Improver's labours

The rules for improvements in private tenancies are regulated in the Tenancy Act and related ordinances. These rules cover the rights and obligations of both the landlord and the tenant in relation to leasehold improvements. Improvements can result in rent increases and there are specific procedures and requirements that must be followed to ensure that the improvements are legal and reasonable.

Section 127 of the Rent Act defines improvements as "measures or installations that increase the value of the rented property, or measures that are required by law or public regulations when these are not covered by the landlord's maintenance obligation.

Improvements differ from maintenance in that they add value to the rented property that the tenant is not entitled to under the legal relationship. Maintenance includes work that is necessary to keep the property and the rented premises in the condition to which the tenant is entitled under the rental agreement, the Tenancy Act and general principles of law.

Procedures for improvements
Before the landlord initiates improvements, the landlord must involve the residents' representative organisation, if there is one, cf. section 131 of the Rent Act.

The landlord must also notify tenants of the improvement works and their consequences, including any rent increases.

Rent increases as a result of improvements
The landlord may demand a rent increase that corresponds to the increase in the value of the rented property once the improvements have been completed. The rent increase must be given at least three months' notice and cannot take effect until the improvements have been completed.

Examples from case law
Case law has illustrated how rent increases due to improvements are assessed:

- Balconies: Glazing of balconies was assessed as a limited improvement as the utilisation value was only marginally increased.
- Lifts: Safety modifications to a lift were considered an improvement as they increased safety for users.
- Central heating: The installation of central heating was recognised as an improvement, but the rent increase was reduced with saved maintenance of the previous heat source.
- Doorbell systems: Replacing an old doorbell system with a new one with video and key fobs was considered an improvement as it increased security and functionality.
- Windows and windows: Replacing thermal windows was assessed as an improvement that led to a significant reduction in heat loss and noise.

There are many aspects to consider when announcing improvement works, including improvement increases.