Our rents will increase by an average of 3.5 per cent at the beginning of 2023

Espoon Asunnot follows two principles in their rent determination: we operate on a cost-price principle and the rents must remain reasonably priced.

For next year, the need for a rent review is slightly higher than in the previous two years, an average of 3.5 per cent. However, the increase is quite moderate, given the increase in interest rates, the general increase in the cost level caused by inflation, for example, in the maintenance and construction costs of properties as well as the significant increase in the price of energy.

“Despite a challenging development of costs, we want to guarantee our residents a moderate rent development. Next year, the average rent for our dwellings will be EUR 13.32/month/m², which is over 28 per cent lower than the general rent level in Espoo,” says Jaakko Kammonen, Managing Director.    

The size of the rent review varies from property to property

The average rent increase next year will therefore be 3.5 per cent, but the size of the review will vary from property to property. During October, residents will receive the rent payment letters for 2023, which indicate the rent per dwelling.

“In the case of 26 Espoon Asunnot properties, the increase will remain below 2.9 per cent, whereas the rents of the majority, that is 240 properties, will be reviewed by 3–3.9 per cent. In the case of 32 properties, the rent will increase by over four per cent,” says Juha Heino, Director of Customer Relations.

The increase in the price of electricity will also affect the sauna booking fee, which will increase from EUR 10 to EUR 15 a month at the beginning of next year. Correspondingly, the prices of parking spaces will increase by EUR 2–5 (parking space in a closed parking garage: + EUR 5/month; other parking spaces: + EUR 2/month).

Info: Cost-price principle in a nutshell

The rent is based on the actual usage, maintenance and financing costs of the properties. In addition to the daily running costs, we cover paying for our loans and for both renovating dwellings and constructing new ones with our rents.

As per the city’s policy, we follow the cost-price principle in both ARA properties and in properties that are exempted from rent determination restrictions.