## Blog ## 100 Percent Home Loan Reflects Rent Payment to the Bank If a home is purchased entirely with a loan and the loan term is long, for example, 25 years, the loan does not decrease much at first. There is no personal money invested in the property, and almost all payments to the bank are interest. In practice, this resembles a situation where one would pay rent to the bank for the home. This situation is especially relevant in Sweden, where the loan may not be reduced at all for decades. In addition to the homeowner association fees, the interest paid to the bank is comparable to rent for the right to live in the property. What makes this comparison interesting is that home loan interest is largely tax-deductible, while paid rents are not. We can ponder whether, if there is no personal money invested in the home and payments to the bank consist almost entirely of interest, the situation is closer to renting or owning a completely paid-off property. Timo Metsola Chairman of the Board Vuokraturva # Blog ## 10 Tips for Students Applying for Rental Apartments These ten classic tips from Vuokraturva will help students find an apartment that meets their wishes and needs, even though the competition for rental apartments is particularly fierce at this time of year. 1. Start your apartment search as soon as your school placement is confirmed The annual peak season for rental markets begins around mid-July when school placements are confirmed. Therefore, start your apartment search as soon as your school placement is guaranteed and act quickly. It’s nice to celebrate the confirmation of your school placement, but make sure to secure an apartment for yourself first. At this time of year, a few days can make a significant difference since a large number of students rush to apply for apartments at the same time. The later you leave your apartment search, the greater the number of suitable apartments that will already have been rented out, and the tougher the competition for the remaining apartments will be. The last few available rental apartments often come with a clear seasonal price increase. Thus, being early can also save you money. 2. Apply for apartments in various districts – don't put all your eggs in one basket Public transportation services like www.reittiopas.fi and other city-specific transit guides help you conveniently find travel times. Remember that thanks to lateral traffic, suitable apartments may be located in areas you haven't even considered. Thoroughly explore the alternatives. It’s risky to try to find an apartment in just one popular area, especially if your maximum budget is tight. It’s advisable to look at and compare apartments from various areas. This significantly increases your chances of finding an apartment that meets your needs. 3. Take notes on the apartments Keeping your own notes is crucial when viewing several similar apartments. You may need to apply for dozens of apartments before landing one. Without notes, the memory of different apartments can start to blur. If you receive a call offering you one of these apartments, you might hesitate to make a decision. This could mean missing out on a great apartment or, conversely, ending up with a rental that’s disappointing or different than you remembered. 4. Fill out the apartment application carefully An incomplete application can easily be disregarded. Therefore, fill out the apartment application thoroughly with all the necessary information. The contents of your application significantly impact who gets selected as a tenant. So, take the time and effort to complete the application carefully. During apartment viewings, you must also ensure that you have enough time to familiarize yourself with the apartment, even though rental viewings are typically short. Hence, you should not leave filling out the application until the viewing; it’s better to do it in advance at a site like www.asuntohakemus.fi. Then you can print several completed applications at once, saving you the hassle of filling out a new application for each viewing. 5. Don’t be modest – modesty does not help during apartment viewings If you believe you would make a good tenant, don’t hesitate to communicate that. Highlight why you would be an excellent and suitable choice. If, for example, your workplace or school is very close to the apartment, it’s definitely worth mentioning. Typically, the landlord is looking for a long-term tenant, and this information can reassure them that you would likely enjoy living in the apartment for an extended period. The landlord will also assess your ability to pay rent. For this reason, they are interested in your employment situation and income. Feel free to share more about yourself with the landlord if you think it could persuade them to consider you as a tenant. 6. Talk to the landlord or agent during the viewing If the situation allows, exchange a few words with the person showing the apartment while you submit your application. If they get a good impression of you, you will stand out more. This can improve your chances in the tenant selection process. However, be cautious of coming off too eager, and remember to behave politely. If you keep bombarding the landlord or agent with questions without giving them a chance to talk to other applicants, it may backfire on you. 7. Dress as if you’re going to a job interview Your appearance affects the image you convey. Neat, neutral clothing and being fresh from a shower make a better impression than a disheveled look or dirty clothes. Often, landlords think that if a tenant does not take care of themselves, they will not take care of the apartment either. A good tip is to dress for the occasion as if you were going to a job interview. However, keep your old confirmation suit in the closet. Aim to dress neatly but naturally, in a way that fits your style. 8. Ask your parents to be a guarantor Students often struggle in the competition against employed tenants who have graduated. If possible, ask your parents to act as a guarantor for you. This instills confidence in landlords and levels the playing field with full-time employed applicants. When numerous good applicants are vying for one apartment, having a guarantor can be the decisive advantage that sets you apart from the rest. 9. Arrive early to the apartment viewing Especially for small rental apartment viewings, which are often short, around fifteen minutes long, arriving early gives you more time to look at the apartment and finalize your application. Often, those who are late end up rushing both tasks. 10. Consider shared living If studio apartments feel too expensive or difficult to secure, think about co-living. Many landlords of larger, slightly worn-down apartments currently face challenges finding tenants, which has increased their openness to shared living arrangements. Living in a shared apartment significantly lowers the rent per tenant. The larger the apartment and the more tenants there are, the cheaper living generally becomes. Co-living can range from sharing a two-room apartment with a friend to renting a large downtown apartment or even a house with over ten people. Co-living can offer a better location, kitchen, and bathroom. However, living together often comes with its own challenges in addition to the benefits. Additionally, there have been changes to the housing assistance paid to students, which now requires that tenants are not jointly responsible for the rent. Therefore, shared apartments are typically now rented out to one primary tenant who then sublets parts of the apartment to other students. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## 2020 Might Have Been the Fastest Development Year in Human History Modern humans, Homo sapiens, have existed as a species for about 300,000 years. It’s a long chain of years, and once again, one is coming to an end. The link that this year forms in the chain of history is utterly exceptional. Alongside the sad consequences of the pandemic, we have witnessed a simultaneous, synchronized global leap in development, unparalleled in human history. Typically, development is local and fluctuating, occurring at very different rates in different parts of the world. This year, resistance to change, the inherent resistance to transformation, crumbled simultaneously across the globe. The digital leap and remote work transformed into phenomena that were adamantly promoted on all continents as a result of global synchronization driven by the pandemic. The consequences have been historic and greater than we can yet comprehend. Usually, pioneers encounter the problem that others are not ready for change. This time, it was different. A kind of wave of change emerged, into which all knowledge workers around the world dove simultaneously. The pandemic became a great catalyst. Time judges us all, including this year. Some things become clearer with distance over time than when viewed up close. Historical writing will eventually show what mark this ending year left on the long chain of human history. I believe that the year 2020 may very well have been the year of the fastest global simultaneous development in all of human history. Understanding the housing market requires a broad understanding of society and its structures. It is a privilege to work in a field that necessitates such an extensive awareness of the changing life situations of people and the currents of society. This year has been a particularly unique privilege. Wishing you a Merry Christmas and a Happy New Year, Timo Metsola Chairman of the Board Vuokraturva ## Blog ## 60-Year-Old Huoneistokeskus Celebrates for a Reason Finnish real estate would look quite different without Sunday viewings, female agents, national brokerage chains, or the cooperation between brokerage firms and banks. Pioneering all of these aspects has been one and the same company celebrating its 60th anniversary today: Huoneistokeskus. Additionally, it is well-known within the industry that Huoneistokeskus has also contributed to establishing a systematic training system for agents. The example set by Huoneistokeskus forced competitors to raise the bar and gradually elevated the entire industry from a realm of questionable practices into genuinely responsible customer service. So there is truly a reason to celebrate. Over the impressive trajectory that began in 1953, one company has brought and created a remarkably large portion of the practices and mindsets that are now taken for granted in Finnish real estate. It is said that the best companies create an environment around their industry. Veijo Merjamaa, who is one of my great inspirations, really did just that. He founded a company from scratch and, within a quarter of a century, turned it into a remarkable story of a lifetime. One must also respect how the company's story and growth have continued after his time, through economic downturns and upturns. This is a journey that truly deserves to be celebrated. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Genuine Basic Income Would Solve Housing Benefit Problems The explosive growth of housing benefit costs is becoming an unbearable issue. Solutions are desperately sought in public discourse and behind the scenes, but with little success. The problem is difficult to solve by tweaking the same mechanisms that originally created the issue. Now, a return to an earlier model is proposed, despite the complications that led to the current model being adopted in the first place, which has only made the situation worse. Like a bird with its beak or tail in tar. Housing benefits, as well as other forms of social support, come with disincentives. The fact that benefits tend to flow into prices is also familiar from other contexts. I used to find the idea of a basic income so foolish that I didn't bother to consider it deeply. Over time, I started to wonder why so many thinkers I admire support it. Through that, the irrefutable logic of basic income gradually became clear to me as well. A genuine basic income, where every adult citizen receives a substantial monthly sum that replaces all other benefits, and every minor receives a smaller sum that replaces all other benefits, would lead to the elimination of nearly all disincentives and distortions. If the basic income for minors were paid to their guardians, the situation for single parents would not be unreasonable either. Changes in income tax would ensure that the basic income is gradually taxed back as income increases, maintaining incentives regardless of income level. Of course, such a system is costly, but it is also effective. Everyone would want to accept jobs and strive to improve their lives, and benefits would not seep into prices. The current system is also very expensive, but if anyone hasn’t noticed yet, it is also extremely inefficient. The removal of housing benefits would mean that rental prices would no longer be of little concern to tenants as long as they do not exceed the maximum limits set by Kela (the Finnish social security institution). All tenants would be inclined to try to save on their rental costs rather than simply agreeing to Kela's maximum rent level. The crucial difference would be that once the basic income hits the bank account, everyone would pay their rent with their own money. No one could assume that Kela pays my rent, thus making it irrelevant what the rent is. It is important to remember that housing benefits are not the only element by which Kela contributes to rent payments. The rents that remain to be paid after housing benefits are widely covered by Kela's basic social assistance. The massive increase in housing benefit sums does not fully reflect the enormous amounts Kela puts into paying rents for tenants in Finland. Transitioning to a basic income would be a tremendous societal change. And a very difficult one at that. The ongoing basic income experiment is a good first step, although the amount is too small to replace all other supports, as I see as essential in a truly functional model. The fundamental question is whether there is any real solution to the thicket of disincentivizing supports that have developed in Finland aside from the extremely challenging leap to a basic income. We Finns want to maintain the welfare state, but we cannot endure the current situation. Logic and incentives must be restored to the system. As a solution, the basic income is extremely difficult to implement, but I still think it is good that a fairly widely acknowledged solution among experts – though very challenging – is on the table. We have even advanced to the point where a basic income experiment is taking place in Finland, so it is no longer merely a theoretical utopia. Contemplation is important. But as a well-known contemplator once often noted, eventually, there comes a point when "something needs to be done." In Finland, when things have become dire enough, we have ultimately been able to solve very difficult problems. Sometimes with very large and swift changes. It takes courage to acknowledge the facts and to abandon the immensely bloated support structure that simply does not work. I believe in the "everyone plays" mindset in both sports fields and society. Life cannot be based around a mindset that encourages sitting on the bench due to disincentives. As I mentioned, the problem is hard to solve by tweaking the same mechanisms that originally created the issue or by blaming those who benefit from the current system. A potential solution is on the table. What if we tried it? Timo Metsola Chairman of the Board Vuokraturva # Blog ## Thoughts on the Management of Households' Largest Asset and National Wealth Foundation THE PROBLEM IS MASSIVE: - The building stock constructed during the three decades following the war requires significant repair investments. - Properties built in the 1950s (and early 1960s): plumbing, electrical systems, facades. In many cases, these renovations have not been carried out. - Properties built in the late 1960s and 1970s: plumbing and facades. Often the quality of the plumbing is even worse than in buildings constructed in the 1950s due to low-quality plumbing materials imported from Eastern Europe. Additionally, the facades of panel buildings require large investments because the panel plates themselves and especially their joints have deteriorated. Little basic renovations have been done in properties of that age group. - The extent of the problem is therefore significant; the majority of the housing stock in Helsinki, Turku, and Tampere (Continental Europe...) was built in the decades of the 1950s to 1970s. Just looking at the suburban areas of the metropolitan region reveals the magnitude of the issue; Munkkivuori/ -niemi, Pajamäki, Haaga, Ruskeasuo, Alppila, Hakaniemi, Tapiola... These repair investments will require significant financial sacrifices. - The estimated cost of plumbing and electrical renovation for a property built in the 1950s is currently €1000 per square meter. - The price is high, especially when compared to the purchase price of a similar apartment, which might be, for example, €2500 per square meter (for a two-room apartment in Roihuvuori). Many households, from young savers to low-income retirees who have paid off their debts, will face tough decisions when the plumbing renovation arrives. - Not everyone can continue living as they currently do due to financial realities. Even if the housing company can obtain a loan from the bank, the interest and repayment can become an insurmountable problem for many apartment owners. Even if a household can survive these financial burdens, such renovations cause a significant decline in quality of life; in many cases, it may not be possible to live in one's home for 4-6 months. ACTIONS TO EASE THE SITUATION - The government/city should take action to solve the central problem of its citizens. - The problem is not marginal, as upcoming renovations affect a large portion of Finns. - The problem is not trivial, as the majority of household wealth is tied up in apartments. It is a matter of how this wealth is managed. - The solution is not simple, as costs are €1000 per square meter, and families' daily lives will be disrupted for six months due to plumbing renovations. What should the government/city do in this matter? - Create an active and service-oriented center of expertise. - According to a recently published VTT study, plumbing renovations are carried out with very scant information. There is little information available on different options (e.g., traditional plumbing renovations vs. relining of old pipes). For example, a center of expertise could be established in connection with VTT, to which housing companies could turn for advice. Currently, there is a risk that renovations will be done incorrectly and costs will spiral out of control. Households' and housing companies' boards have weak expertise. Also, the price/quality ratio of various design firms (e.g., engineering firms) leaves much to be desired in a situation where demand clearly exceeds supply. From a national economy perspective, it would be more efficient for the government to create a single center of expertise so that housing company boards do not have to "reinvent the wheel" when planning plumbing renovations with various engineering firms. Easing the financial burden. 1. Extend the household work deduction to cover housing companies' plumbing renovations. Forget the current limit of approximately €2000 per person per annum; for plumbing renovations, the limit could be €1000 per square meter. Indeed, let the plumbing renovation be eligible for tax deduction. It would be logical and sensible from a holistic perspective that if small surface renovations and cleaning services can be deducted from taxes, then a fundamental infrastructure investment in an apartment could also be deducted. After all, a plumbing renovation, which must be done once every 50 years, is a better investment for national wealth than a surface renovation every three years (e.g., new wallpaper and kitchen doors)! 2. Design support (e.g., €50-100 per square meter); well-planned is half done. This relates to the previously mentioned center of expertise. At no time in "modern times" have such a large number of Finns faced concrete interaction with construction companies and culture. Now, for the first time on an unprecedented scale, the knowledge and expectations of households intersect with Finnish/international construction culture. Based on households' knowledge, they find themselves negotiating with professional construction companies about a significant investment. To ensure that households' high expectations and low knowledge don’t get trampled by construction firms, assistance should be directed to the design and supervision of execution. 3. Plumbing renovation assistance at the state/city level. As I understand it, the city of Helsinki already supports the renewal of elevators. Keeping the aging population (e.g., large age cohorts) in their own homes for as long as possible naturally requires functional elevators, but also functional plumbing! Supporting plumbing renovations would be justified from the city's perspective as well. A practical example related to housing for the aging population: how many elderly residents in Roihuvuori would be willing/capable of investing €1000 per square meter in a plumbing renovation and living four months away to gain new pipes? Some might throw up their hands and, encouraged by the impending plumbing renovation, might seek earlier entry into municipal elderly care. Has this been prepared for? Would it be cheaper and more reasonable for the elderly resident’s quality of life that a well-planned plumbing renovation be carried out in due time, supported by the state and the city? It would indeed. IN CONCLUSION Such arrangements would facilitate the initiation and successful completion of these demanding renovations. Otherwise, the poorer scenario may materialize in the management of national wealth, where renovations are postponed, makeshift solutions are made, renovations are poorly planned, and their execution is left to the mercy of construction companies and numerous subcontractors. In other words, national wealth is poorly managed. Supporting plumbing and similar renovations through the aforementioned actions would also support employment during a time when the overall economic cycle is waning. The same applies to new construction in the metropolitan area and elsewhere in Finland and the Baltics. A few years from now, the employment effect of construction will clearly be much less, and this gap would be perfectly filled by a broader initiation of plumbing and similar renovations. Juhana Virkkunen Portfolio Manager, FIM Funds Investment Management # Blog ## Thoughts from Osmo Soininvaara's blog Osmo Soininvaara wrote in his blog on Sunday: "One of the central goals of housing policy is to defend families with children. If there is a shortage of housing, how is it more honorable to direct this shortage toward families with children than the rest of the population? When Metsola writes in his blog that I am responsible for the shortage of studios, I gladly accept the credit for the fact that the housing shortage for families with children is a bit smaller due to my efforts." I find this quote very interesting and it reveals the mindset in which the decisions leading to the current problems in Helsinki's housing policy have been made. The quote seems to convey a belief in a zero-sum game, meaning if one benefits, another suffers. There is no belief that a balanced approach considering the interests of all city residents exists. This perception of the situation is difficult for me to share. When contemplating the shortage of studios in Helsinki, one must remember that the metropolitan area is actually one cohesive functional metropolis. City borders are not visible in the landscape; they are administrative boundaries. Within the Helsinki area, there is the city center and the eastern parts, Vantaa is the northern part of the metropolis, and Espoo is to the north and west. The fact that Helsinki's city center is the true center of the entire metropolitan area is evident in its restaurant scene and also in the way both Espoo and Vantaa are densifying towards Helsinki's city center. For instance, when one walks from Ala-Tikkurila in Helsinki to Tikkurila in Vantaa, or when half of a detached house lot is in Helsinki's Konala and the rest in Espoo's Lintuvaara, one doesn't actually transition from one city to another, even if it appears so on paper. All areas are part of one unified urban entity. If the area were also administratively one and the same city, I believe the guidance of the housing market's development would be more successful. This doesn't necessarily require city mergers; a sufficiently thorough shift in decision-making mindset might suffice. When evaluating solely Helsinki's housing structure, one should constantly remember that this only assesses the metropolitan center and its eastern parts. Although Vantaa and Espoo have their own administrative structures, it would be essential to always consider and fully account for the type of urban structure and housing stock present there in Helsinki's housing production. In the spirit of one united metropolis. Transportation routes are managed in the same way. For them, there’s no thought that Helsinki is making its own routes without considering how they continue into Espoo and Vantaa. The network formed by the highways, railways, ring roads, and the Raide-Jokeri extending out of Helsinki city center emerges as if the entire metropolitan area were one cohesive city. This same line of thought should be applied to housing policy. It doesn't seem very rational to take only Helsinki and, for example, lament about "typically cramped" living conditions there. One cannot regard Helsinki as if it were Hämeenlinna, which is a true round city. Hämeenlinna is genuinely the entire city of Hämeenlinna. However, Helsinki is only the center and eastern part of the metropolis. If we set aside the names of the cities and spoke only of the metropolitan center, eastern part, northern part, and western part, we could conclude that in the center of this half-spherical metropolis, people live very densely and generally in rather small apartments. In the eastern, northern, and western parts, however, people live much more spaciously (so spaciously that there is room for densification) and generally in significantly larger apartments. Without names, it would be easy to ascertain that this resembles a perfectly normal and reasonably constructed metropolitan area. Of course, upon closer inspection, there is much to improve, but I am referring to the overall big picture. The unified urban area of the metropolitan region is easy to visualize on a map. Soininvaara reminds us that all land is built on, and the price per square meter decreases when larger apartments are built. I would like to remind, however, that people do not buy square meters, but apartments. Thus, the unit price of the apartments also matters. As does the number of apartments produced. I believe that the first two factors are even more significant than simply ensuring that all land is built on. Since every second resident of Helsinki is single, we need a large number of new, lower-priced apartments. I see small apartments in Kallio a bit differently than Soininvaara. Firstly, Helsinki would be in serious trouble without the small apartments of Kallio, Alppila, Vallila, and Hermanni. Secondly, the density created by small apartments has rendered these districts highly desirable trend neighborhoods, with no end in sight to their popularity. Therefore, I would not have viewed it as a failure if, for example, the Konepaja area near the excellent transport links of Pasila had been developed with many more small apartments than were built, continuing the trend seen in the aforementioned apartment-centric neighborhoods. Built this way, the area's popularity would certainly have been very high, and many more apartments would have been created in Konepaja than currently exist. But what about families with children? Kalasatama is next to Kallio, and Arabianranta is next to Vallila. I believe that the balance in eastern downtown could have easily been maintained if mostly family apartments were built there and mostly studios (25-30 m²) in Konepaja. Some may disagree, but I sincerely believe this. There is nothing wrong with young singles and dinks gathering in entire neighborhoods, which can then be expanded as they prove to be functional and desirable. There may not be a need for many such concentrations in an area the size of our capital region, but this one works very well, and I believe Konepaja would have been a great opportunity to expand it naturally. Just as many neighborhoods have been accepted for focusing solely on family apartments (e.g., all single-family home areas), a similar acceptance could be extended to include a neighborhood for studios and two-room apartments in the metropolis, which could be allowed to expand. I also wouldn’t see it negatively if someone had to move from Kallio to a family apartment in Kalasatama, from Vallila to Arabianranta, or from Alppila to Pasila. There's still a short walking distance to old neighborhoods and old friends. Families have an advantage by living among other families; they have friends, childcare assistance, and parents have company at the sandbox. It takes a village to raise children. Family apartments don’t necessarily need to be found in the same neighborhood; bordering neighborhoods are sufficient. I am not against family apartments; they are very much needed. I simply want to remind that the shortage of studios in the capital cannot be solved merely by constructing studios. Studios are small, and you can fit half a dozen of them into the same area that one large family apartment occupies. There is indeed space in the city for both studios and family apartments. It is time to return to the quote from the beginning of my writing from Soininvaara's blog. When there is room for both studios and family apartments, it is completely artificial to create the impression that one has to choose one or the other. Timo Metsola Chairman of the Board Vuokraturva ## Announcements Aktia and Vuokraturva are introducing Finland's first real estate investment fund to the market. Aktia Säästöpankki Oyj and Vuokraturva Oy are the first to bring a real estate fund in the form of a special investment fund to the Finnish market. On January 31, 2007, the Parliament approved the law regarding the amendment of the Real Estate Fund Act and the Investment Funds Act, among other related laws. The aim now is to introduce the first real estate fund established in accordance with the Real Estate Fund Act and the Investment Funds Act in Finland. The housing fund will invest in residential properties located in Finnish growth centers, particularly in the capital region. Investment targets will include individual apartments, residential buildings, and housing portfolios. Both private individuals and institutional investors will have the opportunity to invest in the housing fund, allowing private investors for the first time the chance to invest in Finnish real estate through a Finnish fund. Aktia is a Finnish bilingual savings bank that operates based on the needs of Finnish customers—individuals, local businesses, municipalities, and nonprofit organizations. Aktia has 74 offices located in coastal areas and inland growth centers, such as Tampere. Together with its partners, savings banks and local cooperative banks, Aktia has a network of approximately 410 branches. Vuokraturva is the leading operator in the capital region for rental housing brokerage and the acquisition of investment properties. Vuokraturva has established a separate company for the management of real estate investments and related tasks, Asuntoturva Oy. For more information, please contact: Tom Ginman, CEO, Aktia Fund Management Company, Tel: 0500 404 183 Jaakko Sinnemaa, Director, Vuokraturva, Tel: 041 528 0329 ## Announcements ## The First Three Months of the Coming Year Show the Direction of the Rental Market Housing rents reached a turning point in the autumn as the long-standing upward trend in rents was broken. Rents have even started to decline in growth centers. If the decline in rents continues in the coming year, it would be a historically significant turn. It can even be said that this would be the first time that rents in growth centers have decreased significantly, as this has not happened at all in the post-war era. However, the decline in rents is not certain; new economic uncertainty, rising interest rates, or the recent shortage of available homes could potentially lead to an increase in rents again next year. The first quarter of the year is likely to set the direction for the entire year. "This is an interesting time. Generally, the predictability of the rental market is reasonably good. However, in the last year and a half, the housing market has shifted sharply from one extreme to another, similar to a large ship. No one can know for sure what is next," reflects Timo Metsola, Chairman of the Board of Vuokraturva. "There is also a connection between interest rates and rent levels. When interest rates decrease, the rise in rents typically stabilizes. The interest rate related to a mortgage or the rent payment typically serve as alternatives to each other," Metsola notes. "Conversely, any potential rise in interest rates could create new upward pressure on rents by increasing the costs associated with financing a home purchase and introducing uncertainty into housing price development," he continues. Currently, the equations of housing do not provide easy answers. Time will reveal which factors ultimately determine the direction of the market. For more information: Timo Metsola, Chairman of the Board, Vuokraturva Oy, p. 041 5280 330 ### Vuokraturva Oy in Brief Vuokraturva is the market leader in rental housing brokerage and investment property acquisition services. Vuokraturva manages the rental portfolios of individuals, institutions, and investment funds related to housing. ## Is there something on your mind? Write to us. Both criticism and praise are welcome. Our customer service will get back to you by email as soon as possible. The information entered in the form will be sent via email to Vuokraturva’s customer service. Read more. # We Take Responsibility for the Environment and Finnish Work ### Vuokraturva has obtained the WWF Green Office certification All of Vuokraturva's units in Helsinki, Turku, and Tampere have been awarded the WWF Green Office certification. WWF's environmental system Green Office encompasses seven themes that have the greatest environmental impact in the workplace. These themes include leadership, communication and engagement, energy and water, procurement, recycling, sorting and cleaning, mobility, and food. Through WWF's Green Office program, companies can reduce their carbon footprint and promote more sustainable use of natural resources. With the WWF Green Office environmental management system, we can accurately assess and consider how our operation affects the environment. According to the WWF Green Office reporting that Vuokraturva has completed, carbon emissions from Vuokraturva's business operations decreased by approximately 23% from 2022 to 2024. When you rent, sell, or buy a property through us, it is an honor for us to provide the service in a manner that values sustainable business principles and develops more environmentally friendly solutions. ### Vuokraturva is a Key Flag company The Association for Finnish Work has awarded Vuokraturva the Key Flag mark as a sign of services produced and employing in Finland. The main criterion for receiving the mark is that the service must be produced in Finland. Companies applying for the Service Key Flag must also have at least a 50% Finnish degree (the proportion of Finnish costs in the service's self-cost value), a significant Finnish ownership share, and management that operates in Finland. Additionally, the company’s headquarters must be located in Finland. ### Vuokraturva has been awarded the Finland's Strongest Platinum certificate The Finland's Strongest certificate is proof of the company's positive financial key figures, creditworthiness, background information, and good payment behavior. The certificate is evidence that Vuokraturva's operations are built on a solid foundation. Companies recognized as Finland's Strongest are economic pillars that strengthen and stabilize our economy. Only 5.5% of Finnish companies are eligible for the Finland's Strongest Platinum certificate. ### Vuokraturva is a major protector of Helsinki Maternity Home rf Helsinki Maternity Home rf is a citizen and child protection organization that supports those expecting children and small families to ensure every child gets a good start in life. The maternity home refers to the companies supporting it as protectors and its major donors as major protectors. ### Vuokraturva has 100 sponsored children around the world through the SOS Children’s Villages sponsorship program Every child has the right to live in a family that cares for them. The best place for a child's upbringing is ideally their own family. However, this is not always possible, and children then need foster care. In SOS Children's Villages, children who have been deprived of their parents' care live with foster parents and siblings, supported by the community. They receive a stable, safe, and caring home and a new chance in life, along with access to education, healthcare, individual support, and therapy, including recovery from trauma. ### Vuokraturva supports the Mental Health program of the Children’s Clinics’ Sponsors rf In Finland, a full 20% of children and young people suffer from some mental disorder. Through the campaign "Kummien Mielen tila," funds are collected to help them. The campaign finances researched treatment methods that effectively address mental disorders. With the support of the sponsors, these methods are spread to make them available for children and young people across Finland. # An efficient apartment sales service at a reasonable price Myyntiturva sells apartments for a fixed and reasonable commission fee. We specialize in the sale of apartments located in limited liability housing companies. We offer a personal and comprehensive sales service. Myyntiturva can take care of everything for you, from start to finish. ## We can sell your apartment for a reasonable commission fee Back in 2012, at the request of its investor clients, Vuokraturva created a straightforward apartment sales service that operated for a fixed commission fee. And that’s how Myyntiturva was born. We are able to offer fixed, reasonable commission fees because a large number of property investors have placed their trust in Myyntiturva. That’s how we can offer extremely competitive fixed commission fees to all of our customers. In addition to the commission fee, customers also pay for a property manager’s certificate pack. Myyntiturva’s fixed commission fees: • One-room apartments €3,300 • Two-room apartments €4,500 • Three-room apartments €5,700 • Larger apartments €8,800 ## We make selling your apartment carefree Myyntiturva will handle the sale of your apartment for you. We serve customers in the Helsinki, Uusimaa, and Tampere areas. Our services include thorough familiarization with the apartment and housing company, estimating the correct asking price, video footage and photos of the apartment, skilled marketing, apartment showing, offer negotiations, drawing up deeds of sale, sale arrangements, and handling the sale either at a bank, at our office, or using the digital Dias service. ## Ready to move things forward? Contact us Get started by calling us on 010 2327 400. Or ask us to get in touch here! We are happy to discuss your apartment and our services, and you are under no obligation to commit to us. The aim is to provide the information you need to be able to make decisions related to selling your apartment. We can also agree on a meeting at the apartment, still without any obligation to commit to us. If you’ve already made your decision, or you have used our services before, we can help very quickly if necessary. ## We value your apartment Our agent will carefully inspect your apartment and propose a suitable asking price for you based on completed sales in the area. Our aim is to value your apartment correctly the first time. Along with our in-depth experience and familiarity with the current market, we apply extensive statistical material to decide on the correct asking price. ## A wide range of marketing In addition to effective online, video and virtual marketing on Oikotie, Etuovi and our website, we also publish apartment listings with pictures in Helsingin Sanomat. We contact the property manager and find out about any upcoming renovations and order the necessary documents on your behalf. We make sure that all of the necessary and required information is presented appropriately in marketing materials. ## Showing your apartment Our agent will show your apartment to potential buyers. In addition to regular apartment showings, we also use plenty of digital tools to show apartments, such as video showings. Prospective buyers can view the apartment in both public showings and in private showings organized for individuals or small groups based on customers’ wishes. We provide potential buyers with personalized service and highlight the best aspects of your apartment. ## Offer negotiations We provide help and advice to interested buyers who wish to make an offer. Meanwhile, we advise you on how best to respond to the offers. ## Sale of the apartment Once an offer has been accepted, we draw up a deed of sale and take care of all the preparations for the sale. The sale can take place either as normal at the bank or at our office, or alternatively, as a fully digital process using the secure Dias service. Our agent will take care of all of the sale arrangements for you. We carefully monitor and ensure the sale complies with laws, decrees, and good brokerage practice. ## We also provide service after the sale You can always contact us; we’re happy to help! Myyntiturva’s help and support don’t end once the deed of sale is signed and keys are handed over. There are many situations in life where it’s nice to be able to ask for a professional’s advice or reassurance. Myyntiturva doesn’t charge extra for this; it’s all included in our services. ## Infokit In this section we have compiled a comprehensive list of useful information for potential sellers. If you don't find what you are looking for, you can also ask our experts. ## Customer reviews Matti Waitinen ★★★★★ Absolutely great service! ✨️🌹👍 Lauri W ★★★★★ I had a pleasant and easy experience with Myyntiturva's real estate broker. The broker communicated openly and honestly about the apartment being sold and took care of all the details related to the sale comprehensively and precisely. The transaction was very smooth and the broker's service gave a trustworthy image of Vuokraturva - Myyntiturva as a company. Jori Kulmala ★★★★★ Professional, good, and reliable service with a strong recommendation to other sellers! Aleksi ★★★★★ Knowledgeable, straightforward, and humane service, which unfortunately isn't a given these days. I’m happy to give praise when it's due – Strong recommendation! Marika Halme ★★★★★ Everything went smoothly; nothing to complain about. Full marks for the work 😀 Thank you! Hannele Cadiroglu ★★★★★ I am 100% satisfied. Everything was handled excellently. I highly recommend. Päivi Tulenheimo ★★★★★ Everything went wonderfully. The rental apartment was found in a day. The old apartment sold for a good price at the first viewing. The commission fee was reasonable. Nothing to complain about. Jari Järvinen ★★★★★ ## Announcements ## Study on Housing-Related Work Benefits and Their Tax Advantages Vuokraturva and the Tenants' Central Association are launching a study on housing-related benefits that companies offer to their employees. The aim is to investigate how well companies utilize the tax advantages of employee housing for both the employee and employer. Additionally, the study seeks to determine whether arranging housing has an impact on the employer's attractiveness or the employee's commitment to their job, based on companies' experiences. The goal of the study, besides data collection, is to present concrete operational models for companies in the final report. An alternative to planned salary reductions could be reducing the employer's personnel costs through employee housing without decreasing the employee's net income. A key reason for initiating this extensive study is the observed lack of knowledge about the benefits of housing benefits during the preparation phase. Car and phone allowances, as well as sports and lunch vouchers, are well-known and their benefits are recognized within companies. Although employee housing is the oldest of in-kind benefits, its financial advantages are often the least understood. "Employers might, for example, mistakenly believe that they need to own properties to offer employee housing. However, this old notion is not true," says Anne Viita, Executive Director of the Tenants' Central Association. Another reason for the poor recognition of housing benefits in companies may stem from the complex presentation of the tax authority's calculation formulas. To assist with this issue, a simple housing benefit calculator has been opened at www.vuokraturva.fi/asuntoetulaskuri. Using the calculator, examples are easy to calculate. For instance, the rent of a 100-square-meter apartment completed in 2009 in southern Helsinki may be around 2000 euros, but the employee only pays tax on a housing benefit of 895 euros. In the same area, the rent for a 25-square-meter studio built in 1970 may be 600 euros, but the taxable value is only 301.50 euros. "It is interesting that international companies, in particular, are currently taking the lead in utilizing modern housing benefits," states Timo Metsola, Chairman of the Board of Vuokraturva. "Arranging a suitable apartment and relocation services are part of the benefits associated with employment, both for international and Finnish employees. This is also a matter of tax planning." Some companies also provide assistance related to purchasing homes for their employees. The scope and prevalence of these home-buying-related benefits will also be investigated. The study is expected to be completed by October 2009. Companies participating in the study will receive a final report that includes anonymized summary data from all participating companies. Additionally, each company will receive specific feedback for its own use. The study will be conducted as a survey and supplemented with interviews. Companies can sign up to participate by contacting Anne Viita, Executive Director of the Tenants' Central Association, via email at anne.viita@vuokralaistenkeskusliitto.fi or by phone at 050 588 3483. Participation in the study is free of charge. ### Press Conference A press conference will be held on Tuesday, April 21, 2009, from 11:00 to 11:30 at Hotel Seurahuone, located at Kaivokatu 12, Helsinki (opposite the railway station). After the conference, there will be an opportunity to take illustrative photos in rental apartments in central Helsinki. The event is open to the media. ### Further Information Anne Viita, Executive Director, Tenants' Central Association, phone 050 588 3483. Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone (09) 6877 550. ### About Vuokraturva Oy Vuokraturva is the market leader in the rental brokerage and investment property acquisition services in the Helsinki metropolitan area. Vuokraturva manages the rental portfolios of private individuals, institutions, and real estate investment funds. www.vuokraturva.fi ## Announcements ## Awareness of Employment-Related Housing Benefits and Their Tax Advantages is Poor in Companies Vuokraturva and the Tenants' Central Association have investigated employment-related housing benefits and awareness of their tax advantages. The study found that very few companies are able to take advantage of the tax benefits that arise from employee housing for both the employee and employer in their personnel strategies. Moreover, housing benefits are rarely seen as tools for attracting or retaining workforce. However, some companies recognize the connection between employee housing and employer attractiveness as well as employee commitment to be significant. This phenomenon is particularly pronounced in the capital region. Company executives are accustomed to international practices where the employer arranges housing if necessary. In low-wage sectors, the difficulty of finding affordable housing increases the value of employment-related housing. "It must be admitted that the result of the study was a bit disappointing for us," says Anne Viita, Executive Director of the Tenants' Central Association. "We were cautiously hopeful that employers would be more enlightened in this matter." Car and phone benefits, as well as sports and lunch vouchers, are common and well-known benefits in companies. Although housing as a benefit is the oldest of the fringe benefits, the study confirmed that its financial advantages are the least recognized. A key reason for the poor awareness of housing benefits in companies is the complexity of the benefit calculation formula. To aid this problem, a simple housing benefit calculator has been launched at www.vuokraturva.fi/asuntoetulaskuri. "Unfortunately, the recession seems to have increased management's prejudiced attitudes towards housing benefits, despite the fact that it could provide tax advantages for both the employer and the employee," notes Timo Metsola, Chairman of the Board of Vuokraturva. For more information: Anne Viita, Executive Director, Tenants' Central Association, p. 050 588 3483 Timo Metsola, Chairman of the Board, Vuokraturva Oy, p. (09) 6877 550 ### Briefly About Vuokraturva Vuokraturva is the market leader in rental apartment brokerage and investment property acquisition services in the capital region. Vuokraturva manages the housing inventory of individuals, institutions, and funds that invest in properties. www.vuokraturva.fi If you are looking for a home or a real estate agent, you have come to the right place. As the market leader in rental brokerage, we serve you reliably and safely, always with a big heart. ### Is it time for a change of home? We help you in finding the home of your dreams. So take a look at our available rental or sales properties and prepare to fall in love. ### Are you looking for a tenant or considering selling? If you need a reliable tenant, we will find one for you. If you're considering selling your apartment at the right price, we will make it happen. Contact us, and we will take care of everything for you – while you can relax. The story of Vuokraturva began in 1998 when Timo Metsola, who worked as a real estate investor, decided to develop a service that he himself would have needed as a private landlord. From its beginnings as a one-man operation, Vuokraturva has become the market leader in the field, employing 100 housing professionals at five locations in Helsinki, Turku, Tampere, Lahti, and Oulu. Myyntiturva is a part of Vuokraturva Oy focused on the sale of apartments, which, unlike most of its competitors, sells apartments at affordable, fixed brokerage fees. If you're looking for a home or a property agent, you've come to the right place. As the market leader in rental brokerage, we serve you reliably and securely, always with a big heart. If you are looking for a home or a real estate agent, you have come to the right place. As the market leader in rental brokerage, we serve you reliably and safely, always with a big heart. ## Blog ## Cuts to Housing Assistance Increase Rent for Cheapest Apartments in Growth Centers Timo Metsola The cuts to general housing assistance that come into effect at the beginning of April will raise rents for many of the cheapest apartments, as the cuts will occur all at once rather than being staggered. Many tenants are trying to move to cheaper accommodations at the same time, complicating the achievement of the cuts' objectives. Large one-time changes in housing assistance increase the need for discretionary social assistance, and therefore the government's total support costs may not necessarily decrease in line with the established savings targets. The goals would be better met if the changes were spread out over several years. The rental market is dynamic and would likely adjust quite well to changes if implemented gradually over multiple years. The problem with rapid changes is that, in privately funded apartments, rental levels are determined by supply and demand. This year's spike in demand for the cheapest apartments in growth centers will inevitably drive up their rents. Thus, a tenant affected by the subsidy cuts may not be able to avoid an increase in their own contribution, despite moving to a more modest apartment. If the changes to assistance occurred gradually over several years, this could be managed more effectively. For individual recipients of housing assistance, the cuts will be felt gradually between April of this year and March of next year, as Kela (the Finnish social insurance institution) evaluates housing assistance once a year, assuming other circumstances remain unchanged. When changes in support occur for an individual depends on the month in which their support is reviewed. However, it is already evident that some tenants are anticipating the change by taking action early. Therefore, the effects of the changes may be clearly visible in the rental market as early as spring and early summer. ## Housing Assistance is a Complicated Support System Because It Affects Rent Levels Housing assistance is problematic in terms of support, as it inevitably undermines its own effectiveness. Providing support for the ability to pay rent allows for rent increases, which makes the situation more difficult for those who pay their rent entirely out of their own pockets. At the same time, the number of people needing housing assistance grows. The return of housing assistance recipients to a situation where they would pay their rent entirely themselves becomes more difficult. At the end of last year, around 400,000 households living in rental apartments received general housing assistance. Over the past 15 years, the total amount of housing assistance has increased annually from approximately 1.2 billion to about 2.2 billion. Theoretically, this equation is not easy. Housing assistance has become a central market element in Finnish rental markets, in a way that the rental market would not function in its current form without it. ## How Housing Assistance Raises Rents and How It Doesn't Housing assistance does not directly change the rents of individual apartments. There is broad consensus on this. The rental prices of privately funded apartments are determined based on the condition of the apartment, its other features, and the general rental level in the area. The rent of an individual apartment does not change based on whether the tenant receives housing assistance or how much they receive. In 2017, VATT also clarified that housing assistance does not raise the rent of an individual apartment, whether similar apartments have one tenant receiving assistance and another not. The study confirmed that it does not raise rents, as they are primarily determined by the typical rent levels in the area. Housing assistance raises the general rental level when it increases the paying ability of a large group of tenants. There is also broad consensus in the market on this, but it has not been studied in depth. VATT concluded in 2017 that the results do not demonstrate whether the housing assistance system raises overall rental levels. Currently, approximately 60 percent of all renters receive housing assistance, leading to an increase in the general rental level. About 850,000 Finns belong to households receiving housing assistance. This number represents 15 percent of the population and around 60% of those living in rented apartments, as around 25% of the population lives in rented accommodations. In the current situation, housing assistance excessively undermines its own effectiveness. From a societal perspective, the situation is not optimal. The housing assistance system has grown to be an automatic process that systematically supports tenants' paying capacity, affecting the entire market by raising rents, and has become one of the central market mechanisms. ## How Many Could Receive Housing Assistance Without Raising Rent Levels In my estimate, a maximum of one-fifth of households living in rental accommodations in each area could receive housing assistance without its impact on overall rent levels being significant. The current national average is just over 40% of households. As the number of housing assistance recipients increases and therefore rent levels rise, the number of people needing housing assistance also grows. This is contrary to the fundamental goals of housing assistance. ## What Adjustment Could Work Best For housing assistance to provide more real benefits to others besides landlords, the number of beneficiaries should gradually be reduced, and the amount of support should be cut. This gradual process should be planned and carried out without drastic changes, similar to how the tax deduction for loan interest was previously handled. This way, part of the change would not be undermined by the rapid increase in demand for cheaper apartments leading to subsequent rent increases. ## Eliminating Housing Assistance for Homeowners Should Be Reconsidered With the removal of the mortgage interest deduction, the significance and justification for housing assistance provided to homeowners have increased, which should have been carefully considered when contemplating its elimination. The risk of altering the situation for those affected in a way contrary to societal interest is significant. The potential benefits of the change would require closer examination. I cannot see them with my own expertise, and the change feels like a phantom savings, whose actual consequences would be harmful to all parties. The entire measure seems rushed and appears to be a mistake whose impacts were not fully explored within a tight timeline. Even the theoretical maximum cost savings would necessarily be modest, as housing assistance for homeowners accounts for less than 10% of the current total housing assistance costs. Fewer than 19,000 households have received this support. However, the costs to society caused by this relatively large group are likely to rise due to the change and the consequent movement to rental accommodations for many. The problematic points concerning the removal of housing assistance for homeowners include at least the following: - The need for support would not likely decrease, nor would the right to housing assistance (for renters) end. - With the effective date set for the beginning of next year, selling a home is challenging for many, as the housing market is weak nationwide, and in many rural areas, it is dire. Property values are often low in forced sales, and if there is still debt on the home, the current market prices in rural areas may be less than the remaining mortgage amount. - Typical sales times currently range from several months to several years, if the property sells at all. Costs do not end once the sale process begins. - The need for discretionary social assistance for this small group of fewer than 19,000 households will inevitably increase. Additionally, there will be payment defaults that complicate obtaining rental housing. - The human cost (especially for the elderly) may be high, and the benefits gained may still be negative. ## Is It Wrong to Pay Housing Assistance for Homeownership Targeting housing assistance at low-income and disadvantaged individuals is not in conflict with the notion that housing assistance can be received for ownership as well, as many low-income and disadvantaged people live in owner-occupied housing all over Finland. In a geographically large area of Finland, old owner-occupied homes may have little resale value but significant utility value. They provide a roof over one’s head. From the perspective of society’s support needs, the situation can be quite optimal. Tightening the conditions for housing assistance paid for homeownership could help to achieve the savings that the complete elimination of housing assistance for homeownership aims for, but which are unlikely to be realized. I also believe it is crucial to keep open the pathway to homeownership for young adults who are aspiring to it, even if they encounter temporary financial difficulties. Such opportunities are beneficial for society in the long run. It should also be noted that this element of housing assistance for homeownership is what justifies the term "general housing assistance" instead of "rental support" or "rental housing assistance." ## Ongoing Discussion is Necessary – and the Reasonableness of Solutions Can Still Be Considered Open discussion is needed about both the necessity of reducing housing assistance costs and the importance of properly timing changes. It is crucial to address the effect of sudden increases in demand on rent prices for the cheaper accommodations where many people should currently be able to move due to the upcoming changes in support. I have also presented these views in previous expert hearings during government negotiations last spring and in expert hearings with the parliamentary committee on social affairs and health in November. I believe public discussion on this topic has so far been overly limited and too narrow. Given Finland's economic sustainability gap, this is unlikely to be the only time during this decade that the terms of housing assistance will be tightened. With better phased timing for changes, this initial process could proceed in such a way that this year does not become chaotic but rather a successful start to a predictable multi-phase process over election terms. The housing market and people will adapt if given enough time. Timo Metsola Chairman of the Board, Vuokraturva ## Blog ## Housing Support Undermines Its Own Effectiveness The rise in housing support expenses is one of the significant challenges in the housing market and social policy, although economic growth has somewhat alleviated the situation recently. Housing support is problematic because it undermines its own effectiveness. The growth in housing support payments allows for a certain relative share to exceed rent increases, which, in turn, increases the number of people needing housing support. To consider the fundamental effects of housing support, one might entertain the thought experiment of what would happen if housing support were completely abolished. Although such a radical change might not be wise in real life, this line of thinking reveals much about the often misunderstood or rarely acknowledged nature and impacts of housing support. What would happen if housing support were removed entirely? Clearly, some individuals would lose their rental homes unless, for example, discretionary social assistance were provided to compensate for the change. However, even in that case, most recipients of housing support would not lose their rental homes. Nor would their apartments remain vacant without tenants. Such a scenario would not be in anyone's interest. Rent levels would adjust to the changed affordability of tenants, meaning they would likely decrease. Even if housing support were abolished, people would still need homes. And homes would still need tenants. Renting out apartments would not cease, although it might temporarily decrease due to the drop in revenues. Housing support is ineffective in that, in most cases, it does not reduce housing costs for tenants. As a result of housing support, tenants can afford to pay higher rents in desirable areas, and the benefit largely accrues to landlords. Support granted on an individual basis, such as discretionary social assistance, can genuinely help the recipient. But the current massive housing support system is structured as an automatic mechanism that systematically bolsters tenants' payment ability, affecting the entire market and driving up rents. This is already reflected in discussions among real estate investors who view the housing support system as a guarantee for their own returns. At the end of last year, 850,000 Finns were receiving housing support. The situation is unsustainable. This comprises 15 percent of the population, whereas approximately 25 percent of residents are renters. Supporting such a large group undermines the entire concept of the support and siphons off most of its benefits. Rent levels are always determined by the balance of demand, supply, and tenants' payment ability. Around one in five tenants in a specific area can receive support for their housing without having a clear upward impact on the area’s rent levels. If there are more recipients of support, the benefits start to inflate rents. The current situation, where about 60 percent of all rental residents receive housing support, has led to a noticeable increase in general rent levels. The Finnish Economic Research Institute (VATT) investigated in 2017 whether housing support raises the rent of a particular apartment when two similar apartments have one tenant receiving support and the other not. The finding was that it does not raise rents, as rents are primarily based on the typical rent level of the area. This insight complicated news coverage of the topic for quite some time. Researchers themselves noted in their announcement that they had not studied whether the housing support system raises overall rent levels, leading to results that contradicted previous Finnish studies, which indicated that differences in housing support significantly affect rents. Such confusion surrounding the topic also seemed to bewilder political decision-makers, which was unfortunate. What is, in principle, quite evident was likely obscured by what was apparently a slightly flawed framing of the question. What should be done? To obtain more benefit from housing support, the number of beneficiaries should be systematically reduced, and the amount of support should be cut back. This should be done gradually yet decisively, somewhat akin to how the tax deductibility of housing loans has been handled. The current path of inflating housing support has run its course because the inflationary effect of housing support on rents has become the primary reason for the necessity of housing support. A perpetual motion machine has been created, which is effectively funded by taxpayers' wallets. Timo Metsola Chairman of the Board Vuokraturva # Efficient Brokerage Service at a Reasonable Price Myyntiturva sells properties with low fixed brokerage fees. We specialize in the sale of apartments in housing corporations. We offer personal and comprehensive brokerage services. We handle everything for you from start to finish. ## We Sell Your Apartment with Affordable Brokerage Fees Vuokraturva established Myyntiturva in 2012 at the request of its investor clients for a straightforward property sales brokerage service with fixed brokerage fees. This gave rise to Myyntiturva. Affordable fixed brokerage fees are possible because a large number of real estate investors trust Myyntiturva. This allows us to offer exceptionally competitive fixed fees to all our clients. In addition to the fee, there will be costs for the property management certificate package. Myyntiturva's fixed brokerage fees: • Studios €3,300 • One-bedroom apartments €4,500 • Two-bedroom apartments €5,700 • Larger apartments €8,800 ## We Make Selling Your Apartment Easy Myyntiturva takes care of the sale of your apartment on your behalf. We serve you in the Helsinki, Uusimaa, and Tampere areas. Our services include a careful familiarization with the property and housing company, assessment of the right asking price, photo and video shooting of the apartment, skilled marketing, showcasing the property, negotiation of offers, drafting the sales contract, arrangements for the sale, and handling the transaction either at the bank, in our office, or electronically via the Dias service. ## How Things Progress Contact us You can start by calling 010 2327 400. Or leave a contact request here! We are happy to discuss your apartment with you and tell you about our sales services without any commitment on your part. The aim is to provide information upon which you can consider decisions related to selling your apartment. We can also arrange a meeting at the property so that you still have no commitment. If your decision is already made, or if you have used our services before, prompt action can be arranged if necessary. We Price Your Apartment Our broker will carefully examine your apartment and suggest an appropriate price based on completed transactions in the area. Our goal is to price your apartment correctly the first time. The right asking price is agreed upon with you by leveraging our long experience, up-to-date market insight, and extensive statistical data. We Market Widely In addition to marketing on Oikotie, Etuovi, and our websites, we also advertise properties with visual advertisements in Helsingin Sanomat. We will be in touch with the property manager and investigate upcoming renovations, as well as order the necessary documents on your behalf. We ensure that all necessary and required information is appropriately presented in the marketing. Showcasing Your Apartment Our brokers will showcase your apartment to potential buyers. In addition to standard property viewings, we also make extensive use of effective electronic presentation methods such as video presentations. We will present the apartment in both public showings and at private or small group showings arranged based on customer requests. We provide personal service to prospective buyers and highlight the best features of your property. Offer Negotiations We assist and advise interested buyers in making offers. We will also advise you to the best of our ability in responding to offers. Offer negotiations are conducted carefully and professionally. The making and acceptance of offers is fully electronic. Successful offer negotiations are one of the most important and demanding phases of the brokerage process. Real Estate Transactions Once the offer is accepted, we will draft the sales contract and take care of all the preparations for the sale. Transactions can be conducted either in the traditional manner at the bank's office or at our office, and alternatively, fully electronically via the Dias service. Our broker takes care of all arrangements for the sale on your behalf. We monitor and ensure that the sale proceeds in accordance with laws, regulations, and good brokerage practice. We Also Serve Afterwards You can always contact us, and we are happy to help! The support and assistance provided by Myyntiturva does not end with signing the sales contract and handing over the keys. Life can present various situations where it is nice to be able to ask a professional for advice or to confirm something. Myyntiturva does not charge separately for this; it is included in our service. ## Seller's Knowledge Base In this section, we have gathered extensive useful information for you who are planning to sell your apartment. If you can’t find what you are looking for, you can also contact us and ask for more from our experts. ## Customer Reviews Matti Waitinen ★★★★★ Really great service! ✨️🌹👍 Lauri W ★★★★★ It was pleasant and easy to work with Myyntiturva's real estate agent. The agent was open and honest about the property for sale and handled all the details related to the sale very thoroughly and precisely. The transaction went very smoothly, and the way the agent served gave a trustworthy impression of Vuokraturva - Myyntiturva as a company. Jori Kulmala ★★★★★ Professional, good, and reliable service which I strongly recommend to other sellers! Aleksi 2 years 1 month ago ★★★★★ Expert, straightforward, and humane service, which unfortunately is not self-evident today. I am happy to give praise when it's warranted – Strong recommendation! Marika Halme ★★★★★ Everything went smoothly; I have nothing to complain about. Full marks for the work! 😀 Thank you. Hannele Cadiroglu ★★★★★ I am 100% satisfied. Everything was handled excellently. I warmly recommend it. Päivi Tulenheimo ★★★★★ Everything went beautifully. The rental apartment was found in a day. The old apartment sold for a good price at the first showing. The brokerage fee was reasonable. No complaints at all. Jari Järvinen ★★★★★ Professional brokerage service in the brokerage agreement and drafting of marketing materials and transaction documents. ## Blog ## Tax Deduction for Loss on Sale of Property in Depopulating Areas A new solution for labor mobility – tax-free income for several years for low-income individuals. Moving for work from declining areas would become significantly more attractive if one could deduct the loss from the sale of their property against future earned income as a deficit compensation. Society would benefit from an increase in the employment rate. Additionally, more people would dare to buy a property in the area they are moving to if they could receive a tax deduction for potential sales losses should they later need to move elsewhere for work. This would help prevent a complete stagnation of the housing market in declining areas and thus stimulate the housing market in these areas. The right to a tax deduction against future earned income could be established by an advance ruling from the tax authority sought before the sale of the property. The tax authority would assess on a case-by-case basis whether the conditions are met. Specifically, does the area meet the criteria for a depopulating area, and can employment be deemed to require relocation? If the criteria are met, a low-income individual moving for work could receive several years' worth of income tax-free. A middle-income individual, depending on the size of the loss from the sale, could also receive a year's worth of income tax-free. President Sauli Niinistö suggested on January 25, 2018, financial support for owners of properties losing value. Timo Metsola, CEO of Vuokraturva, proposed on January 27, 2018, a scrappage fee for properties in depopulating areas. This proposal is an alternative solution to the same challenging problem. Jaakko Sinnemaa CEO, Asuntosalkku Oy and Asuntoturva Oy, 041 5280 329, jaakko.sinnemaa@asuntosalkut.fi Through our property portfolios, we own nearly two thousand apartments in the Helsinki metropolitan area, surrounding municipalities, Tampere, Turku, Lahti, and Tallinn. Our properties are located in nearly 800 different residential companies and properties. Asuntosalkku Eesti Oy invests in apartments in Tallinn, and we are the largest market-based landlord in Estonia. Our balance sheet size is approximately 185 million euros. ## Blog ## The Value of Apartments is Becoming Like That of Used Cars – Prices Will Often No Longer Rise Over Time but Rather Decrease The economic miracle in Finland after the wars and the liberalization of loan markets that began in the 1980s led to a long period of rising apartment prices throughout the country. It gave rise to an almost taken-for-granted phenomenon, where homeowners became wealthier as they lived, with the value of their homes increasing decade after decade. This trend was disrupted in the last decade in areas with small population losses, which had still enjoyed the same rise in apartment prices as the rest of the country during the recovery from the recession in the 1990s. In the current decade, real apartment prices began to slowly decline in most medium-sized cities as well. The turning point occurred in 2010. The reason for this development can also be traced to urbanization, which has increasingly drawn people from medium-sized cities to larger growth centers throughout this decade. At least half of Finnish apartments are located in areas where the prices of used apartments may never rise again. Banking regulations related to Basel IV will partly strengthen this trend, as it will become increasingly difficult for banks to lend against properties in declining areas. In the future, homeownership may only yield profits in areas experiencing population growth. Outside these growth centers, apartments must be viewed similarly to cars. They have utility value and usually some resale value, but the longer they are used, the lower their value tends to drop. It is not surprising that the value of properties that become older and more used decreases. This is how value development tends to go with almost all other things. However, in Finland, homeownership has traditionally been thought of as a form of wealth preservation, a safety net in old age, and an inheritance for children. Unfortunately, this notion now needs to be updated in a large part of Finland. Timo Metsola Chairman of the Board Vuokraturva # Blog ## Housing Issues as a Theme for Municipal Elections Housing-related issues affect all residents and are central to municipal-level politics. For representative democracy to function in municipalities, housing policy lines must also be election themes. Politicians should have the courage to tackle difficult subjects and not leave them solely to bureaucrats. In a functioning democracy, one of the essentials is that voters can learn about different candidates' positions on key issues. For the past few years, the issues surrounding homeownership and rental housing have been discussed extensively in the media. However, the political side has remained passive, with remarks primarily coming from the housing minister, and other statements being vague, mainly referenced in various ceremonial speeches. Comments have been generic and mostly point to the general importance of the issue. A situation has emerged where individual parties, or perhaps the left, center, and right, have not presented their distinct views on proper housing policy, preventing voters from choosing whose political agenda they support. Unquestioned consensus politics means a shift in power from the people to bureaucrats. What could the election themes related to housing be? - The construction of small apartments should not be unduly restricted. To ensure an adequate supply of small and affordable housing, entities other than student housing foundations should also be able to build buildings focused on small apartments, such as studios. Small affordable apartments are needed by more than just students. - Overly strict regulations that raise housing costs should be rationalized. For example, an accessible toilet (inva-wc) should not need to be constructed in every unit of a new apartment building; it should suffice to have accessible toilets in at least 30 percent of the units. - The zoning of residential lots should be promptly increased in areas beyond costly waterfront locales. - Vacant commercial and industrial spaces that have become outdated compared to their original purpose should be allowed to be converted into apartments with greater flexibility than currently permitted. - Social services should more broadly consider the effects of rising housing costs in their decisions regarding social assistance. