Estonia weighs giving apartment associations power to ban renting out units

Estonia's Ministry of Economic Affairs and Communications is drafting amendments to the Tourism Act that would, among other things, introduce new requirements for apartments offered as short-term rentals. The ministry has invited interested parties to submit their proposals and concerns.

The Union of Apartment Associations wants to take the idea further, proposing that apartment associations be given the right to ban any rental of a unit — or of an entire building — by majority vote of the owners.

Union representative Urmas Mardi explained that the idea targets situations where a landlord's relationship with a tenant cannot be reasonably resolved — for example, when an owner receives constant complaints or calls about a tenant's behavior. In such cases, he said, the association should have the right to decide that a particular apartment in the building can no longer be rented out, though any such decision must be justified.

Experts raise concerns

Real estate expert Tõnu Toompark argues the proposal would effectively strip owners of part of their control over their own property, which could eventually cause losses, including a drop in property values. He believes it is wrong to direct the entire debate at tenants, calling them an easy target chosen as a convenient opponent. Owners themselves are not necessarily better behaved, he noted, pointing out that disruptive behavior — such as loud weekly gatherings — can just as easily come from owner-occupants. In his view, this is a matter of individual behavior, not of rental status.

Minister of Economic Affairs and Industry Erkki Keldo confirmed the ministry had received such a proposal but noted it runs counter to the original goal of the bill, which is to align requirements for hotels and short-term rental apartments. Keldo stressed that apartments are private property, and any restriction on property rights must be very clearly justified, calling it a fundamentally important issue. He added that the ministry is willing to discuss the union's concerns, but separately from the tourism law amendments.