Information database
About the knowledge base
A knowledge base for landlords on real-estate investment, rental operations, taxation and housing companies
Whether you are looking for beginner instructions on real estate investment, information on legal aspects of rental operations or on the pitfalls of taxation, this knowledge base provides answers to your questions. You can filter the articles by topic or use the search function to sort articles by content. While the section on real estate investment is available to everyone, other sections are restricted to members only and fully available via login on our member pages.
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Tax Return Guide
Rental income and any related expenses thereof must always be declared to the Finnish Tax Administration. Relevant information has to…
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Value added tax
Rental operation is principally not subject to value added tax regardless of the legal form of business. However, there are…
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Lease agreement
You should pay extra attention to your agreement terms. It pays off every time. A detailed lease agreement is the…
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Protesting against or voiding a decision
Decisions made by a shareholders’ meeting may be voidable or even null and void. If there is a modicum of…
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Investing via a limited liability company
If you plan on expanding your rental operation, it may be a good idea to establish a limited liability company…
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Audit
The Limited Liability Housing Companies Act includes clauses about the housing company’s obligation to select an auditor or an operations…
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Own use and its implications
A landlord may face a situation where they need their leased apartment for their own use. On the other hand,…
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Losses incurred by the rental operation
Your rental operation may result in losses during a certain year. Losses are incurred when deductible costs exceed your rental…
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Renting to a relative
Your tenant may, at least temporarily, be a family member, such as your own child. It is quite typical for…
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The board of directors
A housing company shall have a board of directors. The board of directors shall see to the administration of the…
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Gift tax and inheritance tax
Any non-compensated assignments are subject to either a gift tax or an inheritance tax which are determined by the value…
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Travel expenses and other expenses
Any travel expenses related to a rental operation are tax-deductible, as are other occasional expenses incurred in the production of…
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Housing company
Many buyers are quick to notice the interior look of the apartment. Good condition, neutral colors, and certain amenities are…
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Before the lease
Renting out an apartment starts with meticulous planning. When you are making a decision on renting, make a list of…
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Positive cash flow
A positive cash flow means that each month an investment property makes a profit after expenses. Most real-estate investors look…
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Investment strategy
As in any investment, the goal of real estate investment is to make a profit on the invested capital. There…
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Rental profit amd cash flow
Calculating your rental profit is part of your real estate investment strategy. It helps you make solid, successful decisions. With…
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Investing via a limited liability company
If your real estate investments are expanding and you own more than a few apartments, you should ask yourself whether…
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Share register and registering ownership
The share register includes a list of all shares along with the owner apartments whose possession is conferred by the…
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Capital gains tax
When a landlord sells their apartments, sales often result in capital gain or loss. Capital gain is taxable as capital…
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Grounds for taking possession of an owner apartment by the housing company
The Limited Liability Housing Companies Act includes a complete list of grounds that a housing company may use to take…
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Risks of investing in real estate
The success of your rental operation requires you to have knowledge and expertise, just as any form of investment. The…
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Real estate investment in brief
Residential property investment has grown more popular in recent years. An increasing number of people are considering taking up this…
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Procedure for taking possession of an owner apartment by the housing company
Taking possession of an owner apartment means that the housing company takes over the possession of a shareholder-owned apartment for…
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Flipping apartments
Flipping apartments is one of many residential property investment strategies. It refers to a strategy where you buy an apartment…
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At the end of the lease
The tenant must take good care of the apartment. After the tenant has emptied and cleaned the apartment, they and…
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Upkeep
The landlord is responsible for having the apartment in good condition at the start of the lease and keeping it…
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At the end of the lease
The tenant must take good care of the apartment. After the tenant has emptied and cleaned the apartment, they and…
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Real estate investment in brief
Residential property investment has grown more popular in recent years. An increasing number of people are considering taking up this…
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Risks of investing in real estate
The success of your rental operation requires you to have knowledge and expertise, just as any form of investment. The…
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Investing via a limited liability company
If your real estate investments are expanding and you own more than a few apartments, you should ask yourself whether…
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Rental profit amd cash flow
Calculating your rental profit is part of your real estate investment strategy. It helps you make solid, successful decisions. With…
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Investment strategy
As in any investment, the goal of real estate investment is to make a profit on the invested capital. There…
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Positive cash flow
A positive cash flow means that each month an investment property makes a profit after expenses. Most real-estate investors look…
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Jäsenille
Housing company management
The Limited Liability Housing Companies Act states that the management of a housing company, i.e. the property manager and the…
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Jäsenille
Rent
The rent is determined with an agreement between the landlord and the tenant. Increasing rent is possible with an agreement…
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Before the lease
Renting out an apartment starts with meticulous planning. When you are making a decision on renting, make a list of…
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Lease agreement
You should pay extra attention to your agreement terms. It pays off every time. A detailed lease agreement is the…
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Jäsenille
Parties
In a lease agreement, the tenant and the landlord are identified by their names and personal identity codes, and companies…
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Rental listing
Good communication between a landlord and a tenant begins with a rental listing. As a landlord, you should put some…
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The Consumer Disputes Board
The Consumer Disputes Board is a neutral and independent dispute settlement body. The Board guides consumer law and defines policies…
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Ending a lease agreement
There are typically three ways to end a lease. You either terminate or rescind the agreement or you jointly agree…
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Transfer
During the lease there may come a time when the tenant wishes to transfer a part of the apartment or…
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Upkeep
The landlord is responsible for having the apartment in good condition at the start of the lease and keeping it…
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Out-of-court settlement
