Understanding the laws of Estonia: How can a landlord increase the rent during the contract period? Let's delve into the details!

Changing the rental cost

The owner of the apartment can increase the rent if the contract is concluded for an indefinite period. Before changing the cost, the owner must:

• Notify the tenant in writing one month in advance;
• Describe the reasons for the rent increase. This notification must include all the key points of the upcoming change.

Changing the cost of housing

1. New payment amount: Indicates how much the rent is increasing and the final figure.
2. Effective date: When the new price will take effect.
3. Reason for the change: Why the rent cost is changing, with detailed calculations.
4. Disputes regarding the price: How the tenant can challenge the changes.

If the landlord does not follow the legal notification procedure or threatens to terminate the contract when challenged, the new rent price is not valid. This applies only to long-term lease agreements.

In long-term rental conditions (over 3 years), an annual increase in the rent cost is allowed, provided that it is specified and clearly described in the contract. Excessive rent hikes that exceed the market rates for similar housing in the area and unreasonably increase the owner's profit (except for luxury real estate cases) are considered unlawful. Justified increases, on the other hand, are considered when they are associated with the increase in housing maintenance costs, improvement of living conditions, or expansion of the landlord's obligations.

Tenant's rights

The tenant has the right to initiate a review of the rent cost. For this, they have one month to present their arguments either before a specialized body dealing with rental payment issues or directly in a legal institution.