Residential Leases Act Amended to Include Smoking Ban and Notice Period Changes
News related to:SATO Corporation · 2 min read
On October 1, 2026, the Act on Residential Leases (AHVL) was amended, introducing several changes that will affect residents of rental homes in Finland. Originally adopted in 1995, the new legislation aims to improve living conditions and address disturbances in rental housing.
One of the most significant changes is a comprehensive smoking ban that now applies to indoor areas, as well as balconies and private yards belonging to the apartment. This ban applies to all lease agreements, whether concluded before or after the amendment. Olli Tång, Executive Vice President responsible for SATO’s housing business, emphasized that the ban is intended to enhance living comfort and reduce health risks caused by secondhand smoke. SATO Corporation, a leading rental housing provider, will not grant individual exemptions from the smoking ban, treating all residents equally.
Another change involves the notice periods for lease agreements. For new lease agreements, the landlord’s notice period has been reduced to four months if the tenancy has lasted for at least two years. For shorter tenancies, the notice period remains unchanged at three months. When the tenant terminates the lease agreement, the notice period is one month. Tång noted that the reform aims to strike a better balance between tenants' and landlords' rights regarding notice periods. He explained that 12-month fixed-term agreements will continue automatically, requiring no separate agreement or notification from the tenant.
The amended legislation also provides landlords with better means to address disturbances. Other exceptionally serious reasons can now also constitute grounds for terminating a lease agreement. Tång highlighted that social and financial difficulties have increased significantly, leading to payment problems and an increase in disruptive behavior. The new legislation gives landlords an important tool to deal with challenging situations and safeguard neighbors' right to peaceful, disturbance-free living.
Under the new legislation, landlords have the right to enter an apartment at a time notified to the resident in advance, even if the time of the visit cannot be agreed with the resident. SATO Corporation will continue to make every effort to visit residents' homes at a time that suits them, with notifications well in advance, unless the situation involves safety or another exceptional circumstance requiring an urgent response.
SATO Corporation, an expert in sustainable rental housing and one of Finland’s largest rental housing providers, owns around 27,500 rental homes in the Helsinki Metropolitan Area, Tampere, and Turku. The company aims to provide excellent customer experience and a comprehensive range of urban rental housing alternatives with good access to public transport and services. SATO invests profitably, sustainably, and with a long-term view, increasing the value of its assets through investments, divestments, and repairs. In 2025, SATO celebrated its 85th anniversary, marking a significant milestone in its history.
The amended AHVL represents a step towards improving living conditions and addressing the challenges faced by both tenants and landlords in the rental housing market.