Rent level and rent determination
We operate on a cost-price principle, which means that our rents are lower than the general rent level in Helsinki.
In 2023, Heka’s average rent is EUR 12.60/m²/month, which is about 43% lower than in non-subsidised apartments in Helsinki.
By 2024, Heka’s rents will increase by an average of about 12% due to the rapidly rising interest rate level of Heka’s debts, as well as the rise in the price of energy and the general cost level. Even after this higher than usual increase, the average rent rate for Heka’s apartments will be significantly lower than that of non-subsidised apartments.
Heka operates on a cost-price principle
Heka operates on a cost-price principle, which means that all rents paid by our residents are used to cover the costs of constructing, repairing, maintaining and managing buildings and apartments. Heka does not seek to make a profit and it does not pay a dividend to its owner, the City of Helsinki. If any budgeted money is left over, it will be used for our operations in the following years.
Thanks to our cost-price principle, our rents are lower than the general rent level in Helsinki.
Heka’s costs in 2023 are as follows:
- debt servicing costs 35%
- repairs and self-financing share of renovations 22%
- energy and waste management 17%
- property taxes and plot leases 9%
- maintenance and cleaning 8%
- other costs 5%
- administration 4%.
Rent rates are determined annually
Determining the rent rates of Heka’s apartments begins with the preparation of the next year’s budget, which contains all the costs of our operations. The budgeting is completed in the autumn when the next year’s rent level is known.
The budgeted total costs are divided between properties in two phases. First, the costs are adjusted to region-specific average rent rates using the regional rent level reference. After that, the region-specific average rent rates are adjusted to the property-specific average rent rates based on the properties’
- technical age,
- building type and
- level of equipment and quality.
The rent adjustment does not affect the total costs collected in Heka’s rent rates or the average rent level of Heka. The purpose of rent adjustment is to ensure that the rent development is as even as possible in all Heka’s properties and that the rent rates correspond to the properties’ utility value so that they are in fair proportion to each other.
The next year’s proposed rent rates are submitted to the residents’ committee for comments in August. The comments from housing committees are reviewed by Heka and the amendments deemed necessary are made to the material in September.
Heka’s Board of Directors confirms the rent rates in October, after which information about them is sent to the residents by post.
The rents will take effect on the first day of the year.