compliance with housing rules and regulations is high among rental housing providers as well as residents. Those looking for their first home in Finland will be able to find a place that matches their needs, as homes are available in large cities as well as small towns and in a variety of sizes and quality specifications. This means renting a home is an option that suits almost all circumstances in life.

Unfurnished homes in apartment buildings

Most rental homes in Finland are in an apartment building. Large rental housing providers such as local government authorities, SATO and Lumo own buildings where all of the apartments are rental homes.

Finnish rental homes are almost always unfurnished. However, in most cases the rent includes at least a cooker, a fridge-freezer and a well-equipped bathroom. The newest homes also come with a dishwasher. Finnish homes also very often feature a small private sauna.

There are rules relating to living in an apartment building that may be new to those who have never lived in Finland before. For example, the quiet-time policy hours may differ from those of their home country, waste management may function differently and many may be surprised to find free access to a laundry room and good communal storage spaces. The large rental housing providers apply almost identical building rules and regulations.

Take a look at an example of the Building Rules and Regulations of a Finnish residential building »

Finns are known as a rule-abiding nation. Many find it important that common rules are followed strictly. But we are also keen to help newcomers if they need some assistance, although it may take some time for us to get to know our neighbours.

Rent, security deposit and letting agency fee

In Finland, just like in many other countries, you will have to pay a security deposit on the rental home before you move in. If your credit history is clean and you already have a Finnish personal identity code, the large rental housing providers often allow you to move in without a security deposit.

The amount of rent is usually determined either on the basis of the provisions of the Act on State-Subsidised Housing Loans (the Arava Act) or free market rent levels.

• Homes under the Arava Act are only available from large organisations such as local government authorities and housing investment companies. Those applying for these rental homes usually need to meet certain criteria concerning income and assets and tenants are selected on the basis of a needs assessment. In other words, the Arava Act aims to ensure that those with lower income levels can also have access to rental homes in good locations. The needs assessment means that, if there are multiple applicants for the same home, the applicants’ needs are compared with each other and the applicant whose housing need is the highest is selected. Provisions on the determination of rent, maintenance and joint management with residents in buildings with rental homes constructed with state subsidies are laid down in legislation.
  Read more (in Finnish) about homes constructed with state subsidies »
• Most rental homes owned by private individuals and large companies are non-subsidised, which means the owner can determine the rent charged on the basis of aspects such as the market situation and maintenance costs. Applicants for these homes are not ranked on the basis of their need for housing. The majority of rental homes in Finland are rented on the free market.

The rent review and/or increase usually takes place once a year. Rent increases are affected by factors such as building and home maintenance, repair and energy costs as well as the market situation.

Make sure you check with your new rental housing provider what the rent includes. In some cases water charges are included in the rent, but this is not always the case. Internet access is included in the rent of at least the largest housing providers, but there are almost no exceptions to the practice that you must conclude your own electricity contract with an electricity company of your choice and pay for the electricity you use.

Looking and applying for a home

Finnish homes can be found on the internet. Local government authorities and private rental housing providers alike list their rental homes on their websites, but the largest selection of homes can be found on Finland’s two largest housing portals: Oikotie (in Finnish) and Vuokraovi.

Large housing providers will ask you to fill in a housing application. This is always required by organisations offering state-subsidised rental homes such as local government authorities. The very minimum a Finnish rental housing provider will ask from you is your name, phone number and Finnish personal identity code. They will use your personal identity code to check your credit history. The most serious credit history problem is obviously that the applicant has unpaid overdue rent amounts. This may prevent them from getting a rental home. The rental housing provider also has the right to check if your have lived in one of their homes before and what your residential history is like.

For example, you can apply for a SATO rental home by selecting your preferred available homes when filling in your application. Once your credit history has been checked, you will receive a message telling you when you can view an apartment. It is highly important that you visit the rental home in advance before signing the agreement. If you are still in another country, it is a good idea to authorise a friend or relative who is in Finland to view the apartment on your behalf.

If you spot any defects or other problems in the home offered to you, you should mention them to your future rental housing provider before signing the lease agreement. This way any concerns or issues can be addressed before you make a commitment to your new home.

Read more about applying for a home »

Concluding an agreement

The lease agreement can be concluded face to face, but more and more rental housing providers are also able to conclude the agreement with you online. For this, you usually need either the Mobile ID or Finnish banking user identifiers.

Make sure your read the terms and conditions of the agreement very carefully and ask questions if there is anything unclear to you. It is always a good idea to ask if you are unsure about anything!

The most important details to check in the agreement before signing include:

• the amount of rent
• the terms and conditions of rent increases
• the period of validity of the agreement.

Period of validity of the agreement

The most typical Finnish lease agreement is valid for a non-fixed period until further notice. This means that you may terminate the agreement at one calendar month’s notice.

Large companies often offer agreements with a contractual penalty period ranging from three to twelve months, after which the agreement will continue as a normal lease agreement valid for a non-fixed period until further notice. A contractual penalty usually means that if you terminate your lease agreement during the specified period, you must pay a contractual penalty the amount of which varies from one company to another.

Some homes are also rented out under a fixed-term agreement. In many cases, a home that becomes available in a building that is due to undergo renovation in the future will be rented out under a fixed-term agreement until the renovation begins, which is when the resident must move out.

Legislation and fair rental practices

The position of consumers is well-protected in Finland. Renting a home comes under provisions such as the Act on Residential Leases and the Fair rental practices drawn up by organisations representing tenants, rental housing providers, real estate agents and real estate management.

Read more about renting a home in Finland »

Are you looking for a home for an employee? Take a look at SATO rental homes »