Andrej Holm, Sebastian Gerhardt, David Scheller & others
Rosa-Luxemburg Stiftung
2024
📖 Context and Overview The publication "Keine Profite mit der Miete" is linked to the Rosa-Luxemburg Stiftung, a German think-tank known for its research and advocacy on social justice issues, including housing. The study, authored by Andrej Holm, Sebastian Gerhardt, David Scheller, and Itziar Gastaminza Vacas, investigates the organizational structures and costs involved in managing large public and cooperative housing stocks sustainably and socially. 🏢 Organizational Structures The study examines six state-owned housing companies (Landeseigene Wohnungsunternehmen, LWU) in Berlin, managing approximately 360,000 apartments, alongside selected larger housing cooperatives managing about 30,000 apartments, and Wiener Wohnen, Vienna's municipal housing company with around 210,000 apartments. LWUs typically have centralized decision-making and budgeting with specialized departments, while housing cooperatives often handle functions in-house to control costs. Wiener Wohnen employs a centralized structure relying heavily on on-site staff for maintenance. 🔧 Maintenance and Repair Costs In terms of maintenance and repair expenditures from 2018 to 2022, LWUs spent an average of €1.62 per square meter per month, cooperatives spent €2.43, and Wiener Wohnen spent €1.27. The higher spending among cooperatives is attributed to their commitment to maintaining high-quality housing, while Wiener Wohnen's lower costs may reflect its management of older, unrenovated properties. 💼 Administration and Personnel Costs The administrative and personnel costs varied across the organizations: LWUs spent €0.99/m², cooperatives €1.10/m², and Wiener Wohnen €1.52/m², where the latter's higher costs are linked to a greater reliance on in-house maintenance staff. 📊 Total Operating Costs The total operating costs reflect differing priorities: LWUs incur costs of €9.11/m² (inclusive of utility costs), cooperatives €7.82/m², and Wiener Wohnen €7.02/m². Average rents align with these costs, with LWUs charging €6.40/m², cooperatives €5.81/m², and Wiener Wohnen €4.89/m². 🔍 Conclusion The study concludes that socially-oriented housing management can achieve affordable rents around €5.50/m², although this poses challenges for financing new construction and energy retrofits without additional public funding. The findings underscore that different organizational priorities—expanding housing stock, maintaining quality, and fulfilling social missions—shape the cost structures in public and cooperative housing management across 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