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Real Estate Investment Funds Available to Everyone Asuntoturva brings real estate investment funds within reach of ordinary small investors for the first time. This goal has previously been pursued by three different real estate fund laws enacted in various years, all of which have ultimately proven unsuccessful. The current real estate funds require a minimum investment ranging from one hundred thousand euros to several million euros, and, due to their legal structure, only professional investors have been allowed to invest in them. Asuntoturva's new product is available for sale to everyone, with a minimum investment of two thousand euros. Mandatum Life serves as the distributor. Real estate investment funds have been discussed for 15 years, but with little success. The first real estate fund law was established in Finland in 1997, followed by a second in 2007 and a third attempt in 2009. However, these laws have poorly met market needs, and not a single fund has emerged from them. Certain groups of professional large investors have created real estate investment funds in the form of limited partnerships in recent years. The structure of these small-circle funds requires large minimum investments and complex structures. The collaboration between Asuntoturva and the life insurance company Mandatum Life makes it possible to invest much more flexibly in a portfolio format. Anyone can invest, with a minimum investment of 2,000 euros. Until now, individuals had to buy an entire apartment if they wanted to become real estate investors. Individuals also had to act as landlords, which imposed direct legal obligations towards tenants. Investing required effort, knowledge, and included the risk of having to resolve issues with tenants. In the worst cases, disputes over rent could end up in court. Now, the fund-based real estate investment available to ordinary people allows for smaller investments to be made easily without any specific expertise. The investment achieves good diversification because it is not restricted to a single specific property but rather encompasses all the apartments owned by the fund. Additionally, Vuokraturva's professionals manage the search and rental of the investment properties. Individuals can sell their apartments to the Quorum Asuntoturva III Ky fund without a brokerage fee through Vuokraturva. For more information Jaakko Sinnemaa, CEO, Asuntoturva Oy, p. 041 5280 329 Asuntoturva Oy in brief Asuntoturva is an asset management company for fund-based real estate investments. Our funds have institutional investors, businesses, and private individuals as investors. Our goal is to become Finland's largest owner of privately financed housing by 2015. Asuntoturva is part of the same corporate group as Vuokraturva and leverages Vuokraturva's expertise in its operations. Asuntoturva's mission is to make real estate investing easier and more profitable in Finland. www.asuntoturva.fi ## Blog ## A Fatal Flaw in Real Estate Investment Funds – A Legislative Error The obligation to redeem fund units arising from the Special Investment Funds Act could potentially collapse an entire housing fund even in a relatively minor market disruption. Why is this the case, and does it apply to all housing funds? The publicly listed Orava Housing Fund has faced one challenge after another in recent years. The stock price has plummeted significantly, but a decline in the share price does not mean that the company must sell its property assets. Since the fund itself is not obligated to redeem its own shares, investor flight does not result in capital flight, meaning the company can continue its operations despite difficulties. If an investor wants to get rid of their Orava shares, they sell them to another investor at whatever price they can obtain. This situation does not have a direct impact on the company's operational activities. Such an arrangement does not turn a bad business into a good one, but at least the fund does not collapse immediately. In special investment funds, the situation is completely different. In a special investment fund, the fund itself must return the investor's share if the investor wants to exit. Therefore, investor flight automatically leads to capital flight and, consequently, a rapid need to liquidate properties — potentially at an unfavorable time for the housing market. High redemption fees and temporary suspensions of redemptions are means to combat this, but in practical situations, they can ultimately only accelerate capital flight through erosion of trust. Thus, a special investment fund can collapse significantly easier compared to a fund that does not have a redemption obligation. I discuss this problem more extensively in my blog from last February: https://www.vuokraturva.fi/medialle/blogi/asuntorahastoihin-sijoittanut-saa-rahansa-takaisin-vain-jos-niita-pyytaa The key point to understand is that Orava has, despite all its difficulties, managed to stay afloat precisely because it does not have to redeem investors, as it is a publicly listed REIT fund, not a special investment fund. However, most of the funds favored by private investors do not have this advantage, as they are specifically special investment funds. The situation in the Swedish housing market and the priority given to unrealized returns in the dividend distribution of many special investment funds paint a future outlook where the risks concerning the stability of these funds must be considered very carefully. The problem stems directly from the law governing special investment funds. These structural flaws are very familiar to us; in fact, they have been known for a decade. The government proposal concerning the special investment fund law from 2008 states: “Aktia Fund Management Company Ltd has announced that it will, together with the rental brokerage company Vuokraturva Ltd and its sister company Asuntoturva Ltd, establish a special investment fund under the investment fund law, which will invest in the Finnish rental housing market. According to the operators, the fund is expected to enter the market in late 2008. Aktia will act as the distribution channel for the project.” http://www.finlex.fi/fi/esitykset/he/2008/20080175 At the beginning of 2007, we announced that we would bring the first-ever special investment fund investing in housing to the market in Finland. At the beginning of 2008, we withdrew from the plan because we discovered in our calculations that the redemption requirement could collapse a special investment fund even with a relatively small market disruption. Understandably, we were very pleased with this decision in the fall of 2008. Alarmingly, current special investment funds investing in housing do not seem to recognize or at least acknowledge the problem at all. The core issue is that the redemption obligation can easily lead to the collapse of a special investment fund during a market disruption, especially when the liquidity of the investment assets is not immediate. This represents a structural weakness introduced by legislation concerning special investment funds, which I consider important to rectify for the future. Until that happens, there are other options for the legal form of housing funds. Indeed, housing funds are a very necessary component of the Finnish housing market. We ourselves created Finland's very first private investor housing fund in 2007, and that Asuntoturva fund was established as a limited partnership without redemption obligations. All our funds under Asuntoturva and Asuntosalkku have been set up as completely ordinary limited partnerships or limited liability companies without redemption obligations. These have performed quite well throughout their history since 2007, even though they have faced challenges such as the financial crisis of 2008. According to regulations, in order to participate, an investor's investment assets must, among other requirements, be at least half a million. Therefore, they unfortunately do not cater to small investors – ironically precisely because of the absence of the redemption obligation. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Housing prices in Finland could drop relatively quickly by 10–20% According to Vuokraturva's assessment, there is a 50 percent probability that housing prices in Finland will fall by 10–20 percent within the next year. An alternative scenario, with a probability of 40 percent, is that exceptionally low interest rates may prevent a substantial drop in housing prices, allowing prices to decrease more moderately or remain at current levels. A rise in housing prices does not seem likely in the coming year. Only a surge in inflation could lead to a significant increase in nominal housing prices. Our assessment puts the probability of this scenario at 10 percent. However, even in this scenario, real housing prices may not necessarily rise. Vuokraturva justifies its assessment with the following factors: 1. Exceptionally low interest rates tied to short-term market rates have significantly and quickly affected housing prices in Finland since January 2009. The European Central Bank highlighted this issue in its stability report back in May 2010. Since then, the development has continued. In the housing market, signs of a bubble are easy to see. One signal that price levels may have peaked is the current slowdown in housing transactions, despite historically low interest rates that are now on the decline. This indicates that housing prices may have reached a critical point, which low interest rates alone can no longer support, especially given the overall stagnation of economic outlooks. 2. Consumer confidence in the economy collapsed in August. The consumer confidence index calculated by Statistics Finland, which was at 21.9 last August, plummeted to 5.1 in August. It was still at 11.3 in July. Consumer confidence in the economy also fell in August across the EU and in the United States. The level of housing prices is not primarily based on rational factors; the most significant factor is consumer confidence in both personal finances and the overall economic situation. The sharp drop in confidence does not bode well for housing transactions. 3. Interest rates remain very low, which has a strong supportive effect on housing prices. If the 12-month Euribor were to rise to 6 percent, even then the interest rates on mortgages would still be below the average levels of the past 30 years, and housing prices would immediately begin to plunge uncontrollably. However, the 12-month Euribor is currently around 2 percent, and keeping borrowing costs under control may even prevent a decline in housing prices over the next year. The greatest threat to housing prices is a credit crunch, which, if it occurred, could lead to an immediate collapse in housing prices. Fortunately, the likelihood of a credit crunch remains low. Regardless of which scenario materializes, it is clear that there will still be significant regional differences in the development of housing prices. Renting as a safety valve in the housing market The sentiments in the housing market versus the rental market are almost entirely opposite. While the housing market is suffering from economic uncertainty and tightening lending conditions, leading to an oversupply of properties, the rental market is experiencing a housing shortage and excess demand. Why have rents risen at the end of the summer while demand for owner-occupied housing has decreased, and what accounts for these contrasting sentiments? In commercial real estate, prices and rents often move in the same direction. Why then do housing prices and rents develop so inconsistently? Firstly, housing is a basic need. People need to have a home regardless of whether times are good or bad, and an economic downturn does not diminish the need for housing and occupancy rates in the same way it affects commercial spaces. Secondly, taking out a mortgage and paying rent are direct alternatives to each other. When general sentiment makes people fearful of large mortgages, the rental market tends to be bustling. The basic logic here is quite simple. From this seesaw-like connection, it follows that during times when selling a home is challenging, assistance can often be found in the rental market. Those caught with two properties may find relief by renting out their unsold property, effectively buying time for the sale of the property. Un-sold properties and the rental housing shortage are problems that hold solutions for each other. Increasingly, sellers have grown weary of paying mortgage interest and fees on properties that have been for sale for a long time and have chosen to rent out their properties for at least a few years. In the rental market, family homes are now also available alongside smaller apartments. Some sellers believe that the low interest rates will eventually revive the housing market, making renting out their property a more sensible choice than reducing their asking price. On the other hand, some believe it is best to sell now at any price because soon the property may not fetch any price at all. The end of summer has been turbulent in the economy, raising concerns and fears that have also surfaced in the housing market. Every new property is, of course, a welcome relief to the rental market. Building new homes is a slow way to alleviate the rental housing shortage, but a broader shift of unsold properties to the rental market could speed up relief for the excess demand. Old stereotypes have been broken. Now, families, previously cautious due to economic uncertainty, are also searching for suitable rental housing, having previously sold their owned homes but not wanting to buy a new one just yet. Living in a rental is therefore not always a choice imposed by necessity. It can also be a conscious decision. Even if the necessary funds to purchase a home are available, the purchase may not be desired at this time. ADDITIONAL INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva Oy, p. (09) 6877 550 VUOKRATURVA OY IN BRIEF Vuokraturva is the market leader in rental housing brokerage and investment property acquisition services. Vuokraturva manages properties owned by private individuals, institutions, and investment funds specializing in real estate. ## Blog ## The Good and the Bad in Housing Prices Will Become Clear Next Spring So far, real estate transactions have largely gone something like this: a potential buyer asks if the building is scheduled for any renovations. The seller or agent replies that there are no decided renovations planned for the building. The buyer might be satisfied with this answer, but technically the seller didn't answer the question. Up until now, sellers could often feign ignorance about renovation needs that had not yet received a decision from the homeowners' meeting. This was despite the fact that a decision might be made at the next meeting, and the renovation could start within a couple of years. Certainly, experienced buyers have been digging deeper into the condition of the housing company. However, from a pricing perspective, it has been crucial that there has almost always been a naive buyer willing to purchase the property at a high price without considering renovation prospects. This has kept the price level high even in poorly maintained housing companies and created an irrationally small price difference between renovated properties and those in poor condition. Legislators came to the rescue when the new housing company law came into effect in July. The law requires the housing company to prepare a long-term renovation plan by the next homeowners' meeting. In practice, this involves a combination of a condition assessment and a related long-term maintenance plan (PTS). From these documents, buyers will gain an objective view of the remaining technical lifespan of various building components, renovation needs, indicative timelines for repairs, and expected costs. This information package will likely be quite a cold shower for many prospective buyers after the spring homeowners' meetings. Especially since the renovation needs outlined in these assessments are typically not rounded down. Current homeowners may also face shocks if rosy pictures of property conditions are shattered. Estimates of future renovation costs may scare multiple shareholders as the spring approaches, which could increase the supply of used properties on the market. If this happens, it could exert downward pressure on the prices of properties in poorly maintained housing companies. On the other hand, the change may have a positive impact on the prices of well-maintained, renovated housing company properties. As the good becomes clear from the bad and the true condition of the companies increasingly reflects in sales prices, those selling properties in well-maintained companies may find themselves as the winners in this comparison. Until now, the good condition of the housing company has not always been given its due value in sale prices. The upcoming change is a positive development for the housing market. It will increase the transparency of housing prices. Purchasing a home is famously one of the single largest financial decisions in a regular person’s life. The housing market does not need unpleasant surprises or underhanded dealings, but rather openness and pricing that is as closely based on the true values of properties as possible. Timo Metsola Chairman of the Board Vuokraturva ## Bulletins ## Statistics on Housing Prices and Rents are a Tough Nut for News Outlets When new statistics concerning housing prices or rents are released, confused consumers are almost invariably met with completely contradictory reporting on the same statistics. There are deficiencies within the statistics themselves, such as inaccuracies and lagging information, but the contradictions in reporting make it much more difficult to grasp the market situation. This problem makes it nearly impossible to detect market turning points quickly, allowing a small insider group within the housing market to benefit from their real-time information. Even reputable media outlets' conflicting and even opposite news regarding housing statistics leave the average citizen perplexed. When one source claims that housing prices or rents increased while another says they decreased, one saying significantly and the other slightly, it's understandable that the average person is confused. The differences are explained by what time period is being compared and to what. However, since information on the sources of comparison is often inadequately conveyed or entirely omitted, even the most attentive consumer cannot pick out the most relevant information from the news stream without digging into the statistics themselves. Often, for instance, annual statistics from the previous year are reported in the spring as if they were current market information. In late summer, spring data is reported and headlined as if it were the latest developments at that time. For example, based on the rent statistics published last Friday for the second quarter, one could correctly state that the rents of privately funded apartments in the capital region rose by only 2.1 percent over the year until spring. Alternatively, one could also correctly state based on the same statistics that these very same rents rose by 3.4 percent during the last quarter alone, which equates to an annual change rate of over 14 percent. Obtaining a correct overall picture requires both of these pieces of information and likely also a brief remark that rents first dropped during the year and then clearly rose in the spring. Otherwise, the market turn remains unclear. A more exaggerated example can be observed in the development of rents in Helsinki's city center at the beginning of the year. In the first quarter, rents in the center actually fell by 6.4 percent in just one quarter, corresponding to an annual rate of 28 percent. After this market reversal, the increase was even steeper in the second quarter, with an increase of 8.7 percent occurring in just one quarter, which equates to an annual change rate of 39 percent. Such significant figures should be approached with caution. However, since market observations support the statistical data, and for example, Vuokraturva reported in real-time before the statistics were released that rents had initially decreased (Helsingin Sanomat, January 3, 2010) and then sharply turned upward in the spring (Helsingin Sanomat, May 7, 2010), selecting and reporting the statistical information confirming the reversals in retrospective news provides the news follower with more and more accurate information than merely stating, in itself correct, that the rents of privately funded apartments in Helsinki's city center increased by 7.1% according to the latest quarterly statistics. The unclear and contradictory reporting of statistical information gives considerable influence to real estate agents, banks, and other interest groups linked to the housing market, including Vuokraturva. Some of the information they provide is sincere, and some is intentionally framed in one way or another. This does not serve the consumer's interest and does not promote the prevention of excesses and fluctuations in the housing market. ### Additional Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 ### About Vuokraturva Oy Vuokraturva is the market leader in apartment rental brokerage and investment property acquisition services. Vuokraturva manages the housing inventory for private individuals, institutions, and funds investing in housing. www.vuokraturva.fi ## Blog ## The Rise in Property Prices has Resulted in Absurd Percentage-Based Commission Fees for Real Estate Agents Real estate agents handling the sales of apartments typically charge a certain percentage of the final sale price as their commission. The long-standing upward trend in property prices has elevated commissions to a level that often bears no relation to the amount of work performed. For example, in Kallio, Helsinki, the typical commission for a 35-square-meter one-bedroom apartment is consistently over €7,000, even though the apartment may sell after just a few viewings or sometimes even before a single viewing takes place. The commission for a similarly sized apartment is over €6,000 across the board, regardless of whether it is located in Kivenlahti, Espoo, or Kaivoksela, Vantaa. This is not just a problem confined to downtown Helsinki. At Vuokraturva, we became frustrated by the exploitation of our clients with investment properties at the end of 2009. Since price competition did not seem to be working at all, we decided to start selling our clients' one-bedroom apartments for a flat fee of €2,000 plus VAT, regardless of size or sale price. Even with this fixed fee of €2,460, we have managed to achieve around a 20% profit margin from this operation. We have also reached a similar profit margin of about 20% on two-bedroom apartments, for which the fixed commission is €3,690 including VAT. For example, the typical commission for a 55-square-meter two-bedroom apartment in Viikki, Helsinki, or Kilo, Espoo, is over €10,000, and in Myyrmäki, Vantaa, it's around €8,000. Initially, we charged the same commission for two-bedrooms as we did for one-bedrooms, but we realized that level was insufficient to cover expenses. With the slightly higher flat fee of €3,690, it became economically viable to sell two-bedroom apartments as well. I believe this is a good and concrete demonstration of what a healthy commission level should look like. It's important to remember that Vuokraturva's main businesses are rental brokerage and management of real estate investments. Thus, one would think that operators specializing purely in real estate brokerage could easily achieve the same with ease. We have not only sold properties for our long-term clients but for anyone looking to sell their apartment. And the content of our brokerage service is exactly the same as for others, so that can't be used as an excuse. Interestingly, even real estate agents working in the industry have used our services to sell their own properties. What is not amusing, however, is that our goal to lower the general level of brokerage commissions has not succeeded at all. On the contrary, since the end of 2009, both property prices and thus percentage-based commissions have risen considerably. This frustrates us, especially since we are continuously purchasing apartments for private individuals and funds that are our clients. The high fees paid by sellers to their brokers reduce trading activity in the housing market, much like all unhealthy transaction costs. In this situation, we are attempting to kick-start at least some form of price competition among real estate agents' commissions. Therefore, we are now also offering three-bedroom apartments for a fixed fee of €4,920. In the case of three-bedroom apartments, this reasonably profit-generating flat commission significantly deviates from the general level of commissions charged by real estate agents. Perhaps this, combined with the deteriorating general economic outlook, will finally prompt people to question the outrageous level of brokerage fees, which is clearly evident from the comparison below. It’s hard to find any other industry with such nonexistent price competition. In the complicated sale of large detached houses, a high brokerage commission may well be justified based on the amount of work and expertise required; however, the fees for ordinary small apartment units have completely detached from reasonable charging principles. I believe it is also in the long-term interest of the real estate brokerage industry to be aware of this, as such pricing cannot fail to affect the average citizen's attitude towards the entire group of real estate agents. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Rents for Apartments Surprisingly in Decline The typical cycle of the rental market includes a busy peak season in the summer and early autumn. It is also common for rental demand to decrease and rental prices to drop somewhat after the season ends. However, the current situation is exceptional. While last year’s relatively active period continued until November, this year, the demand for rental apartments in all growth centers began to decline as early as September. This is also the case in the capital region. It is not unusual for the end of the season to vary from year to year. However, this year, the decrease in demand has been accompanied by a pronounced search for cheaper options and a general caution regarding how much rent people are willing to commit to. There has been a surprisingly swift slowdown in the rental market following a busy summer. Rents are declining. Only the demand for studio apartments continues to exceed supply, so rental levels have mostly remained stable. For other types of apartments, however, rental requests have had to be significantly lowered already to find tenants. The situation is particularly difficult for the most expensive apartments, which are rented for several thousand euros per month. Demand is lacking, even though rental requests have been clearly lower than in previous years. The situation in the property sales market is similar. Studio apartments and small reasonably priced two-bedroom apartments are selling well, but increased caution among buyers is leading to a steady quieting in the sales of slightly larger apartments week by week. The signs are alarming and tell a harsh story. Concerns about the future and the economic outlook seem to have now exceeded a critical mass this autumn, where the number of people worried about future economic developments is so significant that it begins to worry a large majority, thus influencing the behavior of large groups. When the phenomenon is so clearly visible in the housing market, one might expect it to be reflected similarly in other areas of the economy. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Restructuring of Housing Sales - How a Fixed Brokerage Fee is Changing Finnish Housing Sales International Comparative Data and Expert Interviews in Finland 2013 ************ The restructuring of housing sales is a Silent Report™ commissioned by Vuokraturva Oy in the summer of 2013, examining the contractual practices of Finnish real estate brokerage and the pressures for change, as well as international operating models. The report aimed to compile facts and substantiated opinions on this thought-provoking topic. According to the editorial approach of Silent Reports™, the client’s role has been limited to defining the topic and scope of the work. The selection of interviewees and other information gathering has been carried out independently by Newsbrokers Oy's editorial team, and the client has not intervened in any phase of the report's content. It has been created solely based on interviews and the sources mentioned in the report. The interviewees have reviewed and approved their contributions. The journalist's questions have been retained in the interview text only when deemed necessary for clarity. Osmo Soininvaara has permitted the use of his column on the subject. The report has been prepared by Mika Horelli and Jukka Keitele. Highlights from the material are editorial enhancements. This Silent Report™ may be freely used in media as a source, but the source must be cited. Helsinki, July 8, 2013 Mika Horelli Newsbrokers Oy Read the report here: http://www.vuokraturva.fi/wp-content/uploads/Asuntokaupan-uusjako.pdf ## Announcements ## The housing market was moderate in October, but unrest increased Although real housing prices have been declining during the summer and fall, there was no dramatic slowdown in housing sales in October. However, signs indicating unrest in the market (cancelled purchase offers, extended selling times, properties circulating from one agency to another) seem to have gradually shifted from larger homes to smaller ones as well. In the best and most desirable locations, small apartments in well-renovated buildings continued to sell quickly and at high prices in October. However, the mood in the market became much more cautious in less prime locations or in poorer quality buildings, even for small apartments. This phenomenon was not as pronounced in studio apartments as it was in two-bedroom apartments. In the sale of larger homes, the gap between asking prices and actual sale prices continued to grow. The practice seems to be that players in the industry tend to keep asking prices high but encourage making bold offers during property viewings. This can be seen as a kind of collectively constructed artificial façade that makes it difficult for buyers to compare the true prices of properties. On the other hand, in Finland, asking prices have traditionally been very close to actual sale prices compared to international standards. In many countries, it has been quite normal for the asking price of a property to be negotiated down by an average of 20–30 percent during the transaction. The uncertain mood in the housing market is directly related to the general uncertainty of the world economy and individuals' concerns about their own personal futures. Therefore, the future long-term development of the housing market is inevitably tied to the success or failure of resolving Europe's debt crisis. In the short term, however, psychology weighs more heavily on the housing market than economics. Any possible upcoming rapid changes will result from changes at the emotional level. The true economic realities will only reveal themselves over time, with a significant delay. In October, it was noteworthy that the publicly expressed views of real estate agents regarding the future development of the housing market became noticeably more pessimistic. No one among the agents predicted a rise in prices anymore. For more information: Timo Metsola, Chairman of the Board, tel. (09) 677 55 # Announcements ## The Housing Market is Gaining Momentum on Thin Ice – Market Comments from Vuokraturva ### COVID-19 PUT THE HOME IN FOCUS In spring, it didn't seem at all clear that this year would be active in the housing market. When the strict restrictions introduced due to the pandemic temporarily silenced the housing market, the increase in time spent tightly at home brought the home into a new focus in life. The desire to invest in one's own home, its features, and comfort grew, which has been reflected in the sales of renovation supplies and in the active number of property exchanges since June. ### SPACIOUS SUBURBAN APARTMENTS WITH BALCONIES AND COMMON YARDS ARE NOW IN DEMAND The popularity of suburban housing has gained significant momentum this year due to various factors. The increase in remote work has led many to seek an additional room. The balconies of suburban apartment buildings, which had received less attention over the years, have also experienced a renaissance. Families with children have begun to appreciate playing in the shared yard of their apartment building even more, as the close atmosphere of public playgrounds has raised concerns among parents. The popularity of private picnic spots in apartment yards has multiplied as gatherings with friends and family have shifted to these locations. Finnish suburbs are traditionally built in close proximity to nature. Forests, rocky areas, and jogging paths often start just around the corner, and these were rediscovered in a new way during spring. ### THE QUEST FOR AN ADDITIONAL ROOM HAS INCREASED THE POPULARITY OF FAMILY HOMES The increase in remote work has led many to seek an extra room. In addition to the popularity of family homes located in suburbs, this trend has boosted the demand for other family-sized apartments as well. The impact can be seen across the Finnish housing market, and perhaps even more clearly in the rental market. Well-maintained family apartments are currently in high demand in rental markets. On the sales side, the demand and price levels for family apartments are significantly influenced by the situation regarding upcoming renovations, which are less relevant from the tenant's perspective. ### RENTAL MARKETS ACROSS THE COUNTRY There are now fewer dream tenants on the rental market than high-quality apartments. For those looking to rent a well-maintained apartment, the situation is very favorable—significantly better than in years. Numerous apartment options are available. This situation is unlikely to change in the near future, as new properties owned by investors continue to be completed at a brisk pace, while layoffs and dismissals diminish the pool of potential dream tenants from the landlord's perspective. ### HOUSING SALES ARE GAINING MOMENTUM ON THIN ICE Forecasting the development of the housing market this winter is nearly impossible. It seems entirely possible that housing sales will not only continue to be active but also see rising prices throughout the winter and during the second wave of the pandemic. Extreme monetary easing and competitive banking margins keep mortgage rates at rock bottom, strongly supporting both sales and prices. However, it is equally possible that the increase in the second wave will cause the number of housing transactions to drop sharply again, as seen in spring. Factors such as sustainability gaps, unemployment rates, and the overall state of the global economy are very concerning, and it is also possible that both transaction volumes and housing prices will fall. It is extremely difficult to predict which extreme situation or what kind of state will emerge between those extremes this winter. Scenarios can be proposed, but reliable forecasts are scarce. It can, however, be stated that it is not at all impossible that the winter could proceed as currently without drama. Right now, the housing market is moving smoothly, but on thin ice. Caution is warranted due to uncertainty, but for now, transactions are going well. ### CHARGING HYBRID CARS RESTORE THE SIGNIFICANCE OF CHARGING STATIONS – NEW LAW REQUIRES PREPARATION FOR THE FUTURE Webasto and its competitors' products have largely supplanted traditional engine block heaters that require charging sockets over the course of the 2000s. During electrical renovations, charging sockets were even removed as unnecessary. The increasing popularity of plug-in hybrid cars has restored the importance of parking spaces with electrical outlets. Although the number of fully electric cars is still relatively small, the surge in plug-in hybrids is now beginning to affect the value of these outlet parking spaces. However, many greater changes lie ahead. The Finnish Parliament has approved a law requiring all parking spaces in buildings subject to renovation and new constructions to be pre-piped or cabled so that electric vehicle charging points can be easily installed later. This law applies in cases where there are at least five parking spaces. The preparation is underway for the shift towards electric vehicle usage. It seems that the transition to electric vehicles shares characteristics with the shift from film cameras to digital photography. The change takes time, and some people continue to use film cameras, but the direction is clear and inevitable. This can be inferred from the announcements of several key car manufacturers planning to manufacture solely electric vehicles in the future. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Number of Property Transactions is Increasing as Sellers Mature in Accepting Lower Prices Timo Metsola The decline or stagnation of property prices continues. Although the number of transactions for used properties has noticeably increased in many areas, there has yet to be a turnaround in price increases. Many are puzzled as to why the growing number of transactions does not translate into rising property prices. The explanation is simple. The number of transactions for used properties has grown because sellers are increasingly accepting buyers' offers, even if they are quite low. Buyers are not offering more than before. Instead, the increase in transactions is due to sellers gradually accepting that in order to make a sale, they must accept the best offer they receive. For three years, there has been significantly more supply of used properties than demand. More sellers have gradually matured to understand that they will only sell their properties if they accept offers that are lower than their original expectations. Transaction numbers have not surged due to interest rates halving from two years ago. Rather, it is because sellers are increasingly willing to bend to buyers' price expectations. This reality has not been clearly communicated in public discourse, resulting in widespread confusion about why the increase in transaction numbers isn’t driving up prices. The apparent correlation between the two seems self-evident, but it is not. Those who work in real estate are well aware that the uptick in transactions is due to sellers being flexible on pricing. However, it may not be advantageous to publicly acknowledge this. Despite the availability of statistics showing clearly that while transaction numbers rise, prices are stagnating or falling. The structure of the housing inventory for sale has not shown significant changes. Sellers have increasingly accepted that property prices have decreased and are taking offers that are clearly below their initial expectations. It is also significant that interest rates have halved from two years ago because, without this large drop, price-sensitive and cautious buyers would likely be even more reluctant to make offers. However, the drop in interest rates is not the primary factor explaining the growth in transaction numbers, as transactions are only occurring from those homes where sellers are willing to accept offers that reflect the current lower price levels. Reality is hard to dispute. It also appears that for the foreseeable future, the increased frequency of transactions may hinge specifically on sellers’ willingness to adjust their prices. Properties remain available for sale in significantly greater numbers than there is demand. Additionally, many contemplating selling their homes are waiting for prices to rise even slightly before listing their properties. Therefore, not all supply on the market is openly displayed. There is no imminent shortage of properties for sale. When there is significantly more supply than demand, the necessary conditions for an increase in property prices do not emerge, because only those sellers who accept relatively low offers are able to sell their homes. Currently, it is strongly a buyer's market, and transactions are occurring increasingly because sellers are finally more willing to accept this situation. An increase in property prices would require a scenario in which there is at least some local scarcity of available homes for sale. However, due to persistent oversupply, such a scenario remains elusive. For buyers, this is currently the most favorable moment in years. *** The observed increase in transaction numbers is specifically directed at used properties, as the price gap between used and new homes has widened significantly due to a three-year decline in the prices of used properties. The prices of new homes have only decreased slightly. It is now more advantageous to purchase a used property rather than a new one. New properties cannot be built cheaper than what is still being asked for unsold new homes. Therefore, privately funded new construction is at a standstill. No one has figured out how to build more affordable used properties, which are now more in demand in both sales and rental markets. Only new and expensive properties can be built, and their sales are not currently thriving. The used properties currently sold also tend to have fewer substantial housing company loans compared to new buildings. People find it hard to understand the large housing company loans associated with new properties, and that in those cases, residents indirectly also share responsibility for their neighbors' housing loans. If one owner cannot pay a significant housing loan, it becomes a problem for all other owners and the entire property company. As interest rates have fluctuated significantly, this too is concerning. Future new constructions might need to be debt-free, where each buyer manages and pays their own loans independently. Also, new constructions ideally should be of types of homes where there is genuine scarcity in the supply of used properties. Scarcity mainly exists with family and small houses, but in new construction, they often turn out to be very expensive. The equation is difficult. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Tying Housing Loans to Benchmark Interest Rates Below Ten Years Should be Banned in Finland The past couple of years have often left those of us following the housing market at a loss. Consumer reactions to the downturn have not always seemed rational. Rapid changes have followed one another, making it challenging to grasp the outlook. During the recession of the 1990s, we witnessed the destructive impact of high-interest rates on the housing market. In the current economic crisis, on the other hand, the problems have been compounded by excessively low interest rates. The overall interest of consumers, builders, banks, agents, and society as a whole would be best served by stable and long-term development of the housing market. It is difficult to address the structural problems of the housing market in any case. In markets shaken by fluctuations in short interest rates, this is nearly impossible. For example, construction has become a timing business sensitive to monthly changes, where even strong demand for housing does not necessarily lead to large-scale project initiation if there is a fear that demand might collapse due to interest rate fluctuations. This disrupts the natural development of the housing market as supply does not meet demand. Just a few years ago, I believed that the Finnish practice of tying housing loans to very short interest rates was progressive and good. In other places, the common practice of tying loans to ten or even thirty-year fixed rates seemed old-fashioned and unnecessarily rigid. The events of the last two years have opened my eyes. Now I believe that one of the biggest problems in the housing market is difficult or even impossible to tackle while the instability caused by short benchmark rates allows the housing market to fluctuate like in quarterly economics. The current level of short interest rates is, in reality, completely irrelevant for the housing market. What matters is the long-term average interest rate level. Tying loans to short interest rates makes the housing market dance to the tune of illusions that should not be taken seriously when making real estate transactions. It is a bit like deciding to buy a car based on the weather of that particular day. One wouldn't automatically buy a convertible on a hot day or an SUV on a snowy winter day. Tying loans to very short interest rates is responsible for a large portion of the current problems in the housing market. It raises the suspicion that perhaps many other countries haven’t tied their housing loans to long rates purely out of ignorance or conservatism. Long interest rates are significantly more stable than short rates. Their moderate changes would bring stability to the Finnish housing market as well. I have come to lean towards the idea that tying new housing loans to benchmark interest rates below ten years should be banned in Finland too. Here are six summarized reasons: 1. When most housing loans are tied to short interest rates, fluctuations in rates increase the likelihood of uncontrolled price rises and drops in housing sales. The housing market overreacts to changes in short rates in both directions. Even now, people are closely watching changes in benchmark rates down to a tenth of a percent, even though higher rates of a couple of percent would still be considered low. 2. This rapid fluctuation in housing prices and demand makes construction companies cautious; they do not dare to build new housing steadily but strategize around timing. This reduces the number of homes built over time, raises housing prices, and brings uncertainty to jobs in the construction industry. During this recession, mass unemployment in construction was avoided through strong government stimulus, but artificial stimulus is costly for taxpayers and problematic for the healthy cost structure of the construction industry in combating unemployment. 3. The mood swings in housing sales reflecting the level of short interest rates also have an inverse effect on the rental market. The ups and downs of the housing sales market make rents and demand for rental apartments rise sharply and then fall again, leading rental apartments to end up for sale. A stable development is even more crucial for rental markets than for housing sales since fluctuations in the rental market often hit the most disadvantaged hardest. 4. Tying to short rates increases the risk of those with housing debt falling into financial difficulties, as their capacity for loan repayments during times of low rates is often overestimated. The unpredictability of loan servicing costs and fluctuations in housing prices inevitably raise the banks’ credit loss risks as well. 5. Short interest rates obscure the average person's understanding of a normal interest level. For example, a 6 percent interest rate is used as a “nightmare” rate in banks’ stress tests for customers, even though only two years ago, 6 percent was an entirely ordinary total interest rate for housing loans. In the summer of 2008, the 12-month Euribor was 5.3%, plus a typical bank margin of 0.7%. Even the three-month Euribor was then 5.0%. Our memories are surprisingly short. If stress tests for housing loan applicants were meant to genuinely prepare for periods of high interest rates, calculations should use, for example, an 8 or 10 percent interest level. 6. A fixed benchmark interest rate of at least 10 years for new housing loans would significantly cut down on fluctuations and speculation in housing sales and construction, enabling a more sustainable structural development of the housing market. Humans tend to yield to temptation if short rates are low and tying housing loans to them is possible. Interest rate caps and similar products are not sufficient to stabilize fluctuations in the housing market. Therefore, I believe that if we want the development of the housing market to be genuinely more stable in the future, regulatory oversight must intervene in the benchmark interest rates for housing loans in Finland. Related previous links: www.talouselama.fi/uutiset/article424865.ece http://vuokraturva.fi//yritys/blogi/halpa-korko-humallutti-asuntokaupan-krapula-vasta-edessae Timo Metsola Chairman of the Board Vuokraturva # Blog ## Development of the Housing Market in the 2020s: A Shock for Many For a large portion of Finns, it is difficult to swallow the idea that many homes intended as security for old age must now be viewed like used cars that lose their value over time. Accepting this idea is complicated by the fact that many have become aware of it only recently. It's no surprise that many feel this information is like a wet cloth thrown in their faces—or even an outright insult. However, ignoring this unpleasant truth won't change the circumstances. On the contrary, we should aim to acknowledge the facts, as it is through this acknowledgment that we can begin to think about how to mitigate their negative effects. Even if the development is unstoppable, the harms can be lessened. An Unpleasant Awakening Year With the understanding that small towns with declining populations have no realistic future other than fading away and merging with neighboring municipalities, many have understandably found this a bitter pill to swallow over the past 15 years of slow development. And that’s not all. A year ago, Vuokraturva highlighted that a permanent decline in housing prices threatens nearly all mid-sized cities. We noted that if this development continues, in ten years, most mid-sized cities will be in the same situation as small towns experiencing population loss today. The initial reception to this in February last year was skeptical, even though no significant data-based counterarguments were presented. Comparing the development of mid-sized cities to that of small towns felt extreme. Especially since, to alleviate the plight of small towns, we proposed a last-resort housing scrappage allowance as part of the discussion, which even President Sauli Niinistö has expressed concern about. Since then, it has become clear that recognizing the similarities between the problems of mid-sized cities and small towns was not an exaggeration. To reiterate the gradual awakening to the plight of mid-sized cities over the past year, here are some key news headlines: - Verkkouutiset first reported on February 5, 2019, Vuokraturva's warning that the biggest challenge in the upcoming electoral term would be falling prices in mid-sized cities. - In March, Helsingin Sanomat reported on the decline of the population in almost all provinces. - In April, Helsingin Sanomat, based on Vuokraturva's data, revealed that three million Finns live in areas where housing wealth is losing value. This raised the topic in televised debates amongst party leaders ahead of the parliamentary elections. - The situation continued to clarify with a headline from Helsingin Sanomat announcing the alarming new population forecast published by Statistics Finland. - YLE reported on a recent review by Pellervo titled "Housing Prices Have Turned Downwards Also in Regional Centers – Especially Sharp Declines in Detached Houses." Numerous other thoroughly researched articles and reviews could be mentioned, and it is noteworthy that all these data-driven statements are consistent with each other. Centralization Policy or Inevitable Global Change Many sincerely believe that a deliberate centralization policy is behind this development. In reality, Finland is an international anomaly and a notable example of a country that has long aimed to keep the entire territory populated through deliberate regional policies. For example, our western neighbor Sweden abandoned such ambitions as hopeless at the turn of the millennium and is thus much further ahead in the urbanization process than Finland. It is not that the Finnish governments of the 2000s have not tried to keep the entire country populated. For most of this time, the government has been dominated by the Center Party, for which this issue is particularly important. The reality, however, is that despite these attempts, global realities have made success impossible. Jobs are increasingly concentrated in growth centers, and migration to these areas pulls the working-age population in an unending flow in search of employment. Political willpower cannot alter a development that is global and essentially common to all countries. We can fight against windmills, but that won’t help the situation. Acknowledging the facts and shifting attention towards mitigating the effects of this development could instead provide significant assistance. Redistribution of Wealth A massive restructuring is about to unleash a reallocation of housing wealth. A large number of Finns will have to accept that the homes they worked hard to pay for will hardly have any financial value by the end of this decade. Furthermore, the paid-off home will not bring the security in old age that has traditionally been associated with home ownership. At the same time, the value of inheritances will shrink. Nevertheless, those living in ownership houses in the capital region and the regions of Turku or Tampere can continue to enjoy appreciation in their property values. Concurrently, the first-time buyers' leap into the housing market is becoming increasingly challenging without support from affluent parents. In this decade, this redistribution of housing wealth could become a greater cause of wealth disparity than differences in wages and pensions. This change will be quite a shock for us Finns, potentially creating a new type of class division in Finland. If residents of current mid-sized cities find that their homes have little value in the future, they will, in effect, possess little to no wealth. Traditionally, a significant portion of Finns’ assets has been tied up in their homes and holiday properties, whose values have also declined. The contrast with residents in the three largest growth centers, who are benefitting from their housing, may stir resentment. Many properties outside the largest growth centers will never undergo major renovations. Another challenge is the maintenance backlog for properties, which is pressing for mid-sized cities and, of course, also for small towns with declining populations. Renovations are essential for ensuring future livability and maintaining property values. If demographic forecasts grimly indicate a lack of residents and little chance of maintaining value, doing renovations isn't economically sensible. Especially as Basel IV makes financing sales and renovations in declining towns progressively more difficult and expensive. When calculating the total maintenance backlog of Finnish properties, the figure may not reveal the complete truth. In many parts of Finland, the number of homes may be sufficient for the dropping population without the need for renovations of older buildings. Therefore, many properties outside the largest growth centers may well never undergo renovations. As a result, buildings reaching the point where renovations are necessary may simply be run into the ground and then left empty or demolished. What to do about the vast road network An additional challenge is Finland's traditional advantage: a dense and nationwide road network. Such a network does not exist in Sweden. As the population decreases, the costs associated with maintaining and even the daily upkeep of this road network will become burdensome. Finland has closed railway sections that do not pose problems because they only see traffic from a few nostalgic rail enthusiasts. Closing roads is complicated, as they remain in the landscape, and concrete barriers do not keep speedsters away. The thought of provinces filled with poorly maintained unofficial rally roads seems perilous. Additionally, there is often someone living or vacationing along any given road, and at the very least, logging activities occur nearby. The vast number of underutilized public roads is part of the challenges of this transformation. The hour-long train, Suomirata, and numerous existing busy routes are competing for the same funds. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Real Estate Market Faces Corona Spring Two – Why Real Estate Transactions Need Their Own Vaccine The mood in real estate sales is exceptionally high, largely due to psychological reasons. Therefore, it is crucial to understand that we are almost inevitably facing a sort of repetition of last spring, which will momentarily spoil the overly positive mood of the real estate market. It is highly likely that a very challenging spring awaits in terms of both COVID-19 infections and restrictions, especially in April and May. Corona Spring Two will temporarily cool down the mood and volume of real estate sales, and against that effect, we now need a special vaccine. This vaccine is psychological and means preparing the right attitude in advance regarding what lies ahead. The real estate market recovered very quickly from Corona Spring One. There is no reason to panic too much when Corona Spring Two hits the real estate market, as recovery is likely to be quick this time as well. It is important to discuss this in advance, which will provide a basis that acts as a vaccine against overreacting. I presented my views with more detailed reasoning today on Yle's Poliklinikka program. A very timely discussion took place with Hypon's Ari Pauna and journalist Sakari Sirkkanen. Here’s a link to Annikka Mutanen's article in Helsingin Sanomat, awarded as the Science Journalist of the Year, which I frequently referenced during the broadcast: Timo Metsola Chairman of the Board Vuokraturva # Blog ## The Housing Market May Be Mostly Cloudy After All On January 14, 2016, Kauppalehti headlined that the sun is shining in the housing market. The article, cast in a positive light, was based on the recent report from the Finnish Real Estate Agents’ Association, indicating that the leaders of real estate agencies share a "cautious optimism" about future perspectives. I think the article was well-written. It reveals that 2015 was the second weakest year for housing sales this decade, clearly below the average for the 2000s. The illustration also pointed out that in the Northern Karelia region, which is facing the biggest issues, housing prices were in a free fall of over 20 percent year-on-year during the second half of the year. Like the report from the Real Estate Agents' Association, the article in Kauppalehti carefully depicted the situation. It also highlighted that statistically, 2015 was slightly better than the weakest year of the decade. So, there seems to be some minor signs of a positive development. However, I am perplexed by the sunny headline. The situation cannot be described as if the sun is shining in the housing market, even if the dark clouds are somewhat parting. Considering that all Euribor rates under 12 months are negative and banks’ loan margins are decreasing, it's comforting that housing sales have somewhat improved when borrowing costs are nearly free. Given the extraordinarily low interest rate levels, one would have hoped for a significantly greater revival in housing sales last year. Especially since housing prices were declining in 2015. The increase in transaction volumes that occurred in 2015 was likely mainly due to a moderation in asking prices. Many who had been trying to sell their homes without success eventually lowered their asking prices enough, resulting in sales finally happening. So what did the Real Estate Agents’ Association report overall regarding 2015? - The sales of old condominiums increased by about 6% from the worst year of the decade but remained the second weakest in this decade. - Surprisingly, the number of sales of old single-family houses rose by about 6.8%. In my view, this is particularly explained by a significant reduction in asking prices. - The sales of new homes decreased. The sales of new condominiums fell by over 3%, and new single-family houses saw a decrease of about 5%. - When viewing both new and old homes together, the number of housing transactions in 2015 rebounded with a growth of 3.7% from the weakest year of the decade, 2014. Nevertheless, 2015 was still the second weakest year for housing sales this decade. Housing transactions represent the biggest financial decision an average Finn makes in his or her life. Therefore, it is critically important that news coverage concerning the housing market is accurate and as objective as possible. This also applies to the headlines. Timo Metsola Chairman of the Board Vuokraturva Oy ## Blog ## The Real Estate Market Has Thrown Investment Logics Out the Window The logic of investment markets generally dictates that higher risk assets should yield higher expected returns. In the real estate market, however, the situation is uniquely reversed: assets with lower risk demand higher return expectations, and vice versa. This scenario is, from an investment market perspective, absurd. A correction in this situation could lead to a significant increase in studio apartment prices or a decrease in the values of larger rental properties. The logic governing the real estate market is distorted when viewed through the lens of investment market principles. Either studio apartment prices must undergo a sharp increase, or the prices of larger properties must crash in order for the relationship between yield and risk to return to normal. Alternatively, rental prices for larger apartments would need to rise dramatically. In the commercial real estate market, the logic of investment markets operates normally, but not in the residential market. For commercial real estate, the required yield is higher if liquidity is weaker and finding tenants is more challenging. For example, let’s compare an office building in Mäntsälä that is difficult to sell and find tenants for, versus an office building located on Aleksanterinkatu in Helsinki that is easily sold and rented out. When transactions take place for both, it is evident that the office building on Aleksanterinkatu will be sold at a price that offers the buyer a lower initial yield. In the real estate market, however, the equation works quite differently. If one acquires a studio apartment, its initial yield is high, as it is easily rented out or sold due to good demand. Conversely, if one acquires a three-room apartment or a larger unit in the same desirable location, its initial yield is lower even when rented. This should not be the case, as larger apartments are more challenging to rent out or sell. The situation is indeed strange from the perspective of investment market logic. Why then does the logic of investment markets not apply to the real estate market? The obvious explanation is that the majority of market participants are consumers who do not act according to the logic of investment markets. The common assumption has traditionally been that the value of any property will increase over time, leading to little comparison between rental and purchasing market circumstances from this perspective. The fact that even large professional investors seem to have long accepted this somewhat contradictory logic in the real estate market is more difficult to explain. Does this seemingly irrational equation contain risks from the standpoint of investment logic? The distortion may correct itself in the future for several reasons. Firstly, the assumption of automatic value appreciation no longer holds. This leads to a more detailed examination of the ratios between rents and sales prices. Secondly, renting is likely to become more common as it is viewed as a viable long-term living option among younger generations. Thirdly, the decline in purchasing power, reduced disposable incomes, and job insecurity are pushing more individuals into situations where buying a home is either impossible or lacking in courage. This increases investor interest in rental properties. For the stability of the market, it would be beneficial if, despite intense interest, investment decisions also adhered to the basic logic common across different investment forms. Fourthly, market economies generally correct distortions sooner or later. Jaakko Sinnemaa CEO Asuntosalkku Oy Asuntosalkku Suomi Oy Asuntosalkku Eesti Oy ## Blog ## The Most Concerning Situation in the Housing Market in 20 Years The housing market continues to struggle significantly. The sale of studio apartments is still proceeding without issues, but the overall situation is challenging. The problems began with the increase in the transfer tax on March 1, 2013. Since then, the state of housing sales has worsened month by month, albeit gradually, until it fell sharply at the turn of the year. Since the recession of the 1990s, housing prices in Finland have risen almost continuously. The bursting of the tech bubble in 2000 and the terrorist attacks in 2001 did not shake the housing market. When the financial crisis hit in the autumn of 2008, there was a brief global shock period. In Finland, housing prices fell, and transaction volumes dropped. There were no prospects for recovery, and despite the lowering of interest rates, the eurobor rates remained so high that the overall interest rate for new mortgages stayed around five percent. Therefore, the high-interest levels, in relation to uncertainties, also hampered sales. However, the situation was temporary. When euribor rates finally dropped in early 2009, following the European Central Bank's interest rate policy, this monetary easing spurred housing sales to a remarkably rapid rise. Even the global catastrophe that had brought the world's economy to the brink did not cause more than a six-month disruption in Finnish housing sales. Subsequently, there followed nearly half a decade of price increases. But now, looking ahead from this point, the situation is different. The medium-term outlook is more concerning than ever in the 20 years since the post-recession period of the 1990s. This situation has not arisen suddenly or unexpectedly but has crept in slowly. Interest rates are at an unprecedented low. Unemployment has remained relatively well controlled. Salaries have consistently increased until now. All these factors are positive for the housing market. Yet, housing sales are weak, and transaction volumes are declining. There is no sudden drama that has frozen the housing market, and that is what makes the situation so alarming. Prices are falling, and there is nothing in sight to reverse this trend. The other aspects of the economy are not providing any support for the housing market. Exports are weak. The gross domestic product is not growing. Finland's competitiveness can no longer withstand rising wage levels. Unemployment threatens to rise. The number of jobs is not increasing. The population pyramid is inverted, and the dependency ratio is deteriorating. The state is accumulating debt at an alarming rate. Cuts to public spending are proceeding alarmingly slowly. The upcoming two elections will not alleviate the unpleasant political decisions required. Bank regulations and lending practices are tightening. In 2007, Aktia Bank's chief economist Timo Tyrväinen and the then CEO of the Mortgage Society Matti Inha saw signs of a price bubble in the housing market and the risk of a collapse. From today's perspective, the housing market situation back then appears quite healthy and secure. Prices were rising. Finland's economy was in very strong condition. Debt levels were low, and there was ample room for distribution. Exports and GDP were at higher levels than they are now, seven years later. Moreover, housing prices at that time look relatively moderate and even cheap through current eyes. Additionally, the overall interest rate for housing loans was two to three times higher than it is now, which mitigated the risk of a bubble. At that stage, I was not yet worried. But since then, my concerns about a price bubble have grown year by year. I hope I am wrong. Timo Metsola Chairman of the Board Vuokraturva ## The Stone in the Shoe of the Housing Market The rents of old rental agreements continue to rise significantly faster than inflation. This frustrates tenants, and payment difficulties are on the rise. At the same time, the rents of new rental agreements are decreasing. For tenants, this is favorable, as they can switch from a constantly rising rental property to a cheaper one. For landlords, however, it is disappointing, as a new tenant may not be found at the same rent to replace the departing tenant. The situation where the rents of old rental agreements are rising while those of new agreements are decreasing is contradictory and indicates that not all rent increases of old contracts are based on sound grounds. With these increases, the rents of previously negotiated contracts may rise above the current market rent levels of new rental agreements. When this happens, the rent increase clause is improperly defined. At the same time, the housing market continues to balance between the accelerating effect of record-low interest rates and the depressing effect of a bleak economic situation. There are conflicting positive signs in the market alongside unrest regarding future price developments. This is reflected in the ebb and flow of sentiment from month to month. A surprisingly busy month can be followed by a surprisingly quiet one, and vice versa. The current sentiment in the housing market can generally be described by saying that agreements are being made and things are moving forward, but there is always a stone in the shoe. The contradiction in the development of rents for old and new rental agreements and the tug-of-war between low interest rates and a gloomy economy irritate at every step. As a result, the housing market is not operating at full capacity. The development of the housing market towards the end of the year is difficult to predict due to these contradictions. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## On the Housing Market, You Can Get Two Rooms for the Price of One When the shortage of studios merges with the oversupply of two-room apartments and unprecedented new construction, a peculiar situation arises. The price and rent difference between studios and two-room apartments in the housing market is narrowing and is on the verge of disappearing entirely. It may sound exaggerated, but it is not. In buildings that are awaiting major renovations, the sale prices of two-room apartments are even lower than those of the smaller studios in the same building. The reason is the cost allocation of upcoming renovations, which is determined based on the square footage. As the price difference between studios and two-room apartments is otherwise already small, and the renovation costs for a two-room apartment are expected to be much higher than those for a studio, the sale price of a two-room apartment falls below that of a studio. The rental market has also noticed how small the difference between studio and two-room apartment rents has become. Often, a young apartment seeker may not even consider two-room apartments as an option, as studios seem so prohibitively expensive. At the same time, it goes unnoticed that for nearly the same rent, one could also get a two-room apartment. Moreover, one would not have to settle for whatever is available but could choose for themselves. Rent seekers should therefore look for suitable options among both studios and two-room apartments, even if they live alone. Someone might ask what sense this makes. The question is misformulated because it assumes the market operates rationally. In reality, markets may not operate sensibly when viewed with common sense. The reason for this peculiar market situation is some underlying distortion that makes the scenario appear entirely strange by everyday reasoning. In the housing market, this distortion mainly stems from the restriction on building studios, despite a significant shortage of them. In contrast, more two-room apartments can be constructed to meet the needs of small housing shortages. However, since there is no actual shortage of two-room apartments—in fact, there are already too many in the local housing stock—the logical consequence is an oversupply of two-room apartments. It is difficult to be particularly surprised by this. The same underlying distortion issue also repeats itself on a much larger scale than in the Finnish housing market. In an editorial in Helsingin Sanomat on September 3, it was noted that the global economy is in an exceptional state. All major economies and economic blocs are growing simultaneously. Still, this observation serves as a frightening example of the underlying distortion described earlier. The global economic growth is not celebrated in a relaxed atmosphere, as was usually the case in similar global booms in the past. The mood in the global economy is cautious and even worried. In addition to several major individual threats to stability and security in the air, this entire global economic growth rests on a distorted foundation. The underlying distortion is that economic growth relies on stimulus that is unprecedented in terms of scale, duration, and quality. This stimulus has not been able to be unwound normally as economic growth has started. The concern is that economic growth in both the Eurozone and the United States might collapse with any easing of the stimulus, not to mention completely stopping it. At the same time, avoiding overheating would require tightening monetary policies in the United States, the Eurozone, and China. The choice consists only of bad and worse alternatives. No one wanted such an underlying distortion to form, yet it has still occurred. The outcome is far from reasonable and desired. At this point, we can return to the idea that there is no reason to assume that the situation generated by the development of markets would be rational or intentionally created as the result of some plan. As noted above, the reason for this seemingly peculiar market situation is some underlying distortion that makes the scenario appear entirely strange from the perspective of common sense. As a result of this phenomenon, one can currently get two rooms for the price of one in the Finnish housing market. It may be hard to believe, although in the broader context, it is a typical consequence of social interference that alters the natural progression of the markets. Markets have their own logic. Water cannot flow upstream in a river on its own, no matter what one does. Therefore, stimulus and other artificial steering measures work best as individual guiding surges and are particularly problematic when they remain permanent distorting factors in the logic of the markets. