Finnish MPs say short-term rental bill will not solve problems

Finnish MPs criticised a bill regulating short-term rentals during a parliamentary debate on Tuesday, saying it would not address the problems linked to the practice, Yle reported.

The proposal would allow a home to be rented out for up to 90 days a year without a separate permit. Municipalities could raise the limit to 180 days. MPs who spoke in the debate called for clearer rules, and none clearly supported the bill in its current form.

Mika Riipi, a Centre Party MP from Lapland, said the proposal failed to meet its original purpose. He argued that the 90-to-180-day allowance would remove tools the city of Rovaniemi has to curb short-term rentals, while unnecessarily restricting rentals elsewhere.

Johanna Ojala-Niemelä, a Social Democratic MP from Lapland, also criticised the proposal, though she said she did not oppose short-term rentals themselves. She said a register of rental operators would have been needed to tackle the grey economy. Ojala-Niemelä added that the housing shortage was making it harder to attract skilled workers and threatening the future of educational institutions.

Short-term rentals have been a contentious issue in Rovaniemi, where rents and housing prices have risen as tourism has grown. More than 15 per cent of homes in the city are unoccupied, a figure that is partly explained by short-term rentals, according to the article.

The rules are part of a proposed amendment to Finland’s Building Act. They would cover homes in detailed-plan areas that are used for short-term rentals and are not occupied by their owners during the rental period. If a home is rented out for longer than the permitted limit, building control officials would assess whether a permit is required.

Parliament held the bill’s first reading on Tuesday. MPs will decide whether to approve or reject it in a second reading, which has not yet been scheduled.