Residence charges in right-of-occupancy homes

As a resident of a right-of-occupancy home, you pay a monthly residence charge, which consists of a communal charge and a basic charge. These charges help ensure that your home and building remain in good condition. On this page, you will find information about maintenance charges and the expenses covered by them.

Summary

  • Residents of right-of-occupancy homes pay a monthly residence charge, which consists of a communal charge and a basic charge.
  • The residence charge covers the costs and expenses arising from the maintenance and upkeep of homes and properties.
  • The residence charges are reviewed annually, and residents can influence their amount through everyday choices, such as water and energy consumption.

What does the residence charge for a right-of-occupancy home consist of? Where can I check my own charge?

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.

The residence charge consists of several components that together ensure safe and smooth living. It includes, among other things, costs related to property maintenance and upkeep, repairs, and financing.

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 must not, by law, exceed the rent levels of similar apartments in the same locality.

You can check your own residence charge and payment information in OmaAsuntosäätiö (only in Finnish).

What is a communal charge and what does it include?

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 property expenses.

  • Maintenance
  • Cleaning
  • Waste management
  • Heating
  • Water
  • Building electricity
  • Property-specific purchases
  • Resident activities
  • Separately defined fault and vandalism repairs
  • Other maintenance expenses (e.g., green areas)

What is a basic charge and what does it include?

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.

  • 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

How are residence charge adjustments made?

  1. We review the basic charge annually by dividing the annual budget across all right-of-occupancy homes managed by Asuntosäätiö. The communal charge is not equalised between different properties.
  2. We assess the previous year’s charge in relation to changes during the year, such as completed renovations, developments in market-based rental levels, and inflation.
  3. Each property is assigned a usage value in relation to the equalisation group, which includes all Asuntosäätiö right-of-occupancy homes. This utility value is influenced by factors such as location, age, condition, quality level, and local demand.
  4. Based on the utility value, the capital charge for the property is adjusted if necessary.

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