Finnish Government Proposes Construction Act Amendment to Regulate Short-Term Rentals
The Finnish government has submitted a draft amendment to the Construction Act to Parliament, introducing the first legal definition and regulation of short-term rentals in Finland. The proposal aims to clarify the current legal ambiguity surrounding platforms such as Airbnb, which has led to disputes in housing companies and municipalities.
Under the proposed changes, short-term rental is defined as furnished accommodation lasting continuously for less than 28 days. In owner-occupied apartments within zoning plan areas, short-term rentals would be permitted for a maximum of 90 days per calendar year. However, municipalities could extend this limit to 180 days in designated areas to accommodate seasonal tourism demand, as stated in a press release by the Ministry of the Environment (MTV Uutiset).
The amendment would not apply to permanently or temporarily occupied apartments, holiday homes, or properties in sparsely populated areas. Property owners would be required to maintain records of rental days and provide them to authorities upon request (Yle).
Municipal Flexibility and Enforcement Challenges
The proposal grants municipalities discretion to adjust short-term rental rules based on local needs. Minister of Climate and the Environment Sari Multala emphasized that the situation varies across Finland, and the reform allows municipalities to respond to their specific circumstances (MTV Uutiset).
However, Jaana Junnila, Counsellor at the Ministry of the Environment, acknowledged that the amendment falls short of addressing all concerns related to short-term rentals. While the reform focuses on building control under the Construction Act, it does not regulate professional short-term rental operations or broader housing market impacts. "Expectations were perhaps greater—that the entire phenomenon related to short-term rentals would be addressed, but that will not be realized in this single legislative project," Junnila told Yle.
The reform comes as municipalities grapple with enforcement challenges. In Rovaniemi, short-term rentals have sparked conflicts among residents, with the city imposing conditional fines that have led to administrative court cases (Yle, MTV Uutiset). Similar disputes have prompted housing companies to seek legal clarity, with some municipalities’ building authorities overwhelmed by requests for preliminary rulings.
Timeline and Next Steps
Parliament will consider the amendment either before its summer recess or in the autumn session. If processed swiftly, the changes could take effect at the beginning of 2025. The delay accounts for municipalities’ need to adapt their zoning and guidelines, as well as residents’ time to adjust to the new rules (Yle).
A separate reform of the Housing Companies Act, expected in the autumn, will further address short-term rental issues by empowering housing companies to intervene in cases of repeated disturbances. Under the new rules, a housing company could take control of an apartment if short-term rentals cause unusual disruptions compared to normal residential use (Yle).
