Renters’ Rights: A Look at Legislative Supervision in Europe and the United States
Last update: 06.08.2023 | 8:07
While Israel lacks legal control over rent, various models in Europe and the United States guarantee the rights of both tenants and landlords. A recent inspection sheds light on these legislative measures and their contribution to tenant well-being.
Restrictions on Rent Increase
In England, rental contracts lasting over a year and up to 10 years limit landlords’ ability to raise rent. The maximum percentage of increase must be agreed upon during contract signing and ranges between 5% and 10%, regardless of the market price index. Germany, on the other hand, prohibits rent increase during the initial year of tenancy and allows an increase of up to 15% of the original rent for a three-year tenancy. Tenants who feel the increase is unwarranted can refuse to pay it.
Limiting Increases to Market Standards
In Finland, any rent increase is subject to the apartment’s regional price index, specifications, size, and maintenance quality. Tenants may reject an increase if the apartment fails to meet any of these criteria. The law in Finland also prohibits landlords from raising rent by more than 15% annually or upon contract renewal.
Long-Term Rental Options
In Germany, all accepted lease types are valid for at least two years. While annual contracts exist, they are not favored as they are believed to harm the rental market’s quality. More than 40% of renters in Germany sign contracts without time limits and have the freedom to enter or leave with prior notice. Landlords can only terminate contracts under specific conditions, including advanced notice and a valid reason for eviction.
Cancellation Conditions
Both parties in a Finnish contract agree upon the amount of advance notice required for cancellation. Valid reasons recognized by the court include sudden relocation due to work, studies, or a tenant’s health condition. An apartment owner’s necessity for family or humanitarian reasons also qualifies as a reasonable reason. The law does not specify compensation details, but both parties outline the amount when signing the contract.
Landlord Responsibilities
Finnish contracts grant landlords the right to terminate the lease without warning if a tenant’s behavior disrupts neighbors’ quality of life, such as excessive noise or continuous disturbances.
Tenant Empowerment by Local Councils
Over 20 cities in Connecticut, United States, have fair rent councils that intervene in cases where renters believe the rent increase is unfair compared to average prices in the area. These councils possess extensive powers, including the ability to freeze or reduce rent and punish unruly tenants by fines or contract termination.
And what is the situation in Israel?
In 2017, the Knesset enacted a fair rental law, establishing binding guidelines for rental contracts in Israel. This legislation regulated apartment owners’ responsibility for the safety and condition of their properties, limited the amount of guarantees landlords can collect, and extended eviction notification to 90 days. However, the law did not address changes in rental prices. The municipality of Tel Aviv-Yafo is attempting to promote voluntary rental contracts with limits on price increases, but it remains a local initiative without broader legal implications.