A moderate rental increase for the year 2022
TOAS increases rents 1,5 % for the year 2022. We decided not to increase rents for 2021 but now it is time for a moderate increase. When you calculate the five-year average of the increases, the amount becomes an average annual increase of 0.6 %. This means that our operations have been successful. We hope our tenants agree. The increase does not apply to Männikkö, Pappila and Rauhaniemi.
TOAS’s financial situation is stable in the long-term. This is based on long-term economic planning, which has been successful in spite of relatively sizeable investments. In the near future, there are some question marks about possible inflation and rising interest rates.
With reasonable rent levels we can also stay competitive in the increasing competition of rental housing providers in Tampere. If you feel, however, that the monthly rent is too high, it’s good to keep in mind that you can adjust your own rental costs to your own liking. TOAS offers a large variety of flats of different prices. The cheapest small studios with communal kitchens are only 130€/month, while at the other end of the scale we have studios located in the city centre at 590€/month.
TOAS average rent per square metre, comparable to the housing market, is 12.2 €/m2/month in the beginning of 2022, and rent varies between 8.7 and 18.9 by building. Compared to the housing market in Tampere, TOAS rents are about 24 % lower, based on information from Statistics Finland.
A little less than half of TOAS’s expenses are financing costs: debt installments and interest payments. TOAS has borrowed significantly more money in the last few years as lots of new houses have been built. However, the increased borrowing can be said to be a good thing for students, for it has enabled a significant increase in excellent apartments. Currently many people get a studio apartment after less than a year on the waiting list. The average interest rate of TOAS’s loans has gone down to 1.7 %. We can now benefit from these low interest rates prevalent in all of Europe.
The main figures from the budget:
- Earnings 41.8 million euros
- Management expenses 22.8 million euros (repairs 5.3, heating 3.7, electricity 2.2)
- Financing costs 15.7 million euros
- Surplus 3.2 million euros (for investments)
Other charges will not increase. TOAS will send the tenants a new rental invoice by post and notify the change in the rent directly to Kela.