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Investor in Housing Funds Only Gets Their Money Back if They Ask on a Sunny Day Private investment funds targeting residential properties are understood to be liquid investments from which investors can reasonably quickly reclaim their invested capital whenever they wish. This is true, but only when the fund is performing well and the sun is shining. During positive growth, only a small fraction of investors in these specialty investment funds utilize the redemption option for their shares. However, investors are under the illusion that if they wanted to, they could retrieve their money anytime. The truth, however, is far from that. The value of the redemption option for fund shares during periods of positive development is limited because most investors intend to realize this type of investment only when significantly negative factors appear in the investment outlook. Because a specialty investment fund is not required to disclose such situations until a crisis has seriously escalated, when the moment of truth arrives, there can be many willing redeemers at the same time. The surprise may come that they can no longer retrieve their funds. Funds are structured so that they can only pay out a very small portion of all investments at once. Returning even a moderately large amount of capital to investors requires taking a breather; that is, redemptions are halted, and the fund begins to liquidate its holdings. Such a situation, where withdrawing money from the fund is temporarily blocked, tends to increase the redemption desires of other investors as well. The situation quickly becomes very problematic for both the funds and the investors. Investors cannot retrieve the capital they invested in housing funds unless they ask while things are going well. One might see it as the investor's responsibility to know when the situation is turning such that it is time to request their money back. However, investors cannot predict in advance when a sunny day will turn rainy or even stormy, since they are not actually provided with the facts regarding how the fund is performing. Specialty investment funds are not obliged to report to investors about, for example, serious rental difficulties with two-room apartments in Espoo. Nor about anything else. Investors cannot know if the fund's operations are on a solid footing or if it begins to resemble a pyramid scheme, where the cash flow from new investors is used to pay returns to old investors. They are not informed any more than what pyramid scheme operators tell their victims. It is thus very difficult to distinguish between a successful fund and a pyramid scheme based on available facts. It is impossible to know how much one has slipped into creative accounting. It must be remembered that even those products that truly are pyramid schemes often have operational liquidity while capital is flowing in, keeping investors reassured by the successes of minor redemptions. That is, willing investors can withdraw their funds, which keeps others feeling confident. However, such liquidity that exists only on a sunny day does not actually provide any security to the investor when the investment begins to encounter difficulties. The publicly listed Orava Housing Fund reports on its activities in accordance with stock exchange rules. Thus, investors have access to fairly good information about the company's operations. Identifying risks is up to the investor themselves. What is frightening is that specialty investment funds operate behind a veil. They provide investors with information about returns without fully opening the curtains. Even the informed investor cannot know how the business is performing. The investor does not know the extent of rental incomes or losses, possible capital gains or losses, and paper-based valuation changes. If specialty investment funds were required to report as Orava does, the atmospheres surrounding many specialty investment funds would likely reflect similar conditions. A good question is whether it is right for specialty investment funds targeting private investors, which are encountering difficulties, to raise additional capital from unsuspecting people as if everything were fine. I believe that specialty investment funds investing in housing should transparently report the key metrics of their business to their investors, much like the publicly listed housing fund is required to do. Timo Metsola Chairman of the Board Vuokraturva ## Housing Construction Is Stalled Because There Is No New Direction to Take Timo Metsola The sale and construction of new apartments have nearly come to a standstill. The entire industry is at a loss and in crisis. It even feels like there is no solution to the situation because the knot is so tight. Opening it will require changes in the law. Still, it is clear that even if nothing is done about the situation now, construction will eventually start again at some point. However, significant damage will occur to construction companies, the building materials trade, employment, and the Finnish economy before that. Compared to normal development, we could lose as much as half a decade from the previous two years. This is a frightening alternative when considering sustainability deficits. The current structures, actors, and jobs in the construction cluster will not survive; they would largely be lost. It is difficult to assess the success and timeline of recreating the housing construction sector, especially since the availability of skilled professionals has been a bottleneck so far, and the exodus of skilled workers is unlikely to be avoidable. ## How the Knot in Housing Construction Was Created Large cooperative loans for new properties created a boom that ended with rising interest rates. The changed situation drove the entire cluster into a hangover, where the same cooperative loans that previously heated the market have now become some sort of curse. New developments are unsellable because buyers fear not only the high costs but also that they themselves will not be able to sell the apartment in the future if necessary. Cooperative loans are worse than consumer loans. In certain situations, for example, banks can change the loan margin during the loan term or take other actions that would not be possible for a regular mortgage. Moreover, in situations where some owners face payment difficulties, other owners are jointly responsible for their cooperative loan shares. Even if one has already paid their own cooperative loan share, they can still end up as a payer for their neighbors' loan shares. The homes of owners who have defaulted on payments can be temporarily taken over by the cooperative and rented out, but the rents typically only partially cover the costs of large cooperative loans. According to a statistic published by the Bank of Finland last month, the unmanaged cooperative loan balance managed by private domestic housing limited companies was €116 million at the end of June 2023, which grew to €327 million by the end of September 2023. Absolute levels were relatively low, but the direction and pace of development are alarming. The costs and risks of large cooperative loans are very difficult for consumers to predict and comprehend in advance. Therefore, the cooperative loans for new apartments are poorly suited for the consumer transactions that the hard-money new apartment sales largely represent. It would be wiser to return to the model where the entire mortgage is taken out from the bank, controlling the borrower's payment capacity at the same time. Finland has an internationally very functional and genuinely competitive mortgage market, so the conditions for such a change would be good. If we returned to a model where everyone takes their own loan for the purchase of a new apartment, each person would only be responsible for their loan and would not need to worry about their neighbor's loans. ## Where Is a New Direction and Beginning for Housing Construction in Finland It would be advisable, through a law change timed to this moment, to completely ban cooperative loans for new apartments. This change would give housing construction a new beginning and direction, bringing new developments to the market that would be entirely free from the reputational harm of cooperative loans and other issues. ## Four Immediate Effects of the Necessary Law Change on the Current Knot in Construction The current crisis, which feels overwhelmingly severe, would start to unravel through four different factors. Firstly, ready, unsold new developments could sell better when it is definitively known, as a result of the law change, that no more new developments built with large cooperative loans will come onto the market. Some private investors could be interested in the last such developments due to significant tax benefits from the distributed financing costs. Secondly, construction companies would free up capital and gain the ability to start new projects when they could rid themselves of unsold cooperative loan apartments. With the law change, construction companies could turn a page in their operations and start constructing apartments for sale without debt, as if starting from a clean slate, knowing their competitors would be doing the same. Thirdly, banks would have to start competing by developing various construction-phase loan products and solutions for construction companies, as cooperative loans for new developments in their current form would be removed from the table after the law change. And because competing banks would also do the same. Fourthly, when new apartment buildings no longer have cooperative loans, buyers would dare to purchase their apartments just as they do with used apartments, which have been selling significantly better than new cooperative loan apartments all the time. ## Why Doesn’t the Industry Make the Change Itself A law change could provide a new direction for housing construction, rather than everyone just waiting and fearing the current situation. But why is a legal change specifically needed? It is important to understand that construction companies and banks cannot change the prevailing system of the industry together on their own initiative, regardless of how stuck housing construction has become, because strict cartel and competition laws prevent even discussing such a thing. A legislator is needed for the knot to be untied. Behind the scenes, discussions are intense, and pressures rise in the choice of words. Publicly, the mouths of industry and politicians have remained closed. In interviews, journalists have reported that it has been unusually difficult to get other interviewees. Perhaps that is why the handling of the topic has been more clearly emphasized in editorials (HS 28.12.23, KSML 6.1.24, KL 25.1.24, SS 15.2.24). Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Asuntosalkku Suomi Oy Acquires 500 Market-Rent Apartments The new investment company Asuntosalkku Suomi Oy commenced operations on Wednesday, January 28, 2015, and acquired 500 market-rent apartments. The company is controlled by seasoned real estate investors Jaakko Sinnemaa and Timo Metsola. Other shareholders include professional investors. The sellers were the fund companies Quorum Asuntoturva I Ky and Asuntoturva Ovi Ky, which are concluding their operational terms. Sinnemaa and Metsola, who are key figures in Vuokraturva Oy and Asuntoturva Oy, also played significant roles in the selling funds. Founded in 2007 and having sold 400 apartments, Quorum Asuntoturva I Ky provided its investors with an average annual return of 10 percent during the investment period. The operations of Quorum Asuntoturva I Ky were strongly based on the collaboration between Asuntoturva, Vuokraturva, and the Auratum Group. Investors included both companies and individuals. Notably, Kristian Warras, the CEO of Quorum Oy, was instrumental during the fund's establishment phase. Asuntoturva Ovi Ky, founded in 2010 and having sold 100 apartments, provided its investors with an average annual return of 7 percent during the investment period. Asuntoturva Ovi Ky was a housing fund aimed at individual investors from Asuntoturva. For more information: Jaakko Sinnemaa, Phone: 041 5280 329, jaakko.sinnemaa@asuntosalkkusuomi.fi Matti Äijälä, Phone: 045 6344 400, matti.aijala@auratum.com ## Announcements ## Asuntosalkku Suomi Oy acquires 700 market-rate rental apartments The real estate investment company Asuntosalkku Suomi Oy has today purchased 700 market-rate rental apartments from the apartment fund Quorum Asuntoturva II Ky, which is concluding its term and making a profitable exit. The apartments are located in growth centers, primarily in the metropolitan area. "In January, we started our operations by acquiring 500 apartments. With this transaction, our total apartment count has now risen to 1,200," says Jaakko Sinnemaa, CEO of Asuntosalkku Suomi Oy. "All apartments are market-rate, and the tenants' rental agreements will continue under the same terms," Sinnemaa emphasizes. For more information: Jaakko Sinnemaa, phone. 041 5280 329, jaakko.sinnemaa @ asuntosalkkusuomi.fi # Blog ## Sinnemaa on Real Estate Portfolio: Investor Returns in Real Estate Funds Are Based on Funny Money In even the largest consumer-marketed real estate funds, the actual returns for investors have been zero. The entire reported return has come from funny money that the fund has not actually received, and therefore, returns are generally not paid to the investors. All the money that has come into the fund has gone to bankers and expenses because the banker naturally does not accept funny money, even though it is what they offer to investors as returns. Of course, there are also real estate funds with a sustainable business model, but in the coming years, we will see large difficulties with many real estate funds, and investors will suffer losses as the situation becomes apparent. Bankers have collected millions in fees from real estate funds while, in many cases, investors have been completely unaware if their returns are imaginary Excel money based on theoretical value changes, and thus not real money, since the fund did not receive it in their bank account. The banker, on the other hand, has always received their millions in real money in their account. If real estate funds reported returns only from the money they have actually received in the fund's bank account, many real estate funds would have to cease operations and sell all their properties because investors' money would flee the fund like free buckets at a discount store opening. This scenario is familiar to us because we were involved in establishing Finland's first special investment fund focused on real estate over ten years ago, well before current operators entered the market. We announced the project but withdrew before it started because the calculations clearly indicated that the equation was completely unsustainable from the investor's perspective. Even over a decade ago, it was clear that an investor could not achieve a real return unless the rental income from the properties was exceptionally high. Similarly, it was long clear that, under suitable conditions, a real estate fund could be a very profitable venture for a banker, generating millions. And this opportunity has now been exploited by some bankers. However, it's important to note that large banks have not introduced pure real estate funds to the market because they are well aware that the equation aimed at consumers is not built on a sustainable foundation. Real estate funds operate like revenue forecasts for start-up companies. The difference, however, is that it becomes clear to investors when a start-up's revenue predictions turn out to be overly optimistic and no income materializes. But one can always claim that next year the returns will be even higher and gather more investments. In a real estate fund, it is said that properties will eventually be sold to a foolish consumer at a high price. Or more accurately, that is not actually said; rather, the banker calculates that returns will come from these sales, even though no sales have occurred, and simply tells the investor that everything is going well. But they do not specify what portion is imaginary banker-calculated funny money. The comical aspect is that only real money that has entered the bank is acceptable to the banker, and the banker obviously does not accept the potentially payable funny money in the future as part of the returns. On another note, we see positive signs in the real estate market. Low interest rates are, in general, a positive development for the housing market. According to our analyses, it is quite possible that interest rates will remain low for the foreseeable future, likely for 5-10 years or possibly even longer. An increase in interest rates would likely lead to an economic downturn, where control would be lost, and the risk of collision would grow. Momentary spikes in interest rates may occur, but we believe the trend level of interest rates will remain low for three key reasons. First, there is so much debt in the world that raising interest rates for an extended period is practically impossible without significant inflation. The debt burden of states (both large and small, such as China and the USA), municipalities, businesses, and private households is so great that high interest rates would lead to too many actors becoming insolvent, which would stifle overall economic growth. For this reason, interest rates will likely be lowered back to low levels soon if they rise for some reason. Second, digitization, robotics, and artificial intelligence will replace a very large number of performing jobs. This leads to a very difficult outlook for wage inflation, i.e., wage increases in the big picture when all employees are considered. Surviving high interest rates requires higher wages, and since higher wages are not in sight, it will be difficult for interest rates to rise. Third, demographics in Western countries are highly unfavorable, and even in developing countries, there is a continuous trend toward decreasing birth rates. This year, it is likely that fewer children will be born in Finland than in almost 150 years. If the forecasted number of births for this year is met, i.e., under 50,000, fewer children will have been born since the famine years of 1868. The large age groups (those born between 1945-1950) are currently an average of over 100,000 individuals, meaning they are twice as large. The capacity of younger age groups generally cannot sustain high interest rates. From the debtor's perspective, the outlook looks quite good, at least in terms of interest rates. In the rental housing market, competition for tenants is expected to tighten further, as there are many rental apartments available, and many desired tenants are purchasing homes due to low interest rates while repaying their mortgages with an amount equivalent to the rent. The position of tenants in the rental housing market has strengthened recently, and the willingness to pay high rents has decreased. This has led and will continue to lead to a situation where the low rental amount in euros is decisive. The size of the apartment in square meters or even the number of rooms, such as whether it is a studio or a two-bedroom apartment, is not as significant, at least not in favor of larger apartments. What matters is how much the total rent for the apartment is in euros. The situation is analogous to competition in long-distance transportation. A studio is a bus, where the ticket price in euros is lower. A two-bedroom apartment is a train. Many landlords are pondering how to attract passengers to their trains, meaning tenants to their two-bedroom apartments. As with long-distance transport, train ticket prices will fall in that situation. When the rent is 600 euros, there will be more interested tenants than when the rent is 1,000 euros, regardless of the size of the apartment. This greatly affects two-bedroom apartments' rents. Moving forward, more and more tenants will rent two-bedroom apartments instead of studios, but the rent for the two-bedroom apartment will be close to that of a studio. This is because many two-bedroom apartments have been built and many are available, leading owners to flex on rents. The situation intensifies if two-bedroom apartments are completed at the same unprecedented rate as in recent years. It can be said that in the rental housing market, soon you will get two rooms for the price of one. Looking at the overall housing prices across the country, real prices have been on a downtrend throughout this decade. Of course, the situation in the capital region and growth centers is generally more positive than the national average. On the other hand, in smaller municipalities, the decline in real prices is generally greater than the national averages. This year, there have been positive developments concerning housing prices. However, it is essential to keep the big picture trends and the long-term developments of the entire decade in mind and not become overly excited about relatively small movements in either direction in the short term. What matters is what happens in the long run. There will always be good reasons to remember that unexpected events can occur, and they likely will. Therefore, just like all other forecasts, this is only one scenario of the future. Jaakko Sinnemaa CEO, Asuntosalkku Oy and Asuntosalkku Suomi Oy We own nearly two thousand apartments in the capital region, surrounding municipalities, Tampere, Turku, Lahti, and Tallinn through our property portfolios. Our apartments are located in nearly 750 different housing companies and properties. Asuntosalkku Eesti Oy invests in Tallinn's apartments, and we are Estonia's largest market-based landlord. ## Blog ## Real Estate Investor Wanted Security in Old Age The experiences of real estate investors are increasingly interesting to people who, just a couple of years ago, would not have imagined being interested in real estate investing. The investment property purchasing service concept developed by Vuokraturva, the Association of Finnish Landlords, and the Central Association of Tenants in Finland continues to gain new users at an increasing pace. Helsingin Sanomat reported on January 31, 2009, on the experiences of Vuokraturva's customer Kati Koivisto. Real estate investor Kati Koivisto is not afraid of falling property prices because the investment is long-term. Kati Koivisto, a dental hygienist living in Kerava, has invested in two studio apartments, one in Porvoo and the other in Kallio, Helsinki. Koivisto purchased them a few years ago with her husband because they had been interested in real estate investing for a long time. “A company serving real estate investors, Vuokraturva, recommended these cities to us and found these properties,” Koivisto says. At the same time, the company also found tenants for us who have remained. The Koivistos live in a detached house in Kerava. According to Koivisto, using the company for tenant search and selection was a good solution as she had heard bitter experiences from friends about the poor payment morality of tenants. The Koivistos started with borrowed money. A few years ago, the economic upturn was at its best and interest rates were low. “The situation looked good, and the yield started coming in immediately at over six percent per year,” she calculates. Last October, the financial crisis hit, but according to Koivisto, the returns are still in the positive. “The rental level has risen, and after paying off loans and interest, there is still a little profit left.” Koivisto compares real estate investing to a pension insurance, which is “grandma's security.” “I should have started investing in real estate earlier. I have advised our four young adults that it’s worth buying an investment apartment as soon as possible.” Koivisto is not afraid of falling apartment prices because the investment is so long-term. She believes that prices of small apartments, such as studios, will not fall because there is a shortage of rental studios. “The prices of larger apartments may decrease and probably will.” “As long as the rents and loans are managed, there’s no need to worry about the existence of the apartments,” she says. The Koivistos have such strong trust in Vuokraturva, the company that mediated the apartments and tenants, that she hasn’t even met the tenants once. “We haven’t even checked the apartments after buying them,” she says. A similar experience was shared by Marja Kyllönen, whose experiences were written about in the January issue of the Taxpayers' Central Association’s Taloustaito magazine. Previously a small and wealthy circle's investment method, real estate investing is now rapidly becoming familiar to the general public as a means of wealth accumulation. Timo Metsola Chairman Vuokraturva ## Blog ## Factors to Consider for Real Estate Investors Regarding the Public Transport Zone Change in the Capital Region The attractiveness of Myyrmäki and Martinlaakso compared to Herttoniemi is significantly increasing in the eyes of real estate investors. Espoo stands to gain even more than Vantaa, as the attractiveness of areas around metro and train stations in Espoo will grow even further, reaching Ymmersta. Conversely, the relative position of Espoo Center and Kivenlahti is weakening. There is satisfaction in Kauniainen. However, areas in East Helsinki are losing significant advantages they have had over suburban areas in Espoo and Vantaa. What is this about? This concerns a major change in the pricing zones for public transport, which will have significant effects on the housing market. The change takes effect on April 27, 2019, but the savviest real estate investors have anticipated its impact for a long time. Before the change, public transport to central Helsinki from all over Espoo and Vantaa was nearly twice as expensive as from East Helsinki. With the upcoming change, it will be equally priced from all the aforementioned areas. The new model is based on distance rather than municipal borders. The change is expected to affect tenants' choices, particularly now that HSL has properly launched its information campaign. For an informed real estate investor, the preparation phase for this change has been a particularly opportune time to consider purchasing new investment properties. So few have recognized the change and its implications in advance that the regional price levels for apartments have hardly reacted in anticipation of the change. Now, the situation for the most sought-after types of apartments may change rapidly in those areas of Espoo and Vantaa from which travel to central Helsinki will be on the same AB ticket as from Herttoniemi instead of the regional ticket. The changes will likely be reflected in both apartment prices and rents. Those traveling from the new C zone to the B zone will also benefit from the change when their journey crosses the municipal border. For instance, someone traveling from Korson in Vantaa to Malmi campus for studying will save about one-third on travel costs by purchasing a new BC ticket instead of the current regional ticket. Public transport connections and travel costs are central factors affecting the demand for rental apartments and consequently the rental levels. They also influence ownership apartment prices, whether for investment properties or personal use. As fewer and fewer young people own cars or even have a driving license, it's highly likely that the significance of public transport connections and costs will only increase in the future. Timo Metsola Chairman of the Board Vuokraturva Overview of the New Zones Detailed Map of the New Zones Prices for the New Zones Current Zones Prices for the Current Zones ## The Golden Rule of Real Estate Investment Following recent news and discussions, one might assume that real estate investment has turned into a quick trading game where profits are made by guessing the most favorable month to buy an investment property and which month to sell for maximal quick gains. Such aggressive tactics can easily backfire, especially for inexperienced investors, making what is traditionally a stable and safe investment risky, particularly when heavily financed with debt. Therefore, I consider these perceptions and hasty actions to be detrimental to the entire field. The golden rule of real estate investment, launched by Vuokraturva at the beginning of the decade, seems to have been badly forgotten, but its content is still applicable. 1. Buy investment properties at a steady and infrequent pace, meaning space out your purchases over time. Consistently adhering to this principle significantly smooths out the fluctuations of economic cycles. 2. Make your purchase decision based on rental yield, not speculative appreciation hopes. This way, you can hold onto the property for as long as necessary. 3. Do not sell the property unless you receive a nice profit compared to the original purchase price. What matters overall is not that the profit from the sale is maximized. For a wise investor, it is sufficient to receive a reasonably nice selling profit on top of the accumulated rental yield. Attempting to achieve the maximum selling profit often leads to missing out on the entire cycle. Timo Metsola Chairman of the Board Vuokraturva # Blog ## The Ten Deadly Sins of Real Estate Investors In recent months, there has been a lively market for investment properties. Unfortunately, many buyers proceed with minimal understanding. Over half of those who have purchased an investment property later find themselves disappointed for one reason or another. Successful real estate investing requires thorough research and some education. Vuokraturva has listed the ten deadly sins of real estate investors to help beginners avoid the most significant pitfalls. 1. Choosing a property based on emotion rather than calculations – falling in love is dangerous. It's crucial to be able to calculate the actual yield of an investment property, as this allows for meaningful comparisons among several options as investment targets. While many buy their own homes based on immediate attraction, doing so for an investment property can be a fatal error. Falling in love can cause one to overlook the vital information that calculations provide as an investment target. 2. Failing to assess upcoming major repairs – many cakes are beautiful on the outside. Even if the property management certificate does not mention any approved major repairs, that does not mean they won’t be coming in the near future. Investigate whether preparations for major repairs have begun or if discussions have taken place at homeowners' meetings. Often, properties are sold just before major renovations become officially noted in company documents. Based on technical lifespans, one can also assess the likelihood of, for example, plumbing renovations. 3. Being overly optimistic about rent – don’t trust the seller's estimates. Use cautious rental estimates in your calculations. Rent increases are tapering off, and demand for rental properties varies at different times of the year. Don’t trust the seller's or agent's estimates of what rent can be obtained; instead, check listings for similar rental properties or consult a rental agency professional. Remember that actual rents may be lower than asking prices. 4. Forgetting to negotiate the loan spread – the equation can’t withstand rising reference rates. Now that loan reference rates are low, banks happily discuss total loan costs since they appear low to customers. This focus can divert attention from the margin charged over the reference rate, which currently varies between 0.5-2.0%. For example, with a 3-month Euribor currently around 1.3%, even a two percent margin results in a total rate of only 3.3%. It is very likely that reference rates will eventually return to around 5%, making a total rate of 7% with a two percent margin, and rental operations financed by loans could turn unprofitable. Even with a low reference rate, one must be careful about the margin and solicit offers from multiple banks if necessary. 5. Requirements for the property are considered in advance but are not adhered to – impatience. Far too often, well-considered and studied criteria for purchasing an investment property are abandoned if a suitable property is not found after a few weeks of searching. This may lead to investors becoming weary of searching or losing faith in their ability to find a good investment, resulting in the purchase of merely acceptable properties. Impatience is a deadly sin in real estate investing. Experienced investors target suitable properties month after month and year after year and can take long breaks from purchasing if they view the market as unfavorable. 6. Paying too much for a property – making hasty negotiations. In nearly every property showing, one hears the seller or listing agent say: “Act quickly; these are being snapped up as there are so few available.” Don’t fall for the seller’s sales pitch; make your assessment calmly and analytically. Don’t allow the seller to pressure your decision-making. If you're seriously interested, make an offer. Very few properties sell at the asking price, and there can be room for negotiation, sometimes even up to 20%. 7. Not selecting tenants carefully enough – good-hearted people are often deceived. Everyone praises themselves when applying to rent your property. Remember to check employment, credit records, and tenant references before signing a lease agreement. Never hand over keys to a tenant before securing a rental deposit equal to 2-3 months’ rent. Don’t be swayed by touching stories about payments going to the wrong account or a moving truck already waiting outside. Once a tenant has the keys and has moved in, they have strong legal protections. 8. Forgetting to monitor rent payments – only reacting when payments have accumulated. Check your account for rent payments immediately after the due date and formally alert tenants in writing of any delays. If tracking rent payments is neglected, a tenant’s payment morale can decline rapidly. If a landlord discovers missed payments only after several are unpaid, it’s possible that all due rents might never be collected from the tenant. Therefore, stay continuously updated. 9. Drafting the lease carelessly – some terms are agreed upon generically or verbally. Always create a lease agreement in writing and meticulously document all agreed-upon terms. Verbal agreements are difficult to prove later, and people tend to remember verbal agreements differently over time. Memory is inclined to favor oneself. A landlord cannot rely on contract terms they cannot conclusively demonstrate had been agreed upon. Also, remember to check the mandatory legislation contained within the Residential Lease Act regarding matters that cannot be deviated from in lease agreements. Terms in the lease that contravene mandatory legislation are void, even if both parties have signed in acceptance. 10. Missing out on tax deductions – most deductions require proactive effort from the investor. People are accustomed to having both their earned income and capital gains reported to the tax authorities by someone else. However, in general, real estate investors must personally report both rental income and related deductions to the tax authorities. Income is usually remembered to be reported, but it is common for potential deductions or expense allocations to be overlooked. Such a forgetfulness then becomes the investor's own loss. Timo Metsola Chairman of the Board Vuokraturva Ltd. ## Blog ## The Needs of Property Investors Led to Vuokraturva Property investing has been my profession for over 20 years. This gives Vuokraturva a crucial advantage. We developed exactly the kind of service that I, as a private landlord and property investor, need. That’s why the service also meets the needs of others so well. Understanding and responding to the three main aspects of property investors' needs is essential. First, Vuokraturva finds tenants and guarantees the rent payment for the first year. This means that you simply cannot end up with a bad tenant, which is the core of the entire concept. The second key aspect is meticulous attention to all formalities. This way, there are no issues later on. Renting is straightforward when everything is done correctly from the start. Even if it takes effort. Small oversights or mistakes can, with bad luck, turn into such a mess that it kills your enthusiasm for property investing and leads to selling the apartment. The third absolute necessity is smooth customer service. Agents must be professionals not only in the rental market but also in interpersonal skills. Otherwise, it just doesn’t work anymore today. With these fundamentals, we have risen to become the market leader. If you are interested and want to learn more, you can leave a contact request HERE. I hope that my life's work is helpful to you as a property investor and successful landlord. Whenever someone pulls my sleeve somewhere and tells me so, I feel a joy that is hard to explain. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Real Estate Investment is Like Chess – Just Participating Isn't Enough for a Good Game Comparing real estate investment to chess or checkers is an old adage in the industry. The changes on the board are slow and initially seem harmless as one piece is moved at a time. However, every move is important, and mistakes come at a cost, immediately or with a delay. Wealth has been created and lost depending on how well people have understood the unavoidable truths conveyed by the situation on the board (the markets). It is telling of the times that such thoughts and comparisons feel stale, if they've even been heard at all. Real estate investment has begun to be viewed as an act of bravery. The narrative has shifted to suggest that those who dare to do a lot, use the highest leverage, and promise the greatest returns to their backers will win. If this is swallowed, one must have let interest in the lessons of history and the long-lasting chains of real estate bubbles fade away. Like in chess and checkers, what ultimately matters in real estate investment is how it turns out. A flashy opening move may just as well indicate brilliance as it could foolishness. It is essential to understand that flashy moves do not determine the outcome; rather, it’s the brilliance or foolishness that matters. I play chess with my children from time to time. I need to patiently explain that merely participating in the game and knowing the moves doesn’t mean one knows how to play. Sometimes it feels like my children understand this better than many novice players who have rushed into the real estate investment market with big money in recent years. In October 2015, I played a game against grandmaster Garry Kasparov in front of cameras at the Nordic Business Forum and lasted 32 moves. When I explained to onlookers that my exceptional performance in Finnish chess history resulted from 20 years of daily practice, only a few in the field seemed to grasp what I meant. In both real estate investment, chess, and checkers, it is crucial to position oneself correctly early on. In the 90s, my professional moves as a real estate investor were evident in purchases in Kallio, Helsinki, and elsewhere in the eastern city center. In the early 2010s, the focus was on East Helsinki, and by the end of the decade, on the suburban municipalities surrounding the capital city. In this decade, reading the developing situation on the board has led our fund, Asuntosalkku Eesti, to become the largest landlord in Tallinn. It is essential to understand that a move that was right five or ten years ago is very rarely still correct today. Whether it's Kallio or Kalamaja, this logic applies. One should avoid making major mistakes in the game, but at the same time, one should not be too harsh on oneself for not noticing every opportunity. Achieving a perfect understanding of the game is not a meaningful goal; getting close to it is. When, at the turn of the millennium, Mustalahti became Aurinkolahti and buildings began to rise far from the then-existing services on the fields of Viikki, I did not understand the magnitude of their potential. Many others did, and such experiences are very educational. Even though one’s opinion often later becomes fact, it can also happen the other way around. That’s why it’s essential to remember that one’s own and others’ opinions and perspectives are, at best, still just opinions. This is particularly problematic if it’s forgotten in societal decision-making. One must always consider the possibility that this time, one might be wrong. We all are, constantly. Purely careless mistakes also happen. In September, after a public debate with Osmo Soininvaara, we discovered that Helsinki's chronic studio apartment shortage resulted from a fatal typo made accidentally by the deputy mayor in the proposal that served as the basis for the city council decision at the beginning of the millennium. By my logic, the revelation of such absurdities and the cover-up should be front-page news. But I noticed that in the real world, for example, a record released from my composed music was a topic of greater news value. It feels almost pitiful that I find myself trying to ride the attention of the album in the hope that someone, as a result of this comparison, would become interested in how a civil servant’s typo can cause a chronic studio apartment shortage in Finland's capital city. This example indeed fits this blog's theme; one must adhere to the rules of the game regardless of what one thinks about them. The same applies to observations. When the aforementioned studio shortage was developing, and Vuokraturva warned in 2007, presciently, about the rapid rise in rents, many experts seemed to “know” that rents in Finland have always risen moderately. They brushed aside the well-founded warning as nonsense. It is dangerous to only consider observations that fit one’s worldview. In addition to careful consideration, creativity and deviation from established patterns are also essential in chess and checkers. If you try to play against a grandmaster using well-known chess openings that may be a big deal in a neighborhood chess club, the grandmaster will master them far better than you ever could. Bill Gates discovered this in 2014 when he lost to chess world champion Magnus Carlsen in just nine moves in front of the cameras. You can only compete against better players by doing something that even surprises them. Thus, creativity and deviation from normal patterns are required. And this is not in contradiction to reading the game and considering moves. This week, many have wondered if I thought at all before releasing the album. As if Kim Kuusi, the chairman of Teosto’s board, and I had spent a year pouring our hearts into the Lintuja tuulessa album without considering what we were doing. Kuusi expressed his perspective on the matter to me very pragmatically. From his point of view, I had intellectual property linked to music in my drawer that has financial value in addition to artistic value. There is nothing contradictory about this, unless your worldview shapes it to be so. This must be understood especially in Teosto. That old fox also knows that many talk about creativity, but in reality, far fewer can demonstrate it. Music is a kind of chess itself. A complex whole, where there must be both a strong foundation, structure, and coherence as well as creativity, inner fire, and an unpredictable touch. Whether it’s about real estate investing, music, politics, checkers, or chess, humility is required. Don’t think that mere participation and imitation of others is enough for anything. I watch with horror how new expensive two-room apartments are being built at an accelerating pace for investors and first-time buyers in a housing market that already has too many new costly two-room apartments. There are no signs of acknowledging the situation—or at least admitting it. On the contrary, industry players continue to emphasize that there are NO problems associated with this record high production of record expensive two-room apartments. Anyone paying attention can spot that “nothing” phrase. Not a single problem? Denying the total existence of all problems is unfortunately due to the fact that admitting certain undeniable problems currently would lead to further questions revealing the whole situation. For the same reason, operators in Sweden’s housing market deny all problems in public, with only the authorities warning. We saw the same on a larger scale in the mid-last decade when a country overflowing with Nobel Laureates was in a kind of mass hypnosis, believing that history had ended, housing prices would never fall again, and thus there was nothing problematic with the soaring prices and loan portfolios. This led to a global chain of events that pushed the entire world economy to the brink, from which Finland has yet to recover. Nowadays, almost anyone can declare themselves a professional real estate investor, take on a considerable amount of cheap loans, and even, lacking necessary permits, form a partnership with a financial operator who raises funds from investors for a project. Real estate funds are popping up like mushrooms after rain, and the investment property market is scorching hot. The fact that you have seen others play and know how to move pieces does not mean you can play. Housing markets have always been cyclical and will always be. The cycles are so long that this is difficult for many to remember, especially when the last 25 years have produced irresistibly tempting conditions for investors in real estate, leading them to forget the lessons of history. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Masters of Real Estate Investment – Anna Perho set out to uncover the stories of the most well-known real estate investors The popularity of real estate investment has grown tremendously, but what separates the top performers from the rest? Anna Perho thoroughly investigates this in the Sijoitusovi Podcast starting today. Voices from masters of flipping, Airbnb, and traditional real estate investment will be featured. ### Masters of Real Estate Investment – Anna Perho sets out to uncover the success stories of Finland's most famous real estate investors and whether an ordinary salaried employee can achieve the same! In the opening episode, Jari Sarasvuo reveals the secret to continuous wealth-building. Jari's success is both controversial and inspiring, and since he does not shy away from discussing his achievements and the work required to attain them, he also strongly motivates others. Jari shares his human side with Anna and shows how, at its core, wealth accumulation is ultimately about ensuring that income exceeds expenses in all situations. Success is almost always a collaboration, not just individual excellence. In the second episode, Jenny Nyman discusses how to become a master at buying, renovating, and selling for a profit. Along the way, it is revealed how she actually makes money by being nice and considerate. Contrary to all stereotypes, flipping does not rely on unscrupulous actions or taking advantage of others; instead, it is about the ability to empathize and produce solutions that all parties feel satisfied with afterwards. Understanding Jenny's message can be a real eye-opener for many less successful flippers. In the third episode, Anna talks with Timo Metsola, founder of Vuokraturva. Since Vuokraturva is a commercial partner of the podcast, the conversation is elevated beyond the daily grind for hygienic reasons. Anna guides the discussion into the historical development of the housing market and the deliberately long-term life perspective that Metsola has pursued. They also discuss why offices and commercial spaces have become the dinosaurs of this era, whose environment was irrevocably changed by the COVID-19 crisis—almost as fatal as the asteroid that struck the Yucatán Peninsula 65 million years ago. #### Listen on YouTube >> After the initial taste offered by these three episodes, new episodes featuring masters of real estate investment will be released weekly on Thursdays. ## Announcements ## Asuntoturva Completes Fund of 500 Rental Apartments Asuntoturva Oy, part of the Vuokraturva group, Auratum Kiinteistöt Oy, which is part of the Auratum group, and Öhman Rahastoyhtiö have completed a fund consisting of 500 privately financed apartments. The fund acquired 500 ownership apartments and rented them out. The capital fund Quorum Asuntoturva I Ky, built with private investors' capital, purchased a total of 500 apartments from individuals selling their homes and rented them on the open market. The apartments are located in the capital region and surrounding municipalities, with most of them being studio or one-bedroom apartments. The acquired apartments are intended to be kept for long-term rental use. For more information: Jaakko Sinnemaa, CEO, Asuntoturva Oy, tel. +358 41 5280 329. Matti Äijälä, CEO, Auratum Kiinteistöt Oy, tel. +358 45 6344 400. ### About Asuntoturva Oy Asuntoturva, part of the Vuokraturva group, is an asset management company for fund-based real estate investments. Our funds include institutional investors, companies, and private individuals. Website: www.asuntoturva.fi ### About Auratum Kiinteistöt Oy Auratum Kiinteistöt Oy, which is part of the Auratum group, engages in property development and investment focusing on residential properties and commercial real estate. Additionally, the company manages real estate and property capital fund management tasks. Website: www.auratumkiinteistot.com ### About Öhman Rahastoyhtiö E. Öhman J:or Rahastoyhtiö Suomi Oy is a Finnish asset management company focused on serving individuals, companies, and institutions. Website: http://www.quorum.fi ## Overview of Asuntoturva in 2011 The year 2010 was an interesting year for the housing market. Housing prices rose despite an uncertain economic situation. The Eurozone debt crisis did not have a downward effect on housing prices in Finland, although the situation was different in many other countries. After the financial crisis began in 2008, prices did dip slightly here as well, but they quickly recovered to pre-crisis levels and even surpassed them. In the rental housing market, demand for apartments began to rise in May, exacerbated by the Greek crisis. Rental rates were on a slight upward trend compared to 2009, and particularly strong demand was noted for small apartments. When considering the price development of housing in 2011, it is essential to analyze the key factors that significantly impact housing prices. Homes are often purchased partially with borrowed money, and the monthly loan payment is a crucial factor influencing housing prices. Key factors affecting the monthly payment include the loan amount, reference interest rate, margin, and loan repayment period. Looking at things over a longer term, it can be noted that reference interest rates are currently particularly low. For example, the 12-month Euribor is around 1.5 percent now. In the past couple of years, reference rates have been even lower, but historically speaking, the levels are exceptionally low, and rates are generally expected to rise. If we consider that a long-term average interest rate is around four percent, the interest rate could well double quickly. As reference rates rise, the monthly payment of a housing loan increases, which reduces the homebuyer’s purchasing power. A general decline in purchasing power typically adds pressure for housing prices to decrease. The same observations can be made regarding loan margins charged by banks. Margins have increased slightly from their lowest levels, but historically, margin levels remain low, and banks have expressed concern about upward pressure. It is likely that bank regulation will tighten, increasing the costs of the bank's financing, which in turn will raise margins. The rise in margins negatively impacts purchasing power, which further increases the pressure on housing prices to decrease. In recent years, the repayment period for housing loans in Finland has lengthened. In some countries, even longer repayment periods exist, but there is also a view in the market supporting shorter loan durations. Given the conflicting opinions regarding loan durations, I assume that this factor does not have significant effects on purchasing power and subsequently on housing prices. The relative share of borrowed funds in the purchase price has clearly increased. During the financial crisis, both at the EU level and from Finland's regulatory authorities, concerned comments have been made regarding high loan amounts, and it has been suggested that own funds should constitute a much larger proportion than at present. If we assume that when purchasing a home, one should have at least 30-40 percent of the purchase price in own funds, the situation for first-time homebuyers would become significantly more challenging. Practically, current housing prices would be unattainable for them, and if the proportion of own funds is increased, this will exert clear downward pressure on housing prices. Additionally, factors affecting available income should be considered. Wages are unlikely to rise significantly in the near future, as work continues to shift to countries with lower cost levels. Instead, taxation appears to be tightening, which reduces disposable income. The state derives its income from taxes, and if the state's borrowing is to be curbed or debt load alleviated, tax increases are necessary. Potential means of increasing state revenues include interfering with the tax deductibility of housing loans and potentially reducing or removing exemptions on capital gains from the sale of one's home. Reducing subsidies for homeownership complicates the acquisition, ownership, and sale of properties, adding further downward pressure on prices. Energy costs and property taxes are on the rise, which likewise affects the maintenance fees of housing companies. Our housing stock, particularly in suburbs, is aging and significant repairs are imminent. Maintenance and repair costs will also increase the financial burden on property owners. Based on the previous paragraphs, it can be generally stated that the direction of the driving forces strongly points towards significant rises in housing prices being difficult to foresee in the coming years. However, the interest rate level seems to be the most influential factor on housing prices, and as long as interest rates remain low, it is possible that prices may remain stable or even rise somewhat if property owners are willing to allocate a larger portion of their disposable income to their living expenses. However, there will be a limit to this at some point, and it seems that declines in housing prices will be seen, at least for certain types of apartments and in certain areas. Time will reveal in which types of apartments and areas this occurs. The rental market is expected to be more stable. Particularly small rental apartments will be in demand as urbanization continues in Finland. Rent is typically viewed by laypersons as more of an expense than the interest on a mortgage or maintenance fees, although both are indeed costs of living that property owners bear. As rents rise dramatically, people start actively looking for other alternatives, which mitigates rent increases. Generally, as housing prices rise, there is an eagerness to buy properties to share in their value increase, creating a self-reinforcing cycle. Currently, however, there is enough uncertainty in housing prices that interest in rental living has increased. As demand grows, rents are likely to rise. This is likely to happen in 2011 for at least some rental apartments. However, a considerable number of so-called intermediary-level apartments built with state support are also being completed, many of which are in close proximity to each other. These apartments are primarily two- and three-room units. For these, there may be oversupply in certain areas, leading to potential rent decreases for this type of rental housing. A significant decline in the overall economic situation may create a leverage effect in either direction, and thus significant changes in housing prices and rents are possible in 2011. Uncertainty and the possibility of larger market shifts make the year interesting, and strong market players are likely to benefit from this. Our market knowledge of Finland's most interesting property investment markets is particularly strong, and this presents us with many opportunities in 2011. Jaakko Sinnemaa CEO Asuntoturva Oy ## Announcements ## Asuntoturva buys 800 owner-occupied apartments from private individuals to convert into rental apartments Asuntoturva Oy, part of the Vuokraturva group, is purchasing 800 owner-occupied apartments from private individuals and converting them into rental apartments. The purchased apartments are intended to be kept in the capital funds of Asuntoturva for long-term rental use. Private individuals can sell their apartments to the funds without any commission fees. Due to the strong demand for rental apartments, Asuntoturva will acquire an additional 800 apartments this year, on top of the 500 apartments already purchased. Individuals owning studio and one-bedroom apartments in the capital region or Southern Finland can offer their individual apartments for purchase by the funds through Vuokraturva without any commission fees. "The funds will play an increasingly important role as providers of rental apartments in the future. We focus on offering rental apartments that are in the highest demand in the rental market," says Asuntoturva CEO Jaakko Sinnemaa. "The rental housing shortage is not a problem that will last forever, as is sometimes suggested. It is solvable, just like any other issue. New thinking and new forms of property investment are needed," emphasizes Timo Metsola, Chairman of the Board of Vuokraturva. ### Additional Information Jaakko Sinnemaa, CEO, Asuntoturva, Phone: 041 5280 329 Timo Metsola, Chairman of the Board, Vuokraturva, Phone: (09) 6877 550 ### About Asuntoturva Asuntoturva, part of the Vuokraturva group, is an asset management company focused on fund-based real estate investments. Our capital funds include private individuals, companies, and institutions as investors. www.asuntoturva.fi ## Blog ## The Maintenance Costs of Home Loans Can Quintuple It's not the home loan itself that burdens anyone; it's merely a queue of bits in the bank's system. What weighs heavily on homeowners are the maintenance costs of the loan. This old wisdom is one of the key aspects to consider as the housing market enters the new year. Expenses can indeed multiply. The cash flow of homeowners will play a crucial role in the housing market in 2018. The amount of the mortgage itself is virtually irrelevant. Only the maintenance costs of the loan matter, as they impact each homeowner's cash flow and, consequently, their purchasing power. In discussions with banks, I have used the example of Sweden for years regarding what could happen in the housing market if the cash flow of homeowners increasingly flows towards the banks as maintenance costs rise. The situation in Finland is partially similar. Let me explain this with a simple example. With reference rates at zero or negative, the cost of the loan has been merely the bank's margin, for instance, one percent. When loans have not been amortized, the maintenance costs have entirely consisted of this one percent of the loan amount. It's important to remember that in Finland, we have housing loans with a grace period for amortization, and this is the reality. The situation dramatically changes if reference rates rise or loans are amortized—or if both reference rates rise and loans are amortized. This change has occurred in Sweden. If the loan amortization program is long, say 50 years, the annual amortization of the loan is an average of two percent per year. In this case, the maintenance costs amount to 1 + 2, meaning the total maintenance costs are three percent of the loan amount. Thus, the maintenance costs have tripled. About ten years ago, before the financial crisis, the 12-month Euribor was over five percent. The reference rate could very well rise to two percent. If the mortgage margin is one percent, the reference rate is two percent, and there’s an amortization of two percent, then the maintenance costs are 1 + 2 + 2, totaling five percent. Compared to the initial situation where only the margin was paid, the maintenance costs have quintupled. Yes, quintupled! It is noteworthy that the actual loan amount has remained the same in this example. This shows that it is not the loan amount that disturbs the homeowner but specifically the maintenance costs. If money flows to the bank, less is left for consumption, weakening and unsettling the overall economy. To illustrate this in euros—if previously €1,000 was spent on maintenance costs per month and in the new situation it becomes €5,000 per month, this affects consumption even among better-off individuals. This is what is happening in Sweden, and partly why economic growth has slowed. In Sweden, measures have been taken to start amortizing loans. The subsequent tripling of maintenance costs has led to a clear decline in housing prices, even in Stockholm. If reference rates rise further, the downward trend will likely steepen as if in a steep skiing slope in the Alps. In Finland, loans have generally been amortized. However, an increase in the reference rate would likely mean that with the machine power of the elevator, we have risen to the peak of the hill, and gravity would begin to pull the housing mass downward. It’s important to remember that there is currently a fairly large amount of housing-related loans that are not being amortized at all. These include both housing loans taken from the bank with a grace period and housing company loans that are similarly grace periods during the first years. The risk is thus real also for us in Finland. In the housing market, as in other markets, there are always risks. And it is essential to be aware of these risks. Denying or unnecessarily downplaying risks sooner or later causes turbulence in the markets. Overall, however, we see many opportunities in the housing market. I will return to these in our review of 2018. Helsinki, December 29, 2017 Jaakko Sinnemaa CEO, Asuntosalkku Oy and Asuntosalkku Suomi Oy # Key Automation Instructions ## Using Vuokraturva's key automation is easy The key automation is used with a personal code, which you will receive from us via SMS. Access to the key automation occurs through a keypad lock at a separate door directly from Teollisuuskatu, which is about 10 meters to the right of the main entrance of Vuokraturva’s office. The key automation is open from Monday to Sunday, 6 AM to 11 PM. The address is Teollisuuskatu 21, ground floor, Helsinki. Are you picking up or returning keys? Read the correct instructions below. ### Picking Up Keys: 1. You have received a text message. From it, you will see whether your keys are in automation A, B, C, D, or E. 2. Enter the PIN code from the message into the correct automation. Six digits followed by #. 3. Take the key and keep it safe. The hatch will close automatically. ### Returning Keys to the Automation: 1. Remove the keychain, as only the keys in a keyring can be placed in the automation. Do not use plastic bags or envelopes, or the automation will jam. Keyrings are available for you in a container above the automation. 2. You have received a text message. From it, you will see whether your keys are going into automation A, B, C, D, or E. 3. Enter the PIN code from the message into the correct automation. Six digits followed by #. 4. Place the key into the opening hatch and wait for the hatch to close automatically. If you have any questions or need assistance, please ring the doorbell! Outside office hours (Mon-Fri 9 AM - 5 PM), you can call the number 010 232 7300. ## The Story of Myyntiturva In 2009, Vuokraturva had an important investment client who wanted to sell over a hundred small apartments he owned in the Helsinki area. These were mainly studio and one-bedroom apartments, which were in high demand on the market, and it was assessed that the task would be easy to carry out. Vuokraturva put the real estate agents out to tender in order to get a good offer on the sales commission for the client. Although the sale of small apartments went smoothly, and the apartments were often sold even before the premiere viewing and for higher prices than requested, the commission offers received did not contain greater discounts than 10-15 percent off the list prices. In other words, the client would have had to pay an average commission of about ten thousand euros for each apartment. Vuokraturva considered this completely unreasonable and eventually, out of frustration over the situation, which resembled a cartel, decided to sell the apartments themselves for a fixed commission of 1500 euros + VAT per apartment. The apartments sold quickly, the prices were good, the client was satisfied, and Vuokraturva also achieved a really good contribution margin at this fee level for their work. Timo Metsola, the chairman of Vuokraturva's board, publicly discussed this as a cautionary and illustrative example of how far the commission fees for small apartments had deviated from the actual workload. This led to headlines, but nothing changed. The apartment sales were intended to be a one-off project, but then other Vuokraturva clients who had properties they wished to sell began to reach out. Therefore, a small-scale pilot project began at Vuokraturva, where Vuokraturva also sold its private customers' apartments. This continued until the two-year pilot period ended, and in the autumn of 2011, it was time to summarize the results of the pilot project. The observation was that with a reasonable commission fee, to everyone's surprise, a contribution margin of about 25 percent was achieved. This observation was astonishing, and Vuokraturva again brought it to the public attention, stating that if Vuokraturva, as an actor specialized in rental intermediation, could operate so profitably with such low fees as a side project, how could those specialized in sales intermediation not do the same? The matter was discussed on the radio and in the newspaper columns. However, the other real estate agents remained silent and did not say a word about the topic. They simply tried to hush up the entire matter within the real estate circles. In the spring of 2012, the management of Vuokraturva was at a crossroads. There were two options. Either they had to accept that the commission fees are high and remain high in Finland, or they had to strive to break the price level with active operations of their own, meaning practically founding a competitor to challenge the traditional high fee level. After a few weeks of contemplation, they opted for the latter, and thus Myyntiturva began. Myyntiturva of the 2020s is a forerunner in electronic real estate transactions. Thanks to an almost completely paperless office, Myyntiturva is more efficient, environmentally friendly, and responsible, while still not forgetting good face-to-face customer service. ## The Story of Vuokraturva Vuokraturva began its operations in the 1990s as a one-man company. It was run by the current chairman of Vuokraturva and its affiliated companies, Timo Metsola, who was then a 23-year-old engineering student. The company started its activities in 1998 under the name Uudenmaan Takuuvälittäjät. The following year, the name was changed to Suomen Vuokraturva, which was shortened to Vuokraturva in 2006. The first years were challenging, and competition was fierce. However, from the very start, there was one thing that set Vuokraturva apart from the others: responsibility for ensuring that rents were paid. For the brokerage fee, the landlord received a guarantee for the entire first year’s rent. In 2001, a law concerning rental brokerage disrupted the outdated business models of the large competitors. Vuokraturva's agility and the guarantee for landlords gradually changed the entire market. After many twists and turns, Vuokraturva eventually became the market leader in rental brokerage in 2003. At the same time, Timo Metsola, known as an outspoken debater, established himself as the figurehead for the entire industry. In the following years, Vuokraturva expanded into housing investment services. They sourced and purchased good investment properties for clients as a turnkey service. The attitude towards investing in properties changed. In November 2005, a joint advertisement by Vuokraturva, the Central Federation of Tenants, and the Finnish Landlords' Association proudly appeared on the front page of Helsingin Sanomat, proclaiming that an investment property is an investment in Finland. This represented a completely new line of thinking. The landlord was no longer seen as an exploiter, but rather an important pillar of society. Growth continued. In 2007, Asuntoturva Oy's housing funds came next, with superior performance in the European Chemicals Agency's housing matters and expansion into relocation services for foreign experts. The financial crisis of 2008 significantly increased the demand for rental housing, and the extreme interest rate stimulation of the following years initiated a genuine housing investment boom. The group’s business operations expanded significantly. In 2012, Vuokraturva became frustrated with the expensive brokerage fees of real estate agents and launched Myyntiturva, which offers the same brokerage service for a reasonable fixed fee. The service has been a great success and changed the commission practices of the entire real estate brokerage industry in a fairer direction. Although the group’s business operations have grown and the modes of operation have become more varied, many customers have remained loyal clients since the 1990s. We have come a long way together with these customers, and they are in many ways a rare gem in our work. Timo Metsola, who started as the sole employee of the one-man company, still participates in the daily operations and especially in the development of new services. Vuokraturva in the 2020s is, thanks to the best electronic services in the industry and an almost entirely paperless office, faster, more environmentally friendly, more responsible, and more secure than ever before. ### Blocking Vuokraturva Oy's electronic direct marketing With this form you can block Vuokraturva Oy's electronic direct marketing. Please note that the objection to direct marketing also applies to the search alert. This means that you will be unable to receive emailed information about rental properties that meet the search criteria selected for your search alert. The information entered in the form will be emailed to Vuokraturva Customer Service. Read more in our . ## Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentee: Mon-Sun 8:00 – 18:00 ## Offices ##### Helsinki office and operating area Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki ##### Tampere office and operating area Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere ##### Turku office and operating area Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku ## Properties for Sale # Effective Real Estate Mediation at a Reasonable Price Myyntiturva sells properties with favorable fixed mediation fees. We specialize in selling properties in housing companies. We offer you a personal and comprehensive mediation service. We take care of everything from start to finish on your behalf. ## We Sell Your Property with a Favorable Mediation Fee Vuokraturva created a simple property mediation service with fixed mediation fees in 2012 at the request of its investor clients. Thus, Myyntiturva was born. The favorable fixed mediation fees are possible because many property investors trust Myyntiturva. This allows us to offer all our customers exceptionally competitive fixed fees. The only additional cost beyond the fee is the expense for the property manager certificate package. Myyntiturva's fixed mediation fees: • One-room apartments €3,300 • Two-room apartments €4,500 • Three-room apartments €5,700 • Larger apartments €8,800 ## We Make Property Sales Easy Myyntiturva handles the sale of your property for you. We serve you in Helsinki, Uusimaa, and the Tampere region. Our service includes, among other things, carefully familiarizing ourselves with the property and housing company, assessing the appropriate asking price, taking photos and videos of the property, marketing the property competently, showing it, conducting bidding negotiations, preparing the purchase agreement, and managing the purchase arrangements and closing either at the bank, our office, or electronically with the Dias service. ## This is How It Proceeds ### Contact Us You get started by calling 010 2327 400. Or leave a contact request here! We are happy to discuss your property with you and tell you about our property sales services without you needing to commit to anything yet. The purpose is to provide you with information that you can use as a basis for your decisions regarding the sale of your property. We can also agree on a meeting at the property without you yet being obligated to anything. If you have already made your decision or have used our services before, we can also act quickly if needed. ### We Price Your Property Our mediator carefully familiarizes themselves with your property and suggests an appropriate price based on completed sales in the area. Our goal is to price your property correctly from the start. We will agree with you on the right price to ask by utilizing our extensive experience, current market knowledge, and comprehensive statistical data. ### We Market Diversely In addition to marketing that occurs on Oikotie, Etuovi, and our website, we also advertise properties through newspaper ads with photos in Helsingin Sanomat. We are in contact with the property manager and investigate future repairs and order the necessary documents on your behalf. We ensure that all required information is presented correctly in the marketing. ### Showing Your Property Our mediator shows the property to potential buyers. Besides regular property showings, we also extensively use effective electronic viewing methods, such as video viewings. We present the property both at public showings and during private showings and group viewings arranged based on client requests. We provide prospective buyers with personal service and highlight the best features of your property. ### Bid Negotiations We assist and advise interested buyers on how to make bids. We advise you on how to respond to the bids to the best of our ability. The bidding negotiations are conducted meticulously and professionally. It is possible to submit and accept bids entirely electronically. Successful bid negotiations are one of the most important and challenging stages in the mediation process. ### The Property Transaction Once a bid has been accepted, we prepare the purchase agreement and take care of all preparations for the property transaction. The closing can take place either normally at the bank office or our office, or alternatively entirely electronically with the Dias service. Our mediator handles all transaction arrangements on your behalf. We monitor and ensure that the transaction complies with laws, regulations, and good mediation practices. ### We Serve Even Afterwards You can always contact us; we are happy to help! The support and assistance that Myyntiturva offers do not end when the purchase agreement is signed, and the keys are handed over. There are many situations in life where it is nice to have a low threshold to ask a professional for advice or to have something confirmed. Myyntiturva does not charge separately for this; it is included in our service. ## Database for Property Sellers In this section, we have compiled useful information for you planning to sell your property. If you cannot find what you are looking for, you can also contact us and ask more from our experts. Looking for the perfect property? We're here to help. Get started by checking out our properties for sale. You can move forward with just a few clicks. ## Buying or renting? Both have their advantages. If you find it difficult to choose, consult one of Myyntiturva's experts to help you make your decision. ### Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentee: Mon-Sun 8:00 – 18:00 ## Offices ##### Helsinki office and operating area Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki ##### Tampere office and operating area Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere ##### Turku office and operating area Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku ## About us Vuokraturva was established in 1998. The company employs about a hundred professionals. The three cornerstones of our business are: - Rental services - Real estate sales services (Myyntiturva) - Relocation services We are at your service in the Helsinki, Uusimaa, Turku, and Tampere regions in Finland. We work in close cooperation with Suomen Vuokranantajat ry (Finnish Landlord Association) and Vuokralaiset VKL ry (Finnish Tenants) to develop the Finnish rental market. Timo Metsola, Chairman of the Vuokraturva Board of Directors, is the Chairman of the Rental Brokerage Committee of the Finnish Real Estate Agents Association. Previously, Metsola served on the board of The Finnish Landlord Association for 17 years. Metsola was awarded the association’s highest badge of merit for his service to The Finnish Landlord Association. How did Vuokraturva begin? Read Vuokraturva’s story How did Myyntiturva begin? Read Myyntiturva’s story ## Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentee: Mon-Sun 8:00 – 18:00 ### Petri Meckelborg Deputy Managing Director, Partner, LKV, LVV +358 (0)41 528 0328 petri.meckelborg@vuokraturva.fi ### Timo Metsola Managing Director, Chairman of the Board, LKV, LVV +358 (0)9 6877 550 timo.metsola@vuokraturva.fi ## Operating area - Espoo - Helsinki - Hyvinkää - Järvenpää - Kaarina - Kangasala - Kauniainen - Kerava - Kirkkonummi - Klaukkala - Lempäälä - Lohja - Naantali - Nokia - Nurmijärvi - Parainen - Pirkkala - Porvoo - Raisio - Riihimäki - Sipoo - Tampere - Toijala - Turku - Tuusula - Vantaa - Veikkola - Vihti - Ylöjärvi ## Our Offices ##### Helsinki office and operating area Teollisuuskatu 21, ground floor 00510 Helsinki Mon-Fri 9:00 – 17:00 ##### Tampere office and operating area Sammonkatu 18-20 33540 Tampere Mon-Fri 11:00 – 17:00 ##### Turku office and operating area Maariankatu 6 20100 Turku Mon-Fri 11:00 – 17:00 ## Invoicing address Electronic invoices (preferred form of delivery): Open Text Oy OVT-code 003715438224 Operator ID 003708599126 Paper invoices: Vuokraturva Oy, c/o Skannauspalvelu, Katetuotto Oy, Wallininkuja 5, street level, 00530 Helsinki E-mail invoices:  ostolaskut@vuokraturva.fi ## Vuokraturva’s internal whistleblowing channel The commission charged for the sale of a flat should be based on the amount of work required by the assignment, not on the local price level. Especially in big cities, price increases that have continued for several years are reflected in the commissions charged as a percentage of the sale price. Quite a few of the people selling their flats pay way too much in commission today. In big cities, heavy demand for flats makes selling easier than in small towns. Consequently, the commissions in big cities should be lower, not higher as they are with most real estate agents. ### Example property 1: Studio in Töölö, 34 m², debtless price 234,000€ Competitor’s brokerage fee (4% + VAT = 4.96%) 11,606€ Myyntiturva’s brokerage fee (2,000€ + VAT) 2,480€ ### Example property 2: One bedroom apartment in Katajanokka, 61 m², debtless price 410,000€ Competitor’s brokerage fee (3.5% + VAT = 4.34%) 17,794€ Myyntiturva’s brokerage fee (3,000€ + VAT) 3,720€ ### Example property 3: Two bedroom apartment in Hakaniemi, 77 m², debtless price 458,000€ Competitor’s brokerage fee (3% + VAT= 3.72%) 17,038€ Myyntiturva’s brokerage fee (4,000€ + VAT) 4,960€ ### Example property 4: Five rooms in Kamppi, 246 m², debtless price 1,680,000€ Competitor’s brokerage fee (2% + VAT = 2.48%) 41,664€ Myyntiturva’s brokerage fee (7,000€ + VAT) 8,680€ # Contact Information Property seekers: +358 10 2327 303 Mon-Fri 10:00 – 16:00 tenantservice@vuokraturva.fi Property owners: +358 10 2327 300 Mon-Sun 8:00 – 20:00 customerservice@vuokraturva.fi Property rentee: +358 10 2327 300 Mon-Sun 8:00 – 18:00 customerservice@vuokraturva.fi ## Offices **Helsinki office and operating area** Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki **Tampere office and operating area** Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere **Turku office and operating area** Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku ## Something on your mind? Write to us. We welcome both positive and negative feedback. If necessary, our customer service will contact you by email as soon as possible. The information entered in the form will be emailed to Vuokraturva Customer Service. Read more in our privacy policy. ## Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentees: Mon-Sun 8:00 – 18:00 ## Offices ##### Helsinki office and operating area Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki ##### Tampere office and operating area Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere ##### Turku office and operating area Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku ## Data Protection Description Vuokraturva Oy is a company that offers rental brokerage and housing placement services. This data protection description applies to the processing of personal data of Vuokraturva's customers, such as landlords, tenants seeking rental apartments, sellers and buyers of properties, as well as the processing of personal data in accordance with the principles of the Whistleblower Protection Act in connection with the handling of reports made through Vuokraturva's internal reporting channel. We describe below in more detail: - our contact information - what kind of data we collect - where the data is collected from - for what purpose the data is collected and what the legal basis for processing is - how long the data is stored - where the data is sent and transferred - how we protect the data - what rights the registered users have We ask you to familiarize yourself with the content of the data protection description. #### 1. CONTACT INFORMATION Data Controller: Vuokraturva Oy Business ID 1543822-4 Industrial Street 21, Ground Floor 00510 Helsinki Person managing register matters: Timo Metsola Phone 010 2327 300 timo.metsola@vuokraturva.fi #### 2. DATA CONTENT OF THE REGISTER Regarding all registered individuals, the following basic information is processed: - Basic information about the registered person such as name, address, language, age, phone number, email address - Information about permissions and prohibitions, such as permissions for and prohibitions against direct marketing - Objects of interest and other information provided by the registered individual - Event information - Personal identification