Guide to Renting a Property Long-Term in Finland

Published on April 23, 2026 and written by Cyril Jarnias

Long-Term Rental of Real Estate in Finland

Renting a property long-term in Finland can seem like a daunting task, especially for those unfamiliar with the specifics of the Nordic real estate market. However, understanding the process and key steps can save you time and a lot of hassle.

Key Aspects to Consider

This article breaks down the key aspects to consider, from searching for ideal properties to signing a secure lease agreement. Whether you are an expatriate or a local resident, familiarizing yourself with local regulations and Finnish landlord preferences is essential to ensure a stress-free rental experience.

Practical Tips for Navigating the Finnish Market

With our practical tips and advice, you will be equipped to navigate the Finnish real estate market with confidence and efficiency.

Renting in Finland: A Profitable Long-Term Investment

Finnish Real Estate Market Analysis and Recent Trends

The Finnish real estate price index saw a slight decline in the first quarter of 2025, moving from 100.59 to 99.56 points. After a historical peak in the second quarter of 2022 (113.46 points), the market shows stabilization with a recent correction. The homeownership rate remains high (68.1% at the end of 2024). In terms of transactions, Finland experienced significant fluctuations over the past two years: in 2023, sales dropped by up to -41%, but a recovery was observed in early 2024 (+8%), indicating renewed investor interest.

Most Profitable Regions and Attractive Property Types

City	Average Price Q3 (€)	Average Monthly Rent (€)	Estimated Gross Yield (%)
Helsinki	500,000	2,000	~4.8
Espoo	350,000	1,600	~5.5
Tampere	300,000	1,400	~5.6
Turku	280,000	1,300	~5.6

• Helsinki attracts for its rental security and economic dynamism.
• Espoo, close to Helsinki and a major technology hub.
• Tampere/Turku, university cities with high student demand.

Modern, medium-sized apartments (70–85 m²), ideally located near city centers or university/technology hubs, remain the most sought-after by tenants.

European Comparison of Rental Yields

Gross rental yield in Finland typically ranges between 4% and over 5%, which is competitive compared to France (~3–4%), Germany (~3%), or Belgium (~3%). Baltic or Polish markets sometimes offer more (>6%), but Finland’s legal and economic stability particularly appeals to cautious investors.

Economic & Demographic Factors Influencing Profitability

• Aging population offset by the regular influx of students/internationals in certain metropolitan areas.
• Stable labor market with low structural unemployment in major cities.
• Clear tax policy and transparency of the judicial system.
• Growing need for new housing in some urban areas despite a temporary slowdown in the construction sector in the early/mid-2020s.

Tips for Maximizing Return on Investment

Property Management

• Prioritize an experienced local manager well-versed in Finnish law.
• Invest in properties requiring minimal work to limit initial capital outlay.

Tenant Selection

• Target international students/professionals whose mobility often ensures fewer defaults thanks to local public or private schemes (guarantees).

Financing Strategies

• Bank financing possible from a down payment >20%. Competitive variable rates depending on investor profile/tax residency.

Tax Optimization

In Finland:

• Rental income is taxed as personal income at rates between approximately 30% to +34%, depending on marginal tax brackets;
• Deductions possible: mortgage interest; maintenance costs; local taxes;
• No wealth tax (IFI) or heavy national property tax like in France;
• Capital gains subject to general regime after deduction for holding period (>2 years).

Concrete Example & Testimonial

“After three years as a non-resident investor in Espoo, I found that renting to an international clientele significantly limits my vacancy while allowing a net return higher than what I would currently get in Paris or Berlin” – Antoine D., French expatriate

To succeed in your long-term rental investment in Finland:

• Target dynamic major urban areas.
• Prioritize contemporary apartments near transport/universities.
• Manage carefully through rigorous selection of manager/tenant.
• Take full advantage of the transparent tax framework.

Mastering the Lease Agreement: Essential Steps

Mastering the Lease Agreement: Essential Steps for Long-Term Rental in Finland

Key Legal Elements to Include in a Lease Agreement

• Names and contact details of the parties: landlord (lessor) and tenant.
• Precise description of the rented property: address, apartment type, size.
• Lease duration:
  • Indefinite-term lease (toistaiseksi voimassa oleva vuokrasopimus): continues until terminated by one of the parties.
  • Fixed-term lease (määräaikainen vuokrasopimus): automatically expires on the set date, non-terminable before the term unless otherwise agreed.
• Rent amount, payment terms and date.
• Security deposit, typically equivalent to one or two months’ rent.
• Other potential charges (water, electricity, etc.).
• Any special conditions, such as a ban on pets or smoking.

Mandatory Elements	Specific Details
Names of parties	Landlord and tenant
Address/description of housing	Specify all characteristics
Duration	Fixed-term or indefinite-term
Rent	Amount, possible indexation
Deposit/security	Typically 1–2 months
Charges	Water, electricity often separate

Respective Obligations Under Finnish Legislation

Tenant:

• Pay the rent in full by the due dates
• Maintain the housing in good general condition; repair minor deterioration caused by normal use
• Comply with internal regulations (condominium), especially regarding noise and waste
• Not make major modifications to the housing without authorization

Landlord:

• Deliver the housing to the tenant in good usable condition
• Carry out necessary major repairs to maintain the property
• Respect the tenant’s privacy; visits only with reasonable notice

• Main obligations
• Regular payment of rent
• Routine maintenance by the tenant
• Structural repairs by the landlord
• Strict compliance with collective rules

Specific Provisions for the Finnish Context

• The contract must be in writing. A copy must be provided to both parties.
• Annual rent indexation is possible but must be expressly stated in the contract.
• Notice period for termination:
  • For an indefinite-term lease:
    • Tenant: minimum 1 month
    • Landlord: 3 months if renting

Making Your Property Attractive: How to Set the Ideal Rent

To determine a competitive rent in Finland, it is essential to combine an analysis of local market prices with consideration of the country’s specific economic and regulatory factors.

