Residence charges in right-of-occupancy homes
As a resident of a right-of-occupancy home, you pay a monthly residence charge that consists of a basic and communal charge.
The communal charge accounts for around 20% and the basic charge for around 80% of the residence charge. We review the charges once a year. We operate on the cost rent principle, meaning that we do not seek to make a profit with the charges.
The communal charge is a property-specific charge. Each resident can affect the amount of the charge, for example, through their water consumption and energy use. The communal charge comprises the following property expenses:
- Waste management
- Building electricity
- Property-specific purchases
- Resident activities
- Separately defined fault and vandalism repairs
- Other maintenance expenses (e.g., green areas)
The basic charge covers all the major expenses of right-of-occupancy homes. We review the charge annually by dividing the annual budget among all of Asuntosäätiö’s right-of-occupancy homes.
The amount of the basic charge depends on the utility value of the property, determined in relation to the other buildings in the adjustment group. The adjustment group encompasses all of Asuntosäätiö’s right-of-occupancy homes. The adjustment system ensures that the trend in charges is steady, as a large-scale renovation, for example, does not result in sudden changes for a single property. Each property benefits from the system in turn, since large-scale renovations will inevitably be carried out in all of them at some point.
The utility value depends on, for example, the property’s location, age, condition and standard of equipment. An accurately determined utility value boosts demand and raises the occupancy rate of apartments, which means that living expenses are divided among a larger number of residents. A rise in occupancy rate leads to a decrease in living expenses.
The basic charge covers expenses such as:
- Maintenance repairs
- Repairs related to moves
- Fault repairs
- Ground rent
- Real estate tax
- Real estate insurance
- Non-life insurance
- Loans and capital expenses
- Administrative expenses
- Accounting and auditing
- Collection expenses
- Credit losses
- Company management and financing
- Resident cooperation in right-of-occupancy homes
- Losses due to vacancies
- Other maintenance expenses