Rent arrears and eviction of a tenant

When can a landlord terminate the lease because of rent arrears?

The law gives the landlord a right of extraordinary termination in three cases (VÕS § 316 lg 1) [1]:

• the tenant is in arrears on two consecutive payment dates with the rent, ancillary costs, building maintenance and improvement costs, or a significant part of them; a significant part is at least one month's rent, ancillary costs or building maintenance and improvement costs respectively (VÕS § 316 lg 1 p 1 and lg 6) [1];
• the rent or security deposit (tagatisraha) owed exceeds two months' rent (VÕS § 316 lg 1 p 2) [1];
• the ancillary costs or building maintenance and improvement costs owed exceed those costs for two months (VÕS § 316 lg 1 p 3) [1].

In a residential lease, an agreement that deviates from the law to the tenant's detriment is void (VÕS § 275) [5].

On the overdue amount the landlord may claim late interest (viivis) from when the obligation fell due until it is properly performed; the statutory rate is the interest rate under VÕS § 94 plus eight per cent a year, unless the contract provides for a higher rate (VÕS § 113 lg 1) [6].

What must the warning and the termination look like?

Additional period and warning. The landlord may terminate the lease because of arrears if they gave the tenant, in a form that can be reproduced in writing, an additional period of at least 14 days with a warning that the lease will be terminated if the arrears are not paid within that period (VÕS § 316 lg 3) [1]. In the warning itself the landlord may state that if the arrears are not paid within the additional period, the lease is deemed terminated once it expires (VÕS § 316 lg 4) [1].

When no additional period is needed. If, in the year before the arrears, the tenant at least twice performed their obligations only within an additional period or after it, the landlord may terminate without giving an additional period (VÕS § 316 lg 5) [1].

Notice of termination. A lease of residential or commercial premises is terminated by a notice of termination in a form that can be reproduced in writing (VÕS § 325 lg 1) [2]. The landlord's notice must contain at least the leased item, the day the lease ends, the ground for termination and, for a dwelling, how and by when the termination can be contested (VÕS § 325 lg 2) [2]. A termination that does not meet these requirements is void (VÕS § 325 lg 5) [2]. According to the Supreme Court (Riigikohus), the notice must state the ground for termination; if the terminating party did not rely on other statutory grounds in its notices, the courts have no basis to consider them (Supreme Court (Riigikohus) judgment 2-21-1824/23) [7].

Set-off. The termination is void if the tenant was entitled to set off a claim for rent, ancillary costs, the security deposit or building maintenance and improvement costs and makes a declaration of set-off without delay after receiving the notice of termination (VÕS § 316 lg 2) [1].

Can the tenant contest the termination or extend the lease?

A tenant of a dwelling may contest the landlord's termination before the rent committee or a court if the termination contradicts the principle of good faith (VÕS § 326 lg 1) [8]. The application must be filed with the rent committee or a court within 30 days of receiving the notice of termination (VÕS § 329 lg 1) [9]. During the proceedings the lease continues on the existing terms, unless the parties agree otherwise (VÕS § 329 lg 4) [9].

The tenant may also demand that the lease be extended by up to three years if its ending would have serious consequences for the tenant or their family (VÕS § 326 lg 2) [8]. To extend a residential lease without a fixed term, the tenant must apply to the rent committee or a court within 30 days of receiving the notice of termination (VÕS § 329 lg 2) [9]. However, such an application is not granted if the extension would conflict with the landlord's legitimate interests, in particular if the tenant owes rent, ancillary costs or building maintenance and improvement costs (VÕS § 328 lg 1 p 1) [10].

Under the Rent Dispute Resolution Act (üürivaidluse lahendamise seadus, ÜVLS), the tenant and the landlord may take a dispute under a residential lease to the rent committee or a court (ÜVLS § 1 lg 1) [11]. A rent committee resolves disputes about the lease of dwellings in its own area (ÜVLS § 1 lg 3) [11] and does not resolve disputes over monetary claims exceeding 3200 euros (ÜVLS § 1 lg 1¹) [11].

How does eviction work?

After the lease ends, the tenant must return the leased item (VÕS § 334 lg 1) [12]. If they do not, the landlord may claim as compensation for the period of delay either the rent agreed in the lease or the rent usual for a similar item in a similar location (VÕS § 335) [13].

Forced eviction under the Code of Enforcement Procedure (täitemenetluse seadustik, TMS) works as follows:

1. Enforcement instrument. The landlord needs an enforcement instrument, such as a court judgment that has entered into force or a rent committee decision that has entered into force (TMS § 2 lg 1 p 1 and 7) [4]. A rent committee decision enters into force if no action in the same dispute is filed with a county court within 20 days of receiving the decision (ÜVLS § 22 lg 1) [14].
2. Application for enforcement. The bailiff conducts enforcement proceedings on the basis of the claimant's application and the enforcement instrument (TMS § 23 lg 1) [15].
3. Period for voluntary compliance. The bailiff gives the debtor up to three months to comply with the enforcement instrument voluntarily (TMS § 180 lg 1) [3].
4. Notice of enforcement. The bailiff serves the debtor a notice of enforcement at least 14 days before the planned forced enforcement; it states, among other things, the period for voluntary compliance and the day the property will be vacated by force (TMS § 180 lg 2) [3].
5. Forced enforcement. If the debtor does not comply in time, the bailiff takes the property out of the debtor's possession and hands it to the claimant; both things and persons are removed, and the police are involved if necessary (TMS § 180 lg 3) [3].
6. Belongings. If nobody is present to receive the belongings, the bailiff places them in storage at the debtor's expense or arranges for them to be kept elsewhere (TMS § 180 lg 4) [3]. If the debtor does not reclaim them within two months of the premises being vacated, or reclaims them without paying the costs, the bailiff sells them (TMS § 180 lg 5) [3].