number for reliable identification - Information on whether a person is a politically exposed person (PEP) - Data related to invoicing and collection - Information associated with customer and contractual relationships such as products and services, their usage dates, customer preferences related to them, information about the seller of the service, information about the number of keys, their types and intended use, receptions and transfers, as well as contact and events related to the service For landlords and sellers of properties, in addition to the basic information, the following is processed: - Ownership information and data concerning the rental or sales object, such as address, property registry or housing company data, information on condition and repairs, mortgage, compensation, and debt share information, size, number of rooms, availability, requested rent or price, information on whether the brokerage object is intended to be used as a joint home for spouses, as well as additional information provided by the customer about the object. For tenants, users of relocation services, and seekers of rental apartments, in addition to the basic information, the following is processed: - Employer - Nature of the employment relationship (permanent, temporary) - Student status, educational institution, educational program - Criteria for housing sought - Start date of the lease - Financial information and income, as well as other information for evaluating rental payment capacity - Possibly guarantor, guardian, or representative relationship or possible contact person In addition to these, we may process other information that the registered individual voluntarily provided during the application or other contact. We also observe data about the use of our web services as described in section 10 "Cookies." We do not combine the data observed with cookies with data for an identified customer. Regarding reports made through Vuokraturva's internal reporting channel, in addition to the basic information, the following is processed: - The information provided by the reporter to the channel to the extent necessary for investigating the case. #### 3. REGULAR SOURCES OF INFORMATION Personal data is collected during registration, when services are utilized, or otherwise directly from the registered individual. Personal data can also be collected and updated from the population register and the prohibition register maintained by Suomen Suoramarkkinointiliitto, as well as other similar registers. #### 4. PURPOSES OF PROCESSING PERSONAL DATA AND THE LEGAL BASIS FOR PROCESSING Personal data is used to manage, handle, and develop the customer relationship and for marketing the services in the following ways: - Contract: To fulfill a rental or sales assignment, we process our client's personal data to present and market the object, connect landlords with tenants or sellers with buyers, and to invoice for the assignment. Personal data is also processed in applications, bids, counter-bids, purchase and rental documents, and their annexes as part of contract negotiations. - Consent: We request the consent to process personal data for rental apartment seekers or buyers of ownership apartments, so that we can send the applicant information about available objects via email. We may also ask the client for consent to electronic direct marketing. Given consent can be withdrawn at any time. - Legitimate interest: We process the data for marketing, profiling, to prevent and investigate fraud and abuse, to present or defend legal claims, as well as for Vuokraturva Group's internal purposes, such as developing the business. These purposes are necessary concerning our business operations and justified based on an objective contact between the customer and Vuokraturva and are thus in line with our legitimate interest. The registered person can object to the processing in the ways described below. - Legal obligation: We process, for example, information about whether our client is a politically exposed person (PEP) to comply with the anti-money laundering law. We keep records and correspondence related to business transactions for six years from the end of the year when the accounting period has ended to comply with accounting law. In the aforementioned situations, the processing of personal data is based on a legal obligation. If other factors presented in this data protection description necessitate, the storage period may be longer than the one mentioned earlier in this point. In the forms intended for collecting personal data, it is indicated which information is mandatory concerning the provision of services and which can be provided voluntarily by the registered individual. If the customer wishes, they can refrain from providing information such as which objects interest them, but then we cannot personalize the objects offered to the customer or the service otherwise provided to them. #### 5. HOW LONG THE DATA IS STORED We only retain customers'/users' data as long as necessary to realize the purposes established above and comply with legal requirements: - According to Section 10 of the Brokerage Act, a brokerage business must retain the data and documents (including housing applications and purchase offers) related to an assignment for five years from the termination of that assignment. This five-year retention period is the statutory minimum requirement, and due to the statute of limitations of 10 years for liability in damages and the time that processes initiated at the end of the limitation period take, we retain data and documents for 12 years. - Data related to relocation services is stored for 12 years depending on the statute of limitations of 10 years for liability in damages and the time that processes initiated at the end of the limitation period take. - For reports made via Vuokraturva's internal reporting channel, we store data as long as required by legal standards. Vuokraturva's internal reporting channel operates on Juuriharja Consulting Group’s server under the name "First Whistle." The user can also influence how long data is stored through the influencing options described below in section 8. #### 6. DISCLOSURE AND TRANSFER OF DATA Vuokraturva Group: We may process a customer’s personal data within the Vuokraturva Group. - Authorities: We may disclose a customer's personal data as required by demands made by relevant authorities or other bodies, which are based on current legislation. - Restructuring: If we purchase, merge, or otherwise organize our business, customer personal data may be disclosed to buyers and their advisors. - Measurement and targeting: We may use a customer's personal data for measuring and targeting digital marketing in accordance with applicable regulations. - Collection and legal claims: We may disclose personal data to third parties, if necessary, to fulfill contracts, investigate potential violations, or to formulate, present, or defend legal claims. In addition to Vuokraturva Oy's own personnel, Vuokraturva-sopimus Oy, Takausvakuus Oy, and Vuokraturva-yhtiöt Oy, which is the parent company of the group they form, IT partners City Dev Labs / W3 Group Finland Oy, Jalo IT Oy, and Cinia Oy, and personnel from them who need access to the data to perform their tasks have access to customer data and customer information systems. Regarding Vuokraturva's internal reporting channel, Juuriharja Consulting Group Oy, which has developed the First Whistle service to fulfill its contractual obligations, processes Vuokraturva Oy's system administrators' and reporters' (the "Registered") personal data, such as name and contact details, technical data related to the software, as well as other personal data that may be linked to a natural person. Reporters may also store other people's personal data in the Whistleblowing channel. Juuriharja acts as the data processor defined in the data protection regulation in the role of platform provider, while Vuokraturva acts as the Data Controller according to Data Protection Regulations. Subcontractors that Juuriharja may hire for the service act as Sub-Processors. When we use the aforementioned and other subcontractors, we ensure through contractual arrangements that data is processed in accordance with the legislation in force at any given time and this data protection description. Data is generally not transferred to countries outside the European Union or the European Economic Area. #### 7. CONTROLS OF SANCTION AND FREEZING LISTS AND PREVENTION OF MONEY LAUNDERING AND TERRORISM FINANCING The collected customer knowledge data and other personal data are used for checking sanctions and freezing lists. The collected customer knowledge data and other personal data can be used to prevent, detect, and investigate money laundering and terrorism financing. The collected customer knowledge data and other personal data can be used to initiate an investigation into money laundering and terrorism financing and to investigate the crime through which the property or proceeds of crime that is the object of money laundering or terrorism financing have been obtained. #### 8. PROTECTION OF THE REGISTER The right to use the register requires a user ID issued by the customer database's system administrator. The system administrator also determines the access level granted to users. To start the program, a personal password is needed. The use of the register and the logins to it are monitored. The information is stored in the service's common databases, which are protected by firewalls, passwords, and other technical means. The databases are located in locked and monitored spaces, and only certain pre-authorized individuals have access to the data. Only personnel authorized to use the data may enter the premises of Vuokraturva Oy, where the data is processed and stored. #### 9. RIGHTS OF THE REGISTERED - Access, correction, transfer, and destruction of data: The customer has the right to check what personal data about them has been stored. Upon the customer's request, we will correct, complete, or destroy inaccurate, incomplete, or outdated personal data. The customer can also request the transfer of personal data they have provided, which we process automatically based on consent or contract, by contacting our customer service. - Right to object and limit processing: A customer can object to processing based on legitimate interest due to reasons related to their personal situation. In such a case, the processing may be limited for the duration of the assessment of the reasons for the objection. Processing may also be limited if the customer disputes the accuracy of the personal data, in which case processing is limited for the duration we can ensure the data is accurate. - Withdrawal of consent: A customer can withdraw consent they have given at any time by contacting our customer service or through other specially offered methods. - Right to lodge a complaint: The customer has the right to lodge a complaint with an authority if they believe their data has been processed in violation of this data protection description and applicable legislation. The contact details of the authority can be found at www.tietosuoja.fi. If you want to prohibit Vuokraturva Oy's electronic direct marketing, you can do so here. Please note that prohibiting direct marketing also applies to the property search alert. Then, you will not receive information about rental apartments that meet your search criteria based on the search alert you made via email. #### 10. COOKIES The website Vuokraturva.fi uses cookies. The website sends a cookie – a small text file – to the user's browser, which is stored on the user's terminal. Most browsers automatically accept cookies, but if you wish, you can change your browser settings and disable cookies at any time. You can change your cookie settings via the CookieHub service for cookie approval in use on our website. You can choose which cookies you accept and which you do not in a pop-up window. You can change your choice in the “Cookie Settings” menu at any time. The website uses both temporary session cookies, which are deactivated when you close the browser, and permanent cookies, which are stored on the terminal. With the help of cookies, the website functions technically correctly (necessary cookies). With cookies, we receive information, for example, to count the number of browsers visiting our website and to analyze the use of our site, such as statistical tracking. They also allow us to analyze and follow what our users are interested in and thus develop our web pages. All the collected information is anonymous, and the actions performed on the web cannot be linked to any specific individual. Advertising cookies help us, for example, to choose the ads that are most suitable and interesting to you and to target the ads to the right audience. Some third-party providers may also use cookies or web trackers (e.g., a 1-pixel image file) to show you ads that appeal to you when you visit different websites. The detailed purposes of using cookies have been explained under the "Cookie Settings" button. The data collected through cookies does not reveal any personal information such as your name or contact information to us or third parties. Advertisers operating as third parties may also use techniques that measure the effectiveness of ads. For this purpose, they may use a tracker (e.g., a one-pixel GIF file) placed on our website to collect anonymous information. After receiving anonymous information about a user’s visit to this and other websites, advertisers can plan ads for products and services that may interest the user. # Easily Find Your Desired Housing It is easy to search for and apply for rental housing. In the housing search, you can see all the properties currently available for rent. Applications are made using bank identification codes. With the help of the search guard, you will stay updated on new properties that are offered. ## How is the tenant chosen? The landlord makes a preliminary selection of the tenant based on the applications. The applicant selected by the landlord has the opportunity to view the property at a private or small group showing arranged for them. One can also get acquainted with the property electronically through video viewings. ## Other Frequently Asked Questions In the frequently asked questions section, you will find answers to other questions about applying for rental housing. ## Tenant's Database In this section, we have comprehensively compiled useful information about rental housing. ## Blog ## Not either-or but both-and; versatility and general education are assets for the development of perspective Helsingin Sanomat wrote today on its science page very commendably about the positive effects of physical exercise on brain function. A human being is a whole, where mental and physical capacity are definitely not without mutual connection. An athlete's success in major competitions is often tied to this connection. A successful business leader's secret weapon might be a regular morning run. According to Helsingin Sanomat, it is likely that, among other benefits, new nerve cells literally emerge in the brain during a run. And that's not all. Our mental health also rests on this balance. "According to the latest research, exercise seems to remove a substance from the blood that predisposes to depression. When muscles are working hard, they produce significantly more of a protein called pgc-1-alpha. It has recently been found that this protein cleanses the blood of harmful kynurenine, which the body excretes under severe stress," writes Helsingin Sanomat. The stereotypes of a simple athlete and a couch-bound intellectual are just as erroneous as stereotypes often are. Engaging in different activities actually brings about the most remarkable synergy benefits, such as the generation of new cells in the brain as a result of a running session. I will share a few personal examples related to this topic. In my younger years, I was an avid music enthusiast. Now, in middle age, I've noticed that some musicians take offense when I mention that my playing skills remain at least somewhat intact, as I spend my days typing on a computer keyboard using touch typing. When playing has diminished significantly, I am fully aware that without continuous practice of fine motor skills in some other form, the situation would be much worse. Conversely, for a pianist, learning touch typing was easier than it was for many others. I don't see any reason for offense in such an idea. It is not at all a belittlement of music as an art form but rather a physiological observation related to playing and phrasing skills, among others. Similarly, I had more time to play chess when I was younger and didn't have a business, family, or children to care for. Still, the game is not necessarily lost. In work and investing, there are many challenging situations where I must stretch my ability to think about the implications of my choices several moves ahead. Chess can be a good foundation for such thinking. Additionally, even though I don't play chess as much anymore, the practice brought on by work keeps my playing ability alive. In October 2015, at the Nordic Business Forum event, I played a game of chess against Grandmaster Garry Kasparov in front of cameras and made it through 32 moves. I argue that if I had spent my entire life just playing chess, I would have played worse and been more anxious. In addition to these clear benefits, the overall significance of a versatile life and general education should not be forgotten. Whatever you do, whatever you are interested in, whatever you engage with, it teaches something about life and the world. When you then look at your area of expertise, all this underlying general education serves as an echo chamber. I often reiterate a well-repeated example. Steve Jobs, one of the founders of Apple, studied calligraphy at university just for fun, without thinking about its relevance to his actual studies. Later, it was precisely these classes and the related practice that inspired the realization that the letters on a computer screen are an aesthetic element. Fonts were born. It is also known that Jobs often did his thinking work and had important discussions during long walking meetings. My area of expertise is housing, which connects to every individual on one hand and all the key functions of society on the other. Understanding the housing market requires a very broad understanding of society and its structures. It is a privilege to have a job where forming a perspective requires this broad monitoring of the changing life situations of people and social dynamics. Those are the thoughts worth pondering during skiing trips this winter. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Myyntiturva Was Not a Scam: Real Estate Agency Fees Decreased on Average by a Quarter Even in Helsinki When Myyntiturva was launched in the spring of 2012, competitors claimed it was a scam. Representatives from the largest real estate chains publicly stated that quality real estate work could not be done at the then-current fee levels. Myyntiturva, launched by Vuokraturva, saw the prevailing fees of real estate agents as unreasonably high and introduced fixed, affordable brokerage fees as a countermeasure. So what happened? Competitors predicted that Myyntiturva would meet the same fate as Igglo and would soon cease to exist. They did not believe that real estate work could be done in the long run with affordable fixed brokerage fees. Three years have passed, and now it's time to see how things turned out. Initially, competitors doubted the quality of the work and tried to prompt Yle's Kuningaskuluttaja (King Consumer) program to investigate Myyntiturva. They succeeded in getting the program interested in Myyntiturva's unusual fee structure, but ended up with a conclusion entirely opposite to what the competitors had hoped for. Large chains announced they would not lower their fees. However, the reality was different. They had already begun to adjust their fees. Across the industry, the average brokerage fees charged to customers decreased by a total of 5.2% in January-March 2013, 13.0% in April-June 2013, 9.9% in July-September 2013, and 10.1% in October-December 2013. In three years since the launch of Myyntiturva, the average brokerage fees of real estate agents in the capital region have dropped by a quarter. This has also happened in Helsinki, even in the city center. Meanwhile, instead of fading away, Myyntiturva has continuously strengthened its position. Myyntiturva's concept has proven to be very viable and has changed the market. Why is this important? Because practically no one is willing to pay the brokerage fees in the capital region that were commonly paid just three years ago. Myyntiturva has transformed the real estate brokerage sector in a way that has conservatively saved about 50 million euros of clients' money. One might suspect that this radical change in fee levels is a result of the recession. However, statistics do not support this claim. The fee levels per assignment did not even decrease during the severe financial crisis in the fall of 2008, even though both property prices and transaction volumes were simultaneously falling. The fee levels remained quite stable regardless of external factors until the year Myyntiturva was launched. In the following year, the clear decrease in the general fee level of real estate agents began, which has continued. The fee level per assignment has also decreased in quarters when property prices and transaction volumes were rising. In my view, the brokerage industry has ultimately not suffered harm from this change. Lower fees can now work quite well, as the change has simultaneously forced improvements in operations and better utilization of modern tools. Development in all industries often occurs through crises. Crises can arise from outside the industry or through challenging competition within the industry, as in this case. Development moves the industry forward and benefits the customer. Timo Metsola Chairman of the Board Vuokraturva ## Energy Certificates Should Not Be Charged Twice Energy efficiency and sustainability are our most important values, and future developments largely depend on individual attitudes. Unfortunately, many regular consumers have the impression that energy efficiency means higher costs. This is a moment for some property managers to look in the mirror. The housing company orders an energy certificate for the building using the owners' funds. After this, the property manager simply attaches the completed energy certificate to the property management certificate package. Due to the minimal additional work involved, many respected property management companies have moderately increased the price of the management certificate package by 5-10 euros or not at all. Unfortunately, at the same time, a significant number of property managers have raised the price of the management certificate package, under the guise of adding the energy certificate page, by two or three times. Previously charged fees of 20-40 euros could suddenly jump to 50-150 euros. Housing company boards should respond to such inappropriate increases that harm the reputation of energy initiatives. Timo Metsola Chairman of the Board Vuokraturva Oy Vuokraturva is the most reliable, well-known and reputed rental agency. Taloustutkimus ### Are you looking for a good tenant or are you considering selling? If you need a reliable tenant, we can find one for you. If you are looking to sell your flat for just the right price, we will make it a reality. Contact us, then relax while we take care of everything for you. ### Are you looking for a new home? We will help you find the home of your dreams. Browse our available properties – for rent or for sale – and be prepared to fall in love. ## Infokit Useful information for landlords, tenants, sellers, and buyers. ### Expert property professionals at your service Having started out as a one-man company, Vuokraturva is the market leader and employs hundreds of housing professionals in three locations in Helsinki, Turku, and Tampere. Vuokraturva is the most reliable rental agency (Taloustutkimus). Myyntiturva, a subsidiary of Vuokraturva, specializes in the sale of flats and, unlike almost all its competitors, sells flats at low, fixed commission rates. ## Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentee: Mon-Sun 8:00 – 18:00 ## Offices ##### Helsinki office and operating area Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki ##### Tampere office and operating area Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere ##### Turku office and operating area Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku ## Press Releases ## Forecast for the Development of Rents of Market-Rate Apartments in 2009 The forecast includes the following cities: Helsinki, Espoo, Vantaa, Kauniainen, Kirkkonummi, Kerava, Järvenpää, Porvoo, Lahti, Turku, Tampere, and Oulu. Vuokraturva predicts that the average rents of new lease agreements for market-rate rental apartments will develop in 2009 as follows: Apartment type, change Studios, +9% Two-room apartments, +6% Three-room apartments, +2% Four-room apartments, -2% Five or more rooms, -5% For more information Timo Metsola, Chairman of the Board, Vuokraturva Oy, Tel. (09) 6877 550. Vuokraturva Oy in Brief Vuokraturva is the market leader in rental apartment brokerage and investment property acquisition services. Vuokraturva rents out residential properties for private individuals and institutions and organizes accommodation services, for example, for employees of the Chemicals Agency. Vuokraturva also builds funds that invest in housing and works closely with the Finnish Landlords' Association and the Federation of Tenants in Finland. www.vuokraturva.fi ## Announcements ## Forecast for the Development of Market-Rented Apartment Prices in 2011 The forecast includes the following cities: Helsinki, Espoo, Vantaa, Kauniainen, Kirkkonummi, Kerava, Järvenpää, Porvoo, Lahti, Turku, Tampere, and Oulu. Vuokraturva predicts that the average rent for new lease agreements for market-rented apartments will develop in 2011 as follows:   Studios: + 5 % Two-room apartments: + 4 % Three-room apartments: + 2 % Four-room apartments: + 1 % Five or more rooms: + 0 % For more information Timo Metsola, Chairman of the Board, Vuokraturva Oy, tel. (09) 6877 550 Vuokraturva Oy in Brief Vuokraturva is the market leader in apartment rental services and investment property acquisition services. Vuokraturva manages housing portfolios for individuals, institutions, and funds investing in real estate. www.vuokraturva.fi ## Press Releases ## Forecast of the Development of Rents for Unsubsidized Apartments in 2012 The forecast includes the following cities: Helsinki, Espoo, Vantaa, Kauniainen, Kirkkonummi, Kerava, Järvenpää, Porvoo, Lahti, Turku, Tampere, and Oulu. Vuokraturva forecasts that the average rents for new lease agreements for unsubsidized rental apartments will develop during 2012 as follows: APARTMENT TYPE, CHANGE Studios, + 6 % Two-bedroom apartments, + 3 % Three-bedroom apartments, + 1 % Four-bedroom apartments, + 0 % Five-bedroom apartments or more, – 1 % VUOKRATURVA’S MARKET COMMENTS The general economic uncertainty and the downward trend in housing prices over the past six months have maintained the demand for rental apartments this winter. Mid-winter has not been as quiet in the rental market as usual, as avoiding major economic decisions has increased the appeal of renting even among high-income earners. However, the uncertain economic situation has also led to caution in the rental market. In particular, there is downward pressure on rents for larger and more expensive rental apartments. On the other hand, the oversupply of smaller rental apartments is so high that their rents appear to continue rising rapidly. The shortage of rental apartments is partly the result of mismatches between supply and demand in the market. Available rental apartments are often located in areas that do not meet demand, and newly constructed rental apartments are often too large and expensive for the current demand. Each year, almost half of all rental contracts are made within a three-month period (June, July, and August). During that time, obtaining a rental apartment is the most expensive due to high demand, and rental inquiries peak. Conversely, the quietest time in the rental market traditionally occurs around the turn of the year and early spring when demand is lower than at other times of the year, and rental inquiries are more moderate compared to the rest of the year. For example, the monthly rent for a 35-square-meter studio apartment in Kallio, Helsinki, is typically about 70-100 euros cheaper when rented in February compared to August. Therefore, a person renting an apartment during the quiet period can save approximately 840-1200 euros per year compared to someone renting a similar apartment during the hottest season. FURTHER INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva Oy, Tel. (09) 6877 550 A BRIEF ABOUT VUOKRATURVA OY Vuokraturva is the market leader in rental housing brokerage and investment property acquisition services. Vuokraturva manages rental properties for private individuals, institutions, and property investment funds. www.vuokraturva.fi ## Announcements ## The First Private Real Estate Fund for Investors Has Begun Operations Today The Quorum Fund Management Company and Asuntoturva Ltd have launched the first real estate fund in Finland aimed at private investors. The fund has a target size of approximately 50 million euros, and the number of investors is limited. Investments will be made in rental apartments obtained through the partner, Vuokraturva, mostly located in the capital region. The fund is named Quorum Asuntoturva I Ky. A significant portion of the properties owned by the fund will consist of individual residential units, mainly studio and one-bedroom apartments. Individual apartment owners have the opportunity to sell their apartments to the fund without a brokerage fee. The fund is expected to increase the liquidity of small apartments in the market. The apartment brokerage services required by the fund will be provided by Vuokraturva, which is the market leader in property rental brokerage and investment property acquisition in the capital region. The first property transactions are expected to take place within this week. The limited partnership fund commenced operations just before the amendments to the investment and real estate fund laws that came into effect on May 1, 2007. For more information: Kristian Warras, CEO, Quorum Fund Management Company, phone: 050 675 76 Jaakko Sinnemaa, CEO, Asuntoturva Ltd, phone: 041 528 0329 Press Conference Wed, April 25, 2007, from 1:00 PM to 1:30 PM, in the Merikabinetti 2 of the Palace Hotel, Eteläranta 10, 10th floor ### About Quorum Fund Management Company Quorum Fund Management Company is a Finnish asset management firm focused on serving professional investors and high-net-worth individuals. www.quorum.fi ### About Asuntoturva Ltd Asuntoturva is a management company focused on indirect real estate investments, which, together with its partners, implements indirect real estate investment instruments. www.asuntoturva.fi ## Blog ## First Signs of a Turnaround in the Housing Market Now Visible The chorus of warnings about the overheating housing market and the dangers of low interest rates has quickly grown in recent weeks. Almost all entities tracking housing transactions and mortgages have now stepped forward with their warnings, the most authoritative being the Bank of Finland and the Finnish Financial Supervisory Authority (formerly known as RATA), which has used strong language. Even among the real estate agents and banks that have most benefited from the situation, cracks have started to appear. Surprisingly, it seems that the warnings have finally begun to take effect. In recent weeks, the previously overheated housing market has calmed down somewhat, even regarding small apartments, while the demand for rental properties has simultaneously increased. This could be just a temporary fluctuation, but there may also be the first signs of a turnaround in the housing market. Timo Metsola Chairman of the Board Vuokraturva ## Uncertainty Increasing Demand for Rental Apartments In the past two weeks, there has been a noticeable gradual increase in the demand for rental apartments. It is common for the rental market to pick up in the spring, although usually this occurs at a slower pace than we are currently witnessing. It seems clear that part of this change is due to those who were planning to buy a home but have, due to general uncertainty, decided to temporarily turn to renting instead. Since the change is still very recent and the heightened interest in rental apartments is only just beginning to translate into actual rental agreements, there is no clear statistical data yet on the magnitude of this change. However, the number of applications for rental apartments has clearly increased, and based on discussions with individual clients, at least part of this rapid shift in demand can be explained by the fact that some potential home buyers have taken a pause. The reaction currently seen in the housing market seems to mirror the type of situation that was experienced in Finland's rental market during the financial crisis in the fall of 2008. At that time, housing prices eventually fell very little, but the number of home sales dropped significantly for several months, while the demand for rental apartments was higher than usual. Another factor that could explain the increase in demand for rental apartments is the influx of refugees from Ukraine. However, there have been very few inquiries about rental apartments from them so far. It is expected that the impact of those fleeing the war in Ukraine on the demand for rental apartments will become evident in the coming months. By the time they are ready to search for housing in Finland, their simultaneous effect could clearly affect the rental market, especially as it may overlap with the normalization of life post-corona restrictions and the usual summertime increase in rental market activity. From the landlords' perspective, the past winter has been difficult, as there has been a slight oversupply of rental apartments across the country. At least for the moment, finding a tenant seems to have become noticeably easier, as the general situation has increased the demand for rental apartments. However, there are still plenty of rental apartments available, and there are no signs of a shortage in the rental market. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Crisis Solvers of the Eurozone Stand on the Titanic's Bridge The lookout on the supposedly unsinkable Titanic spotted the iceberg half a kilometer ahead of the ship. There were means to turn the ship and slow down, all of which were eventually used, but they were not enough. The situation of politicians and central bankers desperately seeking a solution to the Eurozone crisis now ominously resembles this. The Eurozone is barreling towards the destruction of its current monetary union with crushing force, and even the most severe measures proposed in this already desperate situation seem inadequate to save the current Eurozone. Meanwhile, celebrations continue below deck, and this is also reflected in the housing market. The captain of the Titanic knew that there was an iceberg warning in the area, yet he still wished to proceed at maximum speed. The officers were aware of the situation but chose to remain passive. Similarly, the reckless indebtedness of the Eurozone and the blatant disregard for shared rules have been known for over a decade. Optimism and the pursuit of maximum economic output blinded the community of euro countries to what we should all have understood. When consumption clearly exceeds income, the reckoning is inevitable. This should come as no surprise to anyone. The speed was too great, and the ship was enormous, and now the leaders of the Eurozone find themselves on the bridge like the captain of the Titanic, watching the inadequacy of their actions and means. One can only imagine how it must feel. Both had time to act, but that hasn’t helped much either. A dark shadow rolls in like a nightmare, slowly but surely. A common feature of these tragedies is that ordinary consumers and travelers have continued to celebrate almost as before, despite the looming threat of disaster. The music plays, and tables are laden. Many might feel that nothing bad could happen when everything in their own lives still seems to be going quite well. It’s important to remember that on the Titanic, champagne was eventually served for free to maintain the good atmosphere, even when the crew already knew that nothing would keep the ship afloat. There are also similarities between the Eurozone debt crisis and the Titanic in facing a collision. If the Titanic had collided directly with the iceberg, trying only to slow down without making evasive maneuvers, the impact would have been unimaginably violent, but the ship would not have sunk. However, the Titanic attempted to avoid the collision and almost succeeded, with the disastrous result that the ship’s side hit the iceberg, which then tore open nearly the entire length of the gliding giant’s side. The ship was considered unsinkable due to its hull structure because in case of a breach, the damaged compartment could be sealed off with watertight doors. But the failed evasive maneuver meant that the "infection" spread along the length of the ship in the form of a torn side so many compartments were affected that ultimately no watertight doors could help, and the entire Titanic sank. Hardly anyone can say for sure whether a direct collision in the Eurozone debt crisis—that is, ceasing evasive maneuvers and immediately acknowledging facts like Greece’s debt restructuring—might have prevented the current situation, which has turned into a veritable nightmare, where the debt crisis tears open the whole of Europe. But even if that were the case, one must remember this: when it is realized that there is an iceberg straight ahead and a collision seems inevitable, few leaders have the courage not even to try to avoid it. This is likely human nature, even if, in hindsight, the decision may not have been the right one. In the shadow of the immense exceptional measures of recent years, normal economic realities blur increasingly. The deficits and unsustainable structures of state budgets that have fallen into a debt crisis cannot be corrected simply by having other countries and the European Central Bank rush to assist in continuing to incur debts. Pumping out the incoming water did not prevent the Titanic from sinking because the breaches just kept coming. And a half-hearted evasive action does not solve the problems of the crisis-hit countries; rather, it opens up vulnerabilities along the entire Eurozone front. The problem is still more common. But the celebrations continue below deck, and consumers are consuming. Their indebtedness has been made painless. With interest rates pushed down as a desperate measure, many overly indebted individuals feel wealthy and their standard of living perhaps just sufficient relative to their own demands. This mindset has seen a bold tilt in personal finances particularly visible in Finland’s housing market in recent years. However, the general state of Europe’s economy creates a bleak contrast to this phenomenon. It’s like joyous summer garden parties where the sun is still shining, while at the same time, a dark thunderfront looms menacingly on the horizon. Recently, these dark clouds have been felt in the housing market. The sale of new properties has slowed. Construction companies are cautious in starting new projects. The sale of even slightly larger and more expensive used apartments has also slowed in recent weeks. Smaller apartments still sell if they are in good locations and in renovated housing cooperatives. However, the buyers in these transactions usually seem to be either first-time buyers or inexperienced property investors. Experienced buyers appear to be sitting on their hands. Furthermore, in slightly less central or weaker housing cooperatives, even smaller apartments’ selling times have stretched and prices have fallen. Rental property showings attract many viewers for the season, but decisions are being pondered for longer than usual, and rental requests are being negotiated down, especially for family apartments. Increased caution in financial decisions is now clearly visible in the housing market. What should be done now? At the very least, everyone should understand the seriousness of the situation. In light of this, the recent reactions in the housing market seem like positive signs. Finns are not floating in pink cloud castles. The Eurozone is not necessarily sinking into debt, but we are certainly diving into an extremely deep crisis. While inciting panic does not benefit anyone, it is important for ordinary citizens to understand this at a fundamental level. Only those with access to the bridge truly know the real seriousness of the situation in the euro crisis. And even for them, the unfolding of events may ultimately come as a surprise. This was surely the case with the Titanic as well. But if an ordinary person becomes aware that they have collided with an iceberg and the ship is leaking, perhaps they will not take more champagne but instead grab something warm from their cabin and prepare to act. This could have crucial significance for their personal survival. I see the situation from the perspective of the housing market. Observations from recent weeks suggest that Finns feel it’s time for caution now. This observation seems so clear that it could emerge in the general consumer behavior in the coming months. Perhaps so far we have only seen the first half of the economic crisis that began in 2008. For a moment, we were able to enjoy some pleasant economic growth in between. Like a brief welcome interlude. Unfortunately, it now seems we are faced with the second half of the economic crisis. The most dramatic turns may have been saved for that. However, there is no reason for pessimism or giving up. I believe that as a nation, we must realize such moments when we must awaken from our slumber, roll up our sleeves, and go into battle on behalf of Finland’s economy with determination. We must take care of ourselves to thrive in this world. It has been done before through hard work, flexibility, and perseverance. Timo Metsola Chairman of the Board Vuokraturva In this section, you can familiarize yourself with frequently asked questions by tenants. Do you have questions regarding tenant's rental agreements? What responsibilities does a tenant have? The primary obligation of a tenant is to pay the agreed rent on time. Another key responsibility is to take good care of the apartment. If there is any damage or inadequacy in the apartment, the tenant must promptly report the damage or inadequacy to the landlord. This allows both parties to agree on the quick repair of any issues. If the apartment includes an outdoor area, the tenant is generally responsible not only for the careful maintenance of the apartment but also for the maintenance of the yard. For example, in a detached house, maintaining the sidewalk in front of the house is also the tenant's responsibility. What responsibilities does the landlord have? The landlord is responsible for ensuring that the apartment is in the condition it was in when it was presented, and that it remains in a condition that the tenant can reasonably expect, unless otherwise agreed. Normal wear and tear of the apartment is the landlord's responsibility. The landlord is responsible for items such as water and kitchen fittings, as well as built-in cabinets, unless otherwise agreed. What is the rent payment deadline? By law, the rent payment deadline is the second working day of the rental payment period, which is a calendar month. However, the tenant and landlord can mutually agree on a different rent payment date. Both the rent and any potential water fee are paid as a total sum at the date mentioned in the rental agreement to the landlord's account. No separate invoice for the rent will be sent. How is the water charge determined? The water charge is based on the number of people living in the apartment. It is usually noted in the rental contract as X €/person/month. The water charge can also be based on water consumption, in which case the apartment has a water meter. Water charges are paid along with the rent to the landlord's account. Where is the parking space payment made? Any parking space mentioned in the rental agreement is paid to the landlord's account unless otherwise stated in the agreement. Parking spaces ordered separately from the housing company, laundry fees, and sauna fees are usually paid directly to the housing company. Where do you pay for electricity? The electricity company will send a separate bill for the electricity. What other costs is the tenant responsible for? In the case of a detached house, the tenant may also be responsible for costs associated with heating and waste management. Can alterations be made to the apartment? No alterations can be made to the apartment without the landlord’s permission. If the tenant makes renovations with the landlord’s consent, both parties should agree on the choice of materials and who will bear the costs of the changes. It is also advisable to agree on whether any installations or furnishings made by the tenant will remain in the apartment after the lease ends, and if they will, whether the tenant will receive any compensation for the work done. Any alterations should ideally be agreed upon in writing. What changes in the rental relationship should be reported? If any changes occur during the lease period, it is advisable for the tenant to contact their broker immediately. How and when should notice be given for termination? When ending the rental agreement, notice must be given in writing and verifiably to the landlord. For a lease on an indefinite basis, the notice period for the tenant is one calendar month. Therefore, it is advisable to draft the notice well in advance of the end of the month, so that the landlord has the opportunity to receive and acknowledge it in a timely manner. It is also recommended to send a copy of the termination notice to the rental service. The rental agreement should also be checked for the first possible start date of the notice period. A fixed-term rental agreement cannot be terminated, as it binds both parties for the entire duration of the rental relationship. How are the return of the deposit and key handover handled at the end of the rental relationship? At the end of the rental relationship, the landlord must return the deposit to the tenant promptly, provided that all rental obligations have been met and no damage has occurred to the apartment that is not considered normal wear and tear. The tenant should contact the landlord directly regarding the return of the deposit. If a bank deposit account has been used as a deposit, the landlord will release the funds at the end of the rental relationship by signing the pledge agreement for the deposit account, which the rental service provided to the landlord at the start of the lease. If the rental deposit was paid to the landlord's account, the landlord will transfer the pledged funds directly to the tenant's account. Key handover should be arranged separately with the landlord. ### Looking for a good tenant or considering selling? If you need a reliable tenant, we will find one for you. If your wish is to sell your apartment at just the right price, we will make that happen. Get in touch, we will handle everything for you – while you can take it easy. ### Looking for a new home? We help you find the home of your dreams. So explore our available rental or sales properties and get ready to fall in love. ## Knowledge Base Useful information for landlords, tenants, sellers, and buyers. ### Strong professionals in housing at your service Starting as a one-man company, Vuokraturva Oy is the market leader in the field and employs a hundred housing professionals in three offices in Helsinki, Turku, and Tampere. Vuokraturva is the most reliable rental agent (source: Taloustutkimus Oy). Myyntiturva is a part of Vuokraturva Oy focused on the sale of properties, which, unlike almost all other competitors, sells properties at low, fixed commission rates. ### Prohibition of Vuokraturva Oy's Electronic Direct Marketing If you want to prohibit Vuokraturva Oy's electronic direct marketing, you can do so using this form. Please note that the prohibition of direct marketing also applies to the search watch. Therefore, you will not receive information via email about rental properties that meet your search criteria based on the search watch you have set up. The information entered in the form will be sent via email to Vuokraturva's customer service. Read more about our data protection policy. ## About Us Vuokraturva was founded in 1998. The company employs about a hundred professionals in the brokerage industry. The three cornerstones of our business are: - Rental services - Property sales services (Myyntiturva) - Relocation services We serve you in Uusimaa and in the Turku and Tampere regions. We collaborate closely with Finnish Landlords' Association and the Central Federation of Tenants in Finland to develop the rental market in Finland. The chairman of Vuokraturva's board, Timo Metsola, is also the chairman of the rental brokerage committee of the Finnish Real Estate Agents Association. Metsola previously served for 17 years on the board of the Finnish Landlords' Association. In recognition of his work for the Landlords' Association, he received the organization's highest merit award. How did Vuokraturva get started? Read the Story of Vuokraturva How did Myyntiturva get started? Read the Story of Myyntiturva ## Service Hours I am looking for housing: Mon-Fri 10 AM – 4 PM Property owners: Mon-Fri 8 AM – 8 PM For those who have already rented a property: Mon-Sun 8 AM – 6 PM ## Area of Operations - Borgå - Birkala - Esbo - Grankulla - Helsinki - Hyvinge - Kangasala - Kervo - Klövskog - Kyrkslätt - Lempäälä - Lojo - Nokia - Nurmijärvi - Nådendal - Pargas - Reso - Riihimäki - Sibbo - S:t Karins - Tampere - Toijala - Träskända - Tusby - Vanda - Veikkola - Vichtis - Ylöjärvi - Turku ## Our Offices ##### Helsinki Office and Region Industrigatan 21, ground floor 00510 Helsinki Mon-Fri 9 AM – 5 PM ##### Tampere Office and Region Sammonkatu 18-20 33540 Tampere Mon-Fri 11 AM – 5 PM ##### Turku Office and Region Mariegatan 6 20100 Turku Mon-Fri 11 AM – 5 PM ## Blog ## A Low Mortgage Rate is an Advantage for the Seller, Not the Buyer On December 8th, Taloussanomat published an interesting article titled "12 Reasons Why Finns Are Being Ripped Off in Housing." Among the 12 primary reasons listed by the interviewed experts for the rapid increase in housing prices, the currently lowest mortgage interest rates in the Eurozone were not included. Unlike most other countries, Finnish practice ties mortgages to very short reference rates, which have now sunk to nearly zero. Finnish mortgage rates dropped so low in January 2009 that the price decline of homes triggered by the financial crisis halted, and the prices of apartments, which had behaved quite logically for 15 years, surprisingly surged during a recession at an unprecedented pace. This occurred even though the national economy was in free fall and unemployment was clearly rising at the same time in early 2009. I see this as a concrete demonstration of the overwhelming influence of nearly free mortgages over other factors. The interest rate is probably the single most significant explanatory factor for this exceptional development, although naturally, there are other factors at play. Everyone can ask themselves whether they believe we would have witnessed such a rocket-like rise in housing prices during a recession over the last two years if mortgage interest rates had mirrored the Eurozone average and hovered around 5 percent. Yes, the market could have flattened out. In those Eurozone countries where such interest rates have prevailed, housing prices have declined during the recession. Curiously, this has not even been questioned in those countries. I ponder why, in the article based on professional interviews, the low rate was not included among the 12 reasons for the exceptional price development. I find this surprising. One possible and quite comprehensive explanation is that I am mistaken, and the low interest rate is not significantly related to this development. A second possible and much more concerning explanation is that not all experts currently see clearly the impacts of mortgages that have become nearly free on housing prices. If that is the case, they also might not see the potential effects of interest rate changes. It is clear that a low interest rate is an advantage for those who purchased their homes earlier. It is commonly concluded that a low mortgage interest rate is also an advantage for those currently purchasing a property. However, this is a dangerous fallacy. A low interest rate is more advantageous for the seller and the real estate agent than for the buyer. Mortgages are typically taken out for decades. The significance of the interest rate at the beginning of the loan term is marginal for the buyer because the interest rate can change numerous times during the loan period. The purchase price of the property, on the other hand, is crucial for the buyer, as it determines the burden of debt on which interest is paid year after year. When the interest rate is low, the seller can sell their property at a good price because low rates make the monthly payments seem small. This is a huge advantage for the seller, but correspondingly an unfavorable situation for the buyer. Even if an individual buyer is cautious, another more carefree buyer may be willing to pay more, snatching the property from under their nose and raising the general price level. In my opinion, over the past two years, we have perhaps witnessed the clearest possible demonstration of how low interest rates transfer into prices irrespective of other environmental factors and the recession. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Cheap Interest Rates Clouded Housing Transactions – The Hangover Is Coming The strong stimulus from the financing crisis has caused a distinctive problem for the Finnish housing market compared to other euro-area countries. In Finland, housing prices have not collapsed; instead, record-low interest rates have recently begun to inflate a debt-driven price bubble in the real estate market during the recession. This has been fueled by three dangerous and short-sighted pitfalls: 1) The Finnish tendency to link mortgage loans to short-term market interest rates, which is different from other countries, 2) Banks' practice of presenting loan calculations and monthly payments as if the interest rate will remain at the level it was at the time of the loan's initiation throughout the loan period, and 3) The herd behavior of inexperienced small-scale investors, which has recently manifested as a rush of rookie investors into real estate. It is essential to remember that Finnish banks have never incurred significant losses from housing loans, even during the recession of the 1990s. Mortgages are such low-risk products for banks that they lack a genuine incentive to ensure prudence on the borrower's part. The bank essentially guarantees that it will recoup its money in one way or another. Therefore, the responsibility for assessing one’s own ability to manage a loan rests solely with the consumer. Moreover, the banking-dependent brokerage chains that benefit from housing transactions also have little incentive to sound alarms about reckless behavior. Why would they jeopardize their own profits amid record-breaking results? The responsibility for ensuring information dissemination in the housing market primarily falls on the media, as the name of the sector aptly indicates. Throughout the 2000s, the media has steadily warned about the housing bubble, even though Finland's development compared to the general European level has been rather moderate. But now, when housing prices are sharply rising in Finland alone amid a recession, and the cause can be clearly traced back to the almost free housing loans we are distributing, it would be prudent for the media to be more alert. Traditionally, offers in housing transactions have been made downward from the asking price, meaning buyers negotiate downwards. Now, unexpectedly, purchase offers are being made upward from the asking price. Common sense should ring alarm bells in such a situation. The record-low cost of borrowing is lifting the mood in the housing market similarly to alcohol consumption at parties. The impending hangover can be compared to the bubble hall familiar to many in sporting circles. When the stimulus from low-cost borrowing ends, the entire structure will collapse. Once again, the question will be raised: why was this not foreseen? Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Father of the 75 Square Meter Rule Behind the Helsinki One-Room Housing Crisis: Osmo Soininvaara On Wednesday, I reported on the 75 square meter rule as one of the three major mistakes in the rental market. I wrote that apparently within the Helsinki branch of the National Coalition Party, it was considered better at the beginning of the millennium to limit the construction of small apartments and to produce mainly family housing for high-income earners. They pushed through the so-called 75 square meter rule, which stated that the average size of apartments in buildings constructed in Helsinki must be at least 75 square meters, even though the city was already suffering from a severe shortage of small apartments. Osmo Soininvaara revealed on Friday that the 75 square meter rule was a "secret plan" of the Greens, aimed at defending families with children (Demokraatti.fi, September 2). Later that evening, Soininvaara told me directly that he was the inventor and the father of the 75 square meter rule. However, at the beginning of the millennium, the 75 square meter rule was regarded as an idea of the National Coalition Party. Either the coalition members wanted to convince themselves of this, or Soininvaara had sold his idea (which he himself refers to as a "secret plan" in the Demokraatti article) so skillfully that the coalition members believed the story themselves. I certainly believed it and repeated it earlier this week, so a public clarification of the matter is definitely appropriate. Now Soininvaara sheds light on the events as follows: "From my proposal, the housing program included that 75 square meter rule. I thought of it as the city's average size, but the officials changed it to be site-specific, which I did not intend. I cannot, of course, know what motives the National Coalition Party had in this matter. The rule itself was poorly formulated because it encouraged addressing the need for large apartments with one large unit. I still cannot understand how that could be advantageous, but that is what happened." There is hardly any reason to doubt the authenticity of his acknowledgment of paternity. Especially since recognizing the invention of the rule that has driven the Helsinki housing market into chaos and a chronic shortage of one-room apartments brings him anything but honor at this stage. On the other hand, I believe Soininvaara's straightforwardness and honesty deserve admiration. He did not want to let his mistake fall on others. It should also be noted in Soininvaara's defense that he quickly noticed the problems arising from the 75 square meter rule and brought them to the public's attention. It is even clearer now that the 75 square meter rule truly is one of those three major mistakes that caused the current significant issues in the rental market. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Helsinki Can Now Build Up to 50% More Apartments in Residential Buildings At the end of last year, Helsinki changed the regulation regarding the average size of new apartments from 75 square meters to a new standard of 80 square meters. This change, after ten years of deliberation, is a significant gesture towards alleviating the city's shortage of small rental apartments, but it seems that the city council's decision has gone largely unnoticed in public discourse and, above all, its implications have not been fully understood. During viewings of small rental apartments, queues can extend to the staircase and, in the worst cases, snake outside. Purchasing a studio apartment isn't any easier, as despite high prices, studios that hit the market are snatched up quickly, with approximately one in three studio apartments in Helsinki being bought by investors taking advantage of the scarcity. So what has changed? Before the City Council's decision, new buildings were required to have an average apartment size of at least 75 square meters. For every 30-square-meter apartment built, a costly and hard-to-sell or rent 120-square-meter apartment had to be constructed to meet the required average size. Thus, building two apartments required at least 150 square meters. Now, every second apartment in a newly constructed building can be a small apartment (a studio or one-bedroom). Moreover, the other apartments don't have to be larger than 80 square meters as long as they have two bedrooms. The minimum size for a new studio in Helsinki is now 20 square meters. Therefore, building two apartments now requires a minimum of 100 square meters. In a new residential building in Helsinki, it is now possible to fit a maximum of 50% more apartments than before. For example, let’s take a residential plot with a building right of 3,000 square meters. Previously, since two apartments always took at least 150 square meters, a maximum of 40 apartments could fit on such a plot, with 20 being small and 20 larger ones. Now, with two apartments requiring only 100 square meters, the same-sized building can accommodate 60 apartments—30 small and 30 medium-sized. This principle is clear even though, in this simplified example, staircases are not taken into account. As over half of Helsinki households consist of single-person households who suffer from a severe shortage of small apartments, this is an extremely welcome improvement. There are about 150,000 single-person households in Helsinki but only around 65,000 studio apartments. Inevitably, this means that over half of Helsinki's single-person households now have no theoretical chance of living for lower costs than those associated with a two-bedroom apartment. Anyone who has followed the sales prices and rents of two-bedroom apartments in Helsinki knows that living alone in a two-bedroom apartment is financially burdensome for a typical wage earner. In many major cities, the construction of oversized apartments is limited due to land shortages. It is considered unfair for a single family to occupy, for example, a 300-square-meter apartment in the urban core. Thus, the aim is for the limited space for construction to be primarily used for producing small and medium-sized apartments. Helsinki's logic has, until now, been the opposite. Despite continuous media reports about the shortage of small apartments, the restriction has specifically targeted the construction of small apartments. No concerns have been raised about a single luxury apartment commandeering 300 square meters in a newly constructed apartment building in a prime location in the city center. This old line of reasoning has exacerbated Helsinki's shortage of small apartments for over a decade. It was high time to take steps in the right direction. The construction of new residential buildings should prioritize the quantity of apartments, especially those that are in high demand in Helsinki. Urban dwellers have the right to expect that the regulations for apartment construction do not overlook the use of common sense. Timo Metsola Chairman of the Board Vuokraturva # Office in Helsinki ### Address Our office is located in Vallgård at Industrigatan 21, ground floor, 00510 Helsinki. Office hours are Monday to Friday from 9 AM to 5 PM, and the key machine is open Monday to Friday from 6 AM to 11 PM. ### Coming by Car? There are plenty of parking spaces available along the nearby Elimägatan. ### Coming by Public Transport? You can easily reach our office using public transport. You can conveniently find the fastest connections and timetables using the route planner at www.reittiopas.fi by entering Industrigatan 21 as your destination and your own address as the starting point. ### Key Drop-off and Pick-up It is easy and quick to use the key machine at Vuokraturva's Helsinki office. You can find the instructions here. ### Operational Area of the Helsinki Office ### Capital Region Espoo Helsinki Grankulla Vantaa ### Western Nyland Kyrkslätt Lojo ### Central Nyland Hyvinge Träskända Kervo Klövskog Nurmijärvi Riihimäki Tusby Veikkola Vichtis ### Eastern Nyland Borgå Sibbo ## Helsinki Needs Studio Apartments This text is a summary of the material from the media event organized by Vuokraturva on August 21, 2008. "Attractive apartment buildings" is a comprehensive report published in spring 2008 regarding housing in Helsinki and the capital region. Representatives from the City of Helsinki's city planning department, real estate department, housing production office, economic and planning center, and building control authority participated in the project work from 2005 to 2008. The entire content of the report can be read at www.hel2.fi/ksv/kerrostalo/ Highlights from the findings of the report include: - Housing is undergoing a significant transformation. - The share of families with children in Helsinki households: 56% (1960) → 24% (2008) – change: -57% - The share of single-person households in Helsinki: 17% (1960) → 50% (2008) – change: +194% - ¾ of households in Helsinki are currently composed of 1-2 persons. - Living alone is becoming more common in large cities across Europe as well. Comments from Vuokraturva: Based on the reported data from the study, it is clear why there is currently a severe shortage of small apartments in the capital region. The demographic shift has dramatically increased the demand for smaller apartments. Why, at the same time, is the City of Helsinki aiming to build larger apartments? In fact, there has been a specific desire to limit the construction of small apartments. The average size of apartments in a new building must be at least 75 square meters; however, fortunately, there is a partial repeal of this requirement for rental apartments in progress. Meanwhile, a new building can indeed have a 600-square-meter apartment that occupies an entire floor. Educational institutions, service sector jobs, and environments suitable for singles attract those living alone to the capital. All researchers examining this issue have reached the same conclusion, and it is a broader international phenomenon. Why then, in the midst of a severe shortage of small apartments, is it acceptable to build one 600-square-meter apartment, but forbidden to create a couple of dozen studio apartments in the same space? The regulations are strongly contradictory to the measures required to tackle housing problems. Helsinki's development aligns with that of other metropolises. In city centers, a large number of one- and two-person households live in small apartments, which are abundant but never enough. There are also larger apartments, but they are clearly fewer in number, and only the wealthy can afford to live in them. Where did the fantasy originate that Helsinki could reduce the construction of small apartments and emphasize the production of larger, expensive ones? There is no support for this idea in international comparisons. Construction companies may have to pay a heavy price for the artificial regulatory oversupply of large apartments through unsold or sold at a loss. Although people might naturally say they would prefer to live in more spacious apartments, this may not necessarily correlate with their actual life choices. When confronted with realities and housing costs, it becomes clear that in everyday life, the wish is for a small and, above all, as affordable as possible apartment, but located in a good area. This can be likened to a survey asking people if they would prefer to be low-income or high-income; nearly everyone would claim to prefer being high-income. However, this cannot justify building a society solely for high-income individuals. Due to inadequate zoning, there is a shortage of building lots, and the few that exist should be used efficiently to resolve housing problems in the capital region. The current housing policy in Helsinki, aimed at constructing ever-larger apartments, seems incomprehensible, even irresponsible, when viewed with common sense. Timo Metsola Chairman of the Board Vuokraturva ## Concerning Signs in the Real Estate Market I want to clearly warn about the risks associated with the currently overheated situation in housing construction. The apartments being built right now are considerably expensive both in terms of unit price and square meter price. Although there is a shortage of apartments, especially in the capital region, there is no guarantee that a large influx of new, expensive apartments will simultaneously find buyers. This is especially true when there is more coming at an unprecedented pace. The demand for expensive, newly completed rental apartments is already struggling. The shortage of affordable small rental apartments does not help in leasing medium-sized new expensive apartments. These target different demographics, which everyone in the industry knows. In larger apartments, landlords are currently only able to increase rents significantly for tenants with credit issues. The reason is harsh—these tenants cannot find another rental apartment to which they could move and thus "vote with their feet." The overall situation in the housing market is extremely sensitive to bad news about the economy and global uncertainty. Pragmatically, it can be noted that classic bubble signs are being met as exceptionally high amounts of construction are financed with cheap borrowed money in an otherwise weak economic situation. To top it all off, it has been observed globally that bubble inflations tend to coincide with a surge in the construction of particularly tall buildings. These signs can be reflected upon by anyone following the news stream. I hope I am very wrong in my concerns. However, remaining silent about the risks and concerning signs does not diminish their danger. Speaking out might do just that. I encourage you to also check out Jaakko Sinneman's recent market review, who leads Asuntosalkku companies. A telling observation is the increasing interest from long-term investors in the Asuntosalkku Eesti fund, which invests in the Tallinn housing market, and apparently a general rise in interest in investing in real estate abroad. There is no statistical data available on rental property investments made from Finland to abroad. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Calculating Room Temperatures Should Start Now – The Government Should Provide a Recommendation on This Matter It is quite clear that the whole of Finland will save energy this coming winter. Alongside cost savings, there is a collective need to ensure energy sufficiency. In these latitudes, heating of buildings is a key variable in the equation. This winter, both in Finland and almost all of Europe, people will have to get used to cooler temperatures, at home, at work, and in public spaces. There is a scientifically proven positive aspect to this. A few degrees cooler temperatures can actually benefit most of us. However, it does require some acclimatization. One can take inspiration from a swimmer who plans to take a dip in natural waters every morning through the winter. Those who have tried it know that the secret is to start daily morning swims while the waters are still relatively warm. Starting after the first snow is much more challenging. We know what lies ahead, so it would be wise to start getting used to a cooler room temperature right from the beginning of the heating season. A clear and strong recommendation from the Finnish government would serve as a good starting point. According to current regulations, residential areas must be at least 18 degrees Celsius in the so-called living area, but it may be cooler near walls. Housing companies, when reducing the heat output of central heating, must ensure that this threshold temperature is not undercut. Residents of apartment buildings can voluntarily lower their heating and radiators slightly, as can residents of single-family homes. If dressing for the weather is a consideration, so is indoor temperature. However, when it comes to lowering the temperature in wet areas, caution is advised to ensure they continue to dry properly. It's important to critically consider the appropriateness of high temperatures in utility, passage, and storage spaces. A hot stairwell is an environmental crime, as I argued 11 years ago. The most essential thing for us to understand now is twofold. First, the intense pressure to save energy this coming winter is practically a foregone conclusion. We gain nothing by delaying real savings for a few months. On the contrary – it is more pleasant to save money by starting early and giving ourselves more time to acclimate. After all, people can adapt. I have personally noticed over the years that after a few days of boating in the autumn and sleeping in cooler temperatures, my home feels uncomfortably warm for a couple of days. Secondly, it is important to understand that this coming winter is unlikely to be an exception. Conscious energy saving during cold spells is set to become the new normal. This is driven not only by the ongoing higher energy prices and limited availability but also by the sharply increasing climate pressure. Such discussions may not be comfortable and can even be annoying. However, from a pragmatic perspective, the trends appear quite clear. I believe it is essential to acknowledge the facts. From an economic standpoint, it is both sensible and important for us to collectively anticipate mitigating the rise in energy prices this coming winter. Currently, this is also a sensible security policy from the standpoint of Europe as a whole. Finns take recommendations seriously when they are clear and concrete. New laws to reduce energy consumption in properties are not required. Moreover, they cannot be quickly enacted, especially in a matter that directly affects people’s lives. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## A Good Time to Change Rental Housing is Running Out The rental market has its own annual cycle. In winter, it is quieter, while summer sees the rental market getting really hot. If a tenant is considering their own best interests, they should aim to change their apartment during the winter months. During this time, there are fewer competing applicants, rental requests are lower, and there is even a variety of available apartments. In summer, a massive number of people search for rental apartments simultaneously, as new students move in and families try to time their move outside of the school year. Apartment viewings get crowded in the summer like taxi stands during the holiday season. The demand is so high that the supply cannot keep up. Therefore, summer rents can reflect seasonal pricing, meaning higher rental costs similar to how hotels price their rooms during peak demand times. If a tenant can time their apartment change to the winter months, it is likely they will find a more suitable apartment at a better price. This year, spring has arrived early, and it has already been reflected as an early uptick in the rental apartment market. If one wants to change apartments before the summer season, they should act quickly. Practically speaking, the summer season kicks off in May, meaning that only April is left. April is particularly advantageous for apartment hunting because the beginning of May coincides with Labor Day. While Labor Day may not seem like the best timing for a move, many others think the same way, so there usually isn't a rush for apartments that become available at the start of May. As a result, those seeking housing in April have an advantage. If a tenant wants to move on Labor Day, their current rental agreement must be terminated by the end of March. Therefore, it is essential to be attentive to this matter. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## A Good Time to Change Rental Accommodation is Running Out The rental market has its own annual cycle. In winter, it is calmer, while in summer the rental market becomes really hot. If a tenant is considering their own interests, it would be advisable to try to change their apartment during the winter months. At that time, there are fewer competing applicants, rent requests are lower, and there is often a choice of available apartments. In summer, a vast number of people are looking for rental apartments at the same time, as new students move in and families try to schedule their moves outside of the school year. Apartment viewings become as crowded in the summer as taxi stands during the holiday season. Demand is so great that supply cannot keep up with it. Therefore, higher seasonal prices can be asked for apartments in the summer, just as hotels set their room rates higher during peak demand times. If a tenant can time their apartment change for the winter months, they are likely to find a more suitable apartment and even at a lower cost. This year, spring has arrived early, and this early bloom has also been reflected in the rental housing market. If one wants to manage to change apartments before the summer season, it is advisable to act quickly. In practice, the summer season kicks off already in May, so there is only April left. April is especially advantageous for apartment hunting because at the turn of April and May, there is always May Day. May Day does not initially seem like a particularly good time to schedule a move. However, because many others think the same way, there is generally not a rush for apartments that become available at the beginning of May. Thus, someone looking for an apartment in April has an advantage. If a tenant wishes to move on May Day, their current rental apartment must be terminated by the end of March. Therefore, it’s important to stay alert regarding this matter. Timo Metsola Chairman of the Board Vuokraturva ## Charity Belongs to the Well-Off Based on a multi-year study, Professor Anu Kantola and Academy Researcher Hanna Kuusela's book "The Richest One Percent – Finland's Wealthiest Promille" will be published tomorrow. The amount of advance publicity already indicates that the topic is groundbreaking. We might think we know what the wealthiest one percent thinks, but do we really? This question confronted me despite having worked with this group for over 20 years and being a part of it myself. Responding anonymously reveals how few people believe that, aside from hard work and capability, luck also plays a role in their success. For another equally hardworking and capable person, sheer happenstance may have led to an entirely different outcome. As it could have for oneself. Life is anything but absolutely fair. It's particularly important to remember this when a stroke of luck has befallen us. It certainly warrants gratitude, but not arrogance. In life's great lotteries, we do not have equal starting points or the same genetic first-class ticket to life. What's most important, in my opinion, is that everyone strives, according to their strengths and abilities, to contribute their share. And we remember to appreciate everyone's input, not just our own. These are two sides of the same coin. What surprised me the most was that charity did not come up at all in the study. I checked this finding with Professor Kantola, and she confirmed it to be accurate. For some reason, the material did not mention charity. This was a surprise and a shock to me. It's understandable that charity isn't something people want to flaunt, but since the research was conducted anonymously, it’s unlikely that the explanation lies there. Charity belongs to the well-off. I had imagined that this understanding was becoming part of the global mainstream. In addition to the fact that a particularly successful individual generates positive fiscal impacts when their created wealth is taxed and invested, creating jobs and contributing to society's welfare through mandatory income transfers, I had envisioned that the majority of the wealthiest individuals engage in voluntary charity. In this regard, the research poured cold water on my expectations. The entire purpose of life is to do good for others. In order to make the world a little bit better because one lived and tried to do so. Even the simplest ant in nature understands this. We do not live solely to focus on our own navel. The concept is fundamentally simple and timeless. And each of us receives the sense that our short lives have some purpose. Or perhaps I have completely misunderstood everything. