COMPREHENSIVE OVERVIEW | What Are the Rights and Obligations of a Tenant?

Many people search for rental apartments at the end of summer to start a new season in the city by studying or working. Martin Matsberg, marketing director of Kinnisvara24, and Margit Joa, a professional real estate broker at Pindi Kinnisvara's Tallinn secondary market, debunk myths on the rental market, clarifying the rights and obligations of both tenants and landlords under the law.

Myth No. 1: Problems with the rental property are the tenant's responsibility

According to Martin Matsberg, all problems related to technical systems and the condition of the property that do not result from improper use are the responsibility of the owner, not the tenant. The landlord must keep in mind that over time, the apartment and its furnishings, including appliances and furniture, depreciate. Therefore, it is not fair for a landlord to demand that a tenant repair or purchase a new washing machine or refrigerator. However, it is entirely reasonable if a tenant independently takes care of small repairs such as changing light bulbs and other minor maintenance.

Margit Joa added that both landlords and tenants have rights and obligations that are clearly outlined in the Obligations Act, which regulates rental relationships. "Small maintenance tasks, such as changing light bulbs, are usually the tenant's responsibility, and there is no point in expecting the landlord to rush to the store for a new incandescent bulb. For larger appliances and equipment breaking down, it is the landlord's obligation to repair or replace them."

However, if the problem was caused by the tenant not using the equipment in a proper and careful manner, costs can be claimed from the tenant. "Improper use would be, figuratively speaking, when a tenant uses a washing machine to wash aquarium stones or for some other purpose it is not intended for and which clearly damages it. If such an act is discovered, the landlord can demand that the tenant repair or replace the machine," Joa confirmed.

It is important to document the condition in which the apartment and furnishings were received. If a tenant knew about problems at the time of handover but still accepted the apartment, he or she cannot demand that the landlord eliminate the defects, except in cases where he or she had reserved this right through a prior agreement. "Therefore, it is worthwhile to be careful when accepting an apartment, check everything thoroughly as both tenant and landlord, and put any agreements in writing," emphasized the broker.

Myth No. 2: Families with pets or children always mean problems

According to Martin Matsberg, prejudices or previous bad experiences have made some landlords cautious, but pets do not always cause problems. "If a pet is well-trained, can manage alone at home, then problems may not arise. A tenant should introduce their pet to the landlord. Every pet is different, and getting to know a specific animal can give the landlord peace of mind that it is a well-behaved animal," Matsberg suggested.

Margit Joa added that almost every landlord's dream tenant is a single, quiet person with a stable income without children and pets, but among those seeking rental apartments there are very different people and families, so it is worthwhile to be more flexible. "Pets and families with children can mean greater risk, but not always problems. Before signing a rental agreement, the tenant and landlord should thoroughly discuss possible problems and concerns and definitely add any agreements to the contract in writing," said Joa.

Risks can be mitigated with a larger deposit or a more comprehensive insurance policy – these provide the landlord with peace of mind and cover costs if, for example, wallpaper is scribbled on or parquet is scratched. It is definitely worth noting in the contract that when the rental property is vacated, it must be in a condition where ordinary wear and tear caused by contractually agreed use has been removed, or if this has not been done, the tenant bears the reasonable and necessary costs associated with this.

Myth No. 3: A landlord can evict a tenant for any reason

The grounds for terminating and ending a rental relationship are regulated by the Obligations Act. A landlord cannot evict a tenant quickly for any reason. In the case of an indefinite lease, the landlord must give the tenant at least three months' notice. It is not possible to terminate a fixed-term lease in the regular manner, that is, simply by giving three months' notice. However, it is possible to terminate a fixed-term lease extraordinarily, but only on the grounds provided by law:

• First of all, if the tenant does not use the rented property carefully or according to its intended purpose or does not take into account the interests of other residents or neighbors and continues to do so despite prior warning from the landlord or to a significant extent. In such a case, the landlord must still give at least 30 days' notice before termination. However, if the tenant deliberately damages the property or the interests of residents, the landlord has the possibility to terminate the contract extraordinarily with immediate effect.
• A contract can also be terminated extraordinarily if the tenant is late in paying rent or ancillary charges on two consecutive payment dates. Before this, the landlord must provide a written notice that can be reproduced for at least 14 days and warn the tenant that if the debt is not paid during this period, he will terminate the contract.
• In accordance with § 315 of the Obligations Act, a landlord can also extraordinarily terminate a rental agreement if the tenant unlawfully allows a third party to use the apartment, as a result of which the landlord or neighbors are so disturbed that the landlord cannot be expected to continue the rental agreement.
• Extraordinarily, the landlord has the right to terminate the contract if the dwelling is in such a condition that its use is associated with a significant risk to human health (Obligations Act § 317), or in the case of the tenant's personal bankruptcy (Obligations Act § 319), if the landlord has presented a demand to the tenant in a form that can be reproduced in writing for payment of future rent, ancillary charges and building maintenance and improvement costs and has given a reasonable period to obtain security, but the demand remains unfulfilled.

