What does our rent consist of, and why can it increase?
In recent years, the cost of living has gone up significantly. What affects how our rent is set, and what causes rent increases? Read a detailed explanation below.
How is our rent calculated?
NAL Asunnot is a non-profit organization, meaning we don’t make a profit from our rents. This means that we charge rent only as much needed to cover the costs of construction, maintenance, repairs and administration of the apartments.
What are these costs?
- Repairs and maintenance of apartments and buildings
- Loan repayments and interest for buildings
- Property maintenance
- Waste disposal
- Cleaning costs
- Electricity for the property
- Heating
- Land rents
- Staff salaries and fees
- Other administrative costs
Why do rents increase?
Several economic factors are causing rent increases, including:
Rising costs of property and waste management services:
Like in many other industries, these costs increase yearly. Property and waste management is essential to keep buildings and common areas safe and comfortable for residents.
Higher prices for electricity, water, and heating:
Energy costs have risen, directly increasing property maintenance expenses. For example, the energy needed for heating water and the building makes up a large part of these costs.
Increased value-added tax:
A rise in the general value-added tax increases the prices of services and products, affecting maintenance costs.
Extra costs from vacant apartments:
When apartments are empty, we don’t get any rental income but still incur maintenance costs. This situation puts pressure on rent increases. Many cities have more available apartments than there is demand, which has also increased our number of vacant units.
What are we doing to keep increases manageable?
To keep rent increases as low as possible, we’ve decided to postpone some maintenance repairs planned for next year to later years. However, we will not skip these repairs altogether; they will just be rescheduled. Critical repairs will still be done.
For example, we also seek competitive bids for maintenance services to operate as efficiently as possible. We continuously look for cost-effective ways to manage our properties, ensuring residents have safe and good-quality housing.
What can tenants do?
Tenants can influence costs in some ways. Here are some tips:
🧹Keep your home clean:
Taking care of your home and keeping common areas tidy reduces maintenance needs and saves costs.
♨️Save on heating:
Heating is a major expense. In winter, keep windows closed to retain warmth.
🚿Reduce water usage:
Heating water accounts for about a third of heating costs. Take shorter showers and be mindful of water use.
💡Be energy-efficient:
Turn off lights and appliances when not in use, and manage your energy use wisely.
🛠️Report any issues quickly:
If you notice problems or defects, report them immediately through the fault report. Small issues can become larger if not addressed quickly.
Residents will receive a payment breakdown for rent payments in October-November. Please use the reference number provided in the payment breakdown when paying your rent.