The mutual trust between the contracting parties to a residential lease is particularly important in residential lease agreements. The lessor rents their apartment for the use of another person to be used as a home. Leases are long-term in nature and may include unexpected changes, which increases the importance of loyalty and openness between the parties to the contract.
AS A GENERAL RULE, the tenant and the lessor may agree on the terms of the lease agreement. However, legislation imposes certain rights and responsibilities on the lessor and tenant which the parties cannot change by agreement.
The purpose of fair rental practices is to assist in creating a problem-free and functional residential lease and its continuous management and appropriate termination. The organisations that have compiled the fair rental practices recommend that their guidelines be observed for residential leases, particularly when the parties have not agreed concerning situations that may emerge. However, if the parties have specified operating methods for the lease, these shall be observed in accordance with the agreement.
Residential leasing activities should be profitable for the lessor in the long run. The rent should cover the costs incurred by the lessor and produce a return on the invested capital. At the same time, the tenant should receive an apartment that corresponds to what is agreed upon in exchange of the rent that they pay and a secure lease that meets their needs. Residential leasing differs from other investment business in that the investment object is the tenant’s home.
Fair rental practices also include being a good neighbour within the residential community, and the building regulations and general guidelines regarding normal good behaviour should be taken into account. Fair rental practices also include that both parties in a tenant relationship contribute to the general comfort residential environment. The well-being of the residential community is based on residents being interested in common issues and taking other residents into consideration. In a pleasant residential environment, a resident understands their responsibility when using common facilities and yard areas.
Functional residential markets need a sufficient supply of housing. A sufficient supply of rental apartments is important for social development and employment.