Myth No. 4: A landlord can enter a tenant's home whenever they wish

According to Martin Matsberg, it is understandable that a landlord wants to ensure that their property is in good hands and is treated carefully, but notice must be given.

Margit Joa added that although the landlord is the owner of the apartment, once it is rented out, it becomes the tenant's home.

Every person has a constitutional right to the inviolability of their home, which means that a landlord cannot enter a tenant's home at any arbitrary moment. A visit to the apartment must be agreed upon in advance and coordinated with the tenant following a reasonable notice period. A reasonable notice period is typically considered to be three to five days. Before signing a rental agreement, it is worthwhile to discuss when and how often the owner can visit the rental property so that it does not excessively infringe on the tenant's privacy.

According to a decision of the Supreme Court, a home also includes the garden surrounding a residential building and other parts of the property that are considered personal space, which cannot be entered without permission. It is not considered reasonable for a landlord to visit a tenant's home several times a year without a clear reason and prior agreement. Typically, landlords visit a tenant's home only at the beginning and end of the contract or in emergency situations.

A landlord has the right to enter the rental property at an agreed time for visual inspection to ensure that everything is in order and safe. A search of the premises, which also includes opening cabinets and drawers, is only permitted by court order.

A landlord has the right to enter the rental property if an emergency situation has occurred in the rental property and immediate action is necessary to prevent damage or prevent greater damage. This presupposes that the tenant has been notified but cannot be at home during the visit or does not respond to the landlord's contact attempts.

Myth No. 5: Rental prices are non-negotiable

Before signing a rental agreement, a landlord and tenant can and may negotiate over the rental price. Although it is generally customary for a landlord to seek a suitable tenant with a desired rental amount and a rental agreement is concluded at the same rental price, depending on market conditions, the tenant, and the terms of the agreement, the parties may agree to sign the contract at a higher or lower rental price.

In particular, prices are negotiable during the low season of the rental market. For example, during the winter period, when there are fewer people interested in renting, there may be a greater opportunity to negotiate more favorable contract terms. During the peak season of the rental market in August, demand is higher and it is unlikely that the rental price will be reduced.

Changes to the rental price during the validity of the rental agreement are regulated by the Obligations Act. In the case of an indefinite lease, rent can be increased once a year. In the case of a fixed-term lease, the increase in rent depends on the length of the lease: for a lease valid for less than three years, the rent can be increased after the lease expires; for a lease concluded for at least three years, at each anniversary, provided that the basis for the rent increase is specified in the lease.

In any case, the landlord must notify in writing of the rent increase at least 30 days in advance and justify the increase. If the tenant does not agree to the increase, he or she may terminate the contract within 30 days. In addition, a tenant may request a reduction in rent if a defect appears in the rented property for which the tenant is not responsible and until the defect is remedied. A tenant may also dispute an excessive increase in rent and its amount during the validity of the lease, based on the Obligations Act.

Myth No. 6: A tenant cannot be required to pay a repair fund contribution

Some tenants may still believe that a tenant cannot be obliged to pay apartment maintenance fund contributions because this was not allowed in the past. According to the law, a landlord can demand that a tenant pay repair fund contributions in addition to the rent, but the landlord cannot simply send invoices to the tenant; an agreement on the payment of ancillary charges must be previously concluded in written form. If such an agreement does not exist, the landlord cannot demand payment of ancillary charges from the tenant.

According to the Obligations Act, a tenant must pay ancillary charges related to the rental property only if this is agreed in writing. Ancillary charges are services related to the use of the apartment, such as electricity and water bills or waste removal. Services that are not related to ordinary use but whose purpose is to improve the property or eliminate defects – such as replacing a gas boiler – are not considered ancillary charges. A tenant has the right to request documents proving ancillary charges from the landlord, and the landlord must provide the corresponding invoices.

According to Joa, it is important to note that even with a proper agreement, a tenant does not have to pay all ancillary charges, for example, significantly increased repair fund contributions or major repair costs that are not agreed upon in the rental agreement. The landlord must inform the tenant of planned expenses before concluding the agreement. If this has not been done, the tenant is not obliged to cover these costs.