News / 1.10.2026
Amendments to Finland’s Act on Residential Leases, which had been in preparation for several years, entered into force on 1 October 2026. Although the previous legislation was more than 30 years old, the amendments do not significantly change how the rental market operates in practice. The fundamental principles of the legislation remain unchanged.
“By international standards, Finnish residential tenancy legislation is well balanced and has enabled a significant increase in the supply of rental housing in recent decades,” says Tarik Ahsanullah, Public Affairs Manager at Lumo Homes. In 2023–2024, Ahsanullah served as a member of the Ministry of Justice working group that prepared the legislative reform.
The most significant changes include extending the smoking ban to all tenancies and enabling fully electronic communications. The Act also provides clearer recognition of rental agreements that begin with a fixed term and continue indefinitely thereafter. The statutory notice period for landlords has been shortened to four months, but Lumo wants to provide its residents with security of tenure and will retain a six-month notice period for the landlord in its contracts.
“All Lumo homes are now completely smoke-free. In line with our strategy, we will continue to develop our digital services to ensure the best customer experience in the industry and reach our residents more efficiently,” Ahsanullah says.
From the resident’s perspective, the new Act also provides additional protection in relation to the return of deposits and notification of rent increases. In future, a deposit must be returned, or the resident must be notified that it is being withheld, within 14 days of the end of the tenancy agreement.
“The amendment that has now entered into force strengthens the rights of both landlords and residents,” Ahsanullah summarises.
Following the legislative amendments, Lumo has updated its tenancy agreement templates and announced that it will also introduce stronger measures to address disturbances.
Minor financial impact on Lumo
The legislative amendments may result in minor cost savings, for example through reduced use of paper mail. In eviction proceedings, a court may also order the resident to pay rent until the end of the month following the date on which the judgment is issued.
“This change is also in the resident’s interests, as the legal costs payable by the resident may be lower when the landlord does not need to pursue the receivables in two separate court proceedings,” Ahsanullah notes.
In addition to the reform of residential tenancy legislation, a new procedure for small civil disputes entered into force on 1 September 2026. One of its aims is to shorten the time required to process eviction cases.
For further information:
Tarik Ahsanullah
Public Affairs Manager, Legal Counsel
Tarik Ahsanullah
Public Affairs Manager, Legal Counsel