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Igglo Gave Much to the Real Estate Brokerage Industry – Others are Now Reaping the Benefits I remember the feeling I had when I read news about Igglo in mid-February 2006. I examined the puzzling business model on Igglo’s website, alternating between admiration and concern for my own competing business. I had been in the industry for almost a decade and thought I knew it like the back of my hand. On an ordinary Wednesday, I felt as if I had moved from the driver’s seat to the back seat, wondering where the entire field was heading. And I wasn’t alone. Many industry players, as well as the general public and the media, were awestruck by the situation. When everyone’s current and past residential buildings could be found on this astonishing new real estate agent’s website, the newly launched company surprisingly became the talk of the town in just a few days. A remarkable achievement for a small start-up. Now times have changed. Igglo is being criticized. It had to cease its brokerage operations after just two and a half years of struggling. During that time, numerous erratic changes were implemented, sometimes leaving even its own staff confused. Some agents felt that clever marketing maneuvers were considered more important in the office than the quality of fundamental brokerage work done in the field. Thus, many think there was nothing new or good about Igglo. At least within the brokerage industry, many perceive Igglo’s story as proof that shaking the boat in this sector doesn’t pay off. If you want to stay afloat, do everything as others do and cling desperately to the highest possible brokerage fees, is the common thought. My interpretation is quite different. To me, Igglo’s magical launch was the finest start-up launch seen in Finland. The fact that it happened in my own field was a great privilege. And the fact that Igglo did not remember the importance of cost discipline in business operations was a great fortune for us competitors. By the time Igglo ventured into rental brokerage, its financial foundation was already collapsing, and Vuokraturva managed to avoid being affected by Igglo’s competition like many other rivals. But from the sheer fright we experienced, we understood that the level of creativity and technology we thought was sufficient was nowhere near enough. We got a cold splash of water on our complacency. At Vuokraturva, a development process began, leading to the launch of investment funds for housing, relocation services, and Myyntiturva. Among these, Myyntiturva is currently in a particularly strong phase of growth, and the observations and lessons learned from following Igglo are under a specific microscope. Success is rarely a coincidence. Young entrepreneur Veijo Merjamaa, in his time, managed to grow his small real estate brokerage by seeking influences outside the usual business models, bringing Sunday open houses from the United States to Finland, and even atypically hiring women as property presenters for the time. It was the 1950s, and the foundation for Merjamaa’s small company, Huoneistokeskus, was laid. Creativity has always been needed, and it will always be needed. Those who become stagnant will quietly wither away over time and fade into the mists of history. Often, the role of the trailblazer is the same as that of Igglo. The pioneer charts a new path for the entire industry but succumbs to the weight of its own efforts. Some of Igglo’s impacts on the industry remained temporary, while others became permanent. When Igglo exited the stage in 2008, the competition in brokerage fees diminished. The real estate brokerage industry simultaneously moved out of the media spotlight and returned to its ordinary days. On the other hand, the advertising of properties in printed newspapers never returned to normal. Igglo had shown with its concepts that printed property ads indeed attract individuals selling their properties to give mandates to brokers, but buyers look for property information and images almost exclusively online, where information can be provided more comprehensively, and search functions facilitate property hunting. This raised the question of whether it is worth it for property-selling clients to pay the broker for newspaper ads, by which the broker ostensibly markets their own operation primarily to other sellers. Moreover, Igglo’s meteoric ascent in real estate brokerage served as a free, case-based crash course on innovation, communication, bold management, and cost control for the entire industry. At the same time, Igglo may have provided a glimpse into the future of real estate brokerage. Perhaps Igglo in 2006 was ten years ahead of its time. Igglo gave a lot to the real estate brokerage sector. Who eventually reaps the gradually ripening fruits of development in the industry depends on us, the players ourselves. Knowledge and experiences are visible to all. For those interested in Igglo’s trajectory, I recommend browsing old news articles online and reading Matti Kasson’s book, based on his personal perspective. Vuokraturva has its own view of what the real estate brokerage industry currently needs in this time. We highlighted that during the launch of Myyntiturva in May. At the same time, we expanded our reach from rental brokerage to sales brokerage. Our claim is that a traditional real estate broker spends most of their time acquiring new mandates instead of focusing on selling properties already in brokerage. The use of time is thus quite counterintuitive. We want to focus on the actual matter: selling properties. Therefore, Myyntiturva set its fee level reasonably enough that clients reach out to us, and new properties to sell can be continually and abundantly secured. The initial phase of Myyntiturva has gone promisingly. Measured by the number of mandates and property sales, it performs better than Igglo in its first months. In rental brokerage, fees are low, so one must become cost-effective in that work. We aim to bring that efficiency now into sales brokerage—for ourselves, our customers, and hopefully ultimately for the entire sector. Osmo Soininvaara commented on our effort in his blog last week as follows: “This is what has been awaited. Thousands of talented individuals will be freed from real estate brokerage to productive work as productivity in real estate brokerage increases. And clients save real money.” It is still too early to say whether this will become anything significant for the entire industry. Igglo’s story is a good lesson on many things, including the destructive nature of arrogance and the illusion of omnipotence. But the surest way to fail is not to even try. We would rather commit some other mistakes than that one. Time will tell. But what ultimately brought Igglo down? It seems to me that if one reason has to be mentioned, it would be the lack of cost discipline. Particularly astronomical sums were spent on advertising compared to the company’s size. It is illustrative that five million euros was spent just on planning the advertising. Why was this done when there was already enough visibility through other means? Why such excesses right from the start, even though Igglo was already present on newspaper pages and in everyone’s conversations? A central driving force behind Igglo’s incredibly successful launch was undoubtedly the advertising agency background of the ownership group. Marketing professionals had finally been allowed to make all the decisions from start to finish, without an ignorant leader from the old world watering them down. Unfortunately, this observation may explain both Igglo’s rise and its destruction. The worldview of an advertising agency professional is understandably that well-planned and executed advertising is always worth its costs. That is, it brings back the money spent on it, regardless of how much advertising there is. That did not happen for Igglo. Timo Metsola Chairman of the Board Vuokraturva ## Whistleblower Protection and Internal Reporting Channel As of January 1, 2023, the Whistleblower Protection Act in Finland, which is the law on the protection of persons reporting violations of European Union and national law (1171/2022), requires the protection of individuals who report wrongdoing. The law is based on the EU directive (the so-called whistleblowing directive) that came into force in the fall of 2019. The law establishes the framework for how to report wrongdoing or illegal activities and what kind of protection is provided for whistleblowers. It mandates that all companies employing more than 50 employees establish an internal reporting channel for notifications. Whistleblowers protected under this law include current and former employees, temporary workers, and interns of the company. Vuokraturva's internal reporting channel operates on the Juuriharja Consulting Group's server called the First Whistle reporting channel and is not part of Vuokraturva's website. Visit Vuokraturva's reporting channel: https://firstwhistle.fi/vuokraturva However, before crafting a report, it is advisable to familiarize yourself with the guidelines for reporters created by Juuriharja Consulting Group: https://www.juuriharja.fi/whistleblowing-ilmoittajalle-faq Through the same reporting channel page, you can submit a report, return to your submitted report, and communicate with the report handlers. You will be informed of the receipt of your report within seven days of its submission. The handling of reports submitted through Vuokraturva's reporting channel involves the following individuals: Hanna Häkli, Administrative Manager, Katja Ekholm, Service Director, and Timo Metsola, CEO. Reports are handled carefully, and decisions on possible follow-up actions will be made based on the handling of the report. You will receive feedback from the report handlers via the First Whistle service within three months of the receipt notification. You can find information on how personal data is processed concerning reports submitted through the reporting channel in Vuokraturva's privacy statement. If you have questions about the privacy issues of the reporting channel, you can contact Hanna Häkli: hanna.hakli@vuokraturva-yhtiot.fi The Chancellor of Justice maintains a centralized government reporting channel accessible at: https://turvaviesti.gov.fi/ilmoituskanava-rapporteringskanal. However, if a company has its own internal reporting channel, reports should primarily be made through the company's own reporting channel. ## Notice of Termination of Rental Agreement #### Property Information #### Landlord #### Tenant #### I hereby terminate the rental relationship as of this date. #### Signature Instructions for filling out the form: Both the landlord and the tenant can use this same template to terminate the rental relationship. The party terminating the agreement fills out, prints, and signs the notice of termination and delivers it verifiably to the other party. The information entered in the notice is not stored in the customer data system of Vuokraturva nor will it be forwarded. When the tenant terminates the rental relationship, the notice period is one calendar month. When the landlord terminates the rental relationship, the notice period is three calendar months if the rental relationship has lasted less than a year, and otherwise six calendar months. If the rental agreement has stipulated the earliest possible date for the notice period to commence, the notice period may start no earlier than from that date. The landlord must provide a reason for the termination of the rental agreement, but the tenant does not have to. # Infokit ### Renting infokit - Information package for landlords - Frequently asked questions about applying for a rental property - Instructions for new tenants - Form templates - Rent increase calculator - Fair rental practices - Act on Residential Leases - Rental data privacy guidelines - Glossary of terms used in rental property ads FI-EN ### Buying or selling infokit - Making an offer on a property - Terminology related to buying and selling a property - Housing Transactions Act ## Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentee: Mon-Sun 8:00 – 18:00 ## Offices ##### Helsinki office and operating area Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki ##### Tampere office and operating area Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere ##### Turku office and operating area Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku # Info Package ### Rental Database - Handbook for Housing Rental - Frequently Asked Questions about Rental Applications - Forms - Rent Increase Calculator - Law on Renting Out Residential Apartments - Services for Landlords ### Real Estate Transaction Database - Making an Offer on a Property - Terminology of Real Estate Transactions - Law on Property Purchases - Good Brokerage Practice ## Blog ## The Irish Crisis May Affect Housing Prices in Finland In May, the intensification of the Greek crisis marked a turning point in the mood of the housing market. After a dramatic surge in activity and record-breaking price increases, the market entered a period of stabilization. The concrete effects were visible in housing prices and transaction volumes during the summer and autumn months. The rise in prices came to a halt, and the focus of housing demand shifted towards rental markets. However, few sellers faced significant difficulties in selling their properties. With reasonable asking prices, transactions continued to occur fairly well. Now, the housing market is closely monitoring the development of the Irish crisis. This crisis will not catch the general public by surprise in the same way the severity of the Greek crisis did back in May. Nevertheless, the Irish crisis could still impact housing prices in Finland. Housing transactions rely on borrowed money, so the worst-case scenario would be disruptions in international lending markets and a loss of trust among banks, which would hinder access to housing loans in Finland. In this case, the effects on housing prices and transaction volumes would be clear and immediate. Significant impacts may also arise purely from a psychological perspective. The Irish crisis is specifically tied to the bursting of a housing bubble. As a result, the issues related to the formation and catastrophic collapse of the housing bubble, along with the accompanying sad stories, will likely remain in the headlines in Finland over the coming months. This could influence potential homebuyers in Finland who follow the news. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Demand for Larger Rental Apartments Increased in October The demand for larger rental apartments, which had been modest in recent years, surged in October. This change was particularly evident in growth centers for apartments over 90 square meters. Typical tenants in this category are families with children. The supply of larger apartments also increased, but demand and supply matched only partially. The increased demand was primarily directed towards well-maintained apartments located near good transportation connections. The increase in supply of larger rental apartments consisted largely of properties that had not been sold by the company in a reasonable time, with many of them being of either average condition or requiring renovation. Although the demand for larger rental apartments grew, rental prices do not seem to be increasing significantly. There are regional differences, but overall, the real rental prices for large apartments appear to be stagnating. The main reason for this seems to be the growing caution among rental apartment seekers regarding the level of rent they are willing to commit to. Even if there is considerable interest in a specific family-sized rental apartment, landlords may still need to negotiate the rent downwards to secure a tenant in a reasonable timeframe. This is an unusual situation that highlights a heightened sense of caution. Some of those seeking larger apartments have, due to their cautiousness, decided against purchasing a home and appear to be hesitant about the rent they will agree to pay. This likely does not yet reflect any changes in disposable income, but rather a shift in mindset. The demand for studios, one-bedroom, and smaller two-bedroom apartments remained at the same level in October as in September. There was no noticeable change in rental prices of new leases in these categories compared to September. August and September are often the busiest months in the rental market. New students and families with children move frequently at the end of summer and early autumn. Demand for rental apartments usually starts to decline slightly in October. However, this year did not follow that trend. Contributing factors are likely the general economic uncertainty and the gradual calming of the housing market, which represents an alternative housing solution to renting. For more information: Timo Metsola, Chairman of the Board, tel. (09) 6877 550 # Blog ## East Helsinki Tops Housing Benefit Tactics Timo Metsola Renters are strategizing and exhausting old generous housing benefits, particularly in Helsinki, where housing benefits are now being cut by double. Those receiving benefits in Helsinki face reductions similar to those elsewhere, but in addition, the right to receive housing benefits higher than those granted in other parts of the capital region has been removed. Therefore, cuts to general housing benefits impact Helsinki residents in two distinct ways, leading to significantly different consequences. This situation provides many with the opportunity to strategize, allowing them to utilize old generous benefits fully before changing apartments. While such tactics have been most evident in Helsinki, where the changes are also the largest, clear strategizing is also observable in Vantaa, Espoo, Tampere, and certain neighborhoods in Turku. Surprisingly, beneficiaries have demonstrated a strong understanding of how to strategize with benefits. For individual housing benefit recipients, the cuts will gradually begin to show between this April and next March, as Kela reviews housing benefits once a year, assuming other circumstances remain unchanged. The timing of when an individual's support changes depends on the month in which their benefit reassessment occurs. This gives many of the approximately 400,000 households receiving housing benefits the chance to strategize by fully utilizing old generous benefits before potentially changing apartments. Data indicating the strategic behavior of beneficiaries is based on the exceptional limited termination of existing lease agreements during late spring and summer, especially in critical areas affected by housing benefit changes, with some areas seeing half as many terminations as in previous years. The number of moves among those receiving housing benefits dramatically decreased from the beginning of April, as at that point over 90% of beneficiaries would have significantly lost housing benefits or lost them completely if they had changed their rental apartments. In such cases, the support for a new apartment would have transitioned to the new system. Without naming individual neighborhoods, it is clear that East Helsinki has emerged as the national leader in housing benefit tactics. The key to successful strategizing may lie in Kela's user-friendly calculator, which allows individuals to compute how a move would impact their housing benefits. This tool illustrates how dramatic the consequences to housing benefits can be if one stops their current generous support by moving before the old support naturally ends. [https://laskurit.kela.fi/yleisen-asumistuen-laskuri](https://laskurit.kela.fi/yleisen-asumistuen-laskuri) ## Shortage of the Most Affordable Rental Apartments Intensifies Next Summer The government plans to move students from the general housing benefit system to the smaller housing supplement of student financial aid on August 1, 2025, at which point the change would take effect for everyone. The maximum amount of the housing supplement would be depending on the residential area: €296, €248, or €216. According to the plans, the housing supplement for student financial aid would only be paid during study months, meaning that usually, no support would be provided during summer months. If the government's plan is implemented, the fierce demand spike for the most affordable rental apartments will likely coincide with next summer, as both students transitioning to the smaller subsidy and those moving due to cuts in general housing benefit seek out cheaper living options. The amount of the student financial aid housing supplement would theoretically be 80% of the monthly rent, but capped such that for the capital region, any part of the monthly rent exceeding €370 would not be considered. In larger cities, the cap would be for any amount over €310，and elsewhere in Finland, it would be for any amount over €270. It is nearly inevitable that changes to housing benefits will overall increase demand for the cheapest privately funded rental apartments in urban centers and, at the same time, raise their rents. Conversely, rents in more expensive apartments, from which people are prompted to move due to benefit changes, may decrease in many cases. The effect may be most pronounced in newer, higher-rent apartments located outside the most desirable areas, where many benefit recipients have resided. Rents may need to be lowered to attract new residents to replace those who have moved out. In such cases, current residents are often dissatisfied and also seek rent reductions. The rents for privately funded apartments will continue to be determined in the usual way, according to supply and demand and the rental payment capacity of tenants. The lower rent for affordable apartments typically stems from the small size, modest condition, and equipment level of the apartment or their location further away. When the demand for more modest apartments increases from previous levels but the supply does not, the rising demand will inevitably reflect an increase in rent for the most affordable options. ## That's Not All – More Cuts to Housing Benefits Are Coming Adjustments in housing benefits that boost the demand for the most affordable rental apartments will not stop here. Three additional major cuts concerning housing benefits are reportedly upcoming, which will simultaneously apply to all recipients of those benefits. The government plans to reintroduce wealth limits for general housing benefits. The proposed wealth limit would be €10,000 for a single-adult household and €20,000 for a household with two or more adults. Under the plan, 20 percent of the net wealth exceeding the limit would be added to the household's annual income when calculating housing benefits. Housing benefits would not be granted at all if the combined net wealth of household members reached €50,000 or more. By the end of this year, the housing benefits paid for residing in owner-occupied housing will be removed. The criteria linked to the national pension index for elderly housing benefits will be frozen for the years 2024-2027. As a smaller change, the government is also planning to transfer Kouvola, Mikkeli, Pori, Kajaani, Lappeenranta, and Vaasa from the current second municipal group for general housing benefits to the third municipal group. ## More Detailed Information on Changes to General Housing Benefits, Especially for Helsinki Residents The decision made by Parliament at the beginning of the year significantly reduced general housing benefits and also tightened the conditions for receiving these benefits. This is in response to decades-long increases in housing benefit costs, which are believed to have had a rent-increasing effect. The changes affect all households eligible for general housing benefits, which Kela reported numbered over 400,000 at the end of last year, but the effects are particularly pronounced on recipients in Helsinki. Previously, Helsinki formed its own municipal group 1, where it was possible to receive higher general housing benefits than in Espoo, Vantaa, and Kauniainen, which were part of municipal group 2. The reforms merged groups 1 and 2, and Helsinki's maximum housing costs will now also be assessed according to the regulations that previously applied to group 2. Practically, municipal group 1 has been dissolved. This change primarily cut housing benefits for Helsinki residents. Additionally, all housing benefit recipients are subject to shared cuts, which will result in housing benefits covering a smaller proportion of household housing expenses in the future. The basic deductible for general housing benefits increased from 42% to 50%. Thus, the basic deductible will now be 50% of the income that exceeds the lower limit of general housing benefit income limits. The reimbursement percentage for general housing benefits has decreased from 80% to 70% of the difference between allowable housing costs and the basic deductible. Furthermore, the €300 earned income deduction has been removed, which reduces the general housing benefits for all households receiving salary income, business income, or agricultural income. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Understanding Rental Statistics The rental levels of new leases should be monitored with their own statistics, while the index increases of old rents should be tracked with their own statistics, as the development of these two aspects relies on different factors. Combining them obscures the data, preventing a true understanding of market evolution. The rental level of new leases is determined by the prevailing situation at any given time. For privately funded apartments, rents are determined by supply and demand. Additionally, maximum rents in effect limit the rent levels of subsidized apartments. It is essential to note that the development of the rental level of new leases indicates what rent an apartment seeker can typically rent at a given time, whether it is a privately funded or a subsidized apartment. This information is very significant and also reflects changes in the relationship between supply and demand. Monitoring the index-linked increases of the old rental stock, which is generally tied to an index, mainly provides insight into the development of those indices. However, Statistics Finland combines these two elements into a single dataset when publishing quarterly statistics on apartment rents. For instance, the dataset for the second quarter included less than a hundred rental agreement records for new privately funded leases for all of Helsinki. This means there was barely one new lease agreement for each postal code area in Helsinki. This one apartment then represented all rental agreements made in that postal code area, from studio apartments to single-family homes. It is clear that when such data is mixed with the older rental agreements (which are numerically much more significant) primarily related to index-linked rent increases, the result unfortunately cannot provide a clear understanding of the development of the rental levels for new leasing agreements. Regarding new lease data, we are therefore entirely dependent on the market sensibilities of industry players and the property websites available online. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## If You're Planning to Change Your Rental Apartment This Year, Now is the Time to Do It There is generally a high demand for rental apartments. However, in April, tenants have perhaps a surprisingly advantageous position. Finding a rental apartment in April is significantly easier than later in the spring, summer, or winter. The explanation is simple. The end of notice periods and the start of new rental agreements coincide with the turn of the month, and most people do not want to schedule their move for May Day. Therefore, rental apartments becoming available on May 1st do not experience the same high demand that is normally directed towards rental apartments. April ends on the eve of May Day, and May starts on May Day. A tenant who terminates their current rental apartment now at the end of March and is ready to move into a new apartment at the end of the one-month notice period, that is, on May Day, will have almost complete freedom in choosing their new rental apartment. I also mention this in this blog because we, too, have difficulties every year in renting out apartments that become available at the beginning of May during April. If you are planning to change your rental apartment this year, the best timing for the tenant is right now, within this month. In May, demand for rental apartments shows an annual spike, which is partly due to people postponing their moves for a month due to May Day, and partly because the busiest time of the rental market, the summer season, is approaching. Summer is the worst time for a tenant to change their rental apartment. During summer, there is the greatest excess demand for rental apartments. In the three months of June, July, and August, as many rental agreements are made as in the rest of the year combined. Key factors explaining the summer demand spike include the influx of students moving to new towns in preparation for the fall, the urgency of busy professionals wanting to time their moving chaos with the summer vacation, and families with children desiring to move so that school-age children do not have to change schools mid-year. During the peak summer season, landlords typically ask for about 10 percent higher rents than usual, which means a seasonal increase in rents. This has significant financial implications for tenants, as the seasonal rent specified in the rental agreement will be paid throughout the year, month after month. Autumn is also traditionally a busy time in the rental market, as many are searching for apartments who either did not find a rental during the peak summer demand or found the summer rent requests unreasonably high. If a tenant wants to take advantage of the fact that in April there is clearly more choice regarding rental apartments, and move on May Day, the current rental apartment must be terminated by the end of March. Getting moving assistance may be a bit more challenging on May Day, but the good chances of obtaining the desired apartment can nicely compensate for that. Timo Metsola Chairman of the Board Vuokraturva # Blog ## If You Plan to Rent an Apartment This Summer, Act Now The summer season spanning from July to September is the busiest time of the year in the rental market. Finding a small rental apartment, especially in the largest cities, can feel nearly impossible during this peak demand period. Additionally, during this high-demand season, the asking rents for apartments are significantly higher than at other times of the year. Those who are moving during the summer due to a new school or job should definitely aim to start their apartment search in June. If you delay your search until July or August, viewings will be crowded, finding a suitable apartment will be challenging, and rental requests will be higher than usual. In June, many new students are still waiting to confirm their study placements, so it is relatively easy to find a rental apartment, even in the capital region. The early bird catches the worm, so it’s important to act quickly. Those students whose study placement is practically guaranteed should especially start searching for apartments before July and the annual student rush. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## If the apartment isn't selling, renting might be worth trying right now The situation in the housing market is challenging. Many who have been trying to sell their apartment for a long time must consider whether to stay in the apartment themselves, lower the asking price, or try renting it out. Which of these options is best depends on the individual’s circumstances. However, if renting is on the table, now is the perfect time to give it a shot. The summer season in the rental market begins around mid-July, and the most intense phase continues for the next four weeks. Students moving to a new city are desperately searching for housing. At the same time, families with children are trying to find a new home before the school year begins. This summer, it seems that many families who have been considering both buying and renting are leaning towards renting. Timing is crucial in the rental market, as approximately as many rental agreements are made in the three summer months as during the entire rest of the year combined. And as we approach the end of summer, the pace only picks up. If a person who has been frustrated with poor demand for an apartment that has been on the market for a long time misses the summer season, it could significantly complicate their chances of renting it out. In the fall, demand decreases as we head into the quietest period of the rental market—the early winter. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## If Love Were a Raindrop – LISTEN HERE "If love were a raindrop" has become a hit, streamed over a million times in the first two months. The song is composed and written by the founder of Vuokraturva, Timo Metsola. Listen on YouTube >> Listen on Spotify >> The best ranking on Spotify's Viral 50 list was fourth place on November 30, 2018. ### If Love Were a Raindrop - lyrics (composed and written by Timo Metsola) Empty chatter a head that already aches, this anxiety It's hard to cope it's all been said a hundred times already Why can't you trust that I already know all these phrases A thousand and one times, it's all been talked about I would just want to say one sentence to you If you could hear me, you'd be so loved "But you don't know that if love were a raindrop I would give you an ocean." Black pain your life ebbs and spreads around you You don't see anything you can't find a friend inside your head Why don't you open your eyes and boldly look ahead Why can't you notice the truth as it's pressed against your face You could change all this so easily, make it break Anchor your life better "But you don't know that if love were a raindrop I would give you an ocean." (guitar solo) "But you don't know that if love were a raindrop I would give you an ocean Once you realize that if love were a raindrop I would give you an ocean." ### Birds in the Wind - If Love Were a Raindrop sung by Katja Felin composition & lyrics by Timo Metsola arrangement & programming by Pertti Jalonen guitar by Ville Nurmi drums by Hartsa Lehtonen mixing by Tommi Vainikainen mastering by Pauli Saastamoinen produced by Kim Kuusi & Vuokraturva-yhtiöt Oy ## Announcements ## Christmas is Coming for Renters Too The rental market quiets down as December approaches. Although the demand for rental apartments has been exceptionally high during the summer and fall, this year, renters are only timing their moves for December if there is a very special reason. Finns do not want to spend their Christmas amidst moving arrangements. This means that landlords hoping for quick rentals may have to lower their rental prices in December. As a result, tenants looking for rental apartments will have somewhat of an easier time finding reasonably priced options during this month. Late summer and autumn are traditionally peak times for rental apartment demand. Typically, the autumn season peaks around the end of September, but this year even October was very active. The main reason for the extended season was a sluggish housing market resulting from economic uncertainty, leading to a stronger than usual shift in demand towards rental apartments. During November, the rental market has calmed down once again this year, with signs indicating that there will be more supply than demand for rental apartments in December. Unrented properties transitioning to rental could increase the supply even further. Most renters seek apartments during peak seasons and tend to rent at seasonal prices. Besides autumn, late spring is also a traditionally busy time in the rental market. While the majority of rental agreements are made during these times, there are also tenants who repeatedly try to time their moves to coincide with quieter periods in the rental market. Along with December, July has also traditionally been a quiet period in the rental market. However, in recent years, the situation has changed, with tenants anticipating the autumn housing shortage actively on the move in June and July. This is especially true for families with children and students, whose moving schedules are influenced by school years. Consequently, the gap between the spring and autumn seasons has practically closed. Unless the housing market picks up, the oversupply of rental apartments and rising rents seem set to continue into next year. “December has become the last surviving period in the rental market. For now, it appears that the Christmas calm in the rental market will still persist,” states Timo Metsola, Chairman of the Board of Vuokraturva. Further Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 Vuokraturva Oy Briefly Vuokraturva is the market leader in rental brokerage and investment property acquisition services. Vuokraturva rents out properties owned by individuals and institutions, and through their relocation service, provides housing for employees of organizations such as the chemical agency. Vuokraturva also builds funds that invest in properties and works closely with the Association of Finnish Landlords and the Central Union of Tenants in Finland. www.vuokraturva.fi # Blog ## Public Transportation for Free, Reducing Living Costs Growing urban areas require a substantial number of new apartments to alleviate housing shortages and bring the prices of used apartments and rents down to a reasonable level. However, new apartments are so expensive that only a few can afford them. It is difficult to profitably produce a large quantity of something that only a few can afford. Therefore, the prices of new apartments need to be reduced somehow to become accessible to the average citizen, allowing this equation to start resolving itself. Tightening energy efficiency requirements and the need for accessibility for wheelchair users in every apartment, even in the bathrooms, makes reducing construction costs for new apartments anything but easy. However, there is one significant opportunity for savings. If the parking space required by zoning regulations for each apartment is implemented by building a parking garage in the building— as is typically the case in larger urban areas— around 40,000 euros in parking costs is added to the price of each apartment. This sum feels astronomical. The monthly rent for new rental apartments increases by about 150 euros due to these parking-related costs. As long as the majority of residents commute to work and activities in their own cars, the cars of both current and new residents need to be accommodated somewhere. Therefore, the parking space requirement is justified. Sometimes, a parking space can be addressed with surface parking in new buildings, but this leads to the loss of already scarce land suitable for apartment production. The increase in car numbers resulting from new constructions also adds to traffic congestion, extends travel times for everyone, and requires new, often very costly road projects. Thus, we can only eliminate the requirements for parking spaces, the inflation of car numbers, and the resulting exorbitant costs if people are encouraged to use public transportation more. However, this is difficult as long as passenger numbers do not suffice to create a well-functioning, dense cross-traffic network that shortens travel times. My opinion is that those who use public transportation should not be charged for it. By doing so, they are effectively providing significant benefits to both urban planning and green values. Currently, traffic congestion is full of personal cars, averaging about one and a half passengers per vehicle, with nearly every car emitting its own fossil fuel engine, and traffic routes are continuously expanded to accommodate these cars while also having to find parking spaces both at the destinations and back at home. This situation is immensely expensive and harmful to the environment. Every person who switches to a public transport vehicle does a great service to others and saves shared money. Therefore, they should not be charged but rather thanked and rewarded. Citizens are required to cover the costs of public transportation in one way or another. Currently, in the largest cities, it is primarily funded by ticket revenues, so the burden falls mainly on public transportation users. On the other hand, investments in transportation for personal vehicles are borne by all taxpayers, whether they own a car or not. I believe this logic is unbalanced. I think that public transportation should be made entirely free. Completely free public transportation would significantly increase passenger numbers. It would also make the practical implementation of cross-traffic more feasible, further increasing the relative advantages of public transport. When the alternatives are expensive car use and completely free dense public transportation networks, it would undoubtedly be much clearer how to navigate urban areas. Everyone would benefit, including those who continue to drive personal vehicles—through reduced congestion. The current parking spaces would still be sufficient in the future, and the mandatory construction of garage spaces could be abandoned, consequently reducing that additional cost of 40,000 euros from the prices of new apartments and 150 euros from new apartment rents. It is true that the costs of publicly funded public transportation would then be shared equally by both public transport users and personally driving citizens. In that sense, the situation would be similar to, for example, libraries. Everyone contributes to the costs, but usage is voluntary. However, it would be beneficial for everyone. I think this would be a healthier way to tax private car use than the establishment of cumbersome road toll bureaucracy. It’s easy to dismiss such an idea as foolish and reject it without proper consideration. But everyone can ponder, if given a blank slate to design a million-person economic zone, would it be wise to allocate available funds to create vast roadways and parking facilities for personal vehicles or to invest in efficient public transportation instead? Well, the answer is, of course, obvious. However, the counter-argument is that, for instance, the metropolitan area cannot be designed from a blank slate now. This is true, but the metropolitan area is only a loose concentration of small cities compared to the much more populous, dense urban metropolis it will be in 30 or 50 years. Urbanization is not slowing down but intensifying. One can look at maps from 30 or 50 years ago to compare how much can change in such a period. To achieve the full benefits of current and upcoming rail transport projects, the connecting routes must surpass a critical threshold where public transportation becomes genuinely more convenient than driving a personal vehicle. Rail connections must be constructed boldly enough that a comprehensive network is created. Exceeding this threshold is fundamental because, in most million-dollar cities, the metro is the most widely used mode of transportation. The one-time investment is massive, but on the other hand, the benefits to the entire economic area would also be enormous. Now is the time to choose a path that can be traveled in the future. We should not charge those who are part of the solution. And it is wise to consider this now, not ten years from now. ## Blog ## A Turn in the Housing Market Seems to Have Truly Occurred At the turn of the year, there were clear signs of intoxication from low interest rates in the housing market. Vuokraturva warned that the development of housing prices in Finland was diverging dangerously from all other Eurozone countries. In the first quarter of the year, the disconnection between housing transactions and the real economy became increasingly evident as the rise in housing prices accelerated at the same time that poor economic news from Europe piled up. The first signs of a turn and the end of the housing market boom were visible in early April. Recent weeks seem to have confirmed that a turn in the housing market has indeed occurred. The escalation of the Greek crisis in early May appeared to be the decisive turning point that prompted large groups of buyers to reconsider. The agreement reached on May 10th regarding a massive bailout fund to support shaky Euro economies did not restore confidence in the housing market. The mood of housing transactions turned negative. I discussed this phenomenon on MTV3's morning television a week after the announcement of this emergency package by finance ministers. Already in the same week, major real estate agencies admitted in Helsingin Sanomat on May 21st that the observation of this turn is correct. Merja Siivonen, the field director of Huoneistokeskus, made a direct and surprisingly honest comment about the speed of the change: “One-room apartments were selling in the capital region within hours just recently; now we're talking about perhaps a week or two.” Such statements from agencies that currently have thousands of properties on their sales lists would not be made unless the change is indeed very clear. At the same time, cautious potential home buyers began to seek rental properties to monitor the development of the situation. This week, the European Central Bank's stability report confirmed the warning issued by Vuokraturva on January 30, 2010, that in Eurozone countries, only in Finland are housing prices sharply rising amid a recession. Now, housing sales are slowing, the demand for rental apartments is rising, and housing market events will certainly be followed closely by the media throughout the summer. For Vuokraturva's operations, this news is positive as the demand for rental apartments increases at the same time as the purchase of reasonably priced investment properties for our clients and the funds of Asuntoturva will be facilitated. However, for many others in the industry who benefited from the housing market boom, the change may bring difficulties. For the entire market, I still see it as a common benefit that the connection between housing prices and the real economy is restored. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Overproduction of Two-Bedroom Apartments is Driving the Housing Market into a Wall In the production of new apartments, records are being broken, and construction companies are striving to build as many small apartments as possible. Due to zoning laws generally restricting the construction of studios, despite a significant shortage of them, construction companies are focusing their efforts on the next best option: building small two-bedroom apartments. This is logical, but when everyone is doing it simultaneously at an unprecedented volume, problems arise. A brand new two-bedroom apartment is expensive and has a high rental price. Only a specific segment of the population can theoretically afford such a place. This is a very limited - and finite - target group of high-income individuals. Warning bells are ringing as all the major builders are simultaneously producing record amounts of apartments for a relatively small target group. Everything is fine as long as there is enough demand. But the first warning signals emerged last spring from the rental market. The target group, high-income couples without children or with one child, was no longer sufficient to fill the mass-produced new and expensive rental two-bedroom apartments. This was correctly explained by the fact that this target group typically wants to buy a two-bedroom apartment at this level of interest rates. The housing funds were left wondering how to resolve the situation and their first action was to reduce the initiation of new rental buildings focused on two-bedrooms. Wise. At the same time, construction companies have only accelerated the production of valuable two-bedroom apartments intended for sale and continued to raise prices. The amount of excessive production in a narrow sector of similarly priced two-bedroom apartments seems incomprehensible by common sense. In recent weeks, the trading of new two-bedroom apartments seems to have started to quiet down. The explanation, it is said, is that it is due to the season. And that snow has melted and the mood has turned bleak. Really? There is a hippopotamus in the living room. The situation is obvious, but no one wants to acknowledge it. A bad idea. Delaying corrective action is almost always a mistake whose cost is high. Timo Metsola Chairman of the Board Vuokraturva # Announcements ## Songs, lyrics, and authors of the album Kuiskaus by the ensemble Lintuja tuulessa Listen to the album here: www.lintujatuulessa.fi The composer of the songs, Timo Metsola, talks about the album in an interview with Radio Dei. ### TRACKLIST Lintuja Tuulessa: KUISKAUS 1. Kuiskaus – song by Mirkka Paajanen, composed and written by Timo Metsola [Listen here](https://www.youtube.com/watch?v=0o-GuF8CNR8) 2. Tahdon – song by Mirkka Paajanen, composed by Timo Metsola, lyrics by Eija Hinkkala [Listen here](https://www.youtube.com/watch?v=O6okYAT1vYQ) 3. Rakkaus – song by Jouni Keronen, composed by Timo Metsola, lyrics by Eija Hinkkala & Timo Metsola [Listen here](https://www.youtube.com/watch?v=SrnqaRdR4wg) 4. Lähden taas – song by Sani, composed by Timo Metsola, lyrics by Eija Hinkkala & Timo Metsola [Listen here](https://www.youtube.com/watch?v=TE5jeUwYYfA) 5. Uni – song by Sani, composed by Timo Metsola, lyrics by Sana Mustonen [Listen here](https://www.youtube.com/watch?v=bFWMsUYXn3g) 6. Samaan ansaan – song by Tapio Liinoja, composed and written by Timo Metsola [Listen here](https://www.youtube.com/watch?v=8nI2p_wvMNA) 7. Tahdon (duetto) – song by Arja Koriseva & Hannu Lehtonen, composed by Timo Metsola, lyrics by Eija Hinkkala [Listen here](https://www.youtube.com/watch?v=dvyblx8PFcY) 8. Lapsuuden joulu – song by Hannu Lehtonen, composed by Timo Metsola, lyrics by Timo Metsola & Sana Mustonen [Listen here](https://www.youtube.com/watch?v=xqabdfGvBZc) 9. Pariisin varjot – composed by Timo Metsola [Listen here](https://www.youtube.com/watch?v=NTCFNuTrzls) 10. Vuorijärven ilta – composed by Timo Metsola [Listen here](https://www.youtube.com/watch?v=-e_HadVOfbA) 11. Pianotunnilla – composed by Timo Metsola [Listen here](https://www.youtube.com/watch?v=7qZHzHehkjU) 12. Marionettien tanssi – composed by Timo Metsola [Listen here](https://www.youtube.com/watch?v=GMqCmIQgrRU) 13. Huvipuiston peilisali – composed by Timo Metsola [Listen here](https://www.youtube.com/watch?v=46QD3WLX5R4) 14. Tuhatjalkainen iltakävelyllä – composed by Timo Metsola [Listen here](https://www.youtube.com/watch?v=Oo3cXtVL_ls) 15. Ei minnekään oo kiire – song by Timo Metsola, composed and written by Timo Metsola [Listen here](https://www.youtube.com/watch?v=zgCh7y9E6tQ) ### LYRICS 1. **KUISKAUS** (music & lyrics Timo Metsola) [Lyrics removed for brevity] 2. **TAHDON** (music Timo Metsola, lyrics Eija Hinkkala) [Lyrics removed for brevity] 3. **RAKKAUS** (music Timo Metsola, lyrics Eija Hinkkala & Timo Metsola) [Lyrics removed for brevity] 4. **LÄHDEN TAAS** (music Timo Metsola, lyrics Eija Hinkkala & Timo Metsola) [Lyrics removed for brevity] 5. **UNI** (music Timo Metsola, lyrics Sana Mustonen) [Lyrics removed for brevity] 6. **SAMAAN ANSAAN** (music & lyrics Timo Metsola) [Lyrics removed for brevity] 8. **LAPSUUDEN JOULU** (music Timo Metsola, lyrics Timo Metsola & Sana Mustonen) [Lyrics removed for brevity] 15. **EI MINNEKÄÄN OO KIIRE** (music & lyrics Timo Metsola) [Lyrics removed for brevity] ### CREATORS Compositions: Timo Metsola Conductor: Pertti Jalonen Flute: Elina Tyni, Mirella Virtanen Oboe: Soineli Suomela Clarinet: Marko Portin Bassoon: Markus Tuukkanen French Horn: Jorma Vuorenmaa Percussion: Sami Koskela Piano: Petri Somer, Marko Hilpo (11) Guitar: Ville Nurmi Violin I: Ilkka Lehtonen (concertmaster), Katariina Nyeki, Siiri Rasta, Seppo Rautasuo Violin II: Petri Päivärinne, Mauri Saarikoski, Terhi Ignatius Viola: Maarit Holkko, Markus Sallinen, Heikki Vehmanen Cello: Iida Sinivalo, Johan Carlsson Double Bass: Jukka Räikkönen Electric Bass: Pertti Jalonen Accordion: Samuli Jokinen Orchestra: Vantaa Entertainment Orchestra Soloists: Mirkka Paajanen, Jouni Keronen, Sani, Tapio Liinoja, Arja Koriseva, Hannu Lehtonen, and Timo Metsola Backing Vocals: Marika Tuhkala (4) and Kim Kuusi, Pertti Jalonen, Timo Metsola (6). Arrangements, keyboards, and programming: Pertti Jalonen Recording and mixing: Speedy Saarinen / Finnvox Studios and Mediagents Studio Vocal recordings: Pertti Jalonen / Studio Jalostamo and Studio Audio Mastering: Pauli Saastamoinen / Finnvox studios Producer: Kim Kuusi ### OWNERSHIP OF THE SONGS Kuiskaus: owned by Alisa, Elina, and Marko Tahdon: to the one who answered beside me a decade ago Rakkaus: to Kevätesikko Lähden taas: to the one whose embrace started all my departures Uni: to Mona and Rafa Samaan ansaan: to the boys from Kotka and the snows of last winter Lapsuuden joulu: to my little sister Pariisin varjot: to Leila Vuorijärven ilta: to Eelis, Pirko, and Olli Pianotunnilla: to Auringolle Marionettien tanssi: to Inksu Huvipuiston peilisali: to Pietsu Tuhatjalkainen iltakävelyllä: to Dessie and Seppo Ei minnekään oo kiire: to the great boy from Porlammi ### ALBUM OWNERSHIP MARKING The entire album is dedicated to my father who turned 70, to his life and life’s work. Helsinki, 13 December 2017 Timo Metsola ## Blog ## Harsh Zero Euro Housing Support Will Shock Almost All Students in August Timo Metsola Students will transition away from general housing support at the end of July. Starting in August, students will receive housing supplements as part of their student financial aid, which are lower and only available for study months. This sounds complicated and may therefore be misunderstood. In practice, the majority of students will wake up when everything has been the same until the end of July, but suddenly at the beginning of August, they will find that no housing support is coming from Kela. Kela’s phone lines may start ringing as students ask why their housing support has not been paid. The shocking answer may be that the support is zero euros. This awakening can be harsh for students. It's a bit like being unexpectedly doused with a bucket of ice water in the middle of a carefree summer. Support will resume in September, but it will be significantly less than before. For example, in Helsinki, the maximum housing aid for a single student will drop by a quarter. Additionally, support for the summer months, during which they are not studying, will cease entirely. Thus, the maximum housing aid for a single student studying nine months a year living in Helsinki will plummet by as much as 44%. Currently, a single student who studies nine months a year in Helsinki can receive up to 394.10 euros per month in housing support, which totals 4,729.20 euros per year. From August, they will be eligible for a maximum of 296 euros per month in housing support as part of their student aid, amounting to 2,664 euros annually. This is a significant change affecting all students simultaneously. Only students living with their own or their partner's child will remain under the general housing support scheme. Since students will receive much less support for housing, a significantly larger portion of their rent will have to be covered by the students themselves. This will inevitably increase the attractiveness of affordable housing and significantly shift the demand in the rental housing market. This change in demand has not yet been adequately anticipated in the rental markets or among real estate investors. In general, the change in August will have a downward effect on rents. However, as demand for the most affordable housing increases, there simply won't be enough of it for everyone, leading to intense competition. This could, according to the laws of supply and demand, drive up rents for the cheapest apartments quite significantly. There are simply not enough affordable units to meet the rapidly increasing demand. So far, the upcoming significant change in students' housing has been surprisingly unnoticed. This coming summer, new students will surely consider the change when contemplating available housing and the adequacy of their finances. On the other hand, it is still difficult to say how many current renters will anticipate the forthcoming change or whether they will only react afterward when the August zero euro housing support shocks them and their existing rent consumes significantly more of their own money. Overall, it seems that the exceptional magnitude of the upcoming change for students has not yet been widely recognized. The impact will extend beyond just the affordable and small apartments in suburban growth centers. Because the income of roommates will no longer affect the amount of housing supplement, the August change will increase the popularity of shared living arrangements. When several individuals share the rent of a larger apartment, each person will pay less after the change than they would in a studio. Thus, even students with low incomes may still afford to live in more expensive areas. Timo Metsola Chairman of the Board Vuokraturva # Blog ## Overview 2019 – The popularity of rental housing is increasing – Problems in shopping centers reflect on apartments? 1. Problems in shopping centers can also impact surrounding apartments. 2. The rents for apartments at the lowest euro levels do not easily decrease. 3. The year 2019 may still remain similar to the housing market pace of 2018. 4. The desirability of rental apartments as a housing option is increasing, especially among young professionals. 5. Hits and misses of our previous reports. *** 1. Problems in shopping centers can also impact surrounding apartments. The opening of Espoo’s Lippulaiva was celebrated in the fall of 1993. A little more than twenty years later, in the fall of 2017, the demolition of Lippulaiva was begun. The shopping center at Pasila station experienced a similar fate. The opening of Espoo’s Iso Omena took place in the fall of 2001. Twelve years later, Iso Omena was in a situation requiring significant changes. Massive renovation and expansion efforts began in the summer of 2013. As the pace of global change accelerates and the retail structure struggles under online pressure, it is likely that even the currently operational and finishing shopping centers will need reconfiguring. Perhaps more quickly than those built in the previous century. Traditionally, proximity to a shopping center has raised apartment prices. However, this effect does not come from the walls themselves but from the services available within. The future impact on apartment value will likely be related to the success of the shopping center. Even as new centers rise, the competition is fierce, especially with the growth of e-commerce. The success of even a brand-new shopping center is uncertain, let alone older and outdated ones. If a shopping center fails, it cannot maintain a wide range of services and its entrepreneurs. Consequently, the influence that raised apartment prices evaporates, and prices drop. A fundamental challenge for apartments connected to shopping centers is that their lifespans are different. The expected lifespan of a new apartment today is considered to be 50-100 years. A shopping center, without significant changes, typically has a lifespan of at most twenty years. This asymmetry will cause headaches, if not hair loss, for those living and owning apartments next to shopping centers. Renovations disturb living, complicate apartment sales, and lower rents. A shopping center filled with flea markets and pubs has the same effect. By this logic, a location a block or two away from the shopping center could long-term be even optimal. In the worst case, a shopping center is threatened not only by decline but also by decades of uncertainty about the future. This can easily happen if the shopping center has multiple owners with differing interests. The development of the Puotiharju shopping center in Helsinki has been attempted fruitlessly for over 20 years. I myself was involved in considering the Puoti situation at Kesko at the beginning of the millennium. A similar situation exists at Heikintori in Tapiola, which is struggling despite its good location. 2. The rents for apartments at the lowest euro levels do not easily decrease. The lowest rents in growth centers do not easily drop because they represent already the cheapest housing option, which always has demand. An apartment has a certain unit value. This is because many tenants primarily think about the total cost of living, not the rent per square meter. This explains why small apartments have high rents per square meter, and in the metropolitan area, even minimal rents are sized at 500-600 euros. This is true, regardless of how small the apartment is in terms of square meters. This level has thus formed a kind of rental floor in the metropolitan area, acting as a rent ceiling's counterpart. Properties with rents lower than this practically do not exist in the market. 3. The year 2019 may still remain similar to the housing market pace of 2018. In the grand scheme, the housing market in 2019 is expected to resemble that of 2018, assuming no major world events shake the global economy. If that is the case, the price level and transaction volumes in growth centers will remain roughly equivalent to those in 2018. The challenges and risks will also persist. There are various possibilities in the global economy. It is possible that the global economy will grow significantly in 2019 and we will see a euphoric rally in stock markets, perhaps before a weaker economic phase and decline in prices. Equally, it is possible that a downturn has already begun. Signs of this can be easily seen, but certainty is lacking. Unclear prospects influence the mood in the housing market, and for this reason, the significance of cash flow in property investment will be emphasized in 2019 compared to the previously common thinking that primarily relied on property appreciation. For rental markets in growth centers, we see a steady situation, particularly concerning apartments at the lowest euro rents. Our view is that the rents in new rental contracts for studio apartments will remain the same or rise slightly. Demand and supply for studio apartments are generally balanced in growth centers. For two-room apartments and larger, the supply of rental apartments exceeds demand, and this gap is widening. It seems that rental levels for apartments larger than one room will decline slightly or remain stable at best. A simple explanation for this is the continuous increase in supply. However, there are practically no new small studio apartments coming onto the market. In older rental agreements, rent increases will continue, not based on the market situation but based on the rent increase clauses included in these contracts. The views expressed in this report are probable under the basic scenario. However, much can happen in the general global economy in 2019, making it important to predict the situation over a longer term beyond economic cycles. One must be prepared to survive possible downturns. 4. The desirability of rental apartments as a housing option is increasing, especially among young professionals. Traditionally, it has been thought in Finland that ownership is the most desirable form of housing. When simplifying the desirability spectrum, rental apartments in rental buildings are the least desired, and ownership among other owners is the most wanted housing type. There are various types of rental buildings, and some are more desirable than others. Rental apartments among owner-occupiers in a so-called ownership building have also been close to ownership in desirability. Movie stars and world-renowned athletes often live in luxury rental condos or rent villas from ownership villa areas. The situation regarding housing desirability has also changed overall. The younger generation now often finds rental apartments more attractive, provided they are located in ownership buildings. Of course, not everyone can live this way; otherwise, the building would become a rental building. A rental apartment in an ownership building represents a kind of living arbitrage, where one can gain benefits without the risks. The advantages of rental housing are appealing because they align with global megatrends. Urbanization, single living, green values, freedom, and the ability to rapidly change and move capital are all realized when living in a small rental apartment in a growth center with good transport connections. For this reason, a rental apartment in an ownership building could become the most attractive housing form among the creative class in 2019. Partly, this is also a matter of free riding, as the described living style assumes that neighbors have their capital tied up in their own apartments. This allows one to enjoy carefree living and the atmosphere of owning a home without having to invest in one's own apartment and renovations. 5. Hits and misses of our previous reports. Many other reports mainly focus on looking back at what has happened previously. We concentrated on looking mostly forward, assessing possible future events based on current and previous developments. Among those attempting to predict the future, few become eager to revisit those predictions later, especially when it comes to past years. We aim to be an exception in this regard. In 2014, we anticipated that the prices of older single-family houses would decrease in many areas when measured in real prices over the next twenty years. This claim was considered provocative at that time and even laughable in some news articles, but it has now become mainstream thought. This assessment seems to have been accurate at this stage. We also predicted back then in 2014 that there would likely be areas with practically no housing sales market due to the stronger-than-anticipated effects described in the report for depopulating municipalities alongside vanishing services. This scenario, once labeled a nightmare, has turned into reality over the turn of 2018-2019. In 2015, we warned that, moving forward, banks would also decrease collateral values for single-family homes compared to apartment buildings due to their considerably weaker liquidity. This has indeed occurred. Additionally, the real prices of older single-family homes have trend-wise decreased throughout this decade, both nationwide and in the metropolitan area. Various comparisons can be conveniently made on Statistics Finland's website. We compared in 2015 the price development of the housing market to the logic of car sales. The more valuable a new apartment you buy today, the more its price will decrease in the future. This assessment is still not mainstream thought, but our stance on it has only strengthened. The significance of the transition from new to used is often underestimated in the housing market. At the beginning of 2018, we wrote about infill construction, which became a key discussion topic in the spring. Misses may include repeated warnings over several years about the newly built and newer apartments forming a challenging market. To our surprise, the situation, which seemed dramatically poor in the new apartment market, has persisted year after year. We will revisit this subject in future reports. Helsinki, January 11, 2019 Jaakko Sinnemaa CEO, Asuntosalkku Oy and Asuntoturva Oy, 041 5280 329, jaakko.sinnemaa@asuntosalkut.fi Our property portfolios include approximately 800 apartments in different housing companies and properties in the metropolitan area, surrounding municipalities, Tampere, Turku, Lahti, and Tallinn. Asuntosalkku Oy’s subsidiary invests in apartments in Tallinn, and we are the largest market-oriented landlord in Estonia. Our balance sheet totals around 200 million euros. # Blog ## Overview of the Housing Market in 2020 - Polarization Continues in Many Ways The housing market has four major divides that continue to strengthen in 2020. 