Many people who have moved abroad still own an apartment in Finland. Letting it is often the most sensible way to keep it earning, but doing it remotely needs a reliable partner on the ground: someone to show the apartment, handle repairs and look after it when tenants change.
This guide covers the things worth settling before the apartment goes on the market.
Condition decides how easily it lets
An apartment in good condition lets faster and attracts long-term tenants. Before letting, go through it and fix at least what shows in the first impression or could cause damage — worn surfaces and dripping taps, for example.
Scale the renovation to the rent level. Not every improvement raises the rent, but an empty month always costs money.
Choosing the tenant
A reliable tenant who can pay the rent is the single most important factor in letting. An experienced letting agent handles the advertising, viewings and assessment of applicants, and draws up the tenancy agreement.
Who takes care of things on the ground
The biggest challenge for a remote owner is the small things that need someone on site: fault reports, maintenance visits, handing over keys and inspections when the tenant changes.
When one company has renovation, cleaning and maintenance skills, all of this is handled without coordinating separate contractors from abroad.
Tax
Rental income from an apartment in Finland is generally taxed in Finland even when the owner lives abroad. Expenses related to letting, such as maintenance charges, can be deducted from rental income. The household tax credit is not available for renovating an apartment that is let out.
Taxation also depends on your country of residence and tax treaties, so check your own situation with the Finnish Tax Administration or a tax adviser.
Checklist before letting
With these settled, the apartment is ready to let.
- Apartment's condition reviewed and necessary repairs done
- Rent level checked against comparable apartments
- Letting agent or other reliable party chosen
- Home insurance checked as suitable for letting
- A contact person in Finland for fault reports and maintenance
- Taxation of the rental income clarified