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Buying Properties in Estonia for Rental Income: Yields, Vacancy & Tenant Management

  • Writer: John Philips
    John Philips
  • Jul 22
  • 2 min read
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Estonia’s Buy-to-Let Snapshot (2025)

  • Average gross rental yield: 4.23% nationwide; Tallinn flats trend slightly higher

  • Average rent in Tallinn: €7.80 per m² for a central apartment

  • Vacancy rate in Tallinn: ≈ 3.5% — healthier than many EU capitals


1. Setting the Right Rent

  • Benchmark local ads to align your asking rent within ±10% of nearby listings to avoid long vacancies

  • Factor in communal fees—tenants expect transparency. Itemize all monthly service charges in the lease

  • Furnish the unit—yields are typically 0.3–0.5 percentage points higher for turnkey apartments in tech-heavy districts like Kalamaja or Ülemiste


2. Understanding Estonian Lease Law

Key Rule

Landlord Implication

No statutory minimum lease term

Flexibility to sign 6-, 12-, or 24-month contracts

Early termination leans pro-tenant

Build one extra month of buffer into cash-flow forecasts

Repairs & habitability

Landlord must fund essential maintenance or face penalty-free tenant exit


Pro Tip: Use the Law of Obligations Act template clauses to stay compliant—Bryan Estates supplies bilingual lease drafts with every buy-to-let transaction.


3. Maximising Net Yield

  • Energy-efficient units (A/B-class EPC) cut utility bills by ~20%, supporting higher all-inclusive rents

  • Short-stay license in Tallinn can boost yields to 6–7%, but zoning restrictions apply—especially in Old Town

  • Professional property management costs 8–10% of rent collected and is often worth it for non-resident investors


4. How Bryan Estates Supports Landlords

  • Off-market investor stock – Gain access to entire blocks with verified yields of 5%+

  • Tenant screening & bilingual leases – Reduce vacancy risk and prevent legal disputes

  • In-house maintenance team – Nationwide 24-hour service with fixed pricing for predictable costs


5. Frequently Asked Questions

Can I hire Bryan Estates to manage my property while I’m abroad?

Absolutely. We handle rent collection, maintenance, and file local tax reports on your behalf.


What taxes apply to rental income?

A flat 20% income tax applies, with deductions allowed for documented expenses. Municipal taxes do not apply to rental receipts.


Do I need a local bank account?

No—but it speeds up rent transfers. We can remit proceeds to any SEPA-zone account.


Ready to Boost Your Rental Portfolio?

Email info@bryanestates.ee or call +372 123 4567 for a customised rental-yield projection and investor-ready property shortlist.

 
 
 

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