3. HOUSING Renting Property The Estonian real estate market is characterised by a very high level of home ownership. The rental market has a minority share. For housing rental, it is recommended to contact real estate agencies. Several dedicated internet sites also list properties for rent, though it is advisable to consult with a real estate professional in order to understand the lease agreement in detail before signing it. The lease agreement may be concluded for a fixed or unspecified term. The rental period can be freely negotiated by the parties. Rental agreements are regulated by the Law of Obligations, and the law is intended to protect the interest of the tenant. Fixed term agreements will expire according to the agreement. The law provides only a finite number of possibilities for cancellation of the agreement before the maturity date. Open-ended lease agreements can be cancelled by either party with an advance notice of three months.
Security Deposit A security deposit is usually equivalent to 1 to 3 months of rent. The landlord shall keep the deposit in a segregated bank account earning at least the local average interest. The deposit shall be paid back to the tenant upon the termination of the lease contract together with the earned interest, unless the landlord has a right to keep the amount in order to satisfy a claim.
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