Moderate rent increase of 2.5% for 2023

17.10.2022

We will increase the rent of TOAS apartments by an average of 2.5% for 2023. The increases do not apply to Lumipuu. Rent increases remain moderate compared to overall price increases in Finland, which have recently exceeded seven per cent.

For now, the greatest cost increases have occurred in electricity rates and loan interests. Fortunately, our foundation has put relevant safeguards in place, which means that our tenants will not have to pay these increases in full. We want to maintain the rent levels of student housing reasonable: this way, we will not only be able to respond to competition from rental operators, but also provide students with more comfortable living conditions. And we believe that we have succeeded quite well: over the last five years, the average annual increase of TOAS rents was 1.1%.

TOAS’ financial situation has also remained stable, even in the long term. This is based on long-term financial planning, which has succeeded regardless of relatively large investments. However, in the near future, potential inflation and increasing interest rates will cause some uncertainty.

If you feel that your current apartment is too expensive, please remember that everyone is able to influence their rent. We offer a large selection of apartments at different prices. The cheapest small apartments with shared kitchens only cost EUR 130/month, while, at the other end of the price range, there are studio apartments in the city centre that go for EUR 590/month.

According to Statistics Finland’s statistics, TOAS rents are still approximately 25% cheaper than in the free market in Tampere. For example, the comparable average rent per square metre at TOAS will be EUR 12.4/m2/month at the beginning of next year, with prices ranging between 8.9–19.3.

Nearly half of TOAS’ costs comprise financial costs, meaning loan repayments and interest. TOAS’ loan volumes continue to grow as we continue to build new houses in the future. However, this increase in loans is a good thing for students, as it will lead to significantly more high-quality housing.

Key figures from our budget:

  • Income EUR 44.0M
  • Maintenance costs EUR 24,6M (repairs 5.6, heating 3.8, electricity 2.8)
  • Financing costs EUR 16.3M
  • Surplus EUR 3.0M (for investment)

Other fees will not increase. TOAS will send the new rental invoice to tenants by email and mail, and will notify Kela directly regarding the change. Read more about housing allowance on Kela’s website.