Security Deposits and Advance Rent in Finland
Rules for collecting security deposits (takuuvuokra) and advance rent according to the Finnish Act on Residential Leases (AHVL). Learn the maximum amounts an...
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This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Under the primary governing law, the Act on Residential Leases (481/1995), which came into effect on 1 May 1995, a landlord in Finland has the legal right to demand a financial deposit from the tenant before handing over the keys to minimize risks. In the Finnish context, the terms "security deposit" (vuokravakuus) and the more colloquial "guarantee rent" (takuuvuokra) mean the same thing, but legally it is referred to as a deposit (vakuus).
Maximum Amount (The 3-Month Rule)
In residential leasing (AHVL § 8), an absolutely strict maximum limit is set for a possible deposit:
- The amount of the deposit may be at most equivalent to three (3) months' rent.
- If the contract contains conditions that require a larger deposit, the condition is void for the exceeding part.
The most common practice in the Finnish rental market is to require a deposit equivalent to 1 or 2 months' rent. Often, for student apartments, the deposit may be even smaller or a fixed amount, such as 250 - 500 euros. The deposit must be delivered to the landlord as agreed, without exception, before the possession of the apartment and keys are handed over.
Purpose and Storage of the Deposit
Unlike in some European countries, a landlord in Finland is not required to set up a separate, strictly regulated escrow account for storing the funds, unless expressly agreed upon. Cash deposits are often simply transferred to an account specified by the landlord. The purpose of the deposit is to secure the fulfillment of all obligations arising from the lease agreement. It can be used to cover:
- Unpaid rents.
- Unpaid utility charges (e.g., water balancing bills).
- Damage caused to the apartment that exceeds "normal wear and tear".
- Cleaning costs if the final move-out cleaning has been neglected.
The tenant may not on their own initiative use the deposit to pay the rent for the final months.
Advance Rent (AHVL § 36)
In addition to a deposit, the law allows the collection of advance rent (ennakkovuokra), but this also has strict limitations. A landlord can demand advance rent for several rent payment periods for a special reason when concluding a lease agreement. In the practical housing market, purely advance rent is very rarely used. The maximum rent paid in advance may only apply to multiple predefined installments, up to a maximum of 3 months. Together with the deposit, the advance requirements should never become unreasonable for the tenant.
Normal Wear and Tear vs. Damages
When the tenancy ends, the landlord inspects the apartment (final inspection). The most central source of dispute is the fine line between normal wear and tear and compensable damage.
- Normal wear and tear (Normal living): Wear that arises from living. Holes left by pictures on the walls, normal dimming of floor surfaces, or small scratches on kitchen counters. The landlord cannot withhold the deposit to repair these.
- Compensable Damage / Negligence: Things that have arisen from carelessness. Deep scratches in the floor from a dog's claws, broken doors, total failure to clean the oven, or drawings on the wallpaper. The deposit can and should be used for these.
The initial inspection of the apartment and the photographic report made of it is critically important. If the landlord does not have evidence of the apartment's original condition, it is very difficult to prove that the damage occurred specifically during that tenant's time.
Returning the Deposit
The Act on Residential Leases (481/1995) does not specify a precise timeframe for the return of the security deposit after the tenancy ends and the handover of the apartment's possession. Furthermore, the Act does not explicitly require the landlord to provide written justification or receipts for deductions, although general legal principles apply to disputes.
Sources & Official References
Frequently Asked Questions
▶What are the security deposit rules and return deadlines in Finland?
Finland has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
▶What are the key landlord-tenant laws in Finland?
The rental of residential apartments in Finland is primarily governed by the Act on Residential Leases (Laki asuinhuoneiston vuokrauksesta, AHVL). The law is largely mandatory (to protect the tenant), meaning that the law cannot be deviated from to the detriment of the tenant even by mutual agreement, unless the law explicitly permits it. The law balances the rights of the parties but gives significant protection to the tenant's right to housing. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in Finland?
The eviction process in Finland requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the rent increase limits and caps in Finland?
Finland has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
Read the complete guide▶What are the mandatory lease requirements in Finland?
Lease agreements in Finland must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in Finland?
Landlords in Finland are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Finland?
Finland has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Finland?
Landlords in Finland must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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