Andrej Holm, Sebastian Gerhardt, David Scheller & others
Rosa-Luxemburg Stiftung
2024
📚 Context and Publisher The study "Keine Profite mit der Miete" was published by the Rosa-Luxemburg Stiftung, a German foundation known for its work in promoting social justice and sustainable development. The authors, Andrej Holm, Sebastian Gerhardt, David Scheller, and Itziar Gastaminza Vacas, analyze the management of large public and cooperative housing stocks in Berlin and Vienna, focusing on sustainable housing practices and their associated costs. 🏢 Organizational Structures The study examines six state-owned housing companies in Berlin, managing approximately 360,000 apartments, alongside selected larger housing cooperatives with about 30,000 apartments, and Wiener Wohnen, Vienna's municipal housing company managing around 210,000 apartments. The research highlights that state-owned companies (LWUs) typically employ centralized decision-making structures, with specialized departments and regional customer service centers. In contrast, housing cooperatives tend to manage most functions in-house to control costs, although larger cooperatives do have specialized departments. 🔧 Maintenance and Repair Costs The financial analysis reveals that LWUs spent an average of €1.62 per square meter (m²) monthly on maintenance and repairs between 2018 and 2022. Housing cooperatives reported higher expenses at €2.43/m², reflecting their commitment to maintaining high-quality living conditions for their members. Wiener Wohnen, conversely, incurred lower costs of €1.27/m², which may be attributed to its stock of older, unrenovated buildings. 💼 Administration and Personnel Costs The LWUs had an average administrative cost of €0.99/m² monthly, while housing cooperatives spent slightly more at €1.10/m². Wiener Wohnen's costs were higher at €1.52/m², primarily due to its reliance on in-house staff for maintenance and repairs. 💰 Total Operating Costs and Average Rents Total operating costs averaged €9.11/m² for LWUs, €7.82/m² for cooperatives, and €7.02/m² for Wiener Wohnen, including utility costs. The average net cold rent was €6.40/m² for LWUs, €5.81/m² for cooperatives, and €4.89/m² for Wiener Wohnen. The study suggests that socially-oriented housing management can achieve affordable rents around €5.50/m², but highlights the necessity for additional public funding to support new construction and energy retrofits. 🔍 Conclusion The findings emphasize the varied priorities among different housing management models: LWUs aim for expansion, cooperatives focus on quality, and Wiener Wohnen underscores its commitment to social housing. This comprehensive analysis provides valuable insights into sustainable housing management practices and their financial implications in Europe.
Rosa-Luxemburg Stiftung
Here is an extensive summary of the key points from the study:
This study examines the organizational structures and costs associated with managing large public and cooperative housing stocks in a sustainable and socially-oriented manner. It analyzes data from:
- Six state-owned housing companies in Berlin (Landeseigene Wohnungsunternehmen, LWU) managing about 360,000 apartments
- Selected larger housing cooperatives in Berlin managing about 30,000 apartments
- Wiener Wohnen, the municipal housing company in Vienna managing about 210,000 apartments
Key findings:
Organizational Structures:
- The LWUs have centralized decision-making and budgeting structures, with specialized departments and subsidiary companies for different functions. Most have regionalized customer service centers.
- Housing cooperatives tend to handle most functions in-house to control costs. Larger ones have specialized departments but aim for integrated management.
- Wiener Wohnen has a centralized structure with two main subsidiaries for customer service and building maintenance. It relies heavily on on-site staff.
Maintenance and Repair Costs:
- LWUs spent an average of €1.62/m2 per month on maintenance/repairs from 2018-2022.
- Housing cooperatives spent more at €2.43/m2 per month on average.
- Wiener Wohnen spent less at €1.27/m2 per month.
The higher spending by cooperatives reflects their focus on maintaining high-quality housing for members. Wiener Wohnen's lower costs may relate to its large stock of older, unrenovated buildings.
Administration and Personnel Costs:
- LWUs spent €0.99/m2 per month on average
- Housing cooperatives spent €1.10/m2
- Wiener Wohnen spent €1.52/m2
Wiener Wohnen's higher costs reflect its greater reliance on in-house staff for maintenance and repairs.
Other Operating Costs (depreciation, financing, etc.):
- LWUs: €3.26/m2 per month
- Housing cooperatives: €2.33/m2
- Wiener Wohnen: €2.10/m2
The LWUs' higher costs reflect greater investment in new construction and acquisitions.
Total Operating Costs:
- LWUs: €9.11/m2 per month (including €3.20/m2 in utility costs)
- Housing cooperatives: €7.82/m2 (including €2.02/m2 utilities)
- Wiener Wohnen: €7.02/m2 (including €1.94/m2 utilities)
Average Rents:
- LWUs: €6.40/m2 per month (net cold rent)
- Housing cooperatives: €5.81/m2
- Wiener Wohnen: €4.89/m2
The study concludes that socially-oriented housing management with good maintenance and tenant services is possible at rents around €5.50/m2 per month. However, this leaves little room for new construction or major energy retrofits without additional public funding.
The different cost structures reflect varying priorities:
- LWUs focus on expanding their housing stock
- Cooperatives prioritize maintaining high-quality housing for members
- Wiener Wohnen emphasizes its social housing mission
Overall, the study provides detailed insights into the costs and organizational approaches for managing large public and cooperative housing stocks in a sustainable and socially-oriented manner. It demonstrates that affordable rents are possible with this model, but also highlights challenges in financing new construction and energy retrofits.
Authors:
Andrej Holm, Sebastian Gerhardt, David Scheller and Itziar Gastaminza Vacas