Over 50,000 people in Finland fall into the poor credit rating black hole when they are unable to pay the rental on their dwelling, according to Suomen Asiakastieto Oy, a Finnish consumer information company. Nearly 40 percent of them are young people under 30.
High rent is a luxury young people can't afford
The firm believes that young people take on rental contracts that they cannot afford.
“It seems that for the majority of young people these days, leases are made for rent that is too high and the situation is not reacted to in time,” says business operations director Heikki Koivula.
”Especially with rentals, you should make contact with the landlord immediately and try to negotiate a suitable rental payment,” says Koivula. “For a person who has defaulted on their rental payment, it can be very difficult to gain rented housing in the future,” he warns.
Oulu tenants most at risk
Asiakastieto’s research was conducted by post code. It reveals that defaulting on rent is especially likely in Oulu. In both Rajakylä and Taskila-Toppila the default rates were over 12 percent.
The biggest risk region was Kajaani’s Lohtaja-Ketu, where 12.7 percent wound up unable to pay their rent.
The most conscientious tenants, despite the high student population, abide in Otaniemi, Espoo. Less than half a percent of people failed to pay their rent in this postal code area.
A rental default is registered after a tenant has defaulted on 2,000 euros or more of their due payments.