Finnish government proposes legal changes to regulate short-term rentals

The Finnish government has submitted a proposed amendment to the Building Act to parliament that would introduce regulations for short-term rentals, a practice not previously defined in national legislation. The bill, presented in a general session on Thursday, will be debated by lawmakers either before the summer recess or in the autumn session, Yle reports.

Short-term rentals have created confusion in housing companies, as current laws do not specify when such arrangements are permitted. The proposed change aims to clarify the rules, though its final approval may be delayed until autumn due to parliamentary schedules, according to Jaana Junnila, a legislative counsel at the Ministry of the Environment.

“Parliament may not have time to address it before the summer break, so the decision could be postponed until autumn,” Junnila said.

The amendment, if passed, would take effect no earlier than January 1, 2025, allowing time for municipalities and residents to adapt. Local authorities have faced a surge in complaints about suspected unlicensed accommodation, particularly in tourist-heavy areas like Rovaniemi, where disputes over short-term rentals have led to fines and legal challenges.

New rules for short-term rentals

Under the proposal, short-term rentals are defined as furnished accommodation rented continuously for less than 28 days. Longer stays would be classified as standard tenancies. Owners could rent out their homes for up to 90 days per year, though municipalities may extend this to 180 days.

Hosts would be required to maintain records of rental periods and provide them to authorities upon request. However, the amendment does not address professional short-term rental operations, focusing solely on building regulations.

“Expectations were perhaps higher—that the entire phenomenon of short-term rentals would be comprehensively regulated—but this single legislative project does not cover that,” Junnila acknowledged.

A separate reform to the Housing Companies Act, set for autumn, will grant housing associations greater authority to intervene in problematic short-term rentals, including taking control of properties causing repeated disruptions.