Three questions to HOWOGE asset manager Stefan Junker on the topic of rent and rent increases.
Mr. Junker, what does “warm rent” actually mean?Every rent is made up of the net rent – the so-called basic rent – and the cold and warm additional costs. These include, for example, the costs for winter maintenance, insurance or energy costs.
And who decides how high the basic rent can be?The basic rent is the fee for using the apartment. In Berlin, the rent index provides information on the rent level. This is recalculated every four years and provides information on the local comparative rent. If the rent is below the local comparative rent, landlords can increase the rent up to a maximum of this amount.
Why do rents have to be adjusted again and again?Landlords are also subject to the usual price increases for things like construction costs, inflation or personnel costs. If we therefore have to increase rents, we as a state-owned housing company stick to the service promise and only increase to a limited extent. We then reinvest the money in the existing stock, in local social projects, in new construction and of course in sustainability and climate protection. A rent increase therefore also contributes to the further development and stability of neighborhoods.
You can find out more about rent increases here.