Under the Bailiffs Act (kohtutäituri seadus, KTS), the bailiff's basic fee for handing over immovable property (eviction) is 250 euros and the advance payment of the fee is 92 euros (KTS § 36 lg 1 p 2 and lg 1¹) [16]. If the debtor complies before the period for voluntary compliance expires, only half of the statutory basic fee and the fee for commencing enforcement proceedings may be claimed from them (TMS § 25 lg 2) [17].

What the law says

• „võlgnetav üür või tagatisraha ületab kahe kuu eest maksmisele kuuluva üüri“ [1] (translation: the rent or security deposit owed exceeds two months' rent; VÕS § 316 lg 1 p 2) – the debt is compared with two months' rent.
• „Üürileandja võib üürilepingu käesoleva paragrahvi lõikes 1 nimetatud alusel üles öelda, kui ta on andnud üürnikule kirjalikku taasesitamist võimaldavas vormis vähemalt 14-päevase täiendava tähtaja“ [1] (translation: the landlord may terminate the lease on a ground in subsection 1 if they have given the tenant an additional period of at least 14 days in a form that can be reproduced in writing; VÕS § 316 lg 3) – the tenant gets a chance to pay before the lease is terminated.
• „Käesoleva paragrahvi lõigetes 1–4 sätestatud nõuetele mittevastav ülesütlemine on tühine.“ [2] (translation: a termination that does not meet the requirements of subsections 1–4 of this section is void; VÕS § 325 lg 5) – an incomplete notice does not end the lease.
• „Valdus on seadusega kaitstud omavoli vastu.“ [18] (translation: possession is protected by law against unlawful interference; AÕS § 40 lg 1) – a tenant who possesses a dwelling under a lease is its direct possessor (AÕS § 33 lg 2) [19].

What to do

1. As a landlord: calculate the arrears and check whether one of the grounds in VÕS § 316 lg 1 is met (VÕS § 316 lg 1 and 6) [1].
2. Send the tenant, in a form that can be reproduced in writing, an additional period of at least 14 days with a warning that you will terminate the lease if the arrears are not paid (VÕS § 316 lg 3) [1].
3. If the arrears are not paid, draw up a notice of termination stating the leased item, the day the lease ends, the ground for termination and, for a dwelling, how and by when it can be contested (VÕS § 325 lg 2) [2].
4. If the tenant does not vacate, apply to the rent committee or a court (ÜVLS § 1 lg 1) [11] and submit the decision that has entered into force to a bailiff with an application for enforcement (TMS § 2 lg 1 p 1 and 7; TMS § 23 lg 1) [4] [15].
5. As a tenant: if you received a warning, pay the arrears within the additional period (VÕS § 316 lg 3) [1]. If you have a claim against the landlord that can be set off, declare the set-off without delay after receiving the notice of termination (VÕS § 316 lg 2) [1].
6. Check whether the notice of termination contains all the required information (VÕS § 325 lg 2 and 5) [2]; to contest it, file an application with the rent committee or a court within 30 days of receiving the notice (VÕS § 329 lg 1) [9].

Frequently asked questions

Can the landlord terminate the lease after a single unpaid month?

The grounds in VÕS § 316 lg 1 require arrears on two consecutive payment dates with the rent (or ancillary costs, building maintenance and improvement costs) or a significant part of it, a significant part being at least one month's rent or costs, or a debt exceeding two months' rent or costs (VÕS § 316 lg 1 and 6) [1]. As a rule, an additional period of at least 14 days with a warning must also be given (VÕS § 316 lg 3) [1].

Can the landlord change the locks or remove my belongings?

Under the Law of Property Act (asjaõigusseadus, AÕS), possession is protected by law against unlawful interference; such interference (omavoli) is unlawfully disturbing or taking away the possession of a thing without the possessor's consent (AÕS § 40 lg 1 and 2) [18]. A possessor is the person under whose actual control a thing is, and the tenant is the direct possessor of the leased dwelling (AÕS § 33 lg 1 and 2) [19]. Forced eviction is carried out by a bailiff on the basis of an enforcement instrument (TMS § 180 lg 3) [3].

Does the tenant have to keep paying after the lease ends?

If the tenant does not return the item after the lease ends, the landlord may claim as compensation for the period of delay the agreed rent or the rent usual for a similar item; this does not exclude a claim for damage exceeding the rent (VÕS § 335) [13].

Can a tenant with rent arrears demand an extension of the lease?

An application for extension is not granted if it would conflict with the landlord's legitimate interests, in particular if the tenant owes rent, ancillary costs or building maintenance and improvement costs (VÕS § 328 lg 1 p 1) [10].