SATO Oyj

The Residential Leases Act has been amended: here’s what it means for residents of rental homes

SATO Corporation, Press release, 1 October 2026 at 12:00 pm

The Act on Residential Leases (AHVL) has been amended today, 1 October. Originally adopted in 1995, the amended legislation introduced changes to areas including the smoking ban, grounds for terminating a lease agreement and notice periods.

The change that has attracted the most attention in advance in terms of tenants’ everyday lives is the smoking ban. From today onwards, the ban applies to indoor areas as well as to balconies and private yards belonging to the apartment. The change also applies to lease agreements concluded before the amended legislation entered into force.

“Cigarette smoke does not stop at the boundaries of an apartment but also affects neighbours. The smoking ban aims to improve living comfort and reduce the health risks caused by cigarette smoke. At SATO, we intend to follow the principles and spirit of the Residential Leases Act, even though the law also allows landlords to make exceptions. Treating our residents equally is important to us, which is why we will not grant individual exemptions from the smoking ban,” says Olli Tång, Executive Vice President responsible for SATO’s housing business.

Landlord’s notice period changed

Landlords’ notice periods for new lease agreements has also been changed. If the tenancy has lasted for at least two years, the landlord’s notice period is four months instead of the previous six. For shorter tenancies, the notice period remains unchanged at three months. When the tenant terminates the lease agreement, the notice period continues to be one month.

As a rule, new lease agreements are initially concluded for a fixed term of 12 months, after which they will continue until further notice.

“The reform aims to strike a better balance between tenants’ and landlords’ rights regarding notice periods, which is why the landlord’s notice period has been shortened somewhat for longer tenancies. In practical terms, very little changes with 12-month fixed-term agreements, as residents don't need to sign a new agreement or separately notify us that they wish to continue living in their home once the fixed term ends. The agreement will continue automatically,” Tång points out.

Changes help address disturbances

From today onwards, landlords will have better means to address disturbances than before. Other exceptionally serious reasons can now also constitute grounds for terminating a lease agreement.

“Social and financial difficulties have increased significantly in our society, and in the rental housing business this is reflected in payment problems and an increase in disruptive behaviour. The change in legislation gives us as landlords an important tool for dealing with challenging situations and helps safeguard neighbours’ right to peaceful, disturbance-free everyday life. Maintaining an open and confidential dialogue with tenants also makes it easier to address disturbances.”

Under the new legislation, landlords have the right to enter an apartment at a time notified to the resident in advance, even if the time of the visit cannot be agreed with the resident

“Naturally, we will continue to make every effort to visit our residents’ homes at a time that suits them. We will also notify residents of an upcoming visit well in advance, unless the situation involves safety or another exceptional circumstance requiring an urgent response.”

Read more about the changes to the Residential Leases Act and how they affect living in a SATOhome: https://www.sato.fi/en/faq-rental-apartments#ahvl

For more information, please contact:
Olli Tång, EVP, Housing Business, tel. +358 20 134 4071, olli.tang@sato.fi

Media contact:
Terhi Jokinen, Senior Communications Specialist, tel. +358 20 134 4307, terhi.jokinen@sato.fi

SATO Corporation is an expert in sustainable rental housing and one of Finland’s largest rental housing providers. SATO owns around 27,500 rental homes in the Helsinki Metropolitan Area, Tampere and Turku.

SATO aims to provide excellent customer experience and a comprehensive range of urban rental housing alternatives with good access to public transport and services. We promote sustainable development and work in open interaction with our stakeholders.

SATO invests profitably, sustainably and with a long-term view. We increase the value of our assets through investments, divestments and repairs. In 2025, SATO celebrated its 85^th anniversary. www.sato.fi/en