Rent increases and ending a lease

How often and how rent can go up

Under an open-ended lease the landlord can raise the rent each time a year has passed since signing, so no more than once a year (VÕS § 299). The notice must be in writing (e-mail is fine) at least 30 days ahead, with the new amount, the start date, the reasons and calculation, and how to challenge it. Without such notice, or if it threatens to end the lease over a challenge, the increase is void.

A regular increase written into the lease in advance is valid only if the lease is for at least 3 years, the rent rises no more than once a year, and the size is fixed precisely — as an amount, a percentage or an index (VÕS § 300).

An increase is not excessive if it is economically justified: average rents for similar flats nearby have risen, the landlord's costs have grown, or reasonable improvements are needed (VÕS § 301). You can challenge an increase before a rent committee or a court.

How a lease ends

Either side can end an open-ended residential lease on at least 3 months' notice; for a furnished room, 1 month (VÕS § 312).

A fixed-term lease ends when its term runs out. It cannot be ended early in the ordinary way — only for good cause, without notice (VÕS § 309, § 313).

A lease of 2 years or more becomes open-ended if neither side said at least 2 months before the end that they do not want to extend it (VÕS § 310). The same happens if the tenant stays on and nobody objects for 2 weeks. A lease for more than a year that was not made in writing counts as open-ended, but it cannot be ended earlier than a year after the home was handed over (VÕS § 274).

Rent arrears and tenant protection

For arrears, the landlord can end the lease if two consecutive payments are late or the debt exceeds 2 months' rent. But first they must give at least 14 days in writing to pay it off (VÕS § 316).

A tenant can challenge a termination made in bad faith — for example, in retaliation for a lawful demand — and ask for the lease to be extended by up to 3 years if moving out would hit the family hard (VÕS § 326–327).