A law on short-term rentals is coming to Finland – what does that mean in practice?
A new regulatory package is being drafted in Finland that specifically addresses Airbnb-style short-term rentals. The aim is to clarify the rules, protect housing, and provide municipalities with better tools to manage a phenomenon that has grown rapidly in recent years.
What is short-term rental?
From now on, “short-term rental” refers to a rental agreement lasting less than four weeks at a time. This typically involves accommodation for tourists or vacationers, not permanent residence. Longer-term rental agreements remain subject to the standard Residential Tenancy Act.
At the same time, an amendment to the Room Rental Act is being proposed: the Act would no longer apply to short-term, temporary accommodation; instead, separate regulations would be established for that purpose.
Daily limits for investment properties
A key element of the amendment to the Building Act is the annual limit on short-term rentals for certain types of housing.
- Your own permanent home: Short-term rentals (e.g., occasional Airbnb listings) are generally permitted without a strict daily limit, provided the activity does not become a commercial lodging business.
- Investment properties and residences other than one’s primary residence within the planning area: short-term rentals would be permitted for up to 90 days per year, unless the municipality decides to raise the limit to 180 days in certain areas.
- Vacation homes and low-density residential areas: the drafts do not impose as strict restrictions on these, as the primary focus is on residential buildings within the planning area.
The landlord will also be required to demonstrate how many days the apartment has been rented on a short-term basis during the year.
New tools for municipalities and housing associations
In the future, municipalities will be able to regulate short-term rentals through their building regulations: for example, they can decide in which areas the 180-day limit applies and when a short-term rental is considered a change of use that requires a permit.
The position of housing companies will also be strengthened. Amendments to the Housing Companies Act will give the company clearer grounds to intervene in activities that cause repeated disturbances or extra costs—noisy and persistent short-term rentals could, in extreme cases, lead to the company taking control of the apartment.
The EU regulation promotes transparency
Another factor at play is the EU Short-Term Accommodation Regulation, which will take effect in May 2026. It requires accommodation platforms, such as Airbnb and Booking.com, to provide data to the authorities. The goal is to improve statistics and enable national registration and oversight without imposing unreasonable bureaucracy on hosts.
What does this mean for the host?
For individual hosts, the key changes are:
- If you rent out your home occasionally, you can probably continue doing so in much the same way
- If you operate an Airbnb business in an investment property located in an urban area, you must take into account the 90/180-day annual limits and the accounting requirements
- If the apartment is part of a housing association, the association’s ability to address disturbances is strengthened.
The legislation brings much-needed clarity to the current situation, but it also forces more professional short-term rental operators to review their business models and comply not only with national law but also with their local municipality’s guidelines.
The next article on this topic will discuss the tourist tax, which municipalities or cities may choose to collect.
