The apartment rent of Helsingin kaupungin asunnot Oy (Heka) homes will be an average of 1.4% higher in 2021 than this year. Next year, the mean rent in Heka housing units will be 12.00 euros per square metre per month, whereas it is 11.83 euros this year.
Heka’s regional mean rent will be 11.22–13.55 euros per square metre per month next year. The mean rent will remain almost the same in nearly 200 Heka locations.
The reasons for rental increases are the general increasing trend of cost development and the growing amount of renovations.
Mostly moderate rental increases
Next year, Heka will have a total of 505 sites up for rent determination, covering about 50,000 apartments. The mean rent will remain at nearly the same level at 197 of the existing sites, meaning that the rent will not increase by more than 0.5 per cent.
A total of 303 Heka locations will have a rental increase of more than 0.5%. However, the rental increases are mostly moderate as the most typical rental increase will be just 1–2%. Only three sites will have rental increases of more than 4 per cent.
The largest rental increases, exceeding 8 per cent, will take place in two locations, where renovations will be completed next year. The housing quality of these locations will see major improvement.
The Board of Helsinki City Housing Company (Heka) confirmed the next year’s rents at their meeting on 7 October 2020. Customers will be sent a letter about their rent for next year by the end of October.
Rent for Heka apartments is determined based on a cost price principle
The total rent charged by Heka is determined on a cost price principle, which means that the rent paid by residents covers the buildings’ capital costs, property maintenance, renovation costs and administration fees.
Heka’s total costs determined on the cost price principle will first be evened out to regional mean rents and then to location-specific mean rents based on user value, which is determined on the basis of the sites’ location, condition and building type as well as equipment and quality level.
Heka’s rents will always remain at a reasonable level and they are still clearly lower than at the average rent level.