Rovaniemi apartment building must end short-term rentals by July after court rejects appeal

The Administrative Court of Northern Finland has upheld a ban on short-term rentals in a Rovaniemi apartment building, ordering the owners to cease operations by the end of July or face a €50,000 coercive fine, Yle reports.

The court ruled that the building’s near-total use for short-term accommodation violates its zoning and construction permits, classifying the activity as professional hospitality rather than residential housing. The owners had contested the decision, arguing their operations did not constitute commercial lodging and that the city’s interpretation was unlawful.

The dispute centres on a centrally located apartment block where nearly all units have been used for short-term stays. In January 2025, Rovaniemi’s environmental board imposed the fine, demanding the practice stop by April 2025, with an additional €14,000 monthly penalty for continued violations. The owners appealed in May 2024, but the court dismissed their claims this week.

While the court reduced the compliance deadline to July 2025 due to procedural delays, it affirmed the fine’s validity. The owners may still seek leave to appeal to the Supreme Administrative Court.

The city maintains that converting residential units to commercial lodging requires a new building permit, as the original permits designate all 14 apartments for housing only.