Estonia proposes faster lease termination for rent arrears

Estonian Justice Minister Liisa Pakosta has submitted a bill to the government that would let landlords terminate a lease when a tenant’s unpaid rent and other charges exceed one month’s rent, ERR reported. Tenants would first have to receive an additional 30 days to settle the debt.

Under current law, a landlord can terminate a lease only when rent arrears exceed two months’ rent. The bill would amend the Law of Obligations to cover unpaid rent, ancillary costs and building maintenance costs, as well as overdue security deposits exceeding one month’s rent.

The proposal would also require courts to set a clear deadline for vacating a home in their judgments, removing the need for an automatic voluntary-compliance period during enforcement proceedings. A court judgment could also be used to evict subtenants without starting separate court proceedings.

The government’s coalition agreement pledged to protect property owners and address problems with tenants who fail to pay rent. The bill says the aim is to support long-term, stable but flexible rental relationships, while protecting both landlords’ interests and tenants’ security.

The Estonian Owners’ Association told the Justice Ministry it did not understand what problem the government was seeking to solve, saying owners had not asked for protection. It argued that rental law needed more extensive changes and that Estonia’s high number of privately owned apartments meant it did not need the same level of tenant protection as countries with a much larger share of renters.

The ministry did not accept the association’s proposal, saying rental rules must balance landlords’ property rights and freedom of contract with tenants’ protection and the inviolability of their homes. The Estonian Association of Real Estate Companies also called for the bill to address the commercial rental market.