Friday, December 8, 2023

Heavy pressure on housing companies’ fees – this is how the threats seem to be coming true


The acceleration of inflation has been reflected in the cost of maintenance of housing associations. However, the steepest price increases can be rare.

Many housing associations have considered increasing the participation fee. General meetings are usually held in the spring, and this issue inevitably comes up in them.

Real estate associations have earlier estimated that this year many housing associations will be under pressure to increase maintenance charges in the range of 10-20 per cent.

– If there was no increase in fees at the extraordinary general meeting last year, it should be done now, says Olli Räikkönen, data specialist at Isnointlitto.

According to him, on the basis of the information received by the union, it can be inferred that the hike decided is going to be close to top to bottom.

– Maybe we’ll go from twenty percent to closer to ten. However, there is no aggregated information on this matter yet, says Räikkönen.

In housing companies, the consideration is determined on the basis of increase in the cost of maintenance of the property. These, in turn, are influenced by the general increase in prices, which has been sharp over the past year.

– The most important item of expenditure is heating, which may reflect an increase in the price of district heating. Other factors include repair prices, various maintenance costs, administrative costs, water costs, electricity, and the cost of waste management and cleaning.

In some cases, an additional fee may be charged in addition to or in lieu of the increase.

– This is a normal mode of operation, says Räikkönen.

At the same time, information has been received from the property managers in the survey that during the last one year, the arrears of unpaid fees have increased to some extent.

– This is not surprising, because for a long time there has been a financial crunch for people. The rate of price increase has surprised many, says Räikkönen.

The real estate association recommends that building societies should have a buffer of around 2-3 months in reserve to cover the cost of maintenance.

According to a survey published at the end of March by Kinteistöliitto, the maintenance fees of apartment construction companies will increase by an average of eight percent this year compared to last year.

Fees will increase the most in Helsinki and Turku. The regional size of the increase is affected, for example, by increases in district heating costs.


Each company examines the position from its starting point.

According to Jukka Kero, chief economist at Kiinistolitto, this initial estimate will probably turn out to be a bit high in the end, but in general the forecast seems to hold itself.

However, Kerro stresses that the variances per housing association are large. In some building societies the coffers have been deposited, while in some the bottom of the coffers can be seen. Some had time to increase compensation earlier.

– Each company checks the position from its starting point. Kerro says companies that have accumulated a lot of debt because interest rates have gone up significantly are a bigger challenge than rising treatment costs.

The increase in fees has been compounded by, inter alia, the previous warm winter, which reduced heating costs, housing associations’ own cost-saving measures, and many housing associations still holding low-cost electricity contracts. Are.

Some are also postponing property renovations.

– I hope, however, that we do not save in the wrong places, which will be reflected in the bills in the coming years, Kerro emphasizes.

At the end of the summer Kiinistolitto collects more detailed information on the increase in fees and the funding of housing associations.

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