The Reform Party and Eesti 200 promised in the coalition agreement to solve the problem of bad tenants. Justice Minister Liisa Pakosta has now made a plan on how to do this.
Pakosta said that many owners do not dare to rent out their apartments. They fear that tenants will not pay rent. For example, there are people who move frequently and do not pay rent.
If the rules were simpler, Pakosta says more owners would rent out their apartments. This would help revitalize the rental market.
Currently, an owner must wait two months if a tenant does not pay rent. This means the owner must pay the utility bills themselves. Pakosta wants the owner to be able to terminate the contract after just one month of unpaid rent.
The owner must then give the tenant 30 days to pay the rent. If the rent still does not come, the contract can be terminated.
If the matter goes to court, the court must set a precise deadline for when the tenant must move out.
Currently, a tenant can bring other people into the apartment. Under the new plan, the court decision also applies to them. They must be evicted without a new court process.
Andry Krass, head of the Central Union of Owners, said that owners do not need protection. They did not ask for it. Tenants are in a weaker position, so the law should protect them more.
According to 2021 data, one-fifth of Estonian families live in rental apartments. Most live in two-room apartments.
Krass said that renting is the owner's choice. If they decide to rent, they must be aware of the risks.
The new plan may help tenants pay better. But it could also make the situation more difficult for poorer families. They may struggle to pay rent and could lose their homes.
Tõnu Toompark, a representative of the Real Estate Association, said the laws should be more flexible. Currently, an owner must wait three months before terminating a contract. This is too long.
Toompark said small owners suffer when a tenant does not pay. They still have to pay loans and utilities. Therefore, it is important that the owner can get rid of the tenant more quickly.
There are many small owners in Estonia who rent out one or two apartments. If they get a bad tenant, it can be very difficult for them.