Information about your rent
M2-Kodit rental apartments are ARA rental apartments, meaning that they are state-funded. For this reason, we aim to keep the rents for M2-Kodit apartments equitable and the rent increases moderate. We are a non-profit entity.
Rent equalisation model and rent allocation
On 1 March 2022, M2-Kodit will introduce a rent equalisation model between properties as well as apartment-specific rent allocation in order to equalise the rent of all M2-Kodit apartments.
The rent equalisation model ensures the just distribution of costs by property, taking the location, age and costs of the buildings into account, among other things.The apartment-specific allocation of rent seeks to remove previous shortcomings in apartment-specific rent.
The new system ensures that all M2-Kodit residents will pay a fair price for their apartment in the future and that rent is uniform. The Board of Trustees of M2-Kodit has approved the system, and the tenant council has discussed it as well.
The property and apartment-specific rent may increase, decrease or remain unchanged. The average rent and the overall rent level of M2-Kodit apartments will not increase. The ARA rent calculation instructions are observed in all the revisions.
The changes will be introduced over a period of several years
The rent equalisation results in rent decreases in 108 properties and rent increases in 97 properties. The rent remains unchanged in 27 properties. The allocation may, however, have an impact on the rent of specific apartments.
Any changes in the rent will be implemented over a period of several years. The changes will be implemented during the transition period in such a way that the property-specific changes in rent in either direction are kept reasonable.
What is the rent equalisation model?
The rent equalisation model applicable between properties is a scoring model determining the rent of the different properties. The purpose is to ensure equitable rent between properties. The following factors are taken into account in the property score:
- location, both nationally and regionally
- technical age, quality and level of equipment
- apartment type and floor area
- tenant activity in the property
- specific characteristics of the property.
What does allocation mean?
Allocation means the determination of an apartment-specific rent. Allocation helps ensure that the rents of apartments are just also within a building.
The following factors are taken into account in the allocation:
- apartment size
- apartment floor
- yard, sauna or terrace
- any other relevant factors.
Why is M2-Kodit introducing rent equalisaiton and allocation?
M2-Kodit has acquired properties from different owners, each with their own rent levels and reasons for it. As a result, some tenants may have been paying a higher rent than others. We now fix these shortcomings by equalising and allocating rent in such a way that everyone pays a fair price for their apartment in the future. The renewal allows a uniform and clearly grounded model for the future pricing of apartments and average rent per square metre as well.
Will the rent of my apartment change?
The rent equalisation results in rent decreases in 108 properties and rent increases in 97 properties. The rent remains unchanged in 27 properties. We will notify the tenants of the new rent in December 2021.