Rental disputes surge in Finland as confusion over deposit returns grows

Confusion surrounding the return of rental deposits has increased significantly. Typically, tenants pay a sum equivalent to one to three months’ rent as a security deposit, which landlords are required to return immediately upon the end of the rental agreement. The rise in rental disputes is evident in consumer dispute resolution bodies, with 599 rental-related cases reported by the end of September this year, signaling a potential increase of over 40% compared to the previous year, assuming the trend continues.

Several factors may contribute to this rise, including increased rental activity and financial strains leading to more disputes over money, as suggested by Pauli Ståhlberg, chairman of the consumer dispute board. Most cases involve issues concerning the return of the security deposit, often linked to the final cleaning conducted by the landlord or their hired personnel, which may involve deducting part of the deposit.

Institutional landlords, such as Pirkanmaan Avo-asunnot, seem to have tightened their policies as well. Tenants frequently inquire about the legitimacy of the deductions made by landlords. Disagreements often arise over what constitutes normal wear and tear. For instance, impressions on the floor caused by a sofa are considered normal wear, while scratches from dragging the sofa are not.

Sanna Hughes, director of the landlord association Suomen Vuokranantajat, disputes claims of unsubstantiated deductions, emphasizing that even though complaints are rising, it does not necessarily mean there’s a surge in unjustified withholdings. According to a survey, 78% of landlords had not withheld any deposits in the past year, with typical reasons for withholding including damage repairs and unpaid rent.