Shareholder alterations and the renovation notice (Finland)
Opening the kitchen to the living room, redoing the bathroom, removing a partition wall, altering ventilation or electrics: a shareholder may modify their own apartment, but not entirely freely and not without telling anyone. The Limited Liability Housing Companies Act gives the shareholder a broad right to make alterations — and at the same time a duty to notify the work in advance whenever it may affect the company or a neighbour. This guide covers when an alteration notice is required, what the board may demand, and what happens if the notice is skipped.
This is general guidance, not legal advice. Check your own company’s articles of association and situation, and consult a lawyer or a qualified expert if needed.
A shareholder’s right to make alterations — what is allowed in your own apartment
The starting point favours the shareholder. Under chapter 5, section 1 of the Limited Liability Housing Companies Act (translation of the Finnish text):
“A shareholder has the right to make alterations in the apartment at their own expense. — — The shareholder must ensure that the alteration is carried out in accordance with good building practice.”
The right has two limits. The change must conform to the use purpose defined in the articles of association (you cannot turn a residential apartment into a business space without amending the articles), and the work must be done in accordance with good building practice. The costs are the shareholder’s.
Note a new-build particularity: chapter 5 does not apply to alterations made before the construction phase under the Housing Transactions Act has ended. During the RS phase you are under a different set of rules — see Pitfalls of an RS project.
Maintenance or alteration? How to draw the line
The line decides which chapter’s rules apply. Maintenance (chapter 4) restores the apartment to its original condition — like-for-like for what broke. An alteration (chapter 5) changes the apartment from the original: the layout changes, a surface is replaced with a different one, technology is added or moved.
| Example | Which? |
|---|---|
| Painting, wallpapering, like-for-like parquet | Usually maintenance (often no notice) |
| Removing or moving a partition wall | Alteration |
| Redoing the bathroom, opening the waterproofing | Alteration |
| Moving the kitchen, adding a water point | Alteration |
| Changing the ventilation or electrical system | Alteration |
The allocation of liability and cost differs between these. For background: Maintenance responsibility between shareholder and company.
When an alteration notice is mandatory — and what it must contain
The duty to notify does not depend on the size of the renovation but on its effects. Under Act 5:2 (translation):
“A shareholder must notify an alteration in advance in writing to the board or the property manager, if it may affect a part of the property, building or apartment under the responsibility of the company or another shareholder, or the use of the company’s or another shareholder’s apartment.”
The content requirement comes from the maintenance provision 4:7, to which 5:2 refers: the notice must contain information that lets the company assess whether good building practice is followed and whether damage or harm may result. In practice: what is done, where, by whom, when, and how the structures and waterproofing are handled.
Rule of thumb: if the work touches structures, waterproofing, pipes, ventilation or electrics — file a notice. Purely cosmetic work usually does not require one.
The board’s handling: reasonable time, conditions and refusal
The notice is not a permit application, but it starts the board’s handling. Under Act 5:4, work may not begin until the company has had a reasonable time to process the notice, and the notice must be processed without delay. A negative or conditional position must be given in writing if the shareholder requests, and a refusal must be justified.
The company may set conditions if the work could damage the building or cause harm, and refuse the work if allowing it would be unreasonable weighing the harm against the shareholder’s benefit (Act 5:3). If material new facts emerge during the work, further conditions may still be added.
An important clarification: the often-repeated “four weeks in advance” is not a statutory deadline but a property-management practice recommendation. The law speaks of a reasonable time and processing without delay — so allow time, but do not treat four weeks as an absolute limit in either direction.
Supervision and who pays
The company has the right to supervise that the work is done without damaging the building and in accordance with good building practice and any conditions set (Act 5:7). The company must ensure supervision is adequately arranged. The payer is clear:
“The shareholder carrying out the alteration is liable for the company’s necessary and reasonable supervision costs.” (Act 5:7)
Crucially: supervision does not transfer liability. Even when the company supervises and even when the work is approved, responsibility for the work being done correctly stays with the shareholder.
