The Landlord's Limited Right to Terminate a Residential Lease Contract: Estonian Law in Comparative Perspective

• Author: Ave Hussar, Irene Kull
• Pages: 71-83

71

JURIDICA INTERNATIONAL 24/2016

Ave Hussar Irene Kull

Mag. iur., Doctoral student Professor of Civil Law

University of Tartu University of Tartu

The Landlord’s Limited Right

to Terminate a Residential

Lease Contract

Estonian Law in Comparative Perspective*

1. Introduction

Residential tenancy law forms a f‌i eld of private law wherein the parties’ autonomy has been seen as, in prin-

ciple, superseded by mandatory provisions oriented toward solidarity among citizens.*1 These mandatory

provisions are intended to compensate for the asymmetric power and monopoly possessed by landlords vis-

à-vis sitting tenants*2 and to guarantee security in housing.*3 However, excessively high tenure security can

have an adverse ef‌f ect on the rental market, as it potentially reduces investments and/or encourages alter-

native uses of the existing stock by households.*4 On the other hand, while reduction in the level of security

for the tenant facilitates investments in the rental-housing sector and supports short-term demand, it has a

negative impact on long-term demand, as, for example, has arguably been experienced in Finland.*5 There-

fore, rental regulations should strike a balance between landlords’ and tenants’ interests, create security of

* The authors are very grateful to the good colleagues Prof. Pascal Pichonnaz, Marta Santos Silva, Per Norberg and Julija

Kolomijceva for valuable comments, suggestions and references.

Қ See, e.g., C. Schmid, J.R. Dinse. Towards a common core of residential tenancy law in Europe? The impact of the European

Court of Human Rights on tenancy law. – L. Nogler, U. Reifner (eds). Life Time Contracts: Social Long-term Contracts in

Labour, Tenancy and Consumer Credit Law. The Hague: Eleven International қҙҚҝ, p. ҟҙҟ.

қ ‘Asymmetry in relations between landlords and tenants’ stems from ‘inelastic supply of rented housing due to geographical

constraints, planning restrictions, f‌i nancial system etc., and [the] landlord’s monopoly in relations with sitting tenants as

it is’, according to C. Whitehead et al. See The Private Rented Sector in the New Century: A Comparative Approach (med

dansk sammenfatning). Cambridge қҙҚқ, p. ҢҜ.

Ҝ There are several aspects that make security in housing much more important than the property-rights perspective alone.

Among others, Hulse and Milligan refer to human well-being, families’ functioning, childhood development, economic and

social participation, and physical and mental health. For more information, see K. Hulse, V. Milligan. Secure occupancy:

A new framework for analysing security in rental housing. – Housing Studies қҢ (қҙҚҝ)/Ҟ, p. ҟҜҢ. – DOI: http://dx.doi.org

/Қҙ.Қҙҡҙ/ҙқҟҠҜҙҜҠ.қҙҚҜ.ҡҠҜҚҚҟ (ҜҚ.Ҝ.қҙҚҟ).

ҝ See, e.g., D. Andrews et al. Housing markets and structural policies in OECD countries. OECD Economics Department

Working Papers, No. ҡҜҟ. OECD Publishing қҙҚҚ, p. ҟҞ. – DOI: http://dx.doi.org/Қҙ.ҚҠҡҠ/ҞkgkҡtқkҢvfҜ-en (ҜҚ.Ҝ.қҙҚҟ).

Ҟ R. de Boer, R. Bitetti. A revival of the private rental sector of the housing market? Lessons from Germany, Finland, the Czech

Republic and the Netherlands. OECD Economic Department Working Papers, No ҚҚҠҙ, қҙҚҝ, p. Ҟҝ. – DOI: http://dx.doi.

org/Қҙ.ҚҠҡҠ/ҞjxvҢfҜқjҙzp-en.

http://dx.doi.org/10.12697/JI.2016.24.08