Main Strategies for Setting Rent:

• Compare similar properties
  • Analyze equivalent apartments in terms of size, location (city center vs. suburbs), and amenities.
  • Example: In 2025, the average rent for a studio in the city center is around €792 per month, with a range between €600 and €1,200 depending on the period and location.
  • For a one-bedroom apartment in Helsinki, the average price reaches approximately €765–€792 per month; outside the city center, it drops to nearly €610 per month.
• Consider regional differences

Region	Price/m² Apartments
Uusimaa (Helsinki)	€3,546/m²
Lapland	€2,294/m²
Pirkanmaa	€1,802/m²
North Ostrobothnia	€2,242/m²

Rents are therefore higher in major cities like Helsinki or Espoo, while they are significantly more affordable in regions like Kymi Valley or South Karelia.

Assess local supply and demand

The price-to-rent ratio helps identify whether the market favors landlords or tenants. In Finland, this ratio hovers around 86 (Q4–2024), indicating stability but also a need to regularly adjust your rent according to market developments.

Specific Legal and Regulatory Aspects:

• There is no strict legal cap on the rent amount in the Finnish private market. However:
  • Increases must be provided for in the written contract (lease); they can be indexed to an official index (such as the consumer price index).
  • The landlord must justify any significant increase to the tenant; any abusive clause can be challenged before local authorities.
  • For certain subsidized or social housing, regulatory caps exist (e.g., subsidized housing in Helsinki = approximately €14.5/m²/month, compared to €22.2/m²/month for private).

Impact of Housing Quality and Included Services:

• Presence of modern amenities (fitted kitchen, enhanced thermal insulation)
• Additional services such as:
  • Heating included
  • Free access to shared laundry room
  • High-speed internet connection included

These elements often allow for a slightly higher rent while remaining attractive. They also positively influence tenant retention.

Tips for Attracting & Retaining Long-Term Tenants:

• Regularly maintain electrical/plumbing installations.
• Renew paint/floors every few years.
• Offer prompt assistance for technical issues.
• Maintain transparency on all ancillary charges (electricity, water, etc.).

Practical checklist for optimizing your rental property:

• Check the general condition of the housing annually
• Modernize equipment if necessary
• Offer contractual flexibility during renewals
• Highlight all included services from the listing

Regular maintenance and continuous improvement not only enhance your attractiveness but also significantly reduce vacancy periods.

Cultivating Harmonious Relationships with Your Tenants

Practical Tips for Establishing and Maintaining Harmonious Relationships with Tenants in Finland:

• Prioritize transparent and regular communication from the start of the tenancy. Promptly inform your tenants of any planned intervention, modification, or repair in the housing. Open dialogue allows for anticipating problems and finding solutions before they escalate.
• Respond to tenant questions and requests within a reasonable timeframe, even if the answer is temporarily uncertain. Keep them informed of the progress of any ongoing process.
• Organize periodic meetings or exchanges, for example by email or phone, to gather any feedback or suggestions.

Legal Aspects and Finnish Rental Laws to Know:

Right/Obligation	Tenant	Landlord
Rent payment	Must pay on time	Must notify of any increase
Compliance with contract	Must comply with clauses	Must comply with clauses
Notice of termination	1 month (tenant)	Based on tenant’s length of stay
Privacy	Right to peace and quiet	Access only with agreement or in case of emergency
Repairs	May require prior notice	Must inform in advance (14 days/6 months depending on nature)

• The law requires that any entry into the housing by the landlord be announced in advance, except in emergencies. Visits must be scheduled with the tenant.
• Rent increases must be officially notified, unless the terms are already provided for in the contract.
• The lease agreement must be in writing and kept by both parties.
• Tenant rights and duties include paying rent, caring for the housing, and the possibility of subletting under certain conditions.
• In the event of major repairs making the housing difficult to inhabit, the tenant may demand a rent reduction or terminate the lease.

Respecting Privacy and Property Maintenance:

• Always give advance notice before any visit or intervention.
• Avoid unjustified or overly frequent visits.
• Schedule preventive maintenance in agreement with the tenant to minimize inconvenience.

Creating a Positive Environment:

• Be attentive to your tenants’ specific needs and, where reasonable, accommodate adjustments (e.g., allowing small decorative changes or pets if regulations permit).
• Thank your tenants for their care of the housing, for example by sending a thank-you note at the end of the year or upon lease renewal.
• Offer flexible solutions for minor repairs or adjustments, involving the tenant in choices when possible.
• Foster a climate of trust, reminding that everyone – tenant and landlord – has clearly defined rights and duties under Finnish legislation.

Key Takeaways:

• A harmonious relationship is based on trust, transparency, and knowledge of each party’s rights and duties.
• Respecting privacy and proactive problem management are essential to avoid conflicts and promote peaceful coexistence.
• Recognition and gestures of consideration enhance tenant satisfaction and commitment to maintaining the property.