What happens if no notice is filed? The burden of proof reverses
This is the heart of the matter. The law has no direct sanction for merely omitting the notice — but the consequence can still be costly. Failing to notify is a breach of chapter 5, and if the work later causes damage, the burden of proof reverses onto the shareholder:
“If damage has been caused by breaching the provisions of chapter 4 or 5, the damage is deemed to have been caused negligently unless the shareholder shows that they acted with care.” (Act 24:2)
In practice: if an un-notified bathroom renovation leads to water damage, the shareholder must themselves show they acted carefully — otherwise negligence is presumed. Compare where this leads: Water damage in a new apartment. The missing notice is also typically recorded on the property manager’s certificate (“the company has had no opportunity to supervise the work”), which can lower the apartment’s value and complicate a sale.
Wet rooms, plumbing and electrical changes: special considerations
The riskiest alterations are exactly the ones where the notice is most often forgotten. For wet-room, plumbing and electrical changes, note:
- Waterproofing is the heart of the alteration. Opening and renewing it requires a qualified installer and a code-compliant result — see Wet-room waterproofing requirements.
- Bathroom renovation is its own package of permits and responsibilities: Bathroom renovation in a housing company — permits and responsibilities.
- An authority’s permit may be needed in addition to the company’s handling. If a permit is required, the board applies for it or authorises the shareholder to apply, and the shareholder bears the costs (Act 5:5).
A checklist for shareholders and boards — and how VAREK helps
For the shareholder: file the notice in writing and in advance, describe the work sufficiently, wait for the board’s position, follow the conditions, and keep all documents. For the board: process the notice without delay, justify your position in writing, arrange supervision, and archive the notice and decision — alteration data belongs to the apartment’s history and is also submitted to the Finnish Housing Information System (HTJ notifications in a housing company).
It is precisely archiving and traceability that fail most often in practice. VAREK gathers alteration notices, conditions, supervision and decisions in one place, reminds you of the handling, and keeps the apartment’s alteration history on record — so the burden of proof does not reverse against the company when an apartment changes hands or damage occurs.
Contact us and keep your housing company’s alterations under control from start to finish.
This is general guidance, not legal advice. The duty to notify an alteration, its conditions and liability depend on the nature of the work, the articles of association and the situation — confirm the details with a lawyer or a qualified expert if needed.
Frequently asked questions
Does even a small renovation require an alteration notice?
Not every one. A notice is required if the work may affect a part of the property under the company's or another shareholder's responsibility, or another apartment's use (Limited Liability Housing Companies Act 5:2). Purely cosmetic work such as painting, wallpapering or changing trims usually does not require a notice.
How quickly must the board process an alteration notice?
The law sets no fixed deadline. The notice must be processed without delay, and the work may not begin until the company has had a reasonable time to consider it (Act 5:4). Many property managers recommend notifying about a month before starting — that is a practical recommendation, not a statutory deadline.
Can the housing company refuse a shareholder's alteration?
Yes, if allowing the work would be unreasonable when weighing the harm caused against the shareholder's benefit. The company may also set conditions to avoid damage (Act 5:3). A negative decision must be justified, and the shareholder may ultimately take the matter to court (Act 5:6).
Who pays for supervising the alteration?
The shareholder carrying out the alteration is liable for the company's necessary and reasonable supervision costs (Act 5:7). Supervision does not, however, transfer responsibility for the work being done correctly from the shareholder to the company.
What happens if no alteration notice is filed?
There is no direct fine in the law, but the consequence can be serious. If the work later causes damage, breaching chapter 5 reverses the burden of proof: the shareholder must show they acted with care, otherwise the damage is deemed to have been caused negligently (Act 24:2). The omission is also typically noted on the property manager's certificate, which can hurt a sale.
What is the difference between maintenance and an alteration?
Maintenance (chapter 4) restores the apartment to its original condition; an alteration (chapter 5) changes it from the original. The notice procedure is similar for both, but how costs and liability are allocated differs.
Besides the company's permission, is a municipal building permit needed?
Sometimes. If the work requires an authority's permit, the board must apply for it or authorise the shareholder to do so; the shareholder bears the cost (Act 5:5). The company's alteration notice and the municipal building permit are separate things — both may be needed.