How to rent out an apartment in Estonia

Set the right rent

An overpriced apartment sits empty — every vacant month costs more than a slightly lower rent. Underpricing leaves hundreds of euros a year on the table. The right figure comes from comparables: same area, room count and condition.

The fastest way is to check real rent levels in your area and get an address-based estimate — a range from actual listings around your building, by room count.

Prepare the apartment

• Small repairs and a proper clean — first impressions decide who even comes to view.
• Decide furnished vs unfurnished — smaller furnished apartments move faster.
• Have the paperwork ready: ownership, the apartment association contact, meter readings.
• Quality daylight photos — the most important part of the listing.

Do it yourself or use an agent?

In Estonia the standard letting fee is one month's rent (often paid by the tenant, by agreement also the owner). For that the agent does photos, portal listings, viewings, tenant background checks and a proper contract.

If your time is valuable or the apartment is in another city, an agent usually makes sense. See who genuinely handles rentals in your area — a rental-active agent finds a tenant faster than a generalist office.

Screen the tenant

The biggest risk is not a vacant month but the wrong tenant. Before signing, check the payment-default register, ask for employer and previous-landlord references, and trust your judgement at the meeting. An agent does the screening for you.

The contract and the deposit

Always put the contract in writing — the Law of Obligations Act protects both sides poorly on verbal agreements. Record the rent, utilities, term, termination rules and meter readings at handover.

• A deposit of up to three months' rent may be asked (Law of Obligations Act § 308).
• A fixed-term contract gives certainty, an open-ended one flexibility — each has its own termination rules.
• Document the condition with photos at handover — gold in any dispute.

Taxes on rental income

As a private person you must declare rental income. For residential leases, 20% of the rent received is a tax-free expense allowance — income tax applies to the remaining 80%, declared once a year in your tax return.

Frequently asked questions

How much rent should I ask?

Compare active listings of the same area, size and room count. Enter your address on the rent-estimate page for a range from real listings around your building.

How big is the agent's letting fee?

Typically one month's rent. Often paid by the tenant; by agreement also the owner, or split.

How large a deposit can I ask?

Up to three months' rent. One month is the common practice; more for premium or furnished apartments.

Do I have to declare rental income?

Yes. 20% of residential rent is a tax-free expense allowance; the rest is subject to income tax, declared annually.