How to give up a right-of-occupancy apartment and can you get the occupancy fee back?
When giving up a right-of-occupancy apartment in Finland, you must provide a written termination notice to your housing provider, such as Avain Asunnot, typically with a three-month notice period. Yes, you can get your occupancy fee back when moving out. The refund equals your original payment adjusted by the construction cost index, minus any potential deductions for damages or unpaid charges. The refund process usually takes 2-6 months after moving out, depending on finding a new resident and the apartment’s condition assessment.
Understanding right-of-occupancy housing in Finland
Right-of-occupancy housing represents a unique middle path between renting and owning in Finland’s housing market. This housing model was introduced in the 1990s to provide more stable housing options with lower initial costs than homeownership while offering more security than rental arrangements.
When you acquire a right-of-occupancy apartment, you pay an initial occupancy fee (typically 15% of the apartment’s value) and then a monthly maintenance charge. Unlike rental apartments, you cannot be evicted without significant cause, and unlike owned apartments, you don’t take on mortgage debt or full property maintenance responsibilities.
The legal framework for right-of-occupancy housing is governed by the Act on Right-of-Occupancy Housing (650/1990), which establishes the rights and responsibilities of both residents and housing companies. This housing option appeals to many Finns seeking long-term housing stability without the financial burden of homeownership.
At Avain Asunnot, we offer various right-of-occupancy apartments throughout Finland, designed with different lifestyles in mind. Our apartments feature quality materials and designs that you can explore in our style collections, created by renowned interior designer Tea-Mariia Pyykönen.
| Housing Type | Initial Cost | Monthly Payment | Occupancy Security | Property Rights |
|---|---|---|---|---|
| Rental Apartment | Deposit (1-2 months rent) | Rent | Limited (contract-based) | None |
| Right-of-Occupancy | Occupancy fee (15% of value) | Maintenance charge | High (permanent right) | Right to occupy, not ownership |
| Owned Apartment | Full purchase price | Maintenance charge | Complete | Full ownership |
How do you properly terminate a right-of-occupancy agreement?
Terminating a right-of-occupancy agreement requires following a specific process to ensure your rights are protected and you can receive your occupancy fee refund. The procedure involves several important steps you must complete in the correct order.
First, you must submit a written termination notice to your housing provider (like Avain Asunnot). This notice must include your personal details, apartment information, and desired move-out date. The standard notice period is three months, meaning your agreement and payment obligations continue for three months after the housing company receives your termination notice.
After submitting your termination notice, your housing provider will begin the process of finding a new resident for the apartment. According to Finnish law, right-of-occupancy apartments must be offered to applicants in order of their queue number, so the timeframe for finding a new resident can vary.
Before moving out, schedule a pre-inspection with your housing provider to identify any potential issues that might affect your occupancy fee refund. This gives you an opportunity to address minor repairs before the final inspection.
On your move-out day, you must:
- Remove all personal belongings
- Clean the apartment thoroughly
- Return all keys to the housing company
- Participate in the final condition inspection
Remember that your right-of-occupancy agreement isn’t officially terminated until a new resident has signed an agreement for the apartment. Until then, you remain responsible for the monthly maintenance charges, even if you’ve physically moved out.
If you’re considering terminating your agreement, you can check our ownership apartment options to explore whether purchasing might be a suitable next step in your housing journey.
Can you get your occupancy fee back when moving out?
Yes, you can get your occupancy fee back when moving out of a right-of-occupancy apartment. The refund process is legally guaranteed under Finnish housing law, though the exact amount and timing depend on several factors.
When you receive your refund, the amount will be your original occupancy fee adjusted according to the construction cost index maintained by Statistics Finland. This index-adjustment protects the real value of your initial investment against inflation. If construction costs have risen since you paid your occupancy fee, you’ll receive more than your original payment. Conversely, in the rare case of declining construction costs, the refund might be slightly less.
The refund process typically begins after a new resident has been selected for your apartment and has paid their occupancy fee. The housing company then has three months to process your refund. In practice, the entire process—from termination notice to receiving your refund—usually takes between 2-6 months, depending on how quickly a new resident is found.
