Amendments to the
Finnish Housing Companies Act
from 1 October 2026
Background
The Finnish Housing Companies Act was amended on 1 October 2026. For housing companies, the most significant changes relate to
- negative effects of short-term rentals
- taking possession of an apartment
- shareholders’ rights to information
- apartment visits/inspections
- the allocation of maintenance responsibilities and costs.
Short-term rentals have raised many questions in housing companies in recent years. The legislative reform introduces new rules aimed at addressing these concerns. At the same time, further changes affecting short-term rentals are being prepared as part of Finland’s building legislation and are expected to take effect in early 2027.
Short-Term Rentals Remain Permitted, but Their Negative Effects Can Be Addressed
The Housing Companies Act does not prohibit short-term rentals. However, housing companies will have stronger tools to intervene in situations where such activities cause significant inconvenience or additional costs.
The Act itself does not contain a specific definition of short-term rental activity. The legislative preparatory materials state that a separate definition was not considered necessary. What matters is not how long the apartment is rented out, but whether its use causes additional costs or other adverse effects compared with ordinary residential use.
Broader Grounds for Taking Possession of an Apartment
Under the amended legislation, a housing company may, under certain conditions, take possession of an apartment if short-term rental activity results in additional costs or other inconvenience that goes beyond normal residential use and affects either the housing company or other shareholders. The negative effects or costs must be more than minor.
The assessment will focus on the actual impact of the activity on the housing company. Relevant factors may include
- the frequency of the rentals
- disturbances caused to other residents
- increased wear and tear on common areas
- other additional expenses.
Taking possession of an apartment will nevertheless remain a measure of last resort. Before such action can be taken, the housing company must gather sufficient evidence, carefully assess the seriousness of the situation, and follow the statutory warning and decision-making procedures. The final decision to take possession of an apartment is made by the general meeting of shareholders.
Going forward, both the warning relating to a potential takeover and the shareholders’ meeting resolution may, in certain circumstances, be served electronically, provided that the method of service is legally compliant and can be reliably verified.
Shareholders’ Duty of Care and Obligation to Provide Information
The reform also strengthens the housing company’s ability to investigate damage caused by occupants of an apartment.
A shareholder who allows another person to use their apartment must ensure that they have the necessary information about that occupant and, upon a justified request, provide the relevant information to the housing company. This may be important, for example, if a short-term tenant causes damage in the building’s common areas.
Upcoming Changes to the Building Act
At the same time, the Finnish Government is preparing amendments to the Building Act concerning short-term rentals. The amendments are expected to enter into force at the beginning of 2027.
The proposed legislation would introduce an entirely new chapter on short-term rentals. It would define short-term rental activity and set out when such activity would constitute a material change in the intended use of a property. Municipalities would also be allowed to increase the proposed 90-day annual limit to up to 180 days.
The proposal would also require apartment holders to keep records of the days on which their property is used for short-term rentals.
The new rules would apply only to dwellings that are not being used as someone’s residence during the short-term rental period. Owner-occupied homes and holiday homes would therefore remain outside the scope of the proposed provisions.
