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🇫🇮 Finland /Economy & Trade

Short-term rentals are unsuitable for apartment buildings, lawyer argues

From Helsingin Sanomat · () Finnish

Translated from Finnish, summarized and contextualized by DistantNews.

At a glance

Opinion Sources not specified Context piece
  • A lawyer argues that short-term rental activity is unsuitable for apartment buildings and criticizes a proposed Finnish law.
  • The proposed law would allow short-term rentals for up to 180 days a year, even in buildings not approved for such use, undermining zoning and building permit regulations.
  • The author contends that the law is difficult to enforce, goes against international trends, and creates unfair competition for hotels while driving up housing costs for locals.

A proposed Finnish law that would permit short-term rental activity in apartment buildings for up to 180 days annually is fundamentally unsuited for residential housing, argues Sami Hämäläinen, a lawyer and representative of the Finnish Hospitality Association (MaRa). The legislation, currently before parliament, would allow such operations even in buildings not designated for accommodation in zoning plans or building permits, effectively undermining established regulations.

Apartment buildings are intended for living, not for commercial accommodation businesses.

— Sami HämäläinenThe author states his core argument against the proposed legislation.

Hämäläinen criticizes the proposal for potentially enabling entire apartment buildings to be converted into hotels without proper permits, thereby eroding the legitimacy of zoning and building regulations. He points out that while many other EU countries are tightening short-term rental laws, Finland is moving in the opposite direction. Cities like Barcelona have banned such activities in apartment buildings due to associated problems, and Iceland recently prohibited the use of investment apartments in built-up areas for accommodation.

The proposed law also includes a requirement for hosts to keep records of short-term rental days, a measure Hämäläinen deems practically unenforceable by authorities. He asserts that legislation which authorities cannot effectively monitor should not be enacted. Apartment buildings are intended for living, not for commercial accommodation businesses.

While many other EU countries are tightening their short-term rental legislation, Finland is heading in the opposite direction.

— Sami HämäläinenThe author contrasts Finland's proposed law with international trends.

Furthermore, Hämäläinen warns that increased short-term rentals will exacerbate problems for other residents, including noise and disturbances. It will also lead to higher housing prices and rents, reducing the availability of long-term rental apartments. This trend makes it difficult for local residents, seasonal workers, and students to find affordable housing. The law also creates unfair competitive advantages for short-term rental operators over hotels, which are subject to stricter regulations.

The proposed regulation would increase short-term rental activity in apartment buildings and, as a result, also increase the costs, harms, and disturbances caused by it to other residents of the housing company.

— Sami HämäläinenThe author outlines the negative consequences for residents.
DistantNews Editorial

Originally published by Helsingin Sanomat in Finnish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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