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The ABC of renting

Renovations performed by the lessor and housing company

The aim of renovations is to improve the quality and safety of living. According to the law, the lessor is entitled to perform repair and alteration work in a rented apartment. The lessor must inform the tenant of the planned renovations in writing and observe the legal or agreed hours for the work. By law, urgent repair and alteration work can be performed immediately. Repairs that do not cause significant inconvenience or disturbance to the leasehold can be performed upon 14 days’ notice. According to the law, the tenant must be informed of more extensive repairs and improvements to the apartment at least six months prior to the start of the work.

When the lessor is a housing company, it has the same obligation to notify the tenants as private lessors do. The legal notification periods in the Act on Residential Leases do not bind the housing company when a shareholder acts as the lessor. The tenant must be informed of renovations to be performed by the housing company as soon as such information is available. The notice must include the contact person, extent of the renovation, starting date, and estimated duration. A tenant in an apartment that is in deficient condition or only partially in use shall pay only partial or decreased rent for the duration of the renovation. According to the law, the tenant is always entitled to a reasonable rent reduction for the duration of the renovation unless the tenant has caused the damage to the apartment. The amount of the discount is particularly dependent on the level of inconvenience. The tenant is entitled to a rent discount regardless of whether the renovation is performed by the lessor or the housing company.

If the apartment is uninhabitable during the renovation, the tenant has to move out for the duration of the renovation. The tenant is not obliged to pay rent for the apartment in such cases. A tenant in an apartment that is in deficient condition or only partially in use shall pay only partial or decreased rent for the duration of the renovation. The lessor is not responsible for providing the tenant with substitute housing for the duration of the renovation. However, according to fair rental practices, the lessor should offer the tenant another apartment when possible. In such cases, the tenant is free to choose whether to accept the apartment offered by the lessor. If the tenant does so, he or she shall pay the lessor the agreed rent for the substitute apartment.

When performing renovations, the lessor should ensure that they cause the tenant as little inconvenience as possible. In accordance with fair rental practices, the lessor shall, even when providing notification of the renovation, attempt to advise the tenant on how to protect any property that may remain in the apartment and indicate how the post-renovation cleaning will be arranged on the part of the lessor, as well as other practical measures. For reasons of flexibility and planning, the notification should include a proposal regarding the rent discount during the renovation and an estimate of the intended rent after the renovation. If the tenant considers some part of the proposal to be unfair, he or she should contact the lessor in order to continue negotiations. The proposal should be changed if the conditions of the renovation change. The actual inconvenience caused by the renovation and the fair final amount of reduction are generally only evident after the renovation is completed. Furthermore, the tenant is entitled to compensation for any damage caused through the carelessness of the party commissioning or performing the work.

Renovations performed by the tenant

According to the law, the tenant is not entitled to perform alteration or repair work on rented premises without permission from the lessor. Such work subject to permission is considered to include painting, wallpapering, and changes to fixed furnishings. If the tenant receives permission to do alteration or repair work in the apartment, the compensation paid for work and materials must be agreed upon in writing in advance. The tenant must provide the lessor with the opportunity to inspect the completed alteration or repair work at an agreed time. The date when compensation will be paid must also be agreed upon, as well as how the alteration or repair work is to be performed (schedule, materials, workers, supervisors, and quality).

If the tenant has, with the permission of the lessor, performed alteration or repair work that increases the value of the apartment, the lessor shall pay compensation for this work as agreed with the tenant. If nothing has been agreed on in advance regarding compensation, the tenant is entitled to reasonable compensation for alteration or repair work that significantly raises the value of the apartment.

Upkeep of the rented premises

The condition of the rented premises shall be inspected prior to the tenant taking possession and when the tenant surrenders the apartment back into the lessor’s care. According to the law, the tenant must take good care of the rented premises and the related equipment and furnishings in the premises. If the tenant notices a fault in the apartment that could cause damage, he or she must immediately take appropriate measures to prevent the damage. This can mean protective measures or notifying the authorities, company representatives, or the lessor.

Whenever possible, the tenant must inform the lessor in writing of any faults and other deficiencies that appear in the apartment. If the fault or deficiency threatens the condition or structures of the apartment, notification must be given immediately in accordance with the law. Whenever possible, the lessor should confirm that he or she has received the tenant’s notification by, for example, e-mail. If the lessor is responsible for correcting the deficiency, the law obliges the lessor to initiate these measures within a reasonable period of time. However, if the deficiency relates to a matter essential to the use of the apartment, repairs must be initiated immediately. The repair must be performed in a manner that causes the tenant as little disturbance as possible. If the apartment contains a machine or furnishing that requires more precise upkeep or servicing, the lessor shall provide the tenant with the necessary instructions in writing.