Settling disputes is almost without exception the fastest, least expensive, and most convenient way to solve a disagreement concerning a…
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Rescission
If a lease agreement is rescinded, it ends immediately. In other words, no period of notice exists. However, the landlord…
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Termination
Typically a lease agreement ends with a termination by one party. The landlord must always have grounds for termination, while…
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Subletting
A sublease is a lease where the possession of a part of the apartment is given to another person’s possession…
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Preliminary and final inspection
Before the lease, an initial inspection should be carried out with the tenant. This inspection is for checking the condition…
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Amount of rent
Rents of non-subsidized dwellings are determined by an agreement between the landlord and the tenant. The initial rent greatly affects…
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Showing
Apart from new buildings, apartments are rarely rented without having the tenant for a visit. A showing to prospective tenants…
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Lapsed lease
A lease agreement may lapse in unusual circumstances without any specific action to end it. A lease agreement will lapse…
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Security deposit
Agree on the provision of a security deposit as you sign the lease. Both the landlord and the tenant may…
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Guarantee
In addition to or instead of a security deposit, you may ensure the fulfillment of contractual obligations with a guarantee…
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Prepaid rent
Prepaid rent means rent that has been paid in advance. For residential apartments, any agreements regarding prepaid rent can only…
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Period of lease
Lease agreements can be fixed-term or non-fixed term contracts. A fixed-term agreement is valid for both parties for a fixed…
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Serving a notice in a legally enforceable way
According to law, e.g. notices of termination or rescission and rescission warnings must be issued in writing and in a…
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Secondary lease
A secondary lease refers to a lease where the primary tenant rents the apartment to one or more secondary tenants.…
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Alteration work
The tenant is not entitled to alteration or repair work in the rented space without authorization from the landlord. Such…
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Rent increase
You may increase the rent during the lease based on a condition in the agreement or by negotiation. It is…
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Insurances
You should add a condition in the lease agreement that requires the tenant to have a valid home insurance with…
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Eviction
The tenant may have to be evicted if they hold possession of the rental apartment but do not pay agreed…
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Transfer of leasehold
In principle, the tenant may not transfer the leasehold without landlord consent. However, there are some situations where the tenant…
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Normal wear and tear
Normal wear and tear refers to the wear and tear that gradually takes place in an apartment over time, such…
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Rent reductions
The tenant is entitled to reduced rent or be fully exempted from their obligation to pay rent for the time…
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Pets and smoking
You should add a condition regarding pets and smoking in the lease agreement. In principle pets are allowed but you…
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District court
Even landlord-tenant disputes may sometimes need to be resolved in a district court. Typically, landlord-tenant disputes taken to district courts…
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Temporary assignment
The tenant is in certain situations legally entitled to assign the apartment temporarily to someone else. The landlord may not…
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Visiting the apartment
The landlord is entitled to visit the rental apartment at an agreed time to inspect the condition and upkeep of…
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Neglection of rent payment
Tenant’s main obligation is to pay rent. The rent must be paid by the second day of the rent payment…
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Keys
The lease agreement should state the number of keys provided to the tenant. You should hand over the keys only…
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Moving date
If no specific stipulation regarding the moving date has been added in the lease agreement, it is, according to legislation,…
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Compensation for damage in leases
A tenant may damage the apartment or otherwise cause damages to the landlord that must be compensated for. If damages…
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Tenant’s bankruptcy
A lease’s validity does not automatically expire if the tenant declares bankruptcy. The tenant’s insolvency estate may continue the lease.…
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Enforcement
The landlord may begin enforcement proceedings after obtaining an enforceable decision at a district court. At the same time, the…
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Returning or retaining the security deposit
At the end of the lease, the landlord may retain the security deposit provided by the tenant. Most common grounds…
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Death of a tenant
If a tenant dies, the lease remains in effect. However, the death does have some legal consequences which affect both…
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Payment reminder and penalty interest
If the tenant neglects their obligation to pay rent, the landlord may send a payment reminder to the tenant. You…
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Final cleanup
The tenant must give possession of the apartment to the landlord at the end of the lease in clean condition…
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Change of ownership
When an apartment with an existing lease is sold, the existing lease agreement is, in principle, transferred as such to…
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Handing over the keys
At the end of the lease, the tenant must hand over all keys to the apartment. The handover is acknowledged…
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Guardianship
In principle, we are all legally competent individuals, fit to make various legal transactions, such as lease agreements. However, it…
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Collecting rent
The landlord should regularly monitor that the rent is paid on time. If the tenant neglects their obligation to pay…
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Residential lease
The Act on Residential Leases and its provisions apply to any residential lease agreements by which a building or any…
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Renting out a house
Much like an apartment, a house is suitable for renting out. The same legislation applies. You should pay specific attention…
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Renting out a vacation home
There are over 500,000 vacation homes in Finland, and they are vacant 262 days of the year on average (Mökkibarometri…
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Choosing a tenant
A careful tenant selection may significantly improve your profitability and help you avoid issues. Some important things to consider are…
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Credit information
Landlord has the right to run a credit check for a prospective tenant before entering into a lease agreement. During…
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Renting out a parking space
Parking spaces are rented out based on whether the space is controlled by the shareholder, i.e. the landlord, or by…
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Tips for the tenant
Landlords are welcome to print out this page or send a link to the tenant after a lease is signed. Landlords are…
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Renting out a business premise
The Act on Commercial Leases and its provisions apply to any lease agreements by which a building or any part…
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Renting a shared apartment
Renting a shared apartment may be an attractive option for many prospective tenants, especially for students. Shared housing is a…
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Privacy
Privacy is a basic right that ensures everyone’s right to privacy in their life. Landlord is in a position where…
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Short-term accommodation services, such as Airbnb
Short-term accommodation services, such as Airbnb, have gained popularity around the world, including Finland. However, the rules concerning this type…