To ensure eligibility for a full refund, you must:
- Properly terminate your agreement with written notice
- Continue paying monthly maintenance charges until a new resident is found
- Leave the apartment in good condition
- Settle any outstanding payments
The construction cost index adjustment is a significant benefit of right-of-occupancy housing compared to renting, as it allows you to preserve the value of your initial housing investment. This makes right-of-occupancy housing an attractive option for those planning to stay in their homes for several years.
At Avain Asunnot, we handle the refund process transparently and efficiently. If you’re curious about available housing options, you can use our apartment search tool to explore alternatives before making a decision.
What deductions can be made from your occupancy fee refund?
When receiving your occupancy fee refund, certain deductions may be applied based on the apartment’s condition and any outstanding obligations. These potential deductions are governed by Finnish housing legislation and should be clearly communicated during the termination process.
The most common deductions include:
- Repair costs for damages beyond normal wear and tear
- Unpaid monthly maintenance charges
- Unpaid utility bills associated with the apartment
- Cleaning costs if the apartment wasn’t properly cleaned before departure
- Administrative fees related to the termination process (if applicable)
It’s important to understand that normal wear and tear is expected and shouldn’t result in deductions. This includes slight discoloration of surfaces, minor scuffs on walls, and other signs of normal living over time. However, significant damage such as broken fixtures, large holes in walls, or water damage from negligence can lead to substantial deductions.
The assessment of the apartment’s condition is typically conducted during a final inspection with a representative from the housing company. You have the right to be present during this inspection and should request a copy of the inspection report.
| Type of Deduction | Typical Examples | How to Avoid |
|---|---|---|
| Damage Repairs | Broken fixtures, large wall damage, floor damage | Handle repairs yourself or report damages early |
| Cleanliness Issues | Unclean oven, bathroom, floors | Thoroughly clean all areas or hire professional cleaners |
| Outstanding Payments | Unpaid maintenance charges, utility bills | Settle all accounts before final move-out date |
| Unauthorized Modifications | Unapproved wall removals, electrical changes | Seek permission before making structural changes |
If you disagree with any deductions, you have the right to contest them. The housing company must provide itemized documentation of all repair costs and other deductions. In cases of dispute, the Consumer Disputes Board can provide resolution assistance.
When planning your move, consider that our apartments are designed with high-quality, durable materials that maintain their appearance with proper care. Our different style collections feature materials selected for both aesthetics and longevity, helping to minimize potential deductions when you eventually move out.
What are the key differences between terminating rental vs. right-of-occupancy agreements?
Terminating a right-of-occupancy agreement differs significantly from ending a rental contract in Finland, primarily in terms of financial implications and procedural requirements. Understanding these differences is crucial when deciding between housing options.
With rental apartments, the termination process is typically straightforward. You provide notice (usually one month), move out by the agreed date, and receive your security deposit back if the apartment is in good condition. The financial transaction is limited to this deposit return, which usually equals 1-2 months’ rent.
In contrast, terminating a right-of-occupancy agreement involves a more complex process tied to a much larger financial stake—your occupancy fee. This fee, representing 15% of the apartment’s value, is substantially higher than a rental deposit and is indexed to preserve its value over time.
Here are the key differences:
- Notice period: Rental agreements typically require 1 month’s notice, while right-of-occupancy agreements require 3 months
- Financial return: Rental returns only the security deposit, while right-of-occupancy returns the indexed occupancy fee
- Termination completion: Rental agreements end on the agreed date, while right-of-occupancy agreements continue until a new resident takes over
- Apartment condition standards: Right-of-occupancy typically has stricter condition requirements at move-out
- Value preservation: Unlike rental deposits, occupancy fees are adjusted for inflation via the construction cost index
The right-of-occupancy model offers greater long-term financial security, as your initial investment maintains its value relative to construction costs. This contrasts with renting, where monthly payments provide no equity or return.
At Avain Asunnot, we offer both rental and right-of-occupancy options to meet different housing needs. If you’re considering changing your housing arrangement, you can search our available properties to compare alternatives.