Finland's New Rental Law

Finland's updated Residential Leases Act (AHVL) and Business Premises Leases Act (LHVL) will enter into force on October 1, 2026. The new rules will apply to tenancy agreements signed from that date and, in many cases, to existing agreements as well. However, some provisions will continue to follow the previous legislation unless the parties agree otherwise after the new law takes effect.

The amendments do not apply to short-term rentals.

1. Duration of the Lease Agreement

Starting October 1, 2026, Finland will allow a new type of lease agreement: a fixed-term lease that automatically continues as an open-ended agreement once the fixed term expires.

As a general rule, this type of lease cannot be terminated before the end of the fixed-term period. However, the parties may agree in advance that the lease can be terminated earlier and, if necessary, specify a contractual penalty for early termination. In certain situations, a court may also allow the tenant to terminate the lease early, or the landlord and tenant may agree to end the lease by mutual consent.

Another important change applies to new lease agreements. From October 1, 2026, new contracts may no longer include a clause preventing either party from starting the termination process before a specified date. Any such clause will have no legal effect.

These changes apply only to lease agreements concluded on or after October 1, 2026. Agreements signed before that date will generally remain subject to the previous rules unless the parties agree to apply the new legislation.

2. Notice Periods for Termination

Starting October 1, 2026, the landlord's notice periods for terminating a lease will change. If the tenancy has lasted up to two years, the notice period will be three months. If the tenancy has lasted more than two years, the notice period will increase to four months.

The new rules apply only to lease agreements concluded on or after October 1, 2026. For agreements signed before that date, the current notice periods will remain in effect—three months if the tenancy has lasted less than one year, and six months if it has lasted more than one year, unless the parties agree to apply the new rules.

3. Moving-Out Date

Starting October 1, 2026, the default moving-out date will be the last day of the lease agreement. By that date, the tenant must vacate the apartment and any other leased premises and return them in a clean condition. However, the parties may agree in advance on different arrangements for handing over the property.

The new rules apply only to lease agreements concluded on or after October 1, 2026. Agreements signed before that date will remain subject to the previous rules unless the parties agree to apply the new legislation.

4. Electronic Communication

Starting October 1, 2026, landlords and tenants will be able to exchange official notices electronically, for example by email. However, this method of communication must be agreed upon in writing in advance.

Official notices related to terminating a lease—including notices of termination, notices of immediate termination, and required warning notices—may also be delivered electronically if the parties have agreed to this. In such cases, the law requires a two-step procedure: the official notice must be sent through the agreed electronic channel, followed by a separate alert, such as a text message, sent through another agreed channel to help ensure the recipient is aware of the notice.

In addition, both parties will be responsible for keeping their contact information up to date.

5. Security Deposit

Starting October 1, 2026, the security deposit will, by default, cover all obligations under the lease agreement, unless the parties agree otherwise.

Within 14 days after the tenancy ends, the landlord must either return the security deposit or notify the tenant in writing that all or part of the deposit is being withheld, stating the reason.

The law also contains separate transitional provisions.

6. Rent Increases

Starting October 1, 2026, landlords must notify tenants in writing at least one month before a rent increase takes effect. The notice must state the new rent amount and the effective date of the increase.

The law also prohibits retroactive rent increases. Landlords must notify tenants without delay of any changes to other charges, such as water or electricity fees.

The new rules apply only to lease agreements concluded on or after October 1, 2026. Agreements signed before that date will remain subject to the previous rules unless the parties agree to apply the new legislation.

7. Smoking

Starting October 1, 2026, smoking will be prohibited by default in the apartment, on the balcony and in outdoor areas connected to the apartment, unless the parties agree otherwise.

8. New Grounds for Termination

The law introduces an additional ground for terminating a lease. This may apply, for example, if a tenant disturbs the peace or causes disruption in the immediate surroundings of the apartment, residential building or property, not only inside the apartment or in shared areas used by the tenant.

9. Duty to Inform About Residents

Tenants will be required to inform the landlord about the people living in the apartment.

10. Sources / Legal References

• The full information and the source text can be found at Kiinteistönvälitysalan Keskusliitto (KVKL) website.
• Laki asuinhuoneiston vuokrauksesta (481/1995) / Residential Leases Act (481/1995) FINLEX, (481/1995)
• Laki liikehuoneiston vuokrauksesta (482/1995) / Business Premises Leases Act (482/1995) FINLEX,(482/1995)

Amendments effective from October 1, 2026:
• Laki asuinhuoneiston vuokrauksesta annetun lain muuttamisesta (531/2026) / Amendment to the Residential Leases Act (531/2026) FINLEX,(531/2026)
• Laki liikehuoneiston vuokrauksesta annetun lain muuttamisesta (532/2026) / Amendment to the Business Premises Leases Act (532/2026) FINLEX,(532/2026)