Landlords reject proposed mass income checks for tenants

Many landlords and tenants oppose a proposal to require regular income checks in state-subsidised rental housing, Yle reports. If a household exceeded the income limit, the landlord could terminate its tenancy.

The proposal would apply to tenants throughout their time in the property. At present, tenants’ income is checked when they move into a building or change apartments.

Heka, Helsinki’s largest landlord, as well as other landlords and tenant representatives, have strongly criticised the proposal in statements submitted to the Ministry of the Environment. They consider it unreasonable and disproportionate to the benefits it would provide.

For example, the proposed income limit is 3,540 euros a month for a one-person household, 4,190 euros for one adult and one child, 6,020 euros for two adults, and 7,270 euros for two adults and two children.

Heka expects checks on almost 100,000 residents

Heka says regular checks would create substantial work and costs. They could also increase the number of vacant apartments and contribute to rent increases.

About 1,600 of Heka’s 55,000 apartments are continuously vacant, and its occupancy rate has fallen to nearly 95 per cent in a few years.

Heka chief executive Maria Aspala said state-subsidised rental apartments should be offered to those most in need. She noted that housing need, income and assets are already assessed when tenants are selected.

“We oppose placing a very extensive obligation on landlords to monitor the income and assets of households already living in their homes,” Aspala said.

For a company the size of Heka, the proposal would mean checking the incomes of nearly 100,000 residents. It would require new information systems, additional staff resources and extensive processing of personal data, the company said.

Landlords warn of surveillance and privacy risks

Heka said income checks could make residents feel that their homes were not permanent or that their private lives were being monitored continuously.

Monitoring income limits could also create uncertainty about whether residents could take additional shifts or accept a pay rise without risking their homes, Aspala said.

“Asset information is highly significant personal data from the perspective of a person’s private life. Its collection must be based on precise legislation and limited to what is necessary,” she said.

Sivakka Oy, Oulu’s largest landlord, also expressed concern about privacy. Chief executive Raimo Hätälä called the proposal completely disproportionate and said the company did not want to take on the role of an income monitor.

“It is a complete mystery to us by what means we would even be given the right to check our customers’ incomes,” Hätälä said.

Finland’s Data Protection Ombudsman has also raised concerns about mass databases containing personal information and the increased risk of data protection breaches.

Residents fear losing their homes after temporary income increases

The Ministry of the Environment says income checks would ensure that apartments built with state-subsidised interest-rate loans go to those most in need.

Income limits are exceeded most often in the Helsinki metropolitan area and in places where housing is expensive, such as central Helsinki. The ministry estimated that income limits were exceeded in about 7,000 households in Helsinki in 2022.

Aspala said only a small proportion of residents in the city’s rental apartments exceed the limits. She said Heka’s tenants are primarily low-income residents for whom the apartments are intended.