Customs of Finns and Estonians when buying or renting an apartment

It is often thought that a realtor deals only with sales and rental mediation, but our work also plays an important role in serving buying clients in order to find suitable housing for them. I myself have helped foreigners to find a home, who cannot do it themselves here or feel that they don’t have time or knowledge. As you know, the majority of foreign clients come from Finland, and although we are very similar in many ways, when selling or renting real estate to our northern neighbors, we have to take into account various differences and sometimes completely different understandings. The customs of Finns and Estonians when buying or renting an apartment can be very different.

What do Finns prefer in Tallinn? Real estate in the center and especially the heart of the city, right? In the past, for example, Roosikrantsi or Kaupmehe street was more appreciated, but now everyone’s favorite is the Rotermann quarter. In general, the heart of the city for all foreigners is the Viru center, and anything close to it is actually a very sought-after property.

On some occasions, I have been given a map of Tallinn and pointed to the Viru hotel, and a circle with a radius of approx. 5 cm has been drawn around it so that I would look for an apartment in this particular area. On the other hand, those who buy a home for themselves prefer a greener and quieter area – Kadriorg, Kalamaja and also Noblessner, which is an upward trend.

Apartments in stone houses are mainly preferred, wooden houses are more sought after by serious fans. There is also little demand for private houses. Newer apartments are preferred, that is, those located in buildings up to 10 years old, but there are also those who value historical architecture, high ceilings, original herringbone parquet, etc.

There are a number of differences in real estate life in Estonia and Finland

If the real estate buyer or renter is a Finn, it is worth considering that many customs and preferences are different in Estonia and Finland. Of course, these differences do not cause any problems, but they are good to know and useful to explain if necessary.

In the following, I will present a number of examples of the differences between real estate life in Estonia and Finland.

Buying an apartment:

• First of all, it is worth mentioning that the formalization of the transaction is different in Finland and Estonia. In Finland, there is no land registry, i.e. you do not buy apartment ownership, but instead units, and the transaction is not formalized in a notary’s office, but a contract is concluded between the buyer and the seller and it is confirmed by a “authenticator”, i.e. a person who has the right to confirm a real estate transaction.These people often work in a bank, but licensed realtors who have completed the relevant training can also help with this.
• In Finland, new developments always include kitchen furniture and appliances with the apartment, and sanitary appliances and bathroom furniture (sink cabinet) in the bathroom. In Estonia, kitchen furniture is included rather as a campaign offer.
• If from time to time we have a topic of discussion about whether it is necessary to buy a parking space or a storage space in a new development, when buying a new apartment in Estonia, Finns always purchase these two in addition.
• In Finland, the function and control of apartment associations is stricter. If a Finn wants to make repairs in an apartment, they have to coordinate it with the apartment association by submitting various documents. For example, if repairs are carried out in wet rooms, an inspector must be ordered later for the apartment association, who will inspect the work and confirm that it has been carried out in accordance with the standards. This is perhaps the reason why many Finnish buyers are very interested in the activities of the apartment association.

Renting an apartment:

• When it comes to renting an apartment, the first big difference is that in Finland the lessor pays the utility costs, while in Estonia the lessee pays.
• In Estonia, it is considerably more difficult to find a rental apartment for a client with a dog, and signing an insurance does not reassure the landlord either. In Finland, dogs are treated more friendly and they are not so much feared if the lessee signs an appropriate insurance.
• When renting in Estonia, it is important for Finns that the landlord is always available or, if they themself live abroad, that they have a representative who will deal with current issues or simply be helpful if necessary.
• In the case of apartments for sale as well as for rent, it often comes up that the Finnish client is afraid of apartments with gas. In Finland, it is not generally used in households, and therefore there are many fears that, for example, an accident may be caused by gas. This is where it helps to explain how gas systems are built and how boilers and stoves work safely. After that, some neighbors from the north may still choose an apartment with gas.

In conclusion

Therefore, although we are people of one tribe and are very similar in many ways, our societies and countries are still different. As a result, there are also many differences in matters concerning real estate. I hope this article was an interesting and educational read and helps you better understand how to successfully do real estate business with a Finnish client.

Eveli Lindell, ELUM partner