Good news for our tenants: no rental increases for the year 2019!
For the third consecutive year, we are not planning any rent increases for the year 2019. Rents have stayed the same for the past three years due to TOAS’s good financial situation, high utilization rate and low interest rates. With zero increases we respond to the increasing competition of rental housing providers in Tampere, but equally important is to be able to provide students with variety in the accommodation alternatives. The cheapest small studios with communal kitchens are only 125€/month, while at the other end of the scale we have studios located in the town centre at 530€/month. Additionally, we offer locations from where it is possible to rent an apartment without a deposit fee.
TOAS average rent per square metre, comparable to the housing market, is 11.7 €/m2/month in the beginning of 2019, and rent varies between 8.4 and 18.3 by building. Compared to the housing market in Tampere, TOAS rents are about 17% lower, based on information from Statistics Finland from the year 2017. According to the TOAS strategy, we aim to have rental level 20 % less than the market in general and with this third consecutive year without rental increases, we are a bit closer to our goal.
The property management expenses will be increased due to increases in property tax and electricity, and it’s always necessary to prepare for a cold winter. A little less than half of TOAS’s expenses are financing costs: debt instalments and interest payments. TOAS has borrowed significantly more money in the last few years as lots of new houses have been built. Building more student accommodation to Tampere means that we try to ensure the possibility for affordable student accommodation to the student in Tampere region, but also that the waiting time for a studio is shortened. We have succeeded in cutting down the waiting time for a studio to 6 months.
The main figures from the budget 2019:
- Earnings 42 million euros (-3 % compared to the 2018 figure, two buildings were removed from leasing)
- Management expenses 22 million euros (+6 %)
- Financing costs 16 million euros (-3%)
- Surplus 3.9 million euros (for investments)