1. Apartments in urban growth centers and smaller municipalities 2. Apartments in city center areas versus fringe and suburban areas 3. Apartment living in apartment buildings versus single-family homes 4. Small versus larger apartments Additionally, we see four smaller divides in the housing market and four divides in the rental housing market. At the end of the overview, there are suggestions on how we might level out what could be the largest redistribution of housing wealth in our history. We also comment on the liquidity challenges faced by housing funds. The segmentation of the housing market began about ten years ago, and the trend of polarization has been intensifying. It is likely that this trend will continue to strengthen in the 2020s, although there will be some temporary counterforces and regional variations. The relative position of growth centers will further improve, as job opportunities, educational possibilities, services, and a broader range of hobbies and social life are more diverse in larger cities. Young people are moving to cities, and the aging previous generation follows them. Current and future retirees living in cities are not moving back to their hometowns as their increased leisure time makes engaging activities in the city more appealing than the tranquility of rural areas. Additionally, the desire to be involved in the lives of their descendants tilts the balance in favor of city living. Many Finns express a wish to live in the countryside; however, this is only reflected in small surges in a few smaller municipalities and rarely in rural areas. The polarization of the housing market will also manifest in Finland, as city center apartments will gain relatively more value than fringe-area apartments in the same cities. Apartments in so-called good areas will become increasingly sought after. There will be some winning areas in the fringe zones, such as by the seaside. Overall, however, the already desirable areas will continue to be favored by home buyers. The popularity of apartment living will be boosted by the ease and convenience it offers, which will attract both younger and older generations increasingly. However, the resale of older single-family homes may also grow, and prices may rise in this decade because new single-family homes cannot be constructed at prices comparable to a few years old properties. Smaller apartments are more ecological than larger ones. The number of single-person households continues to grow, and communal living in cafes and restaurants is on the rise, which diminishes the necessity for one’s own apartment to be particularly large. The unit price of smaller apartments is lower than for larger ones. Smaller apartments have better liquidity, meaning they sell faster. Banks also consider smaller apartments less risky when granting mortgages. It is easy to justify why the popularity of smaller apartments will continue to increase in the coming years. On the other hand, family apartments in the best areas will also appreciate in value. ### The Four Smaller Lines of the Housing Market 1. Single-level and multi-level apartments 2. Apartments suitable only for ownership versus those for both rental and ownership 3. Owner-occupied versus investor-dominated housing cooperatives 4. Apartments eligible for renovation loans versus ineligible properties Single-level and multi-level apartments are appealing and even practical for about ten years when children are around 8-18 years old. However, multi-child families are generally the only household types for which multi-level homes are practical and efficient. With declining birth rates and smaller family sizes, along with an increasing number of single residents, single-level apartments will be more attractive than multi-level ones in the future. Not to mention the ease of mobility for the aging population in single-level homes. There have been several stories in the media about individuals who have opted to rent out their previous apartments instead of selling them after moving to a new residence. However, only a certain type of apartment makes sense to leave as a rental. The suitability for this activity is determined by the rental market demand. As more individuals leave their previous apartments for rental purposes, fewer of these properties are put up for sale, which indirectly increases their prices due to supply not balancing with demand. Conversely, a growing number of apartments suitable only for ownership are becoming available for sale, creating buyer markets within this segment. Owner-occupied housing cooperatives are preferred regardless of whether one wants to live in their owner-occupied apartment or in a rental. When the majority of the owners reside in the cooperative apartments, the building’s reputation is developed into a positive or at least neutral, which attracts both owner-occupiers and renters. This will likely influence the reputation of residential buildings increasingly in the future, irrespective of whether there is one or multiple investor owners. What matters is the relative ownership share held by investors. The performance of housing cooperatives in the renovation loan market has differentiated them for some time. For a cooperative, being debt-free or nearly so is a sought-after condition to finance future renovations competitively. One way to promote the loan market viability for cooperatives would be to create rules that would make it practically beneficial for private individuals to always take out a mortgage personally rather than through the cooperative loan. The overview concludes with reflections on how this could be implemented. ### Rental Housing Market Divides 1. Completed neighborhoods versus developing areas 2. Rental buildings versus individual rental properties 3. Properties located near rail transit stations versus those reliant on bus traffic 4. Renovated versus unrenovated apartments In the rental housing market, the most crucial aspect for the rent is the balance between supply and demand. In completed neighborhoods, the renter’s risk of surprises is lower because they know what to expect. Services, transport links, and in the big picture, also the other residents are known quantities. In desirable areas, this results in rising rents, while in less popular regions, rents tend to decrease. In developing areas, there are many unknown factors involved. The resident cannot know how the area will evolve over time and it may take years or even decades before the neighborhood becomes a functional part of the city. This creates caution among renters, which typically results in rent developments being more moderate in incomplete neighborhoods. In some developing areas, rents may even decrease. However, this also creates opportunities for obtaining affordable rental properties or allows for negotiation on purchase prices. The situation is akin in rental buildings versus individual rental apartments, similar to that seen in owner-occupied versus investor-dominated buildings. Currently, the rental housing market is primarily a tenant market due to the high supply of apartments. This situation is likely to emphasize even more that desirable tenants prefer renting from individual ownership properties over rental complexes. Certainly, the landlord also matters, and those perceived as stable landlords will gain popularity. Rail transit routes are challenging and expensive to relocate, and they are seldom left without traffic. Changing a bus route is nearly as easy for decision-makers as changing their own socks. This simply explains why prices and rents increase once a decision has been made on rail transportation, although the construction itself may take years. This reasoning also explains why there is liquidity in the housing market around rail transit stations and why liquidity decreases the more one relies on bus traffic. Renter expectations are rising year by year, and poorly maintained apartments do not attract financially capable tenants, even with good locations. Also, the growing number of newly built rental apartments specifically for rental purposes raises the standard of rental living, demanding more interior design appealing from landlords to compete for desirable tenants. Taxing capital gains on home sales and allowing tax deductions for capital losses, alongside making personal mortgages more attractive than cooperative loans, would potentially level out even the historically large redistribution of housing wealth. The redistribution of housing wealth currently underway is perhaps greater than ever in the history of independent Finland. Considering that a property is generally an individual's largest asset, the overall redistribution of wealth may be the largest we have seen. For this reason, it is wise to consider even politically challenging measures to address wealth inequalities or throttle the ongoing redistribution of wealth. Abolishing the tax exemption on capital gains from home sales would be justifiable and beneficial in many ways, as it would also allow for the recognition of capital losses and bring hundreds of millions of euros into the state’s coffers annually. In Finland, approximately 80,000 property transactions occur each year, counting both shareholdings and single-family homes. Starting from 2012, the deductibility of mortgage interest has been gradually reduced as follows: - Until 2011, mortgage interest could be deducted 100%. - In 2012, 85% of the paid interest was deductible. - In 2013, 80% of the paid interest was deductible. - In 2014, 75% of the paid interest was deductible. - In 2015, 65% of the paid interest was deductible. - In 2016, 55% of the paid interest was deductible. - In 2017, 45% of the paid interest was deductible. - In 2018, 35% of the paid interest was deductible. - In 2019, 25% of the paid interest was deductible. - In 2020, 15% of the paid interest was deductible. Taxing capital gains from home sales would also reduce regional inequalities and wealth disparities. Generally, only owner-occupiers in growth centers, already in a better position, benefit from tax-free capital gains, their wealth increasing tax-free. There are many justifiable and encouraging reasons to support homeownership. During times of low interest rates, capital accumulates significantly during ownership through savings from mortgage repayments. Additional support for the well-off through the tax exemption on capital gains from home sales is unnecessary at a time when tax revenues are needed for maintaining a welfare state amid an aging population. Owning a home in a growth center is like a small version of a tax haven. Removing the tax exemption on capital gains would naturally also mean that capital losses would be deductible. This would likely lead to an increased interest in homes outside of growth centers since the risks associated with purchasing could decline due to potential tax deductions for capital losses. This would further reduce regional inequalities, which would be in the overall interest of the nation. Moreover, moving for work to currently declining areas might become more attractive if one could purchase a home with less risk due to the tax deductibility of potential capital losses. Society would benefit from this through increased employment rates. However, the state would likely remain in profit from the tax revenues collected from home sales, resulting in a system that is more just and market-driven. In declining areas, there is a risk that housing stocks could become like golf club memberships—having utility but with market values of zero or negative. This situation already exists in certain regions. Adjusting the taxation structure concerning property value changes would also slow this development. Of course, a counterargument to taxing capital gains is the potential stiffening of the market. Some market stiffness could occur in growth centers. However, the potential gains for smaller municipalities would be significant enough that it would be worthwhile to examine this matter more closely from the perspective of reducing inequalities and also collecting tax revenues. Taxing capital gains would likely also influence the bidding levels for property purchases, potentially moderating price developments, which would be a welcome phenomenon in the housing market of growth centers. The growth of cooperative loans is a socially challenging issue in many ways. One method to curb the monetary growth of cooperative loans would be regulation that would ensure the terms of cooperative loans are practically always less favorable than personal housing loans. This could be implemented by capping the cooperative loan amount to a maximum of, for instance, 50% of the value with a maximum repayment period of 10 years without a payment-free period. This would mean that, from a cash flow perspective, it would almost always benefit a property buyer to pay off cooperative loans with personal housing loans. This, in turn, could lead to reduced cooperative loans and better positioning for cooperatives when renovation needs arise, as the cooperative’s loan amount would be smaller when considering upcoming repairs. It would also significantly decrease the risk for owner-occupiers, making them less susceptible to others’ financial obligations. Furthermore, the examination of loan management expenses would shift increasingly to banks rather than relying on individuals’ personal finance assessments. ### The Asymmetry of Liquidity in Housing Funds I conclude this overview by pondering the liquidity challenges faced by housing funds. Housing funds experience dual levels of liquidity: the investor's share liquidity and the liquidity of the properties themselves. In stock funds, these are generally good and fairly similar, at least when investing in larger and more liquid companies. When a stock fund investor wants to redeem their share, the fund manager can sell stocks in the market, and the investor receives their money straightforwardly and easily. In the case of property funds, the situation is different, especially in specialty investment funds. The investor can request a redemption of their investment because the fund share itself is quite liquid. However, the actual properties are not equally liquid. Particularly when invested in entire apartment buildings, selling them typically takes several months or even longer. This liquidity asymmetry poses a significant problem when there are large redemption requests. Therefore, it would be worth considering whether the specialty investment fund model should be prohibited for all real estate investments due to this liquidity asymmetry, as it is challenging for small investors to grasp this issue. A limited partnership or corporate model-operated housing fund does not bear the same systemic risks. A corporate-model housing fund can be, of course, either a publicly traded company or a REIT fund. The essential feature of these non-specialty investment fund models is that the fund's capital cannot decrease, as the fund does not redeem shares; rather, the share price adjusts according to market needs, or the fund is closed, and the fund manager determines the asset reimbursement schedule. In this way, there is no necessity to sell properties in the market, even when multiple investors wish to convert their investment into cash. The asymmetry of liquidity in property funds is a considerable challenge that should be addressed well before liquidity issues cause the loss of many investors’ retirement savings and sleepless nights. ## Overview of the Year 2012 First, a few words about the past year. The year 2011 was divided on the housing market. In the euphoria of the early year, prices rose, and the market thought that the financial crisis and the European debt crisis were beginning to ease, and that the rising market would continue as it had for the last couple of decades, except for the short downturn in 2008. However, by the end of the year, market prospects became clouded, and uncertainty was reflected in the declining demand for larger apartments. By the second half of the year, prices had indeed turned slightly downward. A year ago, almost all market participants believed that a downturn in housing prices was highly unlikely. In our analyses, we saw such a development as quite possible and wrote about it a year ago in the previous review. We also saw that alongside the demand for smaller apartments, interest in larger rental apartments would increase, but their rents might not necessarily rise as supply also increases. Our estimates for the year 2011 proved to be correct. In 2012, the period of uncertainty continues. Again, a positive atmosphere has struck at least the stock market in the early year. As the necessary measures to resolve the debt crisis in Western industrialized countries, especially in Europe, have not been found or implemented in the long term, uncertainty is likely to return to the market and keep volatility high. It is also important to remember that there are doubts regarding China's growth figures as well. From the perspective of the housing market, it is likely that the buyer's market will improve further, especially regarding larger apartments. On the rental market, we expect an increase in demand across all sizes. However, we anticipate rents to rise very modestly. The increase is likely to be greatest for smaller apartments, and for the largest rental apartments, rents are likely to remain roughly at current levels or decrease slightly. One crucial factor affecting housing prices is consumers' purchasing power. The calculated purchasing power is expected to remain roughly the same. However, the rise in costs associated with housing seems imminent. Last year, we assumed that the state would intervene in the tax deduction rights for housing loans, and a change took place from this year, 2012, onward. We believe that at some point, there will also be changes to the tax exemptions on capital gains from the sale of one's home. As value-added tax rates rise and income tax increases, the ability to pay for homes weakens, especially as energy costs are expected to rise significantly, and banks' lending margins grow. However, benchmark rates are expected to remain low or decrease further. This offsets the rise in other costs such that purchasing power in the housing market is likely to remain roughly unchanged. When calculating rental yields for apartments, it can be noted that the yield has fallen to such a low level that a market correction is very likely. This correction will occur either by rents rising or prices falling, or both will happen. We could take two examples of yields. In the first, assuming a purchase price of 150,000 euros, a rent of 700 euros, and a maintenance fee of 200 euros, the net rental yield is 500 (700-200) euros per month, which gives an annual yield of 6,000 euros, equating to a four percent initial annual return. This is close to the average yield for smaller apartments in the capital region. However, it is essential to consider several additional factors in the equation. According to the perspective of the Property Management Association, renovations of apartments will cost "another purchase price" over 50 years. This means a steady rate of two percent per year, and we assume that the surface renovations are included in these costs. We take into account the transfer tax such that the average holding period for an investment apartment is estimated at eight years, making the annual cost to be allocated to each year 0.2 percent (1.6% / 8). Generally, property investors use rental agency services for renting out the property. The cost incurred from this is equivalent to one month's rent plus VAT and the costs for ordering the property manager's certificate so that the mandatory energy certificate can be delivered to the tenant. We assume the cost of the property manager's certificate to be 70 euros, including VAT. The total cost is approximately 930 euros (700*1.23 + 70). If we assume that the tenant changes every three years, the annual cost is 310 euros, which is about 0.2 percent of the property value. Thus, from the four percent annual yield, we must subtract a total of 2.4 percent (2% + 0.2% + 0.2%), leaving an annual yield of 1.6 percent before taxes and capital change. It is clear that in these equations, debt works against itself. For instance, the 12-month Euribor has been around 1.8 percent in the early year, and if we assume a margin of one percent, then the total cost of the loan is 2.8 percent. It is noteworthy here that this only covers the interest, and the loan principal does not decrease at all. If we assume that the loan is 50 percent of the purchase price, then essentially all cash flow return goes to interest costs. This means that the investor does not receive any return on this specific 75-thousand-euro investment unless there is capital appreciation. If we assume that the total cost of interest at 2.8 percent is the minimum return after costs (in this case, the investor would receive the same cash flow return on their equity as the bank receives as interest), then the net rental yield before costs must be 5.2 percent ((2.8% – 1.6%) + 4% or another way of calculating 2.8% + 2.4%). Thus, the price of the apartment should be approximately 115,000 euros instead of 150,000 euros, meaning prices would need to drop by about 23 percent for the equation to work. Similarly, if we assume that the apartment price is 350,000 euros, the maintenance fee is 400 euros, and the rent is 1,300 euros, we arrive at an initial yield of about 3.1 percent. After deducting costs according to previous sections, the yield is left at 0.7 percent. When calculating the standardized yield change (target yield of 5.2%), the price change would be approximately 40 percent. Thus, with a rent of 1,300 euros per month and a maintenance fee of 400 euros, the initial yield would rise to 5.2 percent if the price were around 210,000 euros. Hence, the price should decrease from 350,000 euros to 210,000 euros. It is clear that in all cases, the price of the apartment cannot be calculated solely based on rental yield. However, it is worth remembering that, for example, in Germany, about two-thirds of apartments are rental apartments, and there is a clear connection between apartment prices and rental yields. Consequently, prices have developed very steadily over the long term and have risen very modestly in recent years compared to other developed countries. A similar 20–40 percent disparity in terms of yield would likely correct much faster in the stock market, as investors there are generally more professional than in the housing market, where most are amateurs who do not even see themselves as investors, but rather as owners of their own homes. For most people, a home is a consumable good for which the market cycle is not typically considered when purchased, but rather they buy an apartment that their own and borrowed funds allow for. This can create smaller or larger price bubbles, whose bursting can take a long time. Especially if loan money remains extraordinarily cheap. However, housing prices are also cyclical, and we believe it is likely that a downward correction will occur in the coming years. We believe that the correction will be more significant the more valuable and larger the apartments considered. Smaller apartments generally sustain the market better, and their rental yields are closer to acceptable levels, and the rental market otherwise acts as a safety net, which is not the case with larger apartments. For the long-term stability of the housing market, it would be beneficial if banks took more account of long-term average interest rates rather than momentary rates in their loan decision-making, as loans are often taken for decades. Another consideration for banks' loan calculations should be maintenance fees, which absolutely should be included as part of living expenses in loan calculations. However, this is not found in the banks' loan calculators. If we assume that the loan servicing costs in terms of interest and principal repayments are 1,000 euros per month and the apartment's maintenance fee is 300 euros plus water charge of 20 euros/month, then the living expenses for a four-member family are 38 percent higher than the bank's calculation implies. Indeed, demand for apartments in growth centers is expected to increase in the near future. On the other hand, municipalities have many interest-subsidized housing units, which are likely to come to the market in substantial numbers soon, as the apartments are released from restrictions. Tens of thousands of these municipal or non-profit community housing units will be released from restrictions in the coming years. When these apartments come for sale in large volumes, supply will increase significantly, which will, in turn, weigh down housing prices. Regarding larger apartments, it is also important to remember that many of them are owned by large age groups whose need for space no longer corresponds to the size of the apartment. Many of them will sell their apartments in the coming years and move to smaller apartments in city centers, further adding larger properties to the sales market. Additionally, many will need to release capital from their homes for retirement years, which will also increase the supply of large apartments in the housing market. Furthermore, many people, whose time to leave is approaching in the coming years and decades, own large apartments that the next generation has no need for or cannot afford to buy their share of the apartment. This too will, of course, increase the number of larger apartments on the market. Trading has already slowed down recently regarding larger apartments, and we believe this trend will continue and intensify in the coming years. Downward price pressure is likely to increase regardless of what happens regarding the European crisis. If chaos follows, it will likely lead to significantly higher unemployment, which will cause prices to drop. If, on the other hand, the crisis is resolved by stimulating the economy, interest rates are likely to rise, making it more difficult to purchase apartments, as purchasing power will decrease even more, especially when inflation simultaneously increases the prices of consumer goods. If wage inflation were to keep pace, this would not necessarily be a problem. However, it is rather difficult to see this since labor costs are significantly lower in developing countries. In other words, for the price stability of housing, the best scenario would probably be that the current uncertainty persists for as long as possible, while the economy continues to operate moderately as it does now. In other situations, we remain more convinced of a decline in housing prices than an increase. And it is also good to remember that even if housing prices dropped by 10–20 percent, they would still not be particularly cheap. In the rental markets, both demand and supply are expected to grow, which will keep the market fairly balanced in 2012. We believe that rents will likely rise around the pace of inflation or slightly faster for smaller apartments, while for larger apartments, especially due to the growing supply, rents will remain practically unchanged. An interesting year also creates opportunities, and we believe that our broad market knowledge will benefit us in 2012 as well. Helsinki, February 9, 2012 Jaakko Sinnemaa CEO Asuntoturva Oy # Blog ## Review of the Year 2013 In the current year, the biggest factors affecting the housing market come from outside Finland's borders. I will start this review with a comparison that aims to describe the situation we have found ourselves in. The current mindset regarding economic management in Europe resembles the thoughts of the late Steve Jobs on treating cancer. The starting point is to trust in quick fixes that may have temporary positive effects, but no one has been able to prove that they work in the long term. No one has a conclusive example of what situation a quick-fix treatment will ultimately lead to. Current medical science has shown that the best way to treat cancer is through surgery, which aims to remove cancer cells from the human body. This is also intended to prevent cancer cells from spreading to healthy tissues. Steve Jobs, at least initially, believed that alternative treatments could eliminate cancer cells. This did not happen in his case. History has shown that when a state, company, or individual accumulates too much debt, the "cancer," or debt, must be cut back or removed, meaning the debt is not repaid and lenders incur losses. Europe currently believes that the significantly increased debt and related issues can somehow be resolved through ultimately unknown quick fixes, without proven surgical methods. When Steve Jobs was battling cancer and using alternative treatments, his situation sometimes worsened and at other times improved. He had better and worse health states within the span of a year. Similarly, when we look at Europe over the last few years, the situation between optimism and pessimism has varied significantly over many years. The symptoms and fluctuations have mirrored those of Steve Jobs' illness quite closely. Surgical treatment for cancer requires acknowledging the facts, namely accepting that there are cancer cells in the body and that one decides to remove them. In such a situation, there is a pause for an uncertain period, trusting that the surgery will work; after some indefinite time, cancer will be overcome, and life will win. The complication lies in the difficulty of accurately estimating the recovery time of this process in advance, and it is also unclear whether surgical treatment will be successful in all cases, as the patient may still die. Like Steve Jobs, Europe is avoiding surgery until the last moment, even though it may be the best and ultimately quickest way out of the debt crisis. It is important to remember that Europe has been living through a period of uncertainty related to debt for about five years now. Steve Jobs died about eight years after he was first diagnosed with cancer. It is also possible that Europe will continue along its current path until absolutely forced into debt cuts when no other options are left. It could very well be that at some point, many countries will have no other option but to cut debts. Had the tumor from Steve Jobs' pancreatic cancer been removed immediately upon detection, it might have occurred that we would have had access to the iPhone and iPad a few years later than in 2007 and 2010. On the other hand, it could also be that in a three-year cycle, we would be expecting something particularly groundbreaking from Jobs' team again this year, 2013. Now it remains to be seen what role Apple will play in the coming years. In Europe, a different situation may have unfolded if excessive debts had been cut as soon as it was recognized that they were practically so large that they would never be repaid. Or if surgery were to occur now, the situation could indeed be better after a few years of recovery compared to starting the surgery when one is even worse off out of sheer necessity. The general European propaganda machine feeds us the idea that the worst is already over. Let’s compress Europe into a smaller framework, in this example, a well-respected but financially normal family of seven siblings. Siblings do not always want to take care of one another, but "blood is thicker than water." The situation is thus roughly similar to that in Europe. Countries do not really want to bear each other's burdens, but they almost have to. Suppose three siblings have lived the life of rock stars, in debt with no income, for about a decade. Now a situation has arisen in which these rock-star siblings can no longer obtain credit from the markets. In turn, they have distorted information to their lenders, and they are facing penalties. Here such a connection can be seen to southern European countries. The other four siblings have lived within their means, with their budgets being surplus and some savings. Now, the rock-star siblings are calling on these four siblings for help to pay off their debts or at least part of them so that the rock-star siblings can avoid penalties. Here, one can also see a connection to the Eurozone's three A-rated countries. Let’s assume that the four siblings respond to the call for help and save the rock-star siblings by paying off their debts or part of them. They come from a respectable family, and the family's reputation must be upheld. Having done so, the worst might be over for the rock-star siblings as they avoid penalties. However, in this scenario, the life of the rock stars comes to an end, and the other four siblings will expect them to manage their finances differently moving forward. The situation thus changes significantly for them after the celebrations end. It is important to note that circumstances will also change for the other four siblings. They are not in the clear; the worst is still ahead. They will have to tighten their belts to pay off the debts that came from the rock-star siblings' celebrations. They will be paying for the celebrations retroactively and saving elsewhere instead of increasing their consumption or even maintaining it at the previous level. The consumption behavior of all siblings thus changes to a state where it does not contribute to the economic cycle as it did before. In this context, it is challenging to rely on substantial growth. From the perspective of the housing market, with the ongoing period of uncertainty, we assume that in our basic scenario, the market situation will develop in a bifurcating manner. The demand for smaller apartments is expected to grow in both the rental and housing sales markets. In contrast, for larger and more expensive apartments, we expect an increase in supply, which should lead to either rental prices and sales prices falling or at least remaining at current levels. In previous annual reviews, we have seen that momentary exuberance in the stock market has been premature joy. Additionally, we have predicted a decline in rents for new leases concerning larger apartments, which has recently shown clear signs. We have also foreseen downward pressure on prices regarding larger and more expensive apartments. There are increasing signs of this in the market. We believe the pressure will further increase in 2013, and prices are expected to start declining. However, it is true that an extremely low interest rate level may keep prices nearly constant. The low-interest rate may remain for a very long time, even ten or twenty years, following Japan's example. In this scenario, the interest rate remains low due to weak economic growth, and thus, due to weak purchasing power, prices are unlikely to rise in this situation either. If the interest rate rises, it will likely push prices down unless the economy grows significantly, which does not seem probable. On the other hand, the beginning of 2013 appears stable for smaller apartments. Demand in both the rental market and housing sales is consistently strong. Based on our analysis, rents for smaller apartments are expected to rise moderately in 2013, and prices are likely to increase at least for studio apartments. We expect the supply of two-room apartments in both sales and rentals to increase, leading to varied rent and price developments in different cities and neighborhoods. In 2013, the Finnish housing market may not face a "Minsky moment," where the debt-financed celebrations would end in forced sales, but it is wise to prepare for general uncertainty. This, of course, creates opportunities for those whose financial position is strong. Jaakko Sinnemaa CEO Housing Security ## Overview of the Year 2014 In last February's previous annual review, we observed that there was downward pressure on the prices of larger and more expensive apartments. We anticipated that this downward pressure would intensify throughout the year and that prices would begin to decline. This indeed happened. Our assessment was surprisingly accurate, even though in early 2013, it was widely believed that prices would not go down. At least not in growth centers, not even for larger apartments. We believed that demand for smaller apartments would remain stable compared to last year. And that is exactly what happened. The demand for studio apartments remained strong, but there were different developments in two-room apartments depending on the area, where some areas experienced price stabilization or even a decrease, as we had anticipated. In the rental market, the rents for new leases on larger apartments decreased, as we predicted. Meanwhile, rents for smaller apartments remained unchanged or increased slightly. Our analyses have successfully anticipated market events for several consecutive years. A year from now, we will see if this positive trend continues in 2014. The volume of housing transactions decreased significantly in 2013 compared to 2012. We believe this was to be expected. There is no forecast for an increase in transaction volumes in the coming years either; rather, transaction volumes are likely to remain roughly at the 2013 level. If any changes occur, the long-term trend is likely downward. Of course, annual fluctuations in transaction numbers may happen, and there could be years with increased transactions. However, the overall level is expected to stabilize at or below last year's level. Two factors generally affect the size of transaction volumes: actual housing exchange needs and speculative trading. Since there is currently no prospect of price increases for larger apartments, but rather continued price drops (more on this later in the review), this significantly reduces speculative trading. Traditionally, for the past twenty years, the trend has been to buy an apartment, renovate it somewhat, and sell it tax-free after two years of residence for capital gain. Some have sold apartments for significant profits even without any renovations. Thus, many have managed to increase their property size through several successful transactions over consecutive two-year periods with the help of rising market prices. Now that prices are no longer rising, this opportunity has practically vanished. Except for real professionals who can always buy at a low price, carry out cost-effective renovations, and sell the apartment for a profit. However, this group of professionals is small. As amateurs can no longer succeed in this, the overall number of participants in speculative property trading is now much smaller than it was, for example, seven years ago. Consequently, as speculative trading has decreased significantly, the total number of transactions has clearly diminished. And since there is no general prospect of price increases, the amount of speculative trading will not grow in the coming year. This alone will keep transaction volumes smaller than they were a few years ago. The natural need for housing exchange has certainly not disappeared, but considering the population size, it is generally at a normal level. In this group, however, there is more caution regarding large loans because interest rates may rise within a certain timeframe if the global economy begins to grow. There is also caution mainly because housing prices may continue to fall. Nobody wants to take out a large loan in a market where their apartment is sold for roughly the same price it was bought for, say, four years ago. This also somewhat restricts the willingness to transact and does not raise transaction volumes. Regarding housing prices, it appears clear that, in the foreseeable future, the prices of larger and more expensive apartments will remain at the same level at best and will primarily decrease when looking at the entire housing stock. Of course, there are always areas where prices can rise for larger apartments, and the higher prices of new constructions can influence statistics, but, for example, the prices of old single-family homes will, in our baseline scenario, decrease in real terms in many areas over the next twenty years. This has a very simple explanation: the size of the age groups. Among large cohorts (1945–1950), the latest cohort, those born in 1950, reached retirement age last year. After 1950, the size of age cohorts steadily decreases until 1970, after which the following cohorts are roughly the same size. According to the law of supply and demand, it is clear that prices will fall in a situation where supply significantly exceeds demand. Retirees are interested in selling their larger and older homes and mainly moving to smaller and newer apartments in prime locations in growth centers. The interest in these older single-family homes is generally weak even now. Given that more and more of these properties will come onto the market compared to the demand, we believe it is highly likely that real prices will begin to decline. The price drop for larger apartments may not be dramatically fast and abrupt. But the direction is likely clear for the next twenty years until things start to stabilize again when the next age group is roughly the same size as the previous one. Homeowners' hope lies in immigration, which theoretically could increase the population size such that demand grows and the prices of old single-family homes start to rise or at least remain unchanged. The age demographic equation, on the other hand, means that demand for smaller apartments in prime locations will increase, keeping prices for these apartments stable or even raising them. At the same time, the number of single-person households is increasing, which supports this trend, further amplified by urbanization. There will likely be areas where there is practically no market for apartments, as the effects described above are stronger in areas losing population, and at the same time, services are disappearing. In those municipalities, the situation is roughly the same as trying to sell an NMT phone in Finland today during the smartphone era for nearly the same price as the new phone. In terms of the rental market, we expect that for smaller apartments, the trend of rental price stabilization will continue as seen last year. Rents for smaller apartments will maintain their levels or rise moderately. For larger apartments, there may also be signs of rent increases since it appears the bottom level has been found. On the other hand, the volumes are relatively small, and there are significant regional differences. Nevertheless, the long-standing decrease in rents for larger apartments seems to have generally come to a halt. The forecasts described above represent our baseline scenarios, and indeed a single shock event in the economy, for example, in China or France, could change the course of events. Helsinki, January 30, 2014 Jaakko Sinnemaa CEO Asuntoturva Oy Asuntosalkku Oy # Blog ## Review of 2015 REVIEW OF 2015 In our previous review a year ago, we noted that we had already anticipated that prices for larger apartments would turn downward in previous years, that this had indeed happened, and that we would see a decline in the real prices of larger apartments for the next twenty years. Many experts also doubted our previous predictions of a decline in apartment prices, at least in growing urban centers. Now the situation has changed, and our forecasting perspective has become a general consensus. In our reviews, we have been remarkably successful in predicting the future for several consecutive years. Now the general public also expects apartment prices to decrease in the near future, at least for larger units. However, it is still not widely accepted that prices for single-family homes will likely continue to decline for a long time even in growth centers, at least when considering real prices. It can be seen positively that one year has been taken off our forecast of twenty years. We anticipated a year ago that apartment sales volumes would not rise. This happened, even though the general sentiment at the time was mostly different, unlike now. We maintain our forecast unchanged in that sales numbers will remain roughly at the same level as last year. In our last review, we also observed that the apartment sales market would nearly disappear in some areas. This topic has sparked much public discussion in the past year, and banks have also begun to take this into account in their lending decisions. Regarding the price development of the housing market, especially in single-family homes, but in many ways also in apartment buildings, we are approaching the logic of car sales; the more expensive new apartment you buy today, the more its price will drop in the near future. In the first few years, this price drop is the steepest and diminishes as the property ages. The smallest losses occur when buying a functional, well-designed apartment that is about twenty years old and suitable for a reasonably large audience, which can be used with relative ease for a few years. The logic of car sales applies in many ways. The market for the most expensive apartments is very thin with weak liquidity. If you want a quick sale, you'll either need luck to get a reasonable price, or the price elasticity must be significant for the transaction to happen. Just as some car dealerships prosper, there's also a slight evidence of appreciation in some apartment properties. However, this segment is relatively small within the real estate market. Skilled professionals can succeed in car sales, whereas the general public almost invariably incurs losses. This is likely to happen in the real estate market as well, especially for those who bought a single-family home in the 2010s or plan to do so in the coming years. Some apartments are indeed like vintage cars; they aren't made anymore. The key factor regarding apartments is, of course, location. The prices of these units may rise, especially in the medium term. Conversely, in areas that comprise the majority of Finland, construction can happen so abundantly that it effectively mirrors the ability to produce cars almost limitlessly. In these areas, buying a new apartment results in greater losses than buying an old one. The logic is quite simple: new becomes old with the passage of time. Even many professional investors forget this simple logic when purchasing new apartments. Their reasoning is often that the prices of new apartments rise as if the apartments they are purchasing will always remain new. A new apartment does not become old as quickly as cars do, but it inevitably does transform into an old apartment over time. Looking back at history since the 1970s, for example, the housing needs of baby boomers have driven the prices of nearly all apartment types upward. Therefore, even a newly purchased apartment's value has later been higher since the prices of almost all apartments have increased over time. Now the rules of the game have changed. Currently, the needs of the baby boomer generation are changing and have changed. This is practically killing the market for single-family homes even in places where this has not yet happened. Only the best single-family apartments in the most vibrant areas will generally maintain sufficient liquidity. In our view, if an apartment does not sell within six months of being listed, it does not possess functional liquidity. A significant portion of even the single-family homes in the capital region belongs to this group. We believe that banks will also start reducing the collateral values of single-family homes compared to apartment blocks due to their clearly weaker liquidity. It is apparent that while the logic for apartments is moving towards the framework of car sales, the logic is not as dramatic. The price of a new apartment does not drop by half in three or four years as is typical with cars, and there are significant regional differences. However, the general principle that prices begin to decline after the first owner's tenure is the rule for most regions across Finland. We also believe that the logic regarding old apartments will change. The so-called repair debt has been seen as a negative issue. However, repair debt will increasingly be viewed positively as it will rather represent an affordable installment plan, provided that future repair investments are genuinely considered in the purchase price. In this case, one can acquire an apartment at a lower investment, especially if they see the renovation as an opportunity to modernize the property. And if genuine repair investments have indeed been factored into the purchase price, it might not only provide a "interest-free payment period" before repairs are needed, but could even yield a profit, as costs may end up being lower than anticipated due to advancements in technology. We believe that in the coming years and decades, cost efficiency will finally improve in the construction sector. We maintain our outlook unchanged regarding the old small and relatively small apartments located in growth centers, where the outlook appears relatively stable for both rental and sales markets. It should be noted, however, that the market is more turbulent for new apartments. We predict that for new apartments, there will be downward pressure on both rents and prices in growth centers, except for a few exceptions. It is possible that due to stimulus measures, we may stay roughly at the current levels. And certainly, there are some exceptions among old apartments as well, where we can see similar downward pressure. However, the overall view seems to differentiate between new and old apartments. And as we noted last year, the aforementioned is our basic scenario, and any shock, such as a Greek euro exit, would significantly change the situation. Helsinki, February 17, 2015 Jaakko Sinnemaa CEO Asuntosalkku Oy Asuntosalkku Suomi Oy Asuntoturva Oy # Blog ## Review of 2016 In last year's review, we compared the price development of the housing market to the logic of car sales; the more expensive a new apartment you buy today, the more its price will fall in the future. Some market participants have argued that the logic of car sales does not apply to the housing market and that homes are "essentially eternal, unlike cars." However, when looking at any single-family home area, it is observed that houses from the 1960s and 1970s are particularly being demolished to make way for newer buildings. Similarly, older apartment buildings are being torn down for newer ones, as exemplified by the rental housing company in Vantaa and Sato, which are also demolishing old buildings and constructing new ones in Vantaa. The logic of car sales is the current reality in the housing market. And in fact, it is a healthy model; this is how price development should proceed. Buildings are demolished at the end of their life cycle, and new ones are built in their place. It is better for prices to decline initially more significantly and then gradually less than to experience a collapse at the end regarding value. Of course, there will always be houses in particularly good locations where the value of the land develops so quickly that it counteracts the decline in the value of the building, and statistically, the value increases. However, the overall value will only rise in the long term for those buildings where the land value rises particularly high or where rental cash flow is strong and value increases due to rental income growth. For larger apartments, and especially single-family homes, our view of price development in the coming years remains unchanged. In examining the price development of larger apartments, we expect to see a decline in real prices for a couple of decades. Such a decline has already been occurring for half a decade. Our view is that this decline will continue into the foreseeable future. It is possible that when the final statistics for 2015 are received, single-family home prices may rise slightly since the decline in 2014 was substantial. Even in this case, prices are likely to be lower than those of 2013. There can still be individual moments or years where prices rise, even in a declining market; this is familiar in the world of stocks, and it is good to remember that even in a rising market, there are times when prices fall. Single-family home prices have been declining for several years, also in the capital region. This was generally considered an entirely impossible development in public discussions. However, statistics show that the nominal prices of single-family homes have been declining in the capital region since 2013. We predicted in our 2013 review that prices would start to decline in 2013. And that is exactly what has happened; the peaks were seen in 2013. Real prices of single-family homes have been declining, including in the capital region, throughout this decade. The peaks were seen in 2010. Our prediction of longer-term price declines in growth centers has thus already come true, even though the general propaganda machinery has claimed otherwise. The general public, of course, knows the real situation, as real prices are at the level of ten years ago, even in the capital region. The situation in the larger apartment market has been practically the best possible. With a long-term price decline being inevitable, it is good that it happens gradually so that prices decline steadily without a collapse. Of course, there will be some fluctuations and occasional increases, but the trend direction is downward. Of course, essential factors for price development include the interest rate level and the lending capability and willingness of banks. A particularly significant factor in the long-term price decline of larger apartments is Finland's very unfavorable demographic development. The supply of larger apartments, and especially single-family homes, is likely to significantly exceed demand in the future, which will continue to put downward pressure on prices for a long time to come. We discussed the impact of the sizes of the large age groups on housing price development in more detail in our 2014 review. Another major factor affecting the price development of single-family homes is the labor market. Labor market organizations have practically already destroyed the value of citizens' largest asset, a single-family home or larger apartment. Due to the quarreling of labor market organizations, our competitiveness has lagged severely behind comparable countries, and that strikes directly and negatively at the housing market, particularly outside growth centers. The risk of a more significant price decline in the housing market is real if interest rates start to rise. Generally, interest rates rise as the economic situation improves. However, since Finland is lagging behind the rest of Europe in growth figures, a rise in interest rates could be outright poison for the housing market, as purchasing power deteriorates considerably due to rising interest rates. In this situation, for working parents of families with children, owning a single-family home is like having a platinum card with an airline; during the acquisition phase, it is imagined to be a good thing, but in reality, it is a burden. To get a working platinum card with an airline, one must travel particularly often as part of their job. This means being away from home a lot, and unique moments of seeing children grow up are limited. Access to the airline's lounge and business class can come later, or for a fee, if one specifically desires it. It would be much better to commute short distances to work by bus and spend quality time with children. After all, children are only small for a moment, and being actively involved in their growth is unique and very productive for the country as a whole. Owning a single-family home not only consumes capital for maintenance but also results in losses regarding the difference between purchase price and selling price due to dropping prices. This makes the financial situation of families with children tighter than necessary. It would be better to live in a comparable house as a tenant and invest the capital in the financial markets or smaller apartments. In our 2014 review, we predicted that transaction volumes would remain at the 2013 levels in the coming years. This was generally denied in the market. However, fresh statistics show that transaction volumes in 2015 were below those of 2013, even though they grew from 2014. We maintain our forecast regarding transaction volumes; they will remain roughly at current levels in the coming years. We have stated in previous reviews that liquidity in areas with population loss and in single-family homes will be very weak. Most experts have agreed with us over the past year. We see that the situation will remain the same in 2016. This issue is currently well known among the general public in Finland. Two years ago, we wrote in our review that immigrants could increase the working-age population, which could lead to increased demand for single-family homes and thus also support price development. Generally, and especially in social media, this was considered a pipe dream, and Finland was not seen as an attractive place. However, it now appears that there could be enough arrivals. If we were to grant work permits to newcomers, following the model of the United States, and inform them that working is a condition for livelihood, we might attract immigrants whose contributions could have a positive impact on the national economy. Those working could also have a faster process for obtaining a residence permit. Thus, Finland could become an attractive place for those immigrants who are interested in working. And, of course, the housing market would develop positively due to the growing population. As for the rental market, we see the situation as stable. We believe that the rents of new leases for small apartments will remain stable or increase slightly. In general, demand and supply for small apartments are currently balanced. For larger apartments, the supply of rental housing exceeds demand. However, since the rental level is already moderate, it appears that rents in new leases will remain approximately at current levels. In older leases, however, there will continue to be rent increases based on the terms set in these earlier agreements, rather than the market situation. In our reviews, we have accurately observed events for several years, as matters have proceeded according to our basic scenario, which is the case here as well. Should the market experience specific shocks, such as a more significant slowdown in the Chinese economy than predicted, or alternatively, a particularly significant increase in ECB's stimulus, situations could change, and development might turn in a more negative or positive direction. Jaakko Sinnemaa CEO Asuntosalkku Oy Asuntosalkku Suomi Oy Asuntosalkku Eesti Oy ## The Dead from Roof Snow Are Victims of Our Collective Foolishness Nothing should ever fall from roofs, especially not from apartment building roofs, onto people's heads on sidewalks or other pathways. Not tiles, not ice, not snow. Not even water, even if it just gets people wet. This should be self-evident. But why isn’t it? In construction, items falling onto sidewalks are usually well protected by law. Water falling from roofs is diverted into gutters, which lead the water away. However, deadly snow and ice fall from roofs onto sidewalks uncontrollably all the time, even though snow removers work around the clock. Fortunately, most of the time, there’s nobody underneath. The resulting crash momentarily turns people's heads, then they gasp for a moment and continue their journey under this icy Damoclean sword. Why doesn’t the law require roofs to have such snow guards and vertical retaining nets around the eaves that the snow could simply not fall from the roofs until the snow removers can get there? They could then literally open the floodgates and let the load come down in a controlled manner. Everyone knows the tale of "The Emperor’s New Clothes." Something completely obvious and nonsensical is visible to all, yet no one dares to speak the truth aloud. The role of the truth-teller is often anything but grateful, but it is still important that at least someone speaks up. That's why I raise again the life-threatening folly of roof snow among us Finns, despite the backlash from the first time I brought it up. Let’s return to the beginning of 2010. Citizens were urged by experts to go up to the roofs of their homes to remove snow. Even the Ministry of the Environment issued a statement encouraging action, and not a single word was said about using professionals for snow removal. The consequences were grim. According to media reports, emergency rooms were overwhelmed with hundreds of injuries. About ten people died after falling from residential roofs. Still, people were encouraged to go onto their roofs. There seemed to be no voice of reason from any direction, and I eventually took up the issue in my blog, even though it doesn't really fall under my area of expertise. The media picked up on my comments immediately, but the reception was initially mostly mocking. The text evidently hadn’t been read very carefully. Frustrated, I asked the then-editor-in-chief of Helsingin Sanomat, Janne Virkkunen, to correct the issue on his last day at work, and my subsequent text was published in Helsingin Sanomat. The mocking attitude shifted to serious contemplation, the tone of the news changed, and reports of falls from residential roofs ceased at the same time. Instead, articles emerged demanding accountability from those issuing absurd rooftop climbing instructions. Throughout this process, I faced considerable backlash, but luckily, in retrospect, it seems to have been unnecessary this time. Since then, no media, expert, or authority has urged people to undertake snow removal on roofs themselves. I have rubbed my eyes in disbelief as advice regarding snow on residential roofs in public discourse last winter and this has aligned completely with my once-mocked blog. There have been no major waves of accidents since, even though snowy winters have continued. For example, the aforementioned Helsingin Sanomat quoted the leading hydrologist Bertel Vehviläinen from the Finnish Environment Institute on Friday: “No single-family house, row house, or properly constructed summer cottage in Finland has ever collapsed under a snow load. Small houses are not at risk of collapse; they are at risk because people go onto their roofs to shovel snow and fall.” Amen. However, let’s turn back to apartment buildings. Snow removers do everything they can, but recently one witnessed a passerby’s death when very bad luck coincided with the fact that they hadn’t arrived in time for this particular site. Blaming the CEO of the maintenance company or members of the homeowners' association for causing death is akin to seeking a scapegoat bordering on sadism, unless extraordinary negligence has been demonstrated. Otherwise, the responsibility for the absurd current state of affairs is on each of us. The dead from rooftop snow are victims of our collective foolishness. Everyone can see the situation when walking on city streets. Barriers have been set up as warnings, but people continue to walk under the eaves regardless. There aren't even real alternatives. Children, adults, and the elderly continue to walk under dangerous eaves on their way to their homes’ stairwells, small shops, and restaurants. Upon entering, maybe a glance is given to the roof overhead, but when exiting, hardly anyone remembers to look up, even if it would help. There is only one true solution to this issue. The falling of snow and ice from apartment roofs onto pathways must be completely prevented. Strong vertical and angled retaining nets must be built above pathways to completely stop snow from falling from roofs until snow removers can arrive and drop the snow down in a controlled manner. Not all apartment roofs would even need snow removal, since if the roofing structure is sufficiently tight, snow could remain on the roof to melt away in spring and flow down into gutters as water. This would also prevent damage to snow removers from being on the roofs. Additionally, heating cables that prevent ice formations must be mandated in gutters and downspouts. There is no sense in having snow removers race against the danger of death to bystanders. Technically, this matter could be easily arranged if we decided to do so. The falling of snow from roofs can indeed be prevented. Snow does not leap into people's necks from the roof if the falling path is securely blocked the whole width of the eave. This is fundamentally an attitude issue. It has always been there, whether this is worth discussing or not. I return to the words with which I began this writing. Nothing should ever fall from roofs, especially not from apartment building roofs, onto people's heads on sidewalks or other pathways. Not tiles, not ice, not snow. Not even water, even if it just gets people wet. This should be self-evident. But why isn’t it? Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Spring is bright on the housing market, even as the world is tumultuous The situation in Ukraine has so far affected the Finnish housing market less than initially expected at the outset of the war. The rise in interest rates, inflation, and general uncertainty have impacts that are contradictory and partially offsetting. The acceleration of inflation increases the desire to buy a home during the spring and summer, as many believe that housing prices will be higher in the autumn and winter. The severe shortage of construction materials is expected to reduce and delay construction, contributing to rising housing prices. On the other hand, rapidly rising interest rates and geopolitical threats are concerning for homebuyers, especially those considering taking on a relatively large mortgage. Weighing these various factors against each other is anything but easy. The contradiction in the situation is reflected in the fact that general uncertainty is now driving more high-income individuals to rent. It appears that those households are particularly inclined to move to rental housing who are trying to avoid risks. An upcoming addition to the family or similar reasons can increase the desire to act cautiously in uncertain times. The Corona restrictions have at least for now come to an end, and it appears that the rental market is set for a lively summer reminiscent of the years before the pandemic, particularly for students. According to the current understanding, educational institutions will be carrying out in-person classes in the autumn, and a large number of students will need a studio or one-bedroom apartment in their study location before that. The full return of students to the rental market will almost certainly have a significant impact on the demand for small rental apartments. The demand for small apartments has been below average throughout the pandemic, making this pivot significant after a couple of years of low pressure. The number of small apartments available for short-term rentals through platforms like Airbnb also appears to be rapidly increasing as tourism rebounds. The development of rents has been moderate in the early part of the year, as it was last year. However, the growing demand for rental apartments and general inflation may significantly increase rents during the summer and autumn. We may indeed be at a clear turning point. The rising costs of energy, interest, and maintenance expenses increase property fees and contribute to upward pressure on rents and sales of investment properties. If the current severe shortage of construction materials reduces construction, there is a risk of relatively rapid rent increases compared to recent years due to a decrease in supply. Rents are determined very straightforwardly according to supply and demand. Therefore, any potential rapid increase in rents would primarily affect those urban growth centers where rental apartments are becoming scarce. It is important to make a distinction, as in most of Finland, there is no shortage of rental apartments, and thus no significant rent increases are expected in the future. Tenant expectations have permanently increased. There is no longer a demand for clearly poorly maintained rental apartments, even at cheaper rents. If a poorly maintained apartment that has been rented for a long time is not to be renovated, the practical alternative is to put the apartment up for sale. There is now more demand for family-sized apartments in the rental market than supply. The primary reason for the lack of supply is that few specifically acquire family apartments as investment properties, as competitive returns on capital are hard to achieve. Due to general uncertainty, there would indeed be a significant demand for good family apartments. The general outlook heading into summer suggests that the level of housing transactions seems to remain stable and that demand for rental apartments is growing, primarily driven by students. Timo Metsola Chairman of the Board Vuokraturva # Vuokraturva’s key machine is easy to use The key machine requires a personal code that you will receive in a text message from us. You can access the key machine directly using a code lock to open a separate door on Teollisuuskatu, approximately 10 metres to the right of the main entrance to the Vuokraturva office. The key machine is open Mon-Sun from 6:00am–11:00pm. The address is the ground floor of Teollisuuskatu 21, Helsinki. Are you returning or collecting keys? Read the right instructions below. ### Collecting keys: 1. You will have received a text message. Check the message to see if the keys are in machine A, B, C, D or E. 2. Enter the PIN code from the text message in the correct key machine. The PIN consists of six numbers and # at the end. 3. Take the key and store it safely. The door will close automatically. ### Returning keys: 1. Remove any keychain because keys must be returned with the keyring only. Plastic bags and envelopes must not be placed in the machine because they will get stuck. If you need a keyring, they are located on top of the machine. 2. You will have received a text message. Check whether your key is to be placed in machine A, B, C, D or E. 3. Enter the PIN code from the text message in the correct key machine. The PIN consists of six numbers and # at the end. 4. Put the key in the machine and wait for the door to close automatically. If you have any questions or need help, please ring the doorbell! Outside of office hours (weekdays 9.00am–5.00pm), please call 010 232 7300. ## Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentee: Mon-Sun 8:00 – 18:00 ## Offices ##### Helsinki office and operating area Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki ##### Tampere office and operating area Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere ##### Turku office and operating area Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku ## The Services of Real Estate Agents Disappearing from Remote Areas About one-third of Finland is in a situation where the housing market is so poor that there are practically no functioning housing markets in the area. Even with very low asking prices, housing transactions are virtually stagnant, erasing the conditions necessary for a real estate agent’s livelihood. From the perspective of someone selling their apartment, this means that real estate brokerage services will drift away to urban centers along with other services. If, in a few years, brokerage services are no longer available, the apartment will have to be sold independently as best as possible. This certainly does not mitigate the struggles of housing sales in declining areas. In the largest cities, sales are still reasonably active compared to the rest of Finland, and for smaller apartments, it is even quite good. However, harsh price competition in brokerage fees has put large brokerage chains, which have heavy cost structures, in a tight spot. Nevertheless, it is clear that brokerage services will continue to be available in the largest cities. The tightening competition in the industry actually benefits consumers there. About one-third of Finns live in Uusimaa, and in these regional centers, there is no concern about the availability of brokerage services. But what about that middle third? Housing sales in small towns are struggling, and agents are currently in a very tight financial situation. It would be desirable to find earning models for these mid-tier municipalities that would keep real estate brokerage operations viable even in difficult times. This is a crucial issue for the development of housing price levels in these towns. Timo Metsola Chairman of the Board Vuokraturva Oy ## Thank you for contacting us! We will get back to you as soon as possible. ## Customer Service I am looking for housing: Mon–Fri 10 AM–4 PM Property Owners: Mon–Fri 8 AM–8 PM For those who have already rented a property: Mon–Sun 8 AM–6 PM ## Offices ### Helsinki Office and Region Mon–Fri 9 AM–5 PM ### Tampere Office and Region Mon–Fri 11 AM–5 PM ### Turku Office and Region Mon–Fri 11 AM–5 PM ## Are you pondering something? Write to us. Both praise and criticism are welcome. Our customer service will contact you via email as soon as possible if needed. The information provided in the form is sent by email to Vuokraturva's customer service. Read more about our privacy protection policy. ## Customer Service I am looking for housing: Mon–Fri 10 AM–4 PM Property owners: Mon–Fri 8 AM–8 PM For those who have already rented a property: Mon–Sun 8 AM–6 PM ## Offices ##### Helsinki Office and Region Mon–Fri 9 AM–5 PM Industrigatan 21, ground floor 00510 Helsinki ##### Tampere Office and Region Mon–Fri 11 AM–5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Region Mon–Fri 11 AM–5 PM Mariegatan 6 20100 Turku ## Contact Information I am looking for housing: +358 10 2327 303 Mon–Fri 10 AM – 4 PM tenantservice@vuokraturva.fi Property owners: +358 10 2327 300 Mon–Fri 8 AM – 8 PM customer.service@vuokraturva.fi For those who have already rented housing: +358 10 2327 300 Mon–Sun 8 AM – 6 PM customer.service@vuokraturva.fi ### Offices ##### Helsinki Office and Region Mon–Fri 9 AM – 5 PM Industrigatan 21, ground floor 00510 Helsinki ##### Tampere Office and Region Mon–Fri 11 AM – 5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Region Mon–Fri 11 AM – 5 PM Mariegatan 6 20100 Turku Are you looking for a home that suits you? We genuinely want to help you. Start by familiarizing yourself with the properties we sell. You will easily move forward with just a few clicks. ## Owner-occupied or still rental housing? Both have their advantages. If you are having trouble deciding, familiarize yourself with the advice provided by Myyntiturva's experts that simplify and expedite decision-making. ## Customer Service I am looking for a home: Mon–Fri 10 AM – 4 PM Homeowners: Mon–Fri 8 AM – 8 PM For those who have already rented a home: Mon–Sun 8 AM – 6 PM ## Offices ##### Helsinki Office and Region Mon–Fri 9 AM – 5 PM Industrigatan 21, ground floor 00510 Helsinki ##### Tampere Office and Region Mon–Fri 11 AM – 5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Region Mon–Fri 11 AM – 5 PM Mariegatan 6 20100 Turku ## Website ## Blog ## Interest Rate Increase Hits Hard as Tax Deduction Rights Are Removed Why is the housing market now stalling so sharply as interest rates rise, even though rates are not very high compared to previous years? Last Friday, the general 12-month Euribor was 2.8%. Exactly one year earlier, on November 18, 2021, the same reference rate was half a percent below zero. The increase has been fast, understandably worrying potential home buyers. But that's not all. It could be calmingly stated that we have seen housing loan rates before. However, something has fundamentally changed since we last saw rates beginning with a two. If we do not compare last Friday to a year ago, but to 11 years ago, we see that on November 18, 2011, the same 12-month Euribor was at 2.0%. However, at that time, it was 100% tax deductible, as was the margin charged by banks on top of the reference rate. From this year, only a meager 5% of housing loan interest can be deducted, and next year, there will be no tax deduction at all. What is going on? At the beginning of the last decade, a political decision was made to gradually reduce the tax deductibility of housing loans. This decision has gone largely unnoticed, and the tax deduction rights for housing loan interest have quietly diminished over the years, becoming nearly unnoticeable, as the significance of the change has been almost negligible during the long period of enjoying zero interest rates. However, this has quietly happened: | | Percentage of Housing Loan Interest Tax Deductible | |---------|---------------------------------------------------| | 2011 | 100% | | 2012 | 85% | | 2013 | 80% | | 2014 | 75% | | 2015 | 65% | | 2016 | 55% | | 2017 | 45% | | 2018 | 35% | | 2019 | 25% | | 2020 | 15% | | 2021 | 10% | | 2022 | 5% | | 2023 | 0% | Roughly put, the effect of this change on a typical housing loan borrower can be described such that one must add about half more to the interest rate to make it comparable to the rates of previous years. Thus, paying a two percent interest now burdens a household approximately as much as paying a three percent interest used to burden it before the deduction rights disappeared. By the same logic, paying a four percent interest would now burden a household as much as paying six percent did before the deduction rights ended. And a six percent interest without any tax deduction would equate to approximately a nine percent fully tax-deductible interest rate. Such coefficients do not feel comfortable when home buyers contemplate how high interest rates might rise. Thus, the increase in interest rates is significantly affecting the housing market now as the tax deduction rights are being removed, more sharply than before. For example, the last time rates beginning with a two were seen, those rates were fully tax-deductible, whereas now the deduction is about to be completely eliminated. At the same time, in the rental market, the situation has changed, as supply has significantly increased. It seems that the prevalence of rental housing is continuing to grow, especially in the largest cities. This is driven not only by rising interest rates but also by the increase in service charges and major renovation costs. On the other hand, property investors can still deduct interest 100% on rental income in their taxation, but not even landlords have a cloudless sky. There is even an oversupply of rental apartments in some areas, tenants are becoming more demanding regarding apartment conditions, rising maintenance fees affect landlords too, and property value appreciation is no longer a given. Overall, operating as a landlord or a yield-seeking real estate investor requires significantly more expertise than during the previous rental apartment shortage. For the functionality of the housing market, it is, however, good that as housing transactions stall, there is plenty of rental housing supply available as alternatives. For instance, looking at large cities in Sweden shows how problematic the situation can become if this is not the case. It is also noteworthy that transactions are still being made in the housing market. Although the pace has dropped to nearly half of what it was a year ago, some think that still— or precisely because of this—now is a suitable time to consider buying a home. Europe's weak economic development may turn interest rates back down, and home borrowers might just get through this scare. However, it should be noted that the absence of tax deductibility on the loan for one's own residence is no longer alleviating the effects of rising interest rates. The non-deductible interest is changing the housing market. And at least for now, the effect seems to be permanent. Unless, of course, as the spring parliamentary elections approach, a party starts to dangle the restoration of the tax deductibility of housing loans as a campaign promise, despite the sustainability gap in public finances. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Home for Ordinary People The popularity of rental housing is on the rise in Finland. Tenants want diverse housing options with various equipment levels from functional rental markets. All families should have the opportunity to choose a living arrangement that best fits their life situation. Families desire high-quality and healthy homes. Environmental values are on the rise, including a safe and green environment, as well as ecological and sustainable building materials. The state is needed as a guiding figure in ecological construction. According to statistics, property repair costs have increased, interest rates are rising, and the demand for housing is growing faster than supply. Especially in the capital region, the starting rents for free-market new rental agreements have clearly increased more sharply than income levels. In long-term rental agreements, the increase in housing costs has been more moderate and predictable. The construction of new rental apartments has nearly come to a halt. In the capital region, production has decreased from 10,000 apartments in the early 2000s to 2,600 apartments started in the last four years. Even today, very few free-market rental apartments are being built, so the new supply generated through new construction in the rental market has been less than in previous years. The government must urgently introduce measures to restart the production of rental apartments. Housing costs in Finland, especially in the capital region, are high. If the labor market is expected to function, there must be enough housing available at a price that allows wage earners to afford rent without housing support. The significant rent increases often reported in the media are not actually in the interest of landlords. High increases can easily lead to increased turnover in rental apartments, which raises the landlord’s costs. Often, severe rent increases are associated with ownership changes, where the new owner inherits a property with deferred maintenance, with rents kept low for years and repairs neglected. The availability of high-quality and healthy rental apartments requires attention to the condition of the property. Such a situation is challenging for both parties. In this situation, tenants are concerned about the evolution of housing costs, namely rent increases. Meanwhile, landlords face the challenge of balancing pressure for increases with the need for repairs. Anne Viita Executive Director Finnish Tenants' Union www.vuokralaistenkeskusliitto.fi ## Blog ## Who Came Up with the Idea of Taking Gardens Away from Tenants in the Garden City? Helsinki’s Puu-Käpylä is the oldest neighborhood built according to the principles of the garden city movement in Finland. The environment is unique and protected. Each house has been perfectly designed by the same architect, Martti Välikangas, to fit seamlessly into the surroundings. During the summer, international architect visitors' buses and walking tours weave through the streets and alleys. The complete unity of the area’s 1920s wooden houses and the lush, sprawling garden yards leave guests sighing in admiration. Residents also feel that the area’s unique atmosphere is formed by these elements. The apartments themselves are mostly small and somewhat impractical for modern living, but that doesn’t detract from the overall experience. Surprisingly, even a protected garden city does not appear to be safe from arbitrary changes. As so often, the road to hell is paved with good intentions. The heart of Puu-Käpylä is formed by the green and atmospheric courtyard gardens framed by wooden houses owned by the city of Helsinki. Over the decades, tenants have turned these into extensions of their small homes, creating a lush yet cohesive authentic garden city. In the shade of cherry and plum trees, the garden city ideal truly lives in everyday reality and in children's play, not just in ceremonial speeches and memos. This is known by anyone who has taken a Sunday stroll in the area. It was different when Käpylä was completed in the 1920s. Old photographs show how the newly built houses stood as if dropped from the sky onto freshly cleared logging sites. There was no sign of a garden city atmosphere. Small saplings and shrubs can be seen in the pictures, but they look quite lonely and many growing seasons away from their best bloom. The situation felt so bleak that the city fathers behind Käpylä's birth grew concerned and hired a vigorous professional, Elisabeth Koch, to guide the residents in creating green plantings unrelated to food cultivation, so that the newly developed area could be made more pleasant and lush. Elisabeth Koch would undoubtedly turn in her grave if she heard that the gardens of the central blocks of Käpylä, which has grown into a true garden city over 90 years, are being destroyed (HS 8.8.), and that they are being deliberately returned to the starting point from which transforming the newly built construction site into a garden city had to begin back in the 1920s. The city of Helsinki has already destroyed one courtyard garden. Tenants’ feelings range from shock to anger. What has already happened is irreversible. But now is the time for a pause. This one already devastated courtyard garden should be turned into a test case for this operation. It should be carried out in full according to the currently ongoing plan, and then its effects on the area and tenants’ well-being should be monitored over a period of five years. After this, there will be a basis for making decisions about the fate of other courtyard gardens based on experience. The current plan can indeed be implemented after the pause if the experiment proves successful. But if all tenants' gardens are destroyed now, it will no longer be reversible, even if a change of heart occurs. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Invitation to the Publicity Event for the 2009 Rental Statistics on February 22, 2010 Vuokraturva, Statistics Finland, the Finnish Landlord Association, and the Central Union of Tenants are organizing a joint information event on rental housing on Monday, February 22, 2010, from 11:00 AM to 12:00 PM. Statistics Finland will present the annual rental statistics for housing published on the same day. Following the statistical release, various parties will assess the outlook and trends of the rental market for 2010. The closing remarks will be made by Housing Minister Jan Vapaavuori. Date and Location The information event will take place on Monday, February 22, 2010, from 11:00 AM to 12:00 PM at Hotel Seurahuone, Kaivokatu 12, Helsinki (across from the railway station). After the event, there will be an opportunity to take illustrative photos in rental apartments in downtown Helsinki. The event is open to the media. Regional Events More focused local events will be held simultaneously with the national information event in Turku, Tampere, and Lahti. Turku: Hotel Scandic Plaza, Yliopistonkatu 29 Tampere: Hotel Ilves, Hatanpään valtatie 1 Lahti: Congress Centre Fellmanni, Kirkkokatu 27 Additional Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, tel. (09) 6877 550 Vuokraturva Company Overview Vuokraturva is a market leader in rental brokerage and acquisition services for investment properties. Vuokraturva manages the housing stock for private individuals, institutions, and funds investing in real estate. ## Announcements ## Invitation to the Press Conference for the Annual Statistics on Apartment Rents for 2010 on March 4, 2011 Vuokraturva Oy, Statistics Finland, the Finnish Landlords' Association, and the Tenants' Association (formerly the Tenants' Central Association) are organizing the traditional joint press conference on apartment rents on Friday, March 4, 2011, from 11:00 to 12:00. During the event, Statistics Finland will present and comment on the annual statistics on apartment rents for 2010, which will be published on the same day. Vuokraturva will review the outlook for real estate investing this year and discuss the factors that have connected successful real estate investors in recent years. Conversely, it will reveal the common trends among those who have fared poorly. The Finnish Landlords' Association will highlight which beliefs about the rental market are myths and which are true. Some common myths about the rental market do not hold any water. Surprisingly, based on the facts, the truth in some matters is even completely opposite to popular belief. The Tenants' Association will examine the age distribution of tenants and emphasize that although the perspective of young adults typically dominates news related to the rental market, it is increasingly common for tenants to be retired seniors, looking at the world from a different viewpoint. Time and Place The national press conference will be held on Friday, March 4, 2010, from 11:00 to 12:00 at Hotel Seurahuone, located at Kaivokatu 12, Helsinki (across from the train station). After the event, there will be an opportunity to take illustrative pictures in rental apartments in downtown Helsinki. The event is open to the media. Regional Events More localized meetings focusing on the specific regional situations will be held simultaneously with the national press conference in Turku, Tampere, and Lahti. Turku: Hotel Scandic Plaza, Yliopistonkatu 29 Tampere: Hotel Ilves, Hatanpään valtatie 1 Lahti: Hotel Lahden Seurahuone, Aleksanterinkatu 14 Further Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, Tel: (09) 6877 550 Vuokraturva Oy in Brief Vuokraturva is the market leader in rental brokerage and investment property acquisition services. Vuokraturva manages the real estate portfolios of private individuals, institutions, and real estate investment funds. www.vuokraturva.fi ## Blog ## A Hot Staircase is an Environmental Crime In climate and energy efforts, it is important to distinguish between essential savings measures and trivial actions. Even a small, correctly directed action has its intrinsic value, but only by identifying significant savings opportunities can we achieve real scale. In new construction, insulation thickness can be increased relatively quickly, but builders warn of an uncontrolled increase in the risk of moisture damage as new construction methods are still being learned. Increasing insulation thickness in existing buildings is an even more complex, expensive, and risky operation. Energy savings are necessary, but we are comfort-seeking. We don’t really want to compromise on a pleasant room temperature or our electric saunas and hot baths. Therefore, we need to find quite significant savings areas that have a minimal impact on our comfort. It feels difficult. But let me ask the following. Why do we heat hundreds of thousands of apartment building staircases to near-room temperature even in severe frost? This is despite the general life experience suggesting that outdoor clothing is put on at home before stepping into the staircase. Similarly, upon returning, clothes are only taken off once back inside the warmth of home. Therefore, nobody faces the risk of freezing in the staircase during winter, but as every family living in an apartment building well knows, sweating is the real issue. In the staircase, we would surely manage well in winter at about 10 degrees Celsius, especially if we plan to be outside in the same clothes. It’s also unnecessary to attempt to heat basement corridors, storage rooms, bicycle and stroller storage areas, or garages to room temperature year-round. Of course, staircases and other spaces cannot be left completely cold because one must consider the risk of moisture condensing on cold surfaces. However, near-room temperature and scorching radiators in these areas are indeed unreasonable energy waste. Ten degrees should be more than enough. Every degree above that is thoughtlessness or indifference, which undermines our communal energy conservation efforts. We also pay for every additional degree. I suspect that in five or ten years, unnecessary heating of staircases will be legally banned. A hot staircase will become an environmental crime, and rightly so. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Temperature Readings from the Real Estate Market Real estate sales are currently brisk, fueled effectively by the low interest rates. Larger apartments are moving with sensible selling timelines, but the sales of smaller apartments in growth centers seem to have skyrocketed like a New Year's rocket. This situation leaves many veterans in the field puzzled. In the past, offers were made downward from the requested prices. If someone offered the full asking price, a handshake was quickly exchanged. This ensured the apartment was secured immediately and surely. When the market was really hot, nearly all small apartments were sold at the asking price during the first viewing. That is not the case nowadays. If you offer the full asking price for a small apartment located in a growth center, and you try to give the broker a deposit to seal the deal, the broker will avoid you and practically run away. Does that sound strange? Let me explain. Nowadays, offers are made upwards from the requested price. Even if you offer several thousand euros more than the asking price, the apartment can still slip away. Often, someone else might offer even more. The former provincial government, now known as the Regional State Administrative Agency, has even had to consider whether a broker is obliged to accept a deposit if the offered price is the same as the asking price, along with the deposit. Brokers didn’t need to be forced into such situations before; they happily accepted full price offers without any government mandates. Fortunately, many wise entities have assured us that there is no housing bubble as of yet. Otherwise, a random observer might start to worry upon seeing the current state of affairs. On the other side of the Baltic Sea, the Swedish state has identified concerns in a somewhat similar situation and is seeking ways to cool down the market. The Finnish state, however, does not seem to carry such worries at the moment. On the contrary, the state is encouraging young people to buy their first homes right now, even granting 3000 euros in cash to those who bravely take out an ASP loan to do so. Those who have witnessed previous cycles in the housing market might feel a bit uneasy about this trend, but I suppose the authorities know what they are doing. Let’s hope so. Perhaps the strong activity in the housing market is due to Finland's robust economic outlook, decreasing unemployment, declining national debt, lowering taxes, excellent export performance, strong municipal finance situations, and a great atmosphere among labor market stakeholders. Additional influences on the bustling housing market could stem from the positive economic outlooks of our EU partners: Greece, Spain, Portugal, and Ireland, which have significant positive effects on the economies of all EU countries. Perhaps it’s also partly due to the optimistic remarks by State Secretary Raimo Sailas regarding Finland’s economic development in the coming years, which may have contributed to the acceleration of home sales. Or maybe people have simply gone mad over the record low cost of borrowing. What do you think? Timo Metsola Chairman of the Board Vuokraturva Oy ## Blog ## Six Tips for Tenants Searching for an Apartment At this time of year, the rental market is in peak season. The struggle for small rental apartments among new students is currently at its most intense. The focus of family relocations is also concentrated in the summer months so that children do not have to change schools in the middle of the academic year. Diplomatic individuals are also looking for high-value apartments now, as their relocation schedule aligns with international practices in February and August. It is indeed busy. Finding a rental apartment is not easy right now, but an applicant can significantly improve their chances through their behavior. Below are six pieces of advice from Vuokraturva based on long-standing experience, which can be of great help in tight competition. 1. Dress as if you are going to a job interview Your appearance affects the impression you give. Neat clothing and a fresh scent work better than messy or dirty clothes and a strong body odor. Often, a landlord thinks that if a tenant does not take care of themselves, they will not take care of the apartment either. A good tip is to dress as if you are going to a job interview. However, leave your old graduation suit in the closet. Aim to dress naturally and in accordance with your style. 2. Fill out the apartment application carefully An application filled out inadequately can easily be overlooked. Therefore, fill out the apartment application meticulously with all information. Do not be modest; confidently explain why you would be an excellent choice as a tenant. Modesty does not beautify the rental market. 3. Talk to the landlord or agent during the viewing If the situation permits, exchange a few words with the person showing the apartment while handing them your application. If they get a good impression of you and remember you positively, your chances in the tenant selection may improve. 4. Take notes on the apartments Making your own notes is beneficial, especially if you visit multiple apartments. Without notes, you might mix up your memories of the apartments. When you then receive a call offering you one of those apartments, you may hesitate to make a decision. A good apartment could slip through your fingers, or you might accidentally accept an apartment that is entirely different from what you remember. 5. If you are a student, ask your parents to be guarantors Students often face challenges competing with employed, graduated tenants. If possible, ask your parents to act as guarantors. This inspires confidence in landlords and levels the playing field. 6. Be on time Especially for small rental apartment viewings, which often last about fifteen minutes, being on time allows for better viewing of the apartment and filling out the application. Those who arrive late often have to rush through both. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Almost Every Apartment in Finland Will Soon Be Next to a Shopping Center According to the saying of investors, the most important factor in real estate investing is location, location, location. This still holds a lot of truth, but something fundamental is changing. Over the last ten years, jobs have rapidly migrated from city centers to the outskirts along ring roads. There are even questions about whether city centers will become dormitory suburbs in the future. Authorities have already started to act, making it more difficult to convert office spaces into housing. Shopping centers have also sought to expand into fields outside the city, and authorities have awakened to respond to this as well. The fear of urban centers becoming deserted is justified, based on a few warning examples. These changes have already occurred, and the observations are undeniable. But is this all, or is there something ahead that we have not yet noticed? It is possible that online shopping will revolutionize the assumption that an apartment located near a grocery store, specialty shops, a pharmacy, and an Alko is clearly more valuable than an apartment in an area lacking these local services. Previously, it was clear that having a store or even a shopping center nearby was a significant advantage because shopping was easy to do. But what if shopping in the future becomes really easy and convenient regardless? Online shopping has already made a groundbreaking impact in specialty retail. Traditional department stores and specialty shops are struggling to stay afloat. What will happen when a similar breakthrough occurs in grocery retail? I’m no technology enthusiast, but I believe it is inevitable. With the explosive growth of online shopping, the quality of service, speed of delivery, and convenience of purchasing will reach levels that we can hardly even imagine today. For example, there are already service lockers where a small locked area outside the actual entrance to an apartment resembles a vestibule, allowing delivery personnel access via a code. There is a refrigerator-freezer for perishable goods, meaning the cold chain is maintained. On the other hand, even large items, such as a snowboard ordered online, can be delivered there regardless of whether the recipient is home. The product arrives just as conveniently even if it’s not otherwise available in Finland, as online shopping knows no national borders. Delivery services are local but utilized across all online shopping platforms, just like mail today. If this is the direction of development, a world where the customer travels to the store and back just to pick up a specific item may feel as outdated as a landline telephone does today. And we should not forget the future potential of 3D printing, which is still difficult for us to grasp. If we can already print a functioning heart, we will surely be able to print a wide range of objects as their need arises in the future. In such a world, having a grocery store or shopping center nearby may no longer provide the added value that we currently consider obvious. Especially if businesses in the face of online shopping have closed down. If anyone can get nearly anything they want delivered to their home on the same day without stepping outside or even being home, all those apartments will be near excellent services. They will all be like being next to a shopping center, if not even more so. The service will operate every day of the year and almost around the clock. While some may still reside on Utö Lighthouse Island and this may not fully apply to them, the location of an apartment near retail services will not impact its price as much in the future. The transformation of retail will also cause a shift in the housing market. Therefore, I believe that having a school, daycare, or swimming hall near an apartment will become an even stronger asset in the future. Current shops may turn into empty commercial spaces that do not enhance the value of nearby residences. The question is not whether this will happen. It will happen, but the extent and speed of it remain uncertain. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The West Metro May Raise Housing Prices in East Helsinki More Clearly Than in Espoo The impact of the under-construction west metro on housing prices in Espoo has been widely discussed. While the overall effect is certainly positive, there are concerns about restlessness and insecurity around future metro stations, which could even decrease housing prices and status. In contrast, the completion of the west metro is unequivocally positive news for East Helsinki. It will surely be reflected in housing prices as well. It will be convenient and quick to reach Keilaniemi and other new job centers along the line from East Helsinki, regardless of the weather. This realization is slowly starting to take hold. The west metro is much more than just an internal matter for Espoo. It will fundamentally change the structure of commuting in the capital region. Commuting from the eastern side of the metropolis to the west, or vice versa, will no longer mean an hour spent stuck in traffic on ring roads. The completion of the bus terminal at Kamppi, connecting to the metro station, was a prelude to the change that the west metro will finalize. The ends of the capital region will receive a fast and pleasant connection, making cars, buses, and trams pale in comparison. East and west will finally greet each other beneath the Helsinki city center. For Ruoholahti, the change means that it will no longer be the dead end of metro traffic, but a stop between Helsinki city center and Espoo. For Tapiola, which has been humiliated by Leppävaara’s Sellon and Matinkylä’s Iso Omena, this is a golden opportunity to make a comeback. Although the metro will also reach Matinkylä, Tapiola and its surroundings will undoubtedly be the biggest net beneficiaries, especially as the area finally seizes the opportunity and undergoes a complete renewal. Certain unrest may arise due to the metro stations in immediate proximity to Espoo, and this could result in some not wanting to live right next to them. It remains to be seen how broadly the weekend activities of Espoo's youth will focus on the station areas. In this scenario, East Helsinki is clearly the winner. The east has already had beautiful buildings and nice residential areas near metro stations. The problem, however, has been that lucrative jobs have increasingly concentrated towards Espoo since the late 1990s, which has been reflected in the housing price differences between Espoo and East Helsinki. The situation is now leveling out in an interesting way. Soon, people from East Helsinki will be able to conveniently commute to South Espoo’s workplaces. Future open houses in East Helsinki will likely see former staunch Espoo residents. Additionally, it must be remembered that it will also be convenient to commute from Espoo to East Helsinki. This may, in turn, affect the placement of company offices and headquarters in the coming years. The west metro has already influenced housing prices in Espoo, but the effects on East Helsinki are yet to come. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Transit Line Could Propel Hämeenlinna's Growth The transit line is a long-distance transportation project advocated by Lauri Lyly, the Mayor of Tampere, and Jan Vapaavuori, the Mayor of Helsinki, which would connect Helsinki-Vantaa Airport to long-distance train services. The line would primarily run through a tunnel from Pasila through the airport to Kerava. In the most ambitious visions, it would continue south through the tunnel to Tallinn. Helsingin Sanomat highlighted today (HS 13.1.2018, www.urly.fi/SNH) that Transportation Minister Anne Berner supports the transit line project. The members of the National Coalition Party appreciate Vapaavuori, while the Social Democrats value Lyly. As a centrist transportation minister, Berner has significant influence over the project's preparation. The situation appears to be becoming interesting. The Green League is also unlikely to oppose the development of environmentally friendly rail transport. The implementation of the project would have many positive effects on the housing market. Kerava, Järvenpää, Hyvinkää, and Riihimäki, located along the congested main line, would be clear winners through the enabling of new train services. However, the biggest beneficiary might be Hämeenlinna. The section of the main line between Helsinki and Tampere is so overcrowded that VR (the Finnish railway company) has had to make tough prioritization decisions. To fit all trains on the tracks, some express trains have started to skip stops in Hämeenlinna. For the development of a medium-sized city and the housing market, such a signal could be a death knell, as it makes Hämeenlinna appear as a future outcast in the intense competition among urban areas. Hämeenlinna is now at risk of falling behind, as many opportunities for growth are passing by along with the trains. The transit line would alleviate congestion on that section of the main line and significantly increase the number of train services stopping in Hämeenlinna, both towards Helsinki and Tampere. Additionally, there could be a very convenient and fast train connection from Hämeenlinna directly to Seutula Airport, if Hämeenlinna is designated as a stop. The city’s declining atmosphere could make an immediate about-face. Hämeenlinna could become a rapidly growing success story that develops a considerable amount of new affordable housing at the midpoint between Finland’s two largest urban areas. This would also have national significance. The mayors of Helsinki and Tampere are strongly advocating for the project. However, the stakes might be highest for the residents of Hämeenlinna, for whom the realization of the transit line could be a matter of fate for the development of their hometown. Timo Metsola Chairman of the Board Vuokraturva ## The Position of Lesbian and Gay Couples in the Rental Market Has Improved The move of same-sex couples into shared rental housing has become more normalized. This trend seems to correlate with a general shift in attitudes that has allowed, for example, one of the candidates in the second round of the last presidential election to be openly homosexual. From the perspective of everyday equality, it is important that this change in attitude has also extended to the housing market. In the 1990s, a same-sex couple applying for housing often evoked confused feelings in landlords, leading to indirect questions aimed at clarifying the nature of their relationship. Based on my experiences, landlords generally did not act in a consciously discriminatory manner; they simply did not know how to approach the situation. This confusion was especially evident in the reactions of the older generation of landlords. Nowadays, in most cases, it seems to be of little importance. Even a somewhat bureaucratically termed registered partnership is largely equated with marriage in the everyday reality of the housing market. Although tenants' sexual orientation is not the landlord's concern, some applicants voluntarily share this information about their situation. Rather than discriminating, most landlords now want to demonstrate the exact opposite. Such a fundamental shift in attitudes has occurred that belonging to a sexual minority may, in some situations, even serve as a competitive advantage in the rental market. However, there are still situations where older landlords may need a moment to digest the life circumstances of tenants applying for housing. Such a situation may arise, for example, when a blended family consists of two mothers and a number of children from their previous relationships. “I guess this is just the modern age,” sighed an older landlord, but he accepted the tenants nonetheless. It is the task of professionals in the rental market to work towards ensuring that no one is discriminated against based on sexual orientation, but also that no one is favored. That is what genuine equality is about. This equality has significantly improved in the rental market over the past few decades. Unfortunately, however, there is still a difference between living in a large city and elsewhere. The smaller the locality, the more work remains to be done for real equality. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Lintuja tuulessa - Album Kuiskaus LISTEN HERE (Composer Timo Metsola) Listen to the Lintuja tuulessa ensemble's album Kuiskaus: www.lintujatuulessa.fi The composer of the tracks, Timo Metsola, talks about the album: Listen to the Radio Dei interview. # Find Your Desired Rental Apartment Easily Searching for and applying for a rental apartment is easy. In our apartment search, you will find all currently available rental apartments. The application process is done using bank credentials. With the alert service, you can stay updated on newly available apartments. ## How is a Tenant Selected? The landlord makes a preliminary tenant selection based on the applications. The applicant chosen by the landlord will get to view the apartment during a private or small group showing arranged for them. Purely electronic viewing is also possible through video presentations. ## Frequently Asked Questions You can find answers to other questions regarding the rental apartment application process in the frequently asked questions. ## Tenant Knowledge Base In this section, we have compiled a comprehensive collection of useful information regarding rental living. ## Blog ## Removing Snow from Small Residential Roofs Was a Mistake No Finnish residential buildings have collapsed due to snow load. Not this year, nor in previous years or decades. Nevertheless, this imaginary threat led many Finns to climb onto their roofs this winter. They were even urged to do so, including by experts. The consequences have been sad. Thousands of minor injuries, hundreds of injuries requiring hospitalization, and a dozen fatalities. An incomprehensible price for a “preventive” but unnecessary action. Additionally, the action itself is primarily harmful. The snow that has been removed from the roofs of small houses now lies in large piles against the sides of the buildings and, when melting, creates a wet shroud that threatens to cause moisture damage. Economic harm is also incurred. Roofs should be equipped with appropriate snow guards, which prevent snow from falling off the roofs in the first place. This way, there is no need to remove the snow for safety reasons, allowing it to fall and melt on the roofs in peace, according to nature's own rhythm. This whole story is like a tale from the village of fools. Unfortunately, in this matter, foolishness has cost lives. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Mortgage Payment Holiday for Those Who Have Already Paid Half of Their Loan Is a Masterstroke by Banks Mortgage payment holiday for those who have already paid half of their loan is a masterstroke by banks – and not a bad move for borrowers either. The risks of housing loans are at their highest for both the borrower and the bank when the loan is first taken out. At that point, a sudden drop in property prices, unemployment, serious illness, or other setbacks can create real difficulties regarding the loan. Years after purchasing a home, the loan has typically been reduced, and the property value has usually increased. This changes the situation entirely. Now, the loan is no longer a risk for either the borrower or the bank. At least if the property is located in a growth center. At the time of taking the loan, it may have represented, for example, 70% of the property value and 30% of the homeowner's equity. If, for instance, after 10 years, the loan represents only 35% of the current property value, and the homeowner's equity is 65%, with the property still serving as collateral, there is no better mortgage for the bank. In reality, it is not in the bank's interest for that loan to be paid off. Is repayment then in the interest of the borrower? Repaying a housing loan is reverse saving, so it may well be. On the other hand, if a break was taken from repayments and the resulting financial freedom was invested in the family's quality of life, children's activities, family vacations, or even in a shorter workday for the other parent of a first grader, it is not at all clear that the trade-off would be unfavorable in the long run. Repaying a mortgage is important in the early stages of the loan. However, treating the complete repayment of the loan as an absolute value that is always followed, regardless of whether there are reasonable grounds for doing so, is not advisable. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Free Public Transport Realized in the Capital Region I proposed changing public transport in the capital region to be free back in 2011. Surprisingly, due to media coverage and a lively discussion, public transport in the capital region did indeed become free for residents starting from the beginning of 2013. But not in Finland’s capital region. Estonia took the idea and implemented it. Like many other good and unconventional ideas in recent years. I have discussed this matter in Tallinn, and the locals are very satisfied with it. Additionally, they are surprisingly unanimous about it. This was also noted by Yle in their investigation. [link](http://yle.fi/uutiset/tallinnan_maksuton_joukkoliikenne_on_onnistunut/6677185) The justifications for my proposal and a few related news articles can be read here: [link](http://vuokraturva.fi/yritys/blogi/julkinen-laehiliikenne-ilmaiseksi-asumiskustannukset-alas) The topic is timely again as discussions about mortgage caps are underway. Why? Because once again, we are enthusiastically addressing the symptoms rather than the root cause of the problem. It’s as if we are trying to treat skin cancer with a band-aid. I discussed this issue in more detail in my previous blog post. Instead of temporary measures, we need a vigorous approach to fundamentally change things. Previously, we looked to Sweden for a model. Now it’s time to look across the Gulf of Finland. Timo Metsola Chairman of the Board Vuokraturva # Blog ## Market Comments November 8, 2018 ## The Supply-Demand Relationship Has Switched in Favor of Tenants The popularity of real estate investment and active new construction have changed the supply-demand relationship in the rental market. Although economic growth has created new jobs and increased migrations to growth centers, the rental housing shortage has not intensified but rather eased. At the same time, tenants' demands have increased, and renting a somewhat poorly maintained apartment can be challenging when new apartments are completed nearby at only slightly higher rents. The competitive situation with new apartments has led to the renovation of older rental apartments as well. The average condition of rental apartments has significantly improved in some areas. Part of the increase in rent statistics is a result of improvements in the condition of the housing stock. The rent for an unrenovated apartment, which has remained unchanged, might have actually decreased simultaneously, although this is not reflected in the statistics. Conversely, in locations where renovating an apartment is not viable, rents may have decreased so broadly that it is visible in the statistics. Winter is the best time for tenants to switch rental apartments because the competition for apartments is lower then and rental requests are more moderate. When the supply of apartments is abundant, a good tenant can freely choose the apartment that pleases them the most. In some cases, a particularly good applicant may even be able to pit landlords against one another. For the typical apartment seeker, having more options and time to consider is beneficial now compared to summer. If there is no compelling reason to move during the summer season, when competition for rental apartments is intense, tenants should aim to time their move between November and February. During this period, the supply-demand relationship is most favorable for tenants. For landlords, the best times to rent out apartments are May, summer, and early autumn. ## The Slowdown in Housing Sales Can Benefit Everyone The heated market for investment property sales has recently calmed down. At the same time, first-time homebuyers are approaching new developments more cautiously, dealing with large company loans, plots owned by land funds, and numerous investor-owned properties. The risks of overheating have been high, and the ongoing, yet rather moderate, cooling of the housing market is a better alternative for everyone in the long run compared to the expansion of a bubble. As long as the declining trend remains moderate as it is now, it promotes stability in housing price development in the long term. Exaggerated spikes tend to lead to initially fantastic gains and then crushing losses, regardless of the asset class. The development of property values significantly impacts the consumption behavior and wealth perception of homeowners in growth centers. Additionally, sharp changes in housing prices also reflect through psychological factors on the behavior of those who do not own housing. Considering also the direct and indirect impacts of new construction, stability in housing prices is important for the economic development stability of the entire country. Housing markets have always been cyclical and will continue to be so. Accepting this allows one to understand that smooth curves are clearly better for the overall interest of society than sharp changes. In that regard, recent news has been welcome. ## The Decrease in Housing Starts is Healthy Anticipation Although the new construction situation is sizzling hot, construction companies' results have declined as the prices of land, labor, and building materials have risen dramatically. This is a very worrying sign of market overheating. At the same time, difficulties in selling not only old apartments but also new ones are increasing, which is a sign of healthy anticipation as many builders are reducing their number of new housing starts. The production of new housing is like a train. It doesn't stop immediately when the driver hits the brakes. If foresight is lacking, the slowdown can extend far too long. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Market Comments and Rent Price Forecast Forecast for the development of rents for new lease agreements of privately funded apartments in 2013 The forecast includes the following cities: Helsinki, Espoo, Vantaa, Kauniainen, Kirkkonummi, Kerava, Järvenpää, Porvoo, Lahti, Turku, Tampere, and Oulu. Vuokraturva predicts that the average rents for new lease agreements of privately funded rental apartments will develop as follows in 2013: - Studios: +4% - Two-bedroom apartments: +3% - Three-bedroom apartments: +1% - Four-bedroom apartments: -1% - Five bedrooms or more: -2% VUOKRATURVA'S MARKET COMMENTS Privately funded rental apartments: The uncertain economic situation has led to caution in the rental market. There is downward pressure on rents for large and expensive rental apartments. In contrast, the oversupply of small rental apartments is so high that their rents seem likely to continue to rise in 2013. There is a glimmer of hope for alleviating Helsinki's acute shortage of small apartments for the first time in years. The previous requirement of a 75 square meter average size is being abandoned. Going forward, the condition will be that at least half of the apartments in each new building must be family apartments with at least two bedrooms and 80 square meters. This significantly better responds to the pressing shortage of small apartments than before. The 75 square meter average size rule meant that for every 30 square meter studio, there had to be a costly and hard-to-sell 120 square meter apartment built. Now, every second new apartment can be a studio or a two-bedroom apartment, and the remaining apartments do not have to be larger than 80 square meters. All sizes of apartments are needed in Helsinki. However, since there is nearly a catastrophic shortage both in the rental market and in the housing market specifically for small apartments, production must be focused on them. The Helsinki city council has now taken an important step in the right direction. State-subsidized rental apartments: The production of state-subsidized rental apartments seems to be at a standstill. The current system is so unfavorable for the construction of new rental apartments that the production of ordinary state-subsidized rental apartments has fallen to nearly zero. Housing Minister Kiuru believes that rental apartments must be created under the current model. And if they do not arise, the state will build them itself. Previously, entities other than the state have been able to build over 400,000 state-subsidized rental apartments using models tailored to the requirements of the time. It is hard to see any alternative but to update the current system to a version that allows for the production of subsidized rental apartments to restart. The state is unlikely to be able to respond alone to the production of new apartments in the future. It is essential that a broad range of industry actors participate, as has been the case throughout the decades. The views of the Housing Minister representing the state and those of the rental apartment producers are currently so far apart that a functional total reform seems unlikely under these conditions. Therefore, it would be reasonable to aim for creating at least a somewhat viable temporary solution for a few years forward, during which a total reform could be attempted again in the next government term, possibly under more favorable conditions. An example from the previous government term of a quickly implemented temporary solution was the so-called interim interest subsidy, which effectively kick-started the production of rental apartments in a difficult economic situation. ADDITIONAL INFORMATION Timo Metsola, Chairman of the Board, p. 09 6877 550 VUOKRATURVA OY IN SHORT Vuokraturva is the market leader in property rental brokerage and investment property acquisition services. Vuokraturva manages the apartment portfolios of private individuals, institutions, and funds investing in apartments. The aim of the Vuokraturva-affiliated Myyntiturva is to revolutionize real estate brokerage fees by restoring their connection to the actual workload. www.vuokraturva.fi ## Blog ## Mauno Koivisto paved the way for Finns from the countryside to the city In the 1950s, there began a growing understanding that agriculture and rural jobs could no longer employ the majority of Finns. A large-scale migration to cities was needed, where new jobs were rapidly being created. The situation escalated in the 1960s when the large cohorts entered the workforce. There were jobs in the city, but no available housing to move into. The pressure for new construction in cities grew to unprecedented levels. Additionally, the high cost of new housing posed a challenge. Those moving to the city for work from rural areas needed affordable housing; otherwise, the move would not be feasible. Therefore, a solution was needed for housing production that could quickly generate a large number of very affordable homes. By the mid-1950s, the situation had become a crisis without a ready solution. It seemed impossible to build in a capital-scarce country the vast number of affordable homes that calculations indicated were necessary. The answer was a new model of area construction invented in Kaivoksela, Vantaa, in 1956, where a single contractor would build an entire district's worth of new apartment buildings using concrete elements, located outside the city amidst fields, far from the city center by the standards of the time. The solution was not optimal, but it was possible. More precisely, it was the only feasible option. The land was cheap on the outskirts, and the builder was fairly free to use the most cost-effective solutions available. The previously impossible goal of providing affordable urban housing to the rural population became achievable. In 1960, groundbreaking plans were approved, and preparations were made to start construction in Kaivoksela. But where would the funds for such an unprecedentedly large project in the middle of the fields in the rural municipality of Helsinki come from? Finland was a poor country. It was only eight years since the last payment of war reparations. If financing could not be found, the plans that enabled affordable urban housing would remain in a drawer, and the project would collapse. This would not bode well for the acceptance of similar projects in the future. At this point, the new young 36-year-old CEO of the Helsinki Workers' Savings Bank, Mauno Koivisto, entered the scene. He understood the situation as a whole and secured backing from his bank's board for the massive project's financing. This was not, to say the least, a straightforward task. For the young man who had only a year earlier taken over as CEO of the historically founded bank in 1909, pushing through such an ambitious and unconventional project would have been a real test. Koivisto's role was deemed crucial at the time, and he himself confirmed decades later in 1996 during an event by the Housing Reform Association that he saw the matter the same way. The Building Magazine reported on the president's remarks, stating flatly, “Koivisto was the chief architect of suburban construction.” Once Koivisto had secured his bank's support behind the idea, the financing needs of the large Kaivoksela project were also shared by the Post Savings Bank under CEO Teuvo Aura. Thus, the Turku-based construction company A. Puolimatka was able to commence groundbreaking construction in Kaivoksela in 1961. The project was a success, and the rest is history for Finnish suburban construction. The change was remarkably swift. In 1950, two-thirds of Finns lived in rural areas. By the early 1970s, the majority of Finns lived in cities. 700,000 Finns had moved from the countryside to urban areas. The migration did not stop there; it continued—and continues today. For nearly anyone, participating in such a central way to solve a problem that posed a serious threat to the development of all of Finland would be a highlight of their career. The scope and magnitude of Mauno Koivisto's work for Finland is evidenced by the fact that this was just one of the many interesting facets of his career. However, this does not downplay the significance of this achievement in any way. On the contrary. Timo Metsola Chairman of the Board Vuokraturva # Media Contact Information For interviews, market comments, and social discussions, media inquiries can be directed to Vuokraturva's CEO and Chairman of the Board, Timo Metsola. ### Timo Metsola CEO, Chairman of the Board, LKV, LVV 010 2327 300 timo.metsola@vuokraturva.fi Timo Metsola's press photos > ## Blog ## Press Releases ## News from the Rental Market ## News from Real Estate Transactions # Media ### Contact information for the media For any interviews, market commentary or social discourse-related enquiries, please contact Vuokraturva’s Managing Director, Chairman of the Board Timo Metsola. ## Blog ## Press releases ## Rental housing market news ## Real estate market news ## Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentee: Mon-Sun 8:00 – 18:00 ## Offices ##### Helsinki office and operating area Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki ##### Tampere office and operating area Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere ##### Turku office and operating area Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku # Media ### Contact Information for Media In connection with interviews, market comments, and societal debates, the media's needs are served by Vuokraturva's Managing Director and Chairman of the Board, Timo Metsola. ## Blog There are no blog posts in your language. ## Press Releases There are no press releases in your language. ## News from the Rental Market ## News from the Housing Market ## Thank you for your feedback! I am looking for housing: Mon–Fri 10 AM–4 PM Property owners: Mon–Fri 8 AM–8 PM For those who have already rented a property: Mon–Sun 8 AM–6 PM ## Offices ##### Helsinki Office and Region Mon–Fri 9 AM–5 PM Industrigatan 21, ground floor 00510 Helsinki ##### Tampere Office and Region Mon–Fri 11 AM–5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Region Mon–Fri 11 AM–5 PM Mariegatan 6 20100 Turku # Blog ## What is a Real Estate Investment Fund? Something new is happening in the rental housing market, but few understand what it is. In connection with the persistent headlines about the rental housing shortage, funds are mentioned as potential alleviators of the situation. The Finnish Parliament is currently discussing new legislation regarding this issue, and well-known investors have already stepped in with their capital funds. What is a real estate investment fund, who can invest in one, and most importantly, why? First, a brief look at history. The idea of real estate investment funds is not entirely new in Finland either. The first law aimed at establishing them was enacted back in 1997, but it resulted in little success. Another law was passed in 2007, but it also failed to bring about any funds. This spring, Parliament is making a third attempt to legislate a viable law for rental housing funds. The background is a desire to increase the supply of rental housing. The weak link in the current legislative proposal regarding REIT-style housing funds is the requirement to list the fund on the stock exchange within three years. This requirement diminishes interest from investors who are specifically looking for investments that are detached from the stock market. Nevertheless, recent legislation failures have not prevented the emergence of real estate investment funds in the past year, as the well-known limited partnership model familiar to major investors has provided sufficient operational prerequisites. A real estate investment fund acquires a large number of properties with pooled capital from investors, thereby diversifying the risks associated with individual properties. A single water damage incident or an unexpected renovation does not jeopardize the entire portfolio. Properties are purchased, rented out, and managed by professionals. Investors do not need to spend time attending property viewings or dealing with day-to-day issues with tenants. There is no need to be familiar with the field or the legislation. Investors have seen an opportunity for strong cash flow in rental housing demand, even in less favorable economic conditions. Additionally, the resale value of a well-assembled property portfolio is believed to exceed the sum of its parts when an economic upturn eventually arrives. So, who can invest in these funds? Unfortunately, at this time, a minimum investment capital of several hundred thousand euros is typically required, sometimes even several million. So, it is not yet a mode of investment accessible to everyone. For smaller investors, access to these funds would require Parliament to establish a workable legal model. The rental housing shortage and economic crisis are increasing the political will to resolve this matter. Construction would provide much-needed jobs in the construction sector, and an increase in rental housing supply in growth centers would improve people's ability to move for work where jobs are available. Timo Metsola Chairman of the Board of Vuokraturva Oy and Asuntoturva Oy ## Blog ## Why Can't Those Under 18 Save for an ASP Loan? The ASP loan has been an important tool for equality in the Finnish housing market for decades. It has enabled people from all social classes to purchase their own homes through diligent saving. The repayment period for a home loan is often long. During this extended period, there may be times of very high interest rates, and the state interest subsidy provides security for those who have taken an ASP loan for a period of 10 years. Its significance can be crucial in managing a large loan. It's a good system, and it has served us Finns well. But why can saving for an ASP loan only begin after turning 18? Shouldn't a young adult be allowed to start saving as soon as they begin earning their own income? Since a minimum of 150 euros has to be saved each quarter, that equates to an average of about fifty euros a month. Many young people could manage that. Grandparents or even godparents could also be eager to support saving. The amounts could be much larger. This could mean that by the time a person turns 18, they would already have some savings set aside for purchasing their own home. Even more important than the amount saved might be the lesson learned: that making significant purchases requires saving and managing one's finances. A home can be bought with a loan, but it is always repaid with one's own money. If the generation born in the 2000s fails to understand this, we are in trouble. Timo Metsola Chairman of the Board Vuokraturva # Blog ## Why Are Apartment Sales Increasing but Prices Aren't – and Why Prices Aren't Falling More Now That Sellers Are Finally Selling for Less I wrote two weeks ago (August 24th) about why the number of apartment sales is rising while prices are not. Since then, Statistics Finland published (August 28th) its statistics on apartment sales for July, which confirmed the matter. However, understanding the combination of these factors seems to remain challenging. According to Statistics Finland: - Prices of old condominium apartments fell by 0.9% in July 2025 in the six largest cities and by 0.8% outside major urban areas compared to the previous year, and - In July, there were 10% more sales of old apartment and row houses via real estate agents than a year earlier. Thus, the sale prices have not changed much over the year, as we are talking about a change of less than one percent. The number of sales, on the other hand, has clearly increased, with a change of ten percent. Hence, the difference in the magnitude of change is tenfold. I receive questions about why prices haven’t fallen further, given that more sellers are yielding on their asking prices and that the increase in sales volume is due to this. Here’s further clarification. Just a year ago, a smaller number of sellers were willing to sell their used apartments at the price level at which transactions were taking place. That price level was, with a precision of one percent, the same as the price level at which sales are currently occurring. I call both of these price levels the current price level, as they are precisely the same to the same percent. A year ago, a smaller number of sellers were willing to sell their homes at the current price level. They would have wanted more for their apartment to agree to a sale. This is why transactions were fewer back then compared to now. Over the last year, sellers’ thoughts and expectations have matured with the passage of time, leading to the acceptance of the prevailing market situation. Now, a larger number of sellers are ready for apartment sales at the same current price level, which they hesitated over a year ago. This is why more apartment sales are being made now, even though the price level is the same to the percent as it was a year ago. Even though the price level of apartments hasn't changed much over the past year, a greater number of sellers now accept the current price level and are making transactions. This is why the number of apartment sales has risen significantly (+10%), while sale prices have decreased slightly (-1%). Furthermore, the growth in sales volume seems to still be on the rise. If the increase in sales volume continues, it signals that even more sellers of apartments are willing to accept the current price level and conduct transactions. The statistics on completed transactions do not reflect the fact that sellers were generally asking for higher prices for their properties a year ago than they are now. This is because the statistics do not include unsuccessful sales attempts. When examining the average asking price levels across all published sales listings, some decline in asking prices over the year can be seen. However, the entire change isn’t evident in asking prices because even more significantly, changes have occurred in how much sellers are willing to accept offers that are below the asking price. Currently, many offers at the current price level are accepted, even if the seller's official asking price is higher. First-time homebuyers, current tenants, and investors all benefit from the market situation. Home changers can also benefit if they are moving to a larger, more expensive property, as the prices for larger apartments have dropped more in recent years and the difference in funding has decreased. Buyers now have the opportunity to calmly compare options and find a well-suited apartment at a reasonable price. This has a lot of value when comparing the current situation to the scorching apartment market during the corona restrictions, where buyers had to purchase properties at high prices in what was perhaps a somewhat random rush competition to secure a property. *** However, not all sellers are yet willing to accept the current price level, as many have their properties on the market for a long time or temporarily withdraw and rent the property instead. If and when the current price level begins to rise, some of these sellers who are waiting for better times will then be ready to sell their properties. The commencement of this hidden supply could alter the relationship between demand and supply in such a way that price increases for apartments would stagnate again. Unfortunately, we do not know the exact amount of hidden supply on the selling side, but the feeling is that it is relatively high. This is why there is yet no sign of price increases for apartments. In certain desirable areas with limited supply, prices might start to rise within a year or two. Broader price growth, even in growth centers, may be delayed for more than two years. On the other hand, even a slight rise in apartment prices could be a signal for investors that the price floor has been surpassed and that action should be taken. If a sufficient number of investors activated at once, it could initiate and amplify price increases for apartments. The effect of this factor is difficult to predict, meaning it may come as a surprise. According to investor textbooks, one should buy when it’s a buyer's market. *** Overall, it is good for the housing market that active trading is occurring at some price level where buyers' and sellers' price perceptions increasingly align. This is the situation right now. The most problematic scenario is if there is such a significant gap between buyers' and sellers' price perceptions that no sales occur, leading the apartment market to nearly come to a standstill. We are currently experiencing this in the new apartment market, where the gap between buyers' and sellers' price perceptions has become so wide that transactions are hardly happening at all. In addition, in the new apartment market, significant construction phase loans and lease agreements for rented plots, which often do not seem reasonable, are causing obstacles. Construction loans are a shared liability for the entire housing company and therefore for all its shareholders. The allocation of debt shares to individual shareholders matters primarily when each shareholder is capable of handling their share. If not, the specific shareholder's apartment may be confiscated in an effort to remedy the situation by renting it out or selling it. If these measures fail to raise sufficient funds due to a challenging market situation, the outcome may be dire. Construction loans are shared liabilities for the entire housing company, meaning that in practice, others will have to cover the debts that some shareholders may not be able to repay. This can feel drastically contrary to one's sense of justice. Construction loans are, however, corporate loans that are attached to the company owned collectively by the shareholders. This type of logic is very difficult for a regular consumer to comprehend. New developments' construction loans are too difficult for consumers to understand. Construction loans are poorly suited as a financing method for purchasing new apartments because consumers do not understand the risks they are taking. Instead, the logic of a mortgage taken directly from a bank is easy for anyone to understand. As a funding solution, it is clearly better and safer. Additionally, this way, the bank seeks to control so that no one accumulates debt beyond their repayment capacity. Such control does not exist in construction loans. When some shareholders pay off a new development's construction loan with their own bank loans while others do not, all shareholders remain responsible for the remaining construction loans through their common housing company. This creates a significant uncertainty problem for buyers. The expensive lease agreements for new developments, along with some unreasonable lease agreements, are also a bottleneck for new apartment sales. When new developments were selling like hot cakes over three years ago, these lease agreements hardly posed an issue. Now, caution has increased, and the situation has changed. One can acquire a used apartment on their own lot in this market at a price that often is clearly cheaper than a new apartment on a leased lot. What kind of new developments would people prefer to buy? Buyers report that they would like attractive family homes built on their own lots and without construction loans. The challenge is that the price level of newly produced homes built this way would currently not be competitive with used apartments. Moreover, builders currently do not have functional financing solutions during the construction phase as alternatives to construction loans. Therefore, the prolonged recession in freely funded housing construction continues. *** In the summer of 2023, I proposed banning construction phase loans, as they have proven too risky and difficult to understand. With a total ban, housing construction could gain a new direction, and banks would be given a clear push to develop better financing solutions for construction. I also proposed more precise mandatory legislation for lease agreements to ensure that unreasonably individual agreements do not tarnish the reputation of otherwise reasonable leased plots. These proposals face significant challenges, even though both could have a salubrious effect on the current problems in new apartment sales in the long term. I understand that these changes would be challenging. However, difficult problems typically do not have easy solutions. If there are any solutions at all, I believe they should be given serious consideration. In summary about construction loans: www.vuokraturva.fi/medialle/blogi/uusien-asuntojen-isot-taloyhtiolainat-jumittavat-kauppaa-ja-rakentamista-edelleen Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Why It’s Worth Changing Rental Apartments Specifically in April? Finding a suitable rental apartment often feels challenging. However, there are certain times of the year when it becomes noticeably easier. The best times are April and December. Why? In December, people have many other things on their minds, and considerations about housing tend to get postponed. Additionally, New Year's Eve or New Year's Day don’t seem appealing as moving days. The typical moving day for rental apartments often falls at the end of the month. April, on the other hand, ends with May Day. Many have various traditions associated with celebrating the eve and the day of May Day. Without any special reason, few would time a move that coincides with this holiday at the end of the month. The typical moving day for rental apartments is thus at the end of the month. In the year, there are only two such month-ends that coincide with a lively holiday: April and December. These two months are, therefore, the best opportunities for an informed apartment seeker to find a rental apartment that meets their wishes. Very few know and can take into consideration that during these two months, there are significantly fewer competing apartment seekers. There’s a lot of noise about the shortage of rental apartments, but very few think to strategically plan their move during these two calm periods. I openly share this because we also struggle every April to get all the apartments vacated on the first of May rented out. This year, Easter also falls in April, leading to two workweeks that are less effective, making it even harder to rent out all apartments. Therefore, a tenant looking for an apartment in April is in a particularly advantageous position. Rental prices in April tend to be more moderate than usual. It's worth noting that if an apartment can be rented out for perhaps 40 euros less than the usual monthly rent during this quieter time, it can save nearly 500 euros over a year compared to renting a similar apartment at another time of the year. Thus, those who take advantage of the situation can find both a more suitable and more affordable apartment. A tenant typically has a one calendar month notice period. Therefore, the current apartment must be terminated during March, at the latest the day after tomorrow, if one wants to leverage the situation and move into the next rental apartment at the beginning of May. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## One Billion Euros a Year in Additional Support for Rental Housing New Housing Minister Krista Kiuru shares her vision for supporting rental housing in today’s Helsingin Sanomat. For the promised €3-4 reduction in rents to actually materialize in real life, the new housing minister would first need to initiate a cash flow for supporting rental housing on a scale comparable to a tsunami. In my opinion, there is no real possibility that the support would only apply to entirely new rental apartments. If that were the case, the rents for new rental apartments would be lower than the rents for older ones. This would hardly be considered fair from the residents' perspective, and therefore, I don’t believe it would be practically feasible. Such a promise of €3-4 rent reductions, if presented by the previous housing minister Jan Vapaavuori, would have been big news and might have had tenants celebrating in the streets. However, given the current situation, it’s hard not to feel doubt about the reliability of this promise. In Finland, there are just over 400,000 state-subsidized rental apartments. Assuming an average size of 60 square meters and calculating the minister's promised €3-4 reduction using €3.5, the annual calculation would go as follows: 400,000 * 60 * 3.5 euros/month * 12 months = €1,008,000,000. The rent reductions caused by the support would thus amount to one billion euros. This means that any new support should also be in the range of one billion euros. Has the party member Jutta Urpilainen been asked about the funding for such additional support? It feels quite outrageous. Rents may decrease by the same amount that the government's interest support rises, but they will not drop any further. Rents can only decrease to the extent that the landlord’s costs decrease. Kiuru estimates that a €3-4 reduction in four rents could be achieved with €32 million over four years. In reality, such a rent reduction would require one billion euros each year. If we wanted to include all rental apartments in Finland in the €3-4 rent reduction goal, it would not just be the over 400,000 state-subsidized rental apartments, but also nearly 400,000 privately funded rental apartments. The total sum of the new support would then rise to two billion euros a year. This is, of course, completely impossible. In my view, rather than pouring vast amounts of state support into all renters or just into entirely new rental apartments, support should be targeted more accurately and then increased, but only for those renters who really need it. In the current economic situation, indiscriminately spreading money is becoming impossible, so in the future, support must simply be targeted accurately. It must finally be noted that at least the new housing minister Krista Kiuru does not seem to come from Arkala. This is, of course, a very good thing for the renewal of the housing market. It will be interesting to see how the minister's policies evolve as she continues to familiarize herself with her new role. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Where Do Renters' Money Really Disappear? Living in rental housing should be just as meaningful and well-regarded an option as home ownership. To ensure this remains the case in the future, the market needs both renters looking for rental housing and landlords considering renting as a viable option. The core issue is that currently, there simply isn’t sufficient demand in the metropolitan area for landlords who would consider renting out their apartments. Where do the euros paid by renters actually go, making it increasingly impossible for landlords to continue renting? One clear reason is the dramatic rise in housing prices over the past few years. Rents have not kept pace with this development. According to Statistics Finland, housing prices have increased by 109 percent over the last decade, while rents only grew by 43 percent during the same period. When you add to this the prevailing high interest rates, it is evident that many see selling their apartments as a better solution than continuing to rent them out. The growing volume of renovation construction cannot fail to put pressure on rent increases. In addition to the quantitative growth of renovation construction, both material and labor costs have also risen. While we can say from experience that among landlords, there are also compassionate individuals, we must start from the fact that the rent must cover the costs incurred by the landlord for the apartment. It is therefore clear that the euros increasingly used for renovation construction in property companies will ultimately be paid by the renter. Factors influencing rent increases include not only housing pricing and renovation construction but also many other external factors affecting rental agreements. A directly affecting factor is the municipal property tax, which is charged on all residential properties. Municipal billing basis decisions also include energy prices, waste management pricing, and billing basis for water consumption. In the future, these costs will certainly not decrease for landlords – and through them, also for renters. It must be noted that the difficult situation in the metropolitan area has not yet been fully revealed by the statistics regarding rent increases. According to Vuokraturva Oy, in the most sought-after areas, particularly within a 20-minute distance from Stockmann in the city center, rents have increased by over 15 percent during the past year, and this trend is expected to continue similarly for at least another year. One reason for the heated situation in the metropolitan area is the severe shortage of small apartments, such as studio and one-bedroom flats. The few apartments that do move on the market are rented out almost instantly, often through a bidding-like process. Contracts are formed increasingly faster. You might think this should drastically increase the number of landlords in the market. However, when a potential landlord sees a rent that has skyrocketed due to bids in one hand and a property price that has roughly doubled in the other, even high rents may not motivate individuals to become landlords. Moreover, there is currently no such affordable new production directed at the most popular areas in Helsinki that would encourage landlords to purchase these properties. On the other hand, the average floor plan size of 75 square meters in Helsinki does not currently serve, nor is it likely to serve in the foreseeable future, any ambition other than attracting exceptionally high-income taxpayers to Helsinki. Therefore, relief for the rental market issues from new construction is not expected in the near future. Social measures that improve landlords’ ability to own and offer affordable housing for rent are critically important in this situation. MIA KORO-KANERVA Managing Director Finnish Landlords' Association SVA ANNE VIITA Managing Director Central Union of Tenants in Finland ## Blog ## What Would an American Subprime Crisis Researcher Think of the Loan Cap Discussion? Housing is disproportionately expensive in Finland compared to international standards. Therefore, ordinary people need enormous loans to purchase homes. Rent is reportedly so high that it makes it difficult for tenants to save money for their own homes. Thus, such expectations should not be made, or should they? Nonetheless, the reality has reached a point where homes are being purchased with 100% loans. In other words, a person without any personal funds buys a home solely on bank credit, which is extraordinarily expensive. The high price of housing has been exacerbated by strict building regulations, along with houses being bought with loaned money, which is lent at low interest rates even to those without any personal savings. A sense of proportion and understanding of the enormity of the sums involved does not develop. The assumption, of course, is that the future price of housing will increase and that even those without money will become wealthy. The thought that prices could instead fall is not even entertained, as it would ruin the scheme. Thus, this unpleasant possibility must be ignored. This line of thinking was thoroughly tested in the United States during the early part of last decade. The outcome of this experiment was the subprime crisis, which nearly toppled the global economy and whose aftermath we are still enduring. This comparison is not a loose analogy, but rather it was specifically 100% loans that caused the subprime crisis. The very fact that these loans were granted to individuals who had not been able to save any personal funds at all, and sometimes did not have any income either, was crucial. Additionally, there was a belief at very high levels that we had entered a new era where housing prices in the United States would no longer decline. And that everyone had the right to buy a home with 100% loans, thus becoming wealthier as the value of that home increased. For a long time, this debt-fueled perpetual motion machine worked, until of course it inevitably collapsed under its own impossibility. Loose credit and low interest rates can never generate sustainable, steady, and controlled increases in housing prices. They only create a temporary but disproportionately powerful boost. The housing market cannot sustain low-interest rates and loose lending in the long run. They have led to a rapid increase in housing prices across all markets followed by serious problems. And this will not change, no matter how nice it would be to think so. In the United States, high-quality and scientifically convincing research has been done on the subject in the last five years. The U.S. can be justly criticized for creating the subprime crisis and imposing it as a burden on the global economy. But at least there is an attempt to learn from mistakes. In Finland, there is currently a defense of people's right to 100% or near-100% housing loans, as if this serves the interests of the borrower purchasing a home. It is self-evident that the larger the loans granted, the lower the interest rates, and the less significance personal savings have, the more expensive homes become. Thus, the entire structure serves the artificially high level of housing prices and their further increases in the future. Everyone understands that if homes had to be purchased solely with personal savings, hardly anyone would be able to buy homes at such prices, and prices would crash. This is not, of course, the aim; it is important to remember that loose lending will come at a truly high cost to buyers through inflated prices. At this point, one must ask: what if prices just keep rising? The stark reality is that the price level of the housing market cannot be based on the fact that broke individuals living without savings are receiving 100% loans. If it begins to feel that way, then perhaps we are already on the other side of the hill, where a decline in prices begins. In a situation where housing prices are falling, an individual who purchased a home with a 100% loan without any money does not become wealthy but loses everything. This includes the home they bought, and the debt remains to be repaid. Shouldn't we, as responsible adults in Finland, recognize this, given that tens of thousands of us personally experienced the same in the 1990s? In such a scenario, the damage is not limited to the over-indebted, but the value of each Finnish homeowner's asset declines. In a sense, those who take (and give) 100% loans gamble with the asset value of all Finnish households. And the effects of this gamble extend beyond the housing market; they influence the entire economy. The discourse on such 100% or 90% loans is so detached from a genuinely sustainable level that it is challenging to engage in the conversation. It is difficult to naturally suggest that a ratio of about one-third personal savings and two-thirds bank loan is a healthy relationship for purchasing a home. It still allows for the tripling of every personally saved euro with borrowed money. But it also enables survival from price declines without requiring the sale of the property at the worst possible time. How we might move from this current skewed situation is a difficult, yet crucial question. A loan cap, however, may not be the saving grace. One option could be to establish an increasing loan margin by law for amounts exceeding 70%. This would not prevent the taking of excessively large loans but would effectively curb it through cost management. Yet, it should not be too steep or absolute. The development of housing prices has always been cyclical, around the world and throughout the centuries. A price drop is followed by a price rise, and a price increase is followed by a price drop. After a decline, prices often rise higher than ever before, and those who benefit from this are generally those who survived the downturn. They probably did not have 100% housing loans. Those without any personal funds live in rental properties in a healthy housing market situation. They may also save for an owned home at the same time. Claims that rents are so high that they cannot save may not hold true. While central rents are indeed high, if one goes far enough, affordable rental housing can be found. The longer commute time can be used advantageously on public transport, for example, for studying. “I don’t feel like it” is perhaps not the way adult individuals should face such matters in the world. Debt must be understood and feared healthily. If large debt does not frighten, society as a whole should be concerned. The lesson from history is clear on this matter. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## MM Referee Kari Neuvonen Receives Vuokraturva Award for Extensive Contributions to Judo The recipient of the Judo Lifetime Achievement Award is Kari Neuvonen from Savonlinna Shikata, who has had a judo career spanning over half a century. He has officiated at two adult World Championships, been named the Finnish Judo Referee of the Year five times, and received the Sports and Physical Activity Honorary Cross. Kari Neuvonen's extensive contributions both in Finland and on international stages have significantly raised the standard of Finnish judo refereeing through his exemplary conduct. For decades, he has been a key role model for numerous referees, some of whom have ultimately risen to officiate at international competitions. The entire Finnish judo community can warmly and sincerely thank Kari for his unique contributions to the sport. "Thank you very much for this recognition. This came completely out of the blue," Kari Neuvonen remarked upon receiving news about the lifetime achievement award. “The highlight of my career was officiating the women’s 57 kg final at the World Championships in Rio de Janeiro in 2007,” Kari recalls. Kari sends an important message to the Finnish judo community: "First, one must build a career on the mat with bare feet and a judogi. After that, one can transition to refereeing. We have a strong demand for new referees in Finland, and I hope we will see a significant number of participants in referee courses. Veli-Matti Karinkanta is an excellent role model for young referees." ### Vuokraturva Award in Brief The Vuokraturva Award is a recognition presented for significant lifetime contributions made as part of voluntary work in a non-profit sports association. The award is given every two years to an individual who has made an extremely commendable and respected lifetime contribution to judo in Finland. The award amount is €10,000. The recipient of the award is chosen by the person who received the recognition the previous time, in collaboration with a representative from Vuokraturva. This award was granted for the third time, and the selection was made by Pasi Luoma from Tampere Judo, who received the previous lifetime achievement award, along with Timo Metsola representing Vuokraturva. For additional information: Esa Niemi Chairman, Finnish Judo Federation, p. 0400 452 400, esa.niemi@niemi.fi Timo Metsola Chairman of the Board, Vuokraturva, p. 010 2327 300, timo.metsola@vuokraturva.fi ## Blog ## Many Save Money in Suburbs for Detached House Dreams Prime Minister Matti Vanhanen strongly advocates for garden villages as a metropolitan option and bus services as an alternative to expanding the rail network and dense concrete construction around stations. I want to emphasize that these two should not be seen as alternatives to each other. The majority of Finns, according to studies, would prefer to live in detached houses, and new pleasant detached house areas are needed. Bus routes can environmentally transport those who have realized their small house dreams to work, and any missing cross-connections can be compensated for by the private cars found in every yard. In Vanhanen's vision, many of these cars could operate on electricity in the future. Acknowledging the financial realities, we cannot even think that nearly everyone could afford to live either in a detached house or alternatively in an expensive apartment in the city center. Apartment neighborhoods offer modest and affordable living that even an average wage earner can afford. It is precisely these cheaper apartments that are in the greatest demand in the capital region. Therefore, suburbs are still necessary, but when planning them, public transportation connections must be prioritized. A hemispherical metropolitan area built along the coast requires more efficient traffic arrangements than a city structure that expands evenly in all directions inland would necessitate. The challenge is further emphasized by the city center's location on a peninsula. Housing must inevitably be built further from the center than it would be in a comparably sized circular city. This requires rapid public transportation. Rail transportation is the most efficient solution, as railways do not face traffic congestion. Buses fall far behind in travel times. With radially directed lines from the center and connecting circular lines, a large land area could be reached quickly. In order to fully benefit from existing and upcoming rail transport projects, continuing links must surpass the critical point where public transportation becomes more convenient than private car use. We must dare to realize rail links so boldly that a comprehensive network is created. Surpassing this critical point is evidenced by the fact that in most major cities, the metro is by far the most used means of transport. The single investment is enormous, but on the other hand, the benefits for the entire economic region's development opportunities are also exceptionally significant. Most families dreaming of a detached house are saving for a long time for their dream in the suburbs. The journey towards realizing this dream is gradual, and society must provide the opportunities for this. If a survey were conducted among Finns to find out whether they would prefer to be low-income or high-income, nearly everyone would say they would prefer to be high-income. However, based on this, we cannot build a society solely for high-income individuals. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Tenants Unable to Move: The Investor Hit of 2017 A lease agreement with a tenant unable to move can be seen as a rent increase automation, as tenant turnover does not occur, resulting in a virtually 100% occupancy rate. However, it is clear that this is not a sign of a healthy market. Previously, investors primarily focused on the optimal apartment, although the tenant themselves may have an even greater significance. From an investor's perspective, the optimal rental property today is a small, used, and in average or worse condition apartment in a growth center, occupied by a tenant who is unable to move yet responsible. The rents of old lease agreements are increasing, as the tenant is often unable to move and has to accept rent increases. In a typical case, a tenant is unable to move if they are unemployed or a low-income retiree, and possibly have lost their creditworthiness. In the current market, an unable-to-move tenant has no practical opportunity to obtain a new apartment, so they are forced to accept rent increases that are significantly higher than inflation, even if the rent is already above the market level. The situation of the less fortunate is thus exploited in the market, leading to rising rents. In 2017, the trend for new lease agreements is likely to be that it hardly matters for the rent amount whether the apartment is new or used. For tenants, it is not essential what condition the water pipes and sewers are in, as long as clean water comes from the tap and they can take a shower without causing a flood. There is growing demand for apartments with lower rents, which is emphasized across all sizes. A lower-rent studio is more sought after than a higher-rent one. The same logic applies to large single-family homes. The number of rooms matters, not square meters. Rents will continue to rise in old lease agreements, but in new lease agreements, rents are generally decreasing. How then could the situation be resolved? The issue of affordable housing is constantly discussed. The fairness of rents could be improved with a simple solution. Obstacles should be removed so that a tenant in distress can obtain a guarantor, allowing them to move from an overpriced apartment to a more affordable one. A guarantor would encourage the landlord of the second apartment to accept the tenant despite any deficiencies in creditworthiness. A guarantor could be, for example, a financially capable relative or an organization that supports individuals in financial difficulties. The maximum amount of the guarantee should not be limited to three months' rent, as this would almost entirely negate the benefit of the guarantee. This possibility would enhance the functionality of the rental market. With guarantees, it would be possible to get rid of unreasonable rent increase automations in lease agreements, allowing the customer to vote with their feet if they choose. The functionality of the housing market would also be significantly increased by a model where one's rent could be deducted from the rental income of their owned property. This would also increase mobility in the job market, as one would not necessarily have to sell their own property but could rent it out and also move into a rental property without incurring additional taxes. Jaakko Sinnemaa CEO, Asuntosalkku Oy, Asuntosalkku Suomi Oy Our housing portfolios include nearly two thousand apartments in the metropolitan area, surrounding municipalities, Tampere, Turku, Lahti, and Tallinn. Asuntosalkku Eesti Oy invests in apartments in Tallinn and is the largest market-based landlord in Estonia. ## Blog ## Other brokerage chains do most of their brokerage work cheaper than Myyntiturva Competitors have strongly criticized Myyntiturva for charging too low a brokerage fee for selling apartments. It has also been criticized for using fixed fees. However, no attention has been paid to the fact that all these large brokerage chains carry out the majority of their brokerage work for apartment transactions cheaper than Myyntiturva. Additionally, they still use fixed fees, which are referred to as minimum fees. So where does all this fuss come from? And even claims that such fees are based on deception? The reason is that in contrast to the reasonably priced brokerage work conducted in most parts of Finland, real estate brokerage chains have had long-standing opportunities to make substantial profits in the largest cities. In these cities, selling apartments is easier than in smaller towns, but the brokerage fees are many times higher than the fixed minimum fees charged elsewhere. And this situation has now been disrupted by Myyntiturva. Many think it is natural that brokerage fees are highest in large cities. However, in fact, selling apartments in these largest cities is the easiest. The fee charged by the broker should not be based on the price level of apartments in the locality, but rather on the amount of work required to carry out the brokerage task and the associated costs. It is not the merit of an individual broker that, for example, a two-room apartment in Helsinki is more expensive than a similar apartment in Kotka, Forssa, Rauma, or Iisalmi. Therefore, the higher price level in Helsinki should not be a basis for a broker to charge a significantly higher fee for their personal work than what would be charged for the same work elsewhere. The smaller the locality, the fewer potential buyers there are, and the more work a broker has to do for each apartment they sell. In the largest cities, transaction processes are the easiest. Thus, in these large cities, it is also possible to conduct brokerage work profitably with smaller fees. If competition were to function effectively, this would be reflected, for example, in the general brokerage fee level in the capital region and other large cities. The fees could theoretically be lower than in the rest of Finland. Large brokerage chains can conduct brokerage work in small towns so cheaply that Myyntiturva cannot lower its brokerage fees to that extent. Therefore, it is not even worth Myyntiturva's effort to compete in those localities. However, in the capital region, these same chains supposedly end up charging multiple times more for the same work than they themselves charge in smaller towns, and what Myyntiturva charges for the same work in the capital region. One is reminded of the story of the emperor's new clothes. Something here doesn’t add up, but no one really dares to say it out loud. Or at least so far only a very few professionals in thinking have dared to state it. Timo Metsola Chairman of the Board Vuokraturva # Blog ## Even an Idol Has Human Rights And this entails an important responsibility for whistleblowers. INFO: The text of this blog was originally intended to be published on Saturday, August 25, 2018, in a paid full-page advertisement in Helsingin Sanomat, Ilta-Sanomat, and Iltalehti, but the editors-in-chief of all three refused to publish this advertisement. The rejected advertisements can be found at the end of the blog. Iltalehti published a modified version of the content on August 25. However, Helsingin Sanomat and Ilta-Sanomat refused to publish even that. On August 27, HS and IS apologized for the incident and stated that it was a mistake. They will publish the rejected advertisement for free in their newspapers on August 29. ## #7stopit ## You and I Are Not Better than Paparazzi – If We Read Seiska Freedom of speech and the right to privacy are fundamental values of the rule of law, and defending these rights in the work of the media is of utmost importance. Freedom of speech affects everyone, and therefore it has broad support and many guardians in society. And so it should be. However, the group of people who need protection from the destructive spotlight of publicity is small, and defenders of that group are few and far between. Moreover, those regularly in the public eye are in entirely different positions depending on their profession. For example, I frequently appear in public as a housing market expert and thus enjoy robust privacy protections. I have no worries. There would be no worries either if I happened to be, say, a news anchor, a professor, or an editor-in-chief. But if I were, say, a stage star, a top actor, or a professional athlete, my situation would be quite different. My private life, health, and relationships would be open prey to the public, even though that would be the last thing I would want for my loved ones. I would be practically defenseless. Not only information but also rumors would be sufficient material for stories with very little source scrutiny. The destruction that would arise in my private life from those would be my problem. What did I expect when I became a stage star, an actor, or an athlete? If a public figure is a politician or another significant societal power player, their private matters often have societal relevance, and there are grounds for discussing and covering them in public up to a certain point. Likewise, if any well-known individual commits a crime or is suspected of a serious crime, there may be reasons for public discourse on the matter. But merely becoming an artist or an athlete does not grant the right to rake through someone’s private life. No matter how well they perform in their work and the associated publicity. Why does this continuously happen anyway? Because you and I allow it to happen. Because we may condemn other human rights violations, but we find the trampling of these basic rights interesting enough as a form of entertainment that it becomes an exception. We need some entertainment and gossip to balance our everyday lives, after all! The situation would seem very different in our eyes if one of our own children happened to succeed in achieving their dreams, say, in a singing competition and getting a recording contract. And then their life’s most painful and difficult issues would be mercilessly paraded in public if someone leaked them. We would try to support our loved ones, but more blows would keep coming. And this could continue unabated year after year. Even though there would certainly be enough to write about those who consciously wish to bring their entire private life into the public eye. We – you and I – are good people. Human rights and equality are important to us. Nevertheless, we are no better than paparazzi when, for example, an artist or athlete faces a breakup and dares to try to keep their sorrow and despair out of the public eye. The story is uncovered and made because we have a desire to read it. Because we buy the newspaper specifically for that story instead of refusing to purchase it. Or canceling our subscription. I want to see a change in this. If you want that too, then do not click, read, subscribe, or buy. Everything depends on that. Think about school bullying. Would you participate in any way in school bullying anymore? This is adult school bullying. One suffers, others get entertainment. You have the opportunity to side with the bullied and tell the bullies to #7stopit. Together we can do this. I hope you catch on. ### We Advertisers Must Take Our Responsibility – So Must the Creators Advertisers are responsible for where they send their money. I feel ashamed and apologize for the fact that despite all the well-known injustices, I have personally decided that Vuokraturva advertisements have continuously appeared in Seiska for years. Our actions have thus not been part of the solution but part of the problem itself. We have now decided to take our moral responsibility and stop agreeing to new advertisements in Seiska. We challenge other Seiska advertisers to reflect on the matter and make their own decisions. At the same time, I appeal to Seiska's editor-in-chief, Joni Soila, to rectify the issues presented here. Also, to each employee and content creator at Aller. You can influence the matter, so do so. Come out of the closet in this matter. Additionally, I challenge the CEO of Aller, Pauli Aalto-Setälä, whom I sincerely consider a good and wise person, to publicly address how the publisher views the necessary corrections and developments in Seiska and the media landscape regarding this issue. I believe that removing the most egregious indiscretions would actually, in the long run, increase the popularity of the newspaper and site in the current value climate. I urge those who continue to read Seiska to watch for quality shortfalls and to say #7stopit whenever there is a reason. I have been touched by a very serious case of school bullying, which involved the heartbreaking indifference of former friends and adults. It made me reflect on what is wrong in our society that such a thing is even possible. It initiated a process of which this blog is an important part. As long as we otherwise responsible adults participate as bystanders in the amusement of bullying other adults for our own entertainment, how can we teach our children to act differently? I had to look in the mirror about this, and I hope you do too. Timo Metsola Chairman of the Board Vuokraturva ## #7stopit ******************************************* Helsingin Sanomat, Ilta-Sanomat, and Iltalehti refused to publish the advertisement reserved for Saturday, August 25, 2018, at Vuokraturva’s paid full-page ad spaces (here are the mock versions of the ads; the same in larger files at the blog's end): When we were informed of the rejection of the aforementioned advertisement, Vuokraturva created new content with less impact that also included marketing for Vuokraturva’s own services at the behest of the editors-in-chief. Only Iltalehti agreed to publish this material. Neither Helsingin Sanomat nor Ilta-Sanomat agreed to publish this material either. On August 27, Helsingin Sanomat and Ilta-Sanomat apologized for the incident and stated that it was a mistake. They will publish the rejected advertisement for free in their newspapers on August 29. ## Press Release ## Unsold Apartments Have High Demand in the Rental Market The continually growing supply of unsold apartments, coupled with a sharply worsening rental housing shortage, could resolve each other's issues. The quickest of those stuck in a two-apartment trap have already turned to a previously effective solution from the last recession and negotiated with their bank the possibility of renting out their old apartment while waiting for the sales market to improve. The sentiment in the housing market differs vastly from that in the rental market. The housing sale market, suffering from economic uncertainty and tightening loan conditions, has turned into an oversupply of apartments, while the rental market is experiencing a housing shortage and excessive demand. These two problems have now begun to confront each other. Some sellers have grown weary of paying interest and maintenance fees on their long-listed properties and have opted to rent out their apartments for a few years instead of lowering their asking price. "The rental market welcomes these apartments with open arms. Building new apartments is a slow way to alleviate the rental housing shortage, but a broader transition of unsold properties to the rental market could quickly ease the excessive demand. At the same time, the most extreme pressures for rent increases would also stabilize," predicts Timo Metsola, Chairman of Vuokraturva's board. An emerging group now searching for suitable rental apartments includes families who have become cautious due to economic uncertainty and who have previously sold their owned properties but do not wish to purchase a new one just yet. For more information, contact: Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: 041 5280 375 ### About Vuokraturva Oy Vuokraturva is the market leader in rental housing brokerage and investment property acquisition services. Vuokraturva leases residential properties from individuals and institutions and organizes housing for employees of the Chemicals Agency. Vuokraturva collaborates closely with the Finnish Landlords Association and the Central Organization of Finnish Renters. www.vuokraturva.fi # Announcements ## Myyntiturva Starts – and Revolutionizes Real Estate Commission Fees The market leader in rental mediation, Vuokraturva, today launches its Myyntiturva concept. A press conference regarding the launch will be held from 11 a.m. to 12 p.m. Myyntiturva revolutionizes the commission structure of real estate transactions with affordable fixed fees. These fees are only a fraction of what has been typically paid in the metropolitan area in recent years. The aim is to draw maximum attention to the excessive fees of competitors during this launch. To achieve this goal, Myyntiturva will handle all sales assignments received in May completely free of charge, meaning a brokerage fee of zero euros. Real estate agents typically charge a percentage of the achieved selling price as their commission. The long-standing rise in property prices has particularly raised brokerage fees in the metropolitan area to levels that often have no correlation to the amount of work done. There is hardly any other industry where price competition is so nonexistent. Vuokraturva has regularly criticized this issue since autumn 2009. Excessive brokerage costs reduce the number of property transactions, drive up property prices, and partly lead inexperienced private sellers to sell their properties themselves, making regrettable mistakes. Thus, excessively high brokerage fees are detrimental to the entire housing market. Recognizing this is also in the long-term interest of the real estate brokerage sector, as such pricing cannot help but affect the general public's attitude toward real estate agents. As change has not materialized despite years of effort, the market leader in rental accommodation mediation and investment property services, Vuokraturva, is now challenging the entire real estate brokerage sector by launching full-scale real estate mediation under the name Myyntiturva. The content of Myyntiturva's brokerage service is the same as that of competitors who charge multiple times more. Myyntiturva's sales brokers are experienced professionals who have successfully been in the sales brokerage field for years. While Myyntiturva's commission fees are reasonable, this does not prevent them from delivering high-quality brokerage services. They are thus content with a more reasonable margin than their competitors. The fixed brokerage fee for studio apartments is always 1500 euros + VAT (1845 euros), for two-room apartments 3000 euros + VAT (3690 euros), and for three-room apartments 4000 euros + VAT (4920 euros). The initial operating area is the metropolitan region, where the first goal is to achieve market leadership in the brokerage of studio apartments. "Thanks to the incredibly affordable brokerage fee level, our real estate agents won't spend excessive time on unnecessary valuation visits, which have traditionally been the biggest challenge in the real estate brokerage sector. Our sales brokers can dedicate their time to selling the properties for our clients. That’s what the customer pays for," states Timo Metsola, Chairman of the Board of Vuokraturva. "Despite our low fees, we must conduct sales brokerage at the same high quality level as all our other operations. Anything less would be detrimental to our reputation," Metsola emphasizes. Vuokraturva has strong experience in property transactions. "We have acted as representatives for buyers in thousands of small property transactions in recent years," Metsola continues. During the launch of Myyntiturva, the aim is to highlight the unreasonable traditional commission levels in real estate brokerage. Therefore, Myyntiturva will handle all sales assignments received in May free of charge. This complete fee exemption applies to studio, two-room, and three-room apartments in Helsinki, Espoo, Vantaa, Kauniainen, Kirkkonummi, Kerava, Järvenpää, and Sipoo. "We want to make it clear right from the start that the tide has turned in the entire industry. There will be no return to the old ways after this, and other brokers will have to respond to the change. That’s why we are detonating a bomb and starting by selling properties for free," Metsola explains. ## PRESS CONFERENCE The press conference about the launch of Myyntiturva will be held today, Monday, May 21, 2012, from 11:00 a.m. to 12:00 p.m. at Hotel Seurahuone, Kaivokatu 12, Helsinki (opposite the train station). Admission is free. ## ADDITIONAL INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva Oy, +358 9 6877 550 www.myyntiturva.fi ## ABOUT VUOKRATURVA OY Vuokraturva is the market leader in rental property mediation and procurement services for investment properties. Vuokraturva mediates properties owned by private individuals, institutions, and property investment funds. www.vuokraturva.fi ## Announcing Myyntiturva's Expansion to Oulu – Starting with Free Apartment Sales Myyntiturva has made waves in the market during its first operational year, inciting discussion and confusing competitors in the capital region. Today marks the launch of a comprehensive campaign to capture market share in other growth centers, starting in Oulu. Myyntiturva's new office in Oulu will handle all apartment sales assignments received during July completely free of charge, meaning no commission fees will apply. A similar launch campaign last year resulted in Myyntiturva acquiring over 150 apartments for sale in just ten days in the capital region. Expectations are likewise high in Oulu. The leading rental apartment intermediary and property investment service, Vuokraturva, initiated full-scale sales brokerage under the name Myyntiturva in the capital region last summer. The new concept, often labeled a market disruptor, features fixed, reasonable fees that are directly proportional to the number of rooms in an apartment. The fixed commission for one-room apartments is 1500 euros + VAT (1860 euros), for two-room apartments 3000 euros + VAT (3720 euros), for three-room apartments 4000 euros + VAT (4920 euros), and for larger apartments 8000 euros + VAT (9920 euros). Positive experiences from the capital region encouraged the decision to expand operations. The new Oulu office of Myyntiturva has now opened at Torikatu 3, with the goal of quickly claiming a significant share of Oulu's housing market. Myyntiturva aims to clearly challenge the commission structure of traditional operators in Oulu right from the start, ensuring that all sales assignments received in July 2013 are handled entirely free of charge. This launch campaign is genuinely a real opportunity for customers to avoid thousands of euros in commission fees while still having their apartment sold smoothly and at a good price. The similar campaign conducted in the capital region last year serves as evidence of this. Anyone can assign Myyntiturva to sell their apartment. However, the free campaign only applies to apartments located in housing companies, which Myyntiturva specializes in. In practical terms, this includes almost all apartment units in blocks of flats and most row and semi-detached houses. The service is similar to that of other brokerage companies. Myyntiturva markets its properties even more widely than most of its more expensive competitors. Every property for sale is marketed without additional fees on platforms such as Etuovi, Oikotie, and Jokakoti. So, what differentiates Myyntiturva from its competitors? How is it possible to operate profitably at lower commission levels? "Thanks to our significantly lower commission levels, our sales agents don’t spend much time on unnecessary appraisal visits, which have traditionally been the real estate industry's biggest challenge. A major issue in the industry is indeed unnecessary work. Our sales agents can dedicate their time to selling the apartments at hand, which is precisely what the customer wants to pay for," states Timo Metsola, chairman of Vuokraturva's board of directors and one of the concept's developers. Last summer, several leaders from competing brokerage chains implied in interviews that profitable business was not possible at Myyntiturva's commission levels. However, Myyntiturva has managed not only to operate profitably but also to continuously expand its operations. This would not be feasible if customers were dissatisfied with Myyntiturva’s service. While the performance of other brokerage firms has declined, Myyntiturva has swum against the tide. "Despite our low commissions, we must maintain the same high quality in our sales brokerage as in all other aspects of our operations. Otherwise, we would jeopardize our reputation and the overall functioning of our corporate group," Metsola assures. Myyntiturva is also a target for competitors. "Rivals try to find even the slightest mistakes in Myyntiturva’s operations to seize upon them. Thus, we have not only internal quality control but also plenty of external scrutiny," Metsola notes with a twinkle in his eye. "We know what we’re doing. There has been years of preparation behind us, and so far, things have gone according to plan," Metsola states. ## Announcements ## Myyntiturva Hits Turku – Starts Again by Selling Apartments for Free Real estate brokerage Myyntiturva, which has puzzled the industry for a year and a half, is bringing its affordable fixed brokerage fees to Turku next. The operation starts today with a bang. Myyntiturva will sell all the apartments received for sale in Turku during October completely free of charge, meaning a brokerage fee of 0 euros. Similar launch campaigns in Helsinki and Oulu have previously brought Myyntiturva around 200 apartments for commission-free sale, which means roughly one million euros worth of work has been done free of charge for customers in honor of the launch. Market leader in rental apartment brokerage and real estate investment services, Vuokraturva, started selling apartments under the name Myyntiturva in the capital region in May 2012. The key aspect of the concept, which is also labeled as a market disruptor, is the fixed affordable fees that are directly tied to the number of rooms in the apartment. The fixed brokerage fee for a one-room apartment is 1500 euros + VAT (1860 euros), for a two-room apartment 3000 euros + VAT (3720 euros), for a three-room apartment 4000 euros + VAT (4920 euros), and for larger apartments 8000 euros + VAT (9920 euros). Good experiences from the capital region encouraged the expansion of services to Oulu this July, and now it's Turku's turn. Myyntiturva clearly challenges the brokerage fee levels of traditional operators in Turku right from the start. Myyntiturva wants to draw attention to the high fees of other brokers by handling all sales mandates received from Turku completely free of charge throughout October 2013, regardless of how much time the job requires. This launch campaign has no hidden agenda; the free campaign is a genuine opportunity for customers to completely avoid brokerage fees worth thousands of euros while still selling their apartment smoothly and at a good price. Comparable campaigns that have already been carried out in the capital region and Oulu serve as proof of this. Anyone can commission Myyntiturva to sell their apartment. However, the free campaign only applies to apartments located in housing companies, which Myyntiturva specializes in. Practically, this includes almost all apartment buildings as well as most row houses and duplex housing. The service is similar to that of other brokerage firms. Myyntiturva markets its properties even more extensively than most of its more expensive competitors. Each property for sale is marketed without additional compensation across Etuovi, Oikotie, and Jokakoti. The reasonable level of brokerage fees is based on a carefully thought-out and consistent operational model. "Thanks to the affordable brokerage fees, our sales agents don't waste much time on unnecessary appraisal visits, which are traditionally the biggest challenge and time drain in the real estate brokerage industry. Our brokers can focus their time on selling the properties, which is exactly what customers want to pay for," says Timo Metsola, chairman of the board of Vuokraturva and one of the concept's originators. Several leaders from competing brokerage chains have suggested that profitable business is not possible at Myyntiturva's fee levels. However, Myyntiturva has managed to not only operate profitably but also continuously expand its operations. This wouldn't be possible if customers weren't satisfied with Myyntiturva's services. While other brokerage firms have experienced a downturn, Myyntiturva has been swimming against the current. "Despite the low brokerage fees, we must provide excellent sales brokerage. Otherwise, we endanger our reputation and the functioning of our entire business group," Metsola states. Myyntiturva has become a target for competitors. "Competitors look for even the smallest mistakes in Myyntiturva's operations to take advantage of them. So we have not only internal but also a lot of external quality control," Metsola notes with a twinkle in his eye. "In reality, our competitors also do a lot of brokerage work at comparable fee levels, especially in smaller towns and other small locations. In big cities, they stubbornly try to keep the fee level high, even though selling properties is indeed easier and less labor-intensive in major cities," Metsola emphasizes. ADDITIONAL INFORMATION Timo Metsola, Chairman of the Board, Tel. 010 2327 300 MYyntiturva IN BRIEF Myyntiturva is a part of Vuokraturva Oy, the market leader in real estate investment services and rental brokerage, specializing in apartment sales brokerage. Vuokraturva is known for its transparency and received the top spot in Aalund Nordic's traditional supplier barometer in 2013 for supplier satisfaction and in the top management category. The company is a member of the Finnish Real Estate Agents Association and an active commentator on the housing market. ## Announcements ## Sales Security Expands to Lahti The rental brokerage market leader Vuokraturva launched its Sales Security concept in the capital region in May. Affordable fixed brokerage fees immediately sparked significant public discussion, bringing hundreds of properties to the market for Sales Security and disrupting the fee levels across the entire industry in the capital area. Competitors have had to respond in some way to this challenge. Now, the operations of Sales Security are expanding to Lahti. The fixed brokerage fees of Sales Security in Lahti are the same as in the capital region, and they are very affordable even by Lahti's standards. 90 percent of the currently available two-room apartments and over 95 percent of the available one-room apartments are those where the seller saves money by listing their home with Sales Security instead of their current broker. Real estate agents handling property sales typically charge a percentage of the final sale price. The long-term rise in housing prices over the last decade has elevated brokerage fees to a level that often bears no relation to the amount of work performed. Sales Security operates with fixed brokerage fees. The brokerage fee for one-room apartments is €1845 (€1500 + VAT), for two-room apartments €3690 (€3000 + VAT), and for three-room apartments €4920 (€4000 + VAT). The brokerage fee for larger properties is €9840 (€8000 + VAT). The size of the fees corresponds to the average amount of work required to sell properties of each size category. "Selling a property in Lahti requires somewhat more work than selling a comparable property in Helsinki. However, we have calculated that we can operate with the same fees because other business-related costs are lower in Lahti," says Timo Metsola, Chairman of the Board of Vuokraturva. “We believe that Sales Security will get off to a vigorous start in Lahti as well. Throughout the summer and fall, we have received inquiries from our clients about when Sales Security will come to Lahti. We are now ready to start and bring price competition in brokerage fees to Päijät-Häme as well,” says Heidi Diov, the broker responsible for Sales Security's operations in Lahti. ADDITIONAL INFORMATION Timo Metsola, Chairman of the Board, tel. +358 9 6877 550 Heidi Diov, broker, tel. +358 41 5280 365 A BRIEF ABOUT VUOKRATURVA OY Vuokraturva is the market leader in rental brokerage and investment property acquisition services. Vuokraturva brokers properties for private individuals, institutions, and funds investing in housing. The goal of Sales Security, which is part of Vuokraturva, is to revolutionize brokerage fees in real estate by restoring their connection to the actual workload involved. www.vuokraturva.fi www.myyntiturva.fi ## Press Release ## Sales Security Expands to Tampere – Commissions Same as in Helsinki The market leader in rental brokerage, Vuokraturva, launched its Sales Security concept in May. Affordable fixed brokerage fees have revolutionized the fee structure in the capital region. Now, the nationwide expansion of operations begins, with Tampere being the first city to join. Although selling apartments in Tampere is more challenging and labor-intensive than in the capital region, Sales Security will sell apartments in Tampere with the same brokerage fees as those in Helsinki. Real estate brokers who handle apartment sales almost invariably charge a certain percentage of the achieved sale price as their fee. The long-standing rise in apartment prices, particularly in the capital region, has pushed brokerage fees to levels that often bear no relation to the actual workload involved. Sales Security operates with fixed brokerage fees, which are based on the average actual workload required to sell an apartment. The brokerage fee for studio apartments is €1,845 (€1,500 + VAT), for two-bedroom apartments €3,690 (€3,000 + VAT), and for three-bedroom apartments €4,920 (€4,000 + VAT). Larger apartments are sold with a fixed brokerage fee of €9,840 (€8,000 + VAT). Although selling apartments is more laborious in Tampere than in Helsinki, Sales Security will not charge higher brokerage fees in Tampere than in Helsinki, at least initially. Brokerage in Tampere starts today. “We are starting in Tampere with the same fee level as in the capital region. This is facilitated by the fact that marketing costs are somewhat lower in Tampere compared to Helsinki. However, it may be that if this fee level is not sufficient to cover costs in Tampere, we will have to raise the brokerage fees slightly,” says Timo Metsola, Chairman of the Board of Vuokraturva. “Our goal is to operate elsewhere in the country with the same fixed brokerage fees as in the Helsinki area. However, maintaining this fee level will be more challenging in Tampere than in Helsinki, as the average workload required to sell a property in Tampere is higher than in Helsinki,” Metsola states. FOR MORE INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva Oy, +358 9 6877 550 www.myyntiturva.fi ## ABOUT VUOKRATURVA OY Vuokraturva is the market leader in apartment rental brokerage and investment apartment acquisition services. Vuokraturva manages the apartment portfolios of private individuals, institutions, and funds investing in real estate. The goal of Myyntiturva, a division of Vuokraturva, is to revolutionize real estate brokerage fees by restoring their connection to actual workloads. www.vuokraturva.fi ## Announcements ## Sales Security Captured a Nice Market Share in Real Estate Brokerage in 10 Days: 152 Assignments Sales Security received 152 sales assignments from the Helsinki area in the 10 days following the service launch on May 21, 2012. This strong start is important for Sales Security, as it aims for market leadership in the brokerage of studio apartments in the capital region. At the same time, Sales Security seeks to revolutionize the commission level in the real estate brokerage sector. “Our customers have found our new service and affordable fees surprisingly well right from the start,” says Timo Metsola, Chairman of the Board of Sales Security. “At this pace, we will achieve our goals by autumn.” “At least in their public comments, the management of traditional real estate brokerage chains has also welcomed us and the competition into the industry,” Metsola continues. “I believe that we, as challengers, will invigorate the entire industry and prompt movement even among traditional players. Many companies will now have to consider whether it is truly justified that selling a two-room apartment in Helsinki incurs, for example, three times the commission compared to selling a similar two-room apartment in Varkaus. I find it difficult to justify this when you consider that two-room apartments sell easier and faster in Helsinki than in Varkaus.” In correcting this inconsistency, Sales Security sees an opportunity in the market. Sales Security offers a brokerage service in the capital region comparable to its competitors, but with lower fixed commission fees. The fixed brokerage fee for studio apartments is always 1500 euros + VAT (1845 euros), for two-room apartments 3000 euros + VAT (3690 euros), and for three-room apartments 4000 euros + VAT (4920 euros). “Yes, it is possible to carry out profitable real estate brokerage at this commission level. Most municipalities in Finland are already doing so and have been for years. The commission level is distorted in the Helsinki area, but you cannot put the genie back in the bottle. Now it will change,” predicts Metsola. ADDITIONAL INFORMATION Timo Metsola, Chairman of the Board, Rental Security Ltd, Tel. 09 6877 550 www.salessecurity.fi SALES SECURITY LTD IN SHORT Sales Security is a market leader in apartment rental brokerage and the acquisition of investment properties. Sales Security brokers apartments for private individuals, institutions, and funds investing in real estate. Sales Security is a subsidiary focused on sales brokerage under Rental Security Ltd. www.rentalsecurity.fi www.salessecurity.fi ## The Collaboration between Myyntiturva and the Huom! Chain Reflects Changing Times Banks' wholly-owned real estate agency chains have long dominated the market with complete sovereignty. While their market share remains relatively strong, it is on the decline. This situation was first altered by the majority ownership of Huoneistokeskus and SKV shifting to private investors. On the other hand, competition in real estate brokerage is heating up from private chains that have never been under the control of banks. The first such company was Habita, which initially succeeded impressively last decade but later stumbled into unclear kilometer reimbursements. Next, the brokerage market was shaken by Igglo, which paved the way for bold changes but ultimately did not succeed. In the next wave came the Huom! chain, founded this decade, and the Myyntiturva launched by Vuokraturva. What ties these new forces together is their ability to find an angle on brokerage that differs from traditional bank-affiliated chains. One might ask why banks still own real estate brokerage companies at all. Certainly, property transactions are usually financed by loans, but so are car purchases, and banks do not own car dealerships. Customers compete the banks anyway, and according to industry veterans, a majority owner with a banking background is not always conducive to increasing business agility. Despite the overall decline in property brokerage due to fewer transactions, Huom and Myyntiturva are currently growing rapidly. One might imagine that they would fiercely compete and perhaps disparage each other. However, instead, Myyntiturva and Huom have announced a rather significant national partnership. From now on, Huom will handle the sales of Myyntiturva's customers' single-family and semi-detached houses. This allows us to offer our clients services that we are not specialized in ourselves, ensuring that Myyntiturva maintains close contact with the customer and keeps a close watch on their interests, particularly to ensure that everything goes exactly as it should. Myyntiturva and the entire Vuokraturva have primarily focused on rental brokerage, investment properties, and the sale of shared apartments. In contrast, the Huom! chain is very strong in the sale of semi-detached and single-family houses. With the collaboration of these two rapidly growing players, much more can be achieved than through mere one-dimensional competition. Both represent change and transformation in the industry. This shared ethos aims to accelerate the industry's evolution together. Timo Metsola Chairman of the Board Vuokraturva ## The Story of Myyntiturva In 2009, Vuokraturva had an important investor-client who wanted to sell over a hundred small apartments in the Helsinki area at once. These were single and two-room apartments, which were in high demand on the market, and the task was deemed easily achievable. Vuokraturva held a competitive tender for real estate agents with the aim of obtaining a good offer for the client regarding the commission fees. Although the sale of small apartments was booming, with many being sold even before the first showing and often for a higher price than the asking price, the received commission offers only included discounts of 10-15 percent off the listing prices. This meant the client would have to pay an average commission fee of around ten thousand euros for each apartment. Vuokraturva considered this completely unreasonable and ultimately, frustrated by the cartel-like situation, decided to sell the apartments themselves for a fixed commission of 1500 euros + VAT per apartment. The apartments sold quickly, the prices were good, the client was satisfied, and Vuokraturva made a decent margin even at this commission level. Timo Metsola, the chairman of Vuokraturva's board, publicly discussed this as a cautionary and illustrative example of how far the commission fees for small apartment sales had detached from the actual workload. Headlines followed, but nothing changed. The sale of the apartments was supposed to be a one-time project, but soon they began receiving inquiries from other Vuokraturva clients who had properties they wanted to sell. Consequently, Vuokraturva initiated a small-scale pilot project, selling the apartments of private clients as well. This continued until the two-year pilot period was completed, and in the autumn of 2011, it was time to evaluate the results of the pilot. The observation was that with a fixed reasonable commission, they surprisingly achieved a margin of about 25%. This finding was astonishing, and once again Vuokraturva brought it to public attention, highlighting that if Vuokraturva, as a rental brokerage specializing operator, could operate so profitably with such low fees as a side project, how was it possible that sales agencies could not do the same? The topic was discussed on the radio and in newspaper columns. However, other real estate agents remained silent and did not say a word about it. The entire matter was simply attempted to be buried within the brokerage sector. In the spring of 2012, Vuokraturva's leadership faced a crossroads. There were two options. Either accept that brokerage fees were high and would remain high in Finland, or actively strive to break the price level, practically by establishing a serious competitor to challenge the traditional high fee structure. After a few weeks of deliberation, they opted for the latter option, which led to the founding of Myyntiturva. Myyntiturva of the 2020s is a pioneer in electronic real estate transactions. Thanks to its virtually paperless office, Myyntiturva is more efficient, environmentally friendly, and responsible than before, without neglecting good face-to-face customer service. ### The Story of Myyntiturva's Founder Timo Metsola Please accept marketing cookies to view the content. ## Properties for Sale # Blog ## The Triangle of Fate in the Housing Market: Housing Company Loans, Real Estate Funds, and Cuts to Housing Benefits Timo Metsola The anticipated drop in interest rates is expected to revitalize the housing market, while the halt in construction is predicted to alleviate the oversupply of rental apartments. Both developments seem to be promisingly underway. However, this is not the complete picture. At the same time, a triangle of fate casts a shadow over the Finnish housing market, and the long-term effects of these three major and fateful components are only partially understood. The eventual impact of these elements will have a crucial significance for the direction of the entire Finnish housing market. ## 1. The Poor Reputation of Housing Company Loans for New Constructions and the Construction Quandary The large housing company loans for new constructions created a boom that ended with the rise in interest rates in 2022. This changed situation drove housing construction into a hangover phase, where the bottleneck is the same housing company loans that previously heated the market. The sales and construction of new apartments have almost come to a standstill. The entire industry is at a loss and in crisis. It even feels as though there is no solution to the situation because the knot is so tight. Those who own existing housing stock in desirable locations are benefiting from the decline in housing construction. The longer the new construction remains in limbo, the more likely a housing shortage in growth centers will occur by the end of the decade. Two blogs from 2024 discussing housing company loans and the construction dilemma: https://www.vuokraturva.fi/medialle/blogi/asuntorakentaminen-ei-lahde-liikkeelle-koska-silla-ei-ole-uutta-suuntaa-mihin-lahtea https://www.vuokraturva.fi/medialle/blogi/uusien-asuntojen-isot-taloyhtiolainat-jumittavat-kauppaa-ja-rakentamista-edelleen ## 2. Capital Flight from Open Real Estate Funds in a Challenging Market Situation The situation of real estate funds that intensified around the turn of the year seems to have caught some by surprise. However, it was not a surprise in the truest sense, but rather an inevitable outcome and, in that sense, only a matter of time. The structural fundamental problem of open real estate funds is that they promise better liquidity for fund investments than the properties held by the funds can provide. Real estate markets have always been cyclical and will continue to be so. On sunny days, investors can withdraw their money from open real estate funds without issues, but there are typically few redemption requests during good times. In a poor market situation, however, there tend to be many redemption requests, but then the realization of the properties held by the fund becomes challenging, and selling prices are weak. As a result, investors cannot easily access their money from the fund, which seems to have come as a significant surprise to many. It is evident that it has not been sufficiently emphasized in the sale of fund investments that, in a weak market situation, investors' funds could be tied up in the fund for a long time. Those who can seek to purchase the housing stock owned by the funds under favorable conditions may benefit from the crisis affecting open real estate funds. A blog from 2017 anticipating the current problems: https://www.vuokraturva.fi/medialle/blogi/asuntorahastoihin-sijoittanut-saa-rahansa-takaisin-vain-jos-niita-pyytaa ## 3. The Cuts to Housing Benefits Already Made and Still Coming, Whose Resulting Demand Changes Are a Major Problem for Rental Buildings Dependent on Abundant Subsidies General housing benefits have been significantly cut in the past year. A significant change is upcoming in early August, when students will transition from the general housing benefit to a considerably smaller housing supplement within student financial aid. The substantial cuts to housing benefits will have a downward effect on rents in many rental apartments, which poses a problem for many investors relying on the continued existence of housing benefits. Investors who own housing stock aligned with the direction of these benefit cuts may benefit. In such properties where demand increases, rents may even rise. A blog discussing the changes in housing benefits from summer 2024: https://www.vuokraturva.fi/medialle/blogi/vuokralaiset-taktikoivat-ja-asuvat-vanhat-avokatiset-asumistuet-loppuun Timo Metsola Chairman of the Board Vuokraturva ## Rental Agreement Termination #### Rented Property #### Landlord #### Tenant #### I hereby terminate the tenancy agreement on this date. #### Signature Instructions for Filling in the Form: Both the tenant and the landlord can use this template to terminate the tenancy agreement. The terminating party fills in, prints, and signs this notification of termination and delivers it in a verifiable manner to the other party. The information submitted with the form will not be saved in Vuokraturva’s customer information system or forwarded on. The notice period for the tenant is one calendar month. The notice period for the landlord is three calendar months if the tenancy has lasted less than a year; otherwise, it is six calendar months. If a first possible date for giving notice has been agreed upon in the tenancy agreement, the notice period can start no earlier than that date. The landlord must provide a reason for termination, but the tenant does not need to. # Key Box Instructions ## Vuokraturva's key box is easy to use The key box is used with a personal code, which you receive from us via SMS. You can access the key box with the lock code directly from Industrigatan through a separate door, located about 10 meters to the right of the main door to Vuokraturva's office. The key box is open Monday to Sunday from 6 AM to 11 PM. The address is Industrigatan 21, ground floor, Helsinki. Are you picking up or returning keys? Read the correct instructions below. ### Picking Up Keys: 1. You have received an SMS. It indicates whether your keys are in box A, B, C, D, or E. 2. Enter the PIN code provided in the message into the appropriate box. Six digits followed by #. 3. Take the key and store it carefully. The compartment will close automatically. ### Returning Keys to the Box: 1. Remove the key fob, as you may only place keys on a key ring in the box. Do not use a plastic bag or envelope, as this may jam the box. Key rings are available in a container at the box. 2. You have received an SMS. It indicates whether your keys should go to box A, B, C, D, or E. 3. Enter the PIN code provided in the message into the appropriate box. Six digits followed by #. 4. Place the key in the compartment that opens and wait for it to close automatically. If you have any questions or need assistance, please ring the doorbell! Outside of office hours (weekdays 9 AM – 5 PM), you can call the number 010 232 7300. ## Blog ## It's Time to Clearly Define Who State-Supported Rental Housing is Intended For Whenever state-supported rental housing production is involved, we should strive to ensure that support is directed to those in need. This direction has been taken with other types of support as well. A student must regularly verify their study credits to receive student aid. The need for general housing support is also reviewed regularly. If the criteria are not met, it is now even required to repay support retroactively. The rigorous monitoring of public expenditures and the distribution of scarcity has led to a situation where it is even defined how many diapers nursing staff can change for a bedridden elderly person each day. This raises the question of whether monitoring the public purse should take precedence over humanity. In many sectors, public spending is not this strict; on the contrary. I believe there is a place for societal discussion on these lines. There are approximately 440,000 state-supported rental homes in Finland. Income and wealth data are displayed when applying for rental housing. However, once an apartment is secured, tenants can enjoy affordable living for the rest of their lives, regardless of how their income and wealth may evolve. This contradicts the principles of regular assessment of support needs followed in other forms of assistance. This issue is most clearly highlighted concerning rental properties owned by municipalities, which are common property of the citizens. International experts evaluating housing policy seven years ago stated in their impartial report that municipal rental apartments are occupied by middle-income people who do not need housing support and could afford to move into an ownership or right-of-occupancy apartment (HS 19.12.2002). At that time, it was predicted that the situation in the rental market in the metropolitan area would become nearly impossible for low-income individuals unless this issue was addressed. The unheeded report, which was aimed at voter groups, indeed anticipated the consequences that we have seen materialize in the rental market in recent years. Is it time to confront the facts now, seven years later? For example, the large mass of rental housing in the city of Helsinki and the billions tied to it do not currently alleviate the situation of households in need of social support in Helsinki's rental market as much as they could. The reason is that a considerable part of these apartments is currently occupied by financially secure families whose financial situation has completely changed over the years since they secured a municipal rental apartment. However, these affluent families do not move out to make way for those in dire need of affordable housing, quite simply because they do not have to. This obligation seems to have been removed about three decades ago. The situation could be compared to the gentlemen's agreements concerning remote cabins, where groups that have already dried their goods and rested in a cabin were obliged to yield to those arriving later and in greater need. Nowadays, it seems that the group that arrives first can keep the cabin as long as they want. This seems to reflect a broader change in our thinking. In housing policy, this "I was here first" principle cannot be considered social justice. The purpose is not to distribute lifelong golden handshakes but to facilitate living arrangements for those in need of support. A suitable assessment interval for housing needs could be, for example, five years, which would not require affluent families to move repeatedly. Additionally, a reasonable timeframe, such as two years, could be allowed to arrange for new housing. I return to the basic idea that whenever state-supported rental housing production is involved, we should at least strive to ensure that support is directed to those in need. Therefore, examining the financial situation in sectors other than municipal-owned ARA apartments would be justified. Lifelong rights to state-supported housing should not be distributed in any sector, in my opinion. Ultimately, this is about the fact that the black-and-white division between privately financed and interest-supported rental apartments is outdated. In the spring of 2008, Vuokraturva suggested that a third model, known as a middle-model rental housing stock, was needed as an intermediate category. The subsequently created middle-model interest support for the production of new rental housing is a step in the right direction, but unfortunately, it was considered a temporary step towards this direction. In connection with the reporting on the activities of the Youth Foundation, we reiterated our position (HS 10.10.2009) and called for a clearer tripartite division among genuinely nonprofit, quasi-nonprofit, and genuinely privately financed rental housing market rules. Recognizing this tripartite division would allow discussions to be held using the correct terminology. Now it is time to clearly define who state-supported rental apartments are intended for and how the targeting of support is monitored. If support is not intended to be directed toward those most in need, this should be stated openly and acknowledged. We're dealing with significant sums, and practice must align with the official truth. Conversely, if the intention is to tie support to actual need, then lifelong golden handshakes should not be distributed. Even suggesting such an idea will undoubtedly raise the blood pressure of many. Nevertheless, the grim economic outlook forces us to consider how on earth we can help those who need assistance the most while municipalities must impose significant cuts in their expenses. Timo Metsola Chairman of the Board Vuokraturva In this section, you can familiarize yourself with frequently asked questions by tenants. Do you have any questions regarding renting an apartment? **What are the responsibilities of the tenant?** The tenant's main obligation is to pay the agreed rent on time. Another key obligation is to take good care of the apartment. If there is any damage or deficiency in the apartment, the tenant must promptly notify the landlord about the damage or deficiency. This way, the parties can agree on the quick repair of the issues. If the apartment includes a yard area, the tenant is usually responsible for maintaining the yard in addition to taking care of the apartment. For example, in a detached house, taking care of the sidewalk in front of the house is also the tenant's responsibility. **What are the responsibilities of the landlord?** The landlord is responsible for ensuring that the apartment is in the condition it was presented in and that it remains in that condition, which the tenant can reasonably expect unless otherwise agreed. The landlord is responsible for normal wear and tear of the apartment. This includes items such as water and kitchen fixtures as well as built-in cabinets, unless otherwise agreed. **What is the rent payment due date?** According to law, the rent payment due date is the second business day of the calendar month of the rent payment period. However, the tenant and landlord can agree otherwise by mutual consent. Both the rent and any possible water charges are to be paid as a lump sum to the landlord's account at the specified time in the rental agreement on a monthly basis. A separate invoice for the rent is not sent. **How is the water charge determined?** The water charge is typically based on the number of occupants in the apartment, expressed in the rental agreement as X €/person/month. The amount can also be based on water consumption if the apartment has a water meter. Water charges are paid along with the rent to the landlord’s account. **Where is the parking space payment made?** Any parking space mentioned in the rental agreement is paid to the landlord's account, unless otherwise stated in the agreement. Parking spaces, laundry fees, and sauna fees ordered from the housing company are generally paid directly to the housing company. **Where is the electricity for use paid?** A separate bill for the use of electricity will be received from the electricity company. **What other costs is the tenant responsible for?** In a detached house, the tenant may also be responsible for heating and waste management costs. **Can modifications be made to the apartment?** No modifications can be made to the apartment without the landlord’s permission. If the tenant undertakes renovations with the landlord's consent, both parties should agree on the choice of materials and who will bear the costs of the modifications. It’s also wise to agree on whether any installations or purchases made by the tenant will remain in the apartment after the rental period ends and if the tenant will receive any compensation for the work done. It’s advisable to document any modifications in writing. **What changes in the rental agreement should be reported?** If there are any changes within the rental agreement's validity period, the tenant should contact the broker at Vuokraturva immediately. **How and when should termination be made?** At the end of the rental agreement, termination must be done in writing and in a verifiable manner to the landlord. For a contract that is valid until further notice, the notice period for the tenant is one calendar month. Therefore, it’s advisable to prepare the notice well in advance of the end of the month so that the landlord can receive and acknowledge the notice in good time. A copy of the termination notice should also be sent to Vuokraturva for their records. The rental agreement should also be checked for the date of the first possible termination notice commencement. A fixed-term rental agreement cannot be terminated; it binds both parties for the entire duration of the rental relationship. **How is the return of the deposit and the return of keys handled at the end of the rental period?** At the end of the rental relationship, the landlord must return the deposit to the tenant without delay, provided that all rental obligations have been fulfilled and the apartment has not incurred damage exceeding normal wear and tear. The tenant should contact the landlord directly regarding the return of the deposit. If a bank-held deposit account has been used as a security, the landlord will release the funds at the end of the rental relationship by signing the pledge statement for the deposit account, which Vuokraturva provided to the landlord at the beginning of the rental relationship. If the rental deposit has been paid to the landlord’s account, the landlord will pay the pledged funds directly to the tenant's account. The handing over of keys must be arranged separately between the tenant and the landlord. ## Announcements ## Olli Paasimaa awarded the Vuokraturva Prize for his significant lifetime work in judo The Vuokraturva Prize is an honor awarded for significant volunteer work in a non-profit sports association. The prize is given every two years to an individual who has made an exceptionally commendable and respected contribution to the sport of judo in Finland. The amount of the prize is 10,000 euros. This is a tax-free recognition award given in acknowledgment of charitable activities (Section 82, Paragraph 1, Item 2 of the Taxation Act). The recipient of the prize is selected by the person who received the award the previous time, in cooperation with a representative of Vuokraturva. The first award was presented today, September 2, 2017, and the recipient was chosen by the chairman of the Finnish Judo Federation, Marko Laaksonen, together with Timo Metsola representing Vuokraturva. The prize was awarded to Olli Paasimaa. The selection criteria state: “Olli Paasimaa from Hämeenlinna Judo Club has shown the greatest imaginable dedication to judo and the sports club over the past four decades.” For more information: Marko Laaksonen Chairman, Finnish Judo Federation, p. 040 568 4986, marko.laaksonen@judoliitto.fi Timo Metsola Chairman of the Board, Vuokraturva, p. 010 2327 300, timo.metsola@vuokraturva.fi # Blog ## Your Success is the Result of Team Play, and Never Forget It In 2013, George Clooney invited 14 people to dinner who had selflessly helped him during the early stages of his career. The surprise was great when Clooney announced that he would donate one million dollars to each of them and pay the gift taxes as well. Since the reaction to such generosity might not be easy, Clooney had a clever stipulation – if even one person declined the money, no one else would receive their sum. This made the decision easy for these important individuals, although at least one of the guests donated their million directly to charity. The story is beautiful, even if the sums involved might raise eyebrows. The gesture would still hold true even if it were a thousand dollars per person, especially if a more ordinary individual were involved instead of a world star. Ultimately, the money isn't the essential part here; it can lead thoughts astray. The story is about the fact that years later, a person still understands and remembers who helped them achieve success. They thank them eternally, meaning gratitude lasts as long as life itself. Even though expressing or receiving gratitude isn't always easy, it is all the more important. Firstly, it is the right thing to do, and secondly, it protects a person from becoming ill due to their own success. I began to reflect on my own life. When I was a shy and clumsy little boy, Olli Paasimaa saw more in me and turned me into a resilient and tough judoka. Olli's wisdom also taught me that even in the most physical endeavors, all development is ultimately mental. Seppo Myllylä continued from where Olli left off and provided me with the best possible foundations for a life in the martial arts. Adversity isn't a reason to give up but an opportunity to show who you really are. Seppo Myllylä also opened my eyes to entrepreneurship. Once my eyes were opened, Mikko Tukonen, Mikko Tiira, and Petteri Jussila taught me that in life, you can aim for big things. And then, at the perfect moment, Jari Sarasvuo entered my life at the age of 21 in a transformative way. The influence of Paasimaa, Myllylä, Tukonen, Tiira, and Sarasvuo continues to strongly resonate in my life today. In Petteri Jussila's later years, I refused to shake his hand. I received only good from Petteri in my life, but many others received treatment I couldn't accept. Nevertheless, at Petteri's funeral in 2004, I summarily expressed my gratitude for how utterly different my life would have been had the man now buried never lived. Petteri opened my eyes to the idea that, in addition to striving, incredible success is possible despite one’s background. Sadly, he seemed to lose his direction, perhaps precisely because his support network wasn't right or strong enough for him. After the mid-1990s, real estate investment became part of my life. It was thanks to Jouni Lehtinen that a penniless twenty-something began to get loans from the bank and buy a new investment apartment almost every month. Jouni understood real estate investment so well at that time that he didn’t allow my young age and thin balance sheet to overshadow what was most essential in the bank's credit assessment. That is, how skillfully I had learned to conduct real estate investments and how exceptionally good the deals I was making at that time were. Thank you, Jouni, it was an honor to be worthy of your trust. I have not forgotten my gratitude towards the Handelsbanken Pasila branch. I still have personal loans there and have served over the years as the chairman of the branch board. In the early 2000s, I had progressed enough in real estate investment and rental brokerage that the living legend of real estate investment, Antti Arjanne, entered my life. Antti's fatherly remark did not remain mere rhetoric: "Listen boy, you are just beginning. But you have the right spirit, one that I like. I am happy to help young people like you move forward." Antti Arjanne taught me how to take hold of the spiritual leadership in the industry by thinking carefully but speaking simply enough that people can genuinely understand. Antti is a master of metaphors and an exemplary figure of how a wise real estate investor positions himself correctly based on his insights at an early stage. Antti is the honorary chairman of the Finnish Landlords Association, and Jouni Lehtinen, who opened the flow of loans for me in the beginning, is now the current chairman. However, life should not be just about work; balance is needed. My youth sport, judo, has been less a part of my life these days, except for a few years spent on the board of the sport federation. I have only gone to the tatami occasionally. Much more passionately, I have trained for the past six years in veteran weightlifting under the training of Matti Vestman at Tempaus-Arena. Masa is something so exceptionally human that it is, in fact, unfair that not everyone can have him in their lives. Another significant outlet for me has been music since my youth. I thank Leila Kukkola, Timo Valve, and Matti Murto for an intense phase in the early 1990s. The diverse resurgence of the last five years, with its surprise hits, is thanks to the encouragement of Kim Kuus, Pertti Jalonen, and Sanni Kurkisuon. George Clooney's life and career have surely been influenced by significantly more than 14 people. However, he did not invite, for example, coworkers, relatives, peers, or the most entertaining socialites but rather those who had personally helped him notably on important non-work-related levels throughout his journey. I made a similar list and ended up with 15 names. If you feel even a bit inclined, I encourage you to make your own list. I conclude with words I have quietly repeated to myself for over 20 years: "Remember to be grateful." Timo Metsola Chairman of the Board Vuokraturva ## "Gratitude protects a person from becoming ill due to their own success." ## Blog ## Is the Central Banks' Inflation Target Dangerously Outdated? The European Central Bank aims to keep the annual inflation in the euro area around 2 percent. The inflation target behind the U.S. Federal Reserve's interest rates also stands at 2 percent. As a result of eight years of extreme monetary stimulus, euro area inflation was estimated at 1.5% in August. In the United States, monetary stimulus has finally brought inflation close to the 2 percent target. Against this backdrop, one could consider the central banks' actions successful. However, the unwanted side effect of extreme monetary stimulus combined with other exceptional measures has inflated bubbles in the stock and real estate markets. This phenomenon is well-known in economic history and documented with numerous cautionary examples. Deflation is poison for the economy, which is why the central banks' goal is moderate inflation. Two percent has long been regarded as such a level. It is questionable whether it is still a meaningful target, especially in the future. Artificial intelligence, robotics, 3D printing, biotechnology, lab-grown meat, insect food, solar panel technology, and numerous other megatrends seem to be significantly lowering production costs. The consequences are likely to be reflected in decreasing consumer prices. The increasing prevalence of electric vehicles and the urgent need to address unbearable maritime transport emissions are likely to gradually reduce oil consumption, which is unlikely to raise oil market prices. In light of this outlook, it could be thought that 2 percent inflation might not be seen in the future without strong monetary stimulus, even if economic growth were robust. Strong economic growth coupled with strong monetary stimulus creates a pair that could justifiably be viewed as a risk to economic stability due to bubble risks. An important question for both the euro area and the United States is whether a target inflation rate of 1% or even 0.5% might be more appropriate for the central bank than 2% going forward. Considering the challenges associated with the global price competitiveness of these two economic zones, it is hard to understand why it would be particularly desirable to pursue an annual inflation rate higher than 1 percent. We have seen how bubbles in the stock and real estate markets can damage the global economy in ways that may take decades—or longer—to recover from. Additionally, in the fall of 2008, we came close to a collapse of the Western monetary economy, the possible consequences of which are beyond the comprehension of common sense. They can be exaggeratedly imagined on the same scale as the devastation of a global nuclear war. Although under normal circumstances the level of interest rates would only relate to rather dull economic news in the eyes of the general public, central banks wield power in deciding them, which can, in extreme situations, undermine the very foundations of society. Considering the rapid development of technologies that could revolutionize productivity, one might envision a functioning interest rate policy where the inflation target is in the range of half to one percent. In this case, accelerating or curbing economic growth and the value of investment assets would be even more central factors in decisions regarding interest rate levels. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Are there too many small apartments in Helsinki or too few? Housing influencers and political decision-makers will discuss the structure and appropriateness of Helsinki's housing stock on Thursday, September 24, from 11:30 AM to 1:00 PM. The event will be held in Porthania lecture hall 673, 6th floor, Yliopistonkatu 3, Helsinki. The event is free of charge for the public and the media. The discussion will be initiated by Housing Minister Jan Vapaavuori. The following individuals will participate in the discussion: Risto Rautava, Chairman of the Helsinki City Board Otto Lehtipuu, Chairman of the Helsinki City Council Tuomas Rajajärvi, Director of the Helsinki City Planning Department Tarja Kantola, Chair of the Tenants' Central Association and Member of the Helsinki City Board Erkka Valkila, CEO of Sato Timo Metsola, Chairman of the Board of Vuokraturva The event will be hosted by Juha Salmi. The audience will have the opportunity to ask questions to the discussants. Date Thursday, September 24, 2009, from 11:30 AM to 1:00 PM. The official portion of the event will end at 12:45 PM, after which there will be an opportunity for open discussion among the audience. Location Porthania lecture hall 673, 6th floor, Yliopistonkatu 3, Helsinki Organizer Vuokraturva Oy For more information Timo Metsola, tel. (09) 6877 550 THE EVENT IS OPEN TO ALL INTERESTED PARTIES. WELCOME! ## Blog ## Students are a key group that needs and uses rental housing In Finland, it seems that there has already been a sufficient number of student housing built, but due to the concentration of study places, there are still not enough in key student cities. The Tenants' Union considers it important that municipalities continue to ensure the reservation of land for the production of student housing. Without a separate, now a Finnish success story—the student housing production system—it would be very difficult to manage the rental housing situation. Student housing foundations should be able to anticipate changes in the number of students. The age groups are decreasing in the future, but at the same time, the standards for student housing are rising. Educational institutions will also welcome more foreign students. In the future, it is important that the construction of housing for special groups takes into account flexibility, so that apartments can also be converted for other residential purposes. We view positively the unprejudiced approach of rental housing foundations in building new rental apartments in old properties. From the students' perspective, it is essential that the student city has functioning free housing markets. Private landlords' rental apartments are needed by students and those working in student cities. Students' ability to pay rent largely depends on the housing allowance that is part of their student support. According to the budget proposal from the Ministry of Education, the amount of the housing allowance for student support is 80% of the defined housing costs, and housing costs exceeding 252 euros are not taken into account. With this equation, a student cannot afford to pay high rent. However, rents are on the rise. We support the proposed change in the budget proposal that would eliminate the consideration of a student's spouse's income when granting housing allowance. Tarja Kantola Chair Tenants' Union ry ## Blog ## Students are Shaping the Year-End Mood in the Rental Market The balance in the rental housing market has improved, and the position of tenants has become easier as the number of rental apartments has rapidly increased. The actual shortage of rental housing has disappeared across Finland. In some areas, there is even an oversupply of rental apartments. Now, investors are closely watching whether students will once again relocate to study cities in the fall as they traditionally do. This migration has typically made summer the busiest time of the year in the rental market. Last year was an exception, as most educational institutions shifted to remote learning and many new students postponed their move to their study locations into an uncertain future. Due to last year's unusual circumstances, there is now pent-up demand for moving among students. If in-person classes resume in the fall, alongside new students, the previous year's arrivals will also be activated to move. For rental markets suffering from oversupply in some areas, this could provide a significant boost that landlords would welcome. Given the large number of students, there could once again be a shortage of small apartments in study cities, which would also impact the demand for larger housing units. If a student is already certain about moving to their study city regardless, they shouldn't wait until the potential confirmation of in-person classes and the subsequent rush begins for their housing search. At this stage, finding an apartment is noticeably easier, and there is a good variety of options available. Another development closely monitored by investors, alongside the situation of students, is the potential removal of previously Airbnb-listed apartments from the conventional rental market. Over the past year, these apartments have contributed to the increased supply of rental housing, and a return to temporary accommodation would alter the supply-demand dynamics in the long-term or so-called traditional rental market. However, for the time being, the return of tourism to any kind of normal situation still seems rather distant. It seems, then, that demand for rental apartments driven by students may increase, but the supply of rental apartments is unlikely to decrease. It appears that the relationship between demand and supply will remain roughly balanced even in growth centers. Strong increases or decreases in rents are unlikely, but a slight rise in rents in growth centers is possible in the latter part of the year if student housing demand rebounds. Thirdly, investors are observing new major trends in housing that will have effects extending well beyond the pandemic era. Among the significant housing trends influencing the current decade, the most noteworthy is remote work. This trend impacts housing preferences related to selection criteria and location in a way that could become a megatrend in housing in the future. The generalization of remote work may become one of the defining features of this decade. Timo Metsola Chairman of the Board ## Blog ## Support for Student Housing Collapses in a Month Timo Metsola A major change is imminent, yet students seem to remain in a deep sleep. Over 100,000 students will face a collapse in the housing support provided by the government, ranging from 21% to 44%, as August begins. The dramatic nature of this collapse is highlighted by the fact that for the majority of students, the housing support for August amounts to zero euros. Additionally, the change affects both new students starting this fall and those continuing their studies. They will have to think carefully about what kind of rental housing they can afford. Shared living arrangements are also becoming more appealing. In Helsinki, Espoo, Vantaa, and Kauniainen, full-time students studying throughout the summer will see their housing support decrease by 25% annually, while those studying normally for nine months will experience a staggering collapse of 44%. For example, in Tampere, Turku, Oulu, Lahti, or Jyväskylä, full-time students studying throughout the summer will face a 21% decrease in housing support, while those studying normally for nine months will see a 41% reduction. Below is a summary based on the data from Kela, prepared by Vuokraturva, which illustrates the situation in each municipality: Few have yet to grasp the enormity of this change. Timo Metsola Chairman of the Board Vuokraturva # Blog ## Change in Student Housing Benefits: Vuokraturva Responds to Kela's Director General's Comments Kela's Director General Elli Aaltonen responded today with a statement addressing Vuokraturva's concerns about the change in student housing benefits accelerating the unsustainable growth of housing support costs. Vuokraturva warned yesterday that the change in student housing benefits directs students away from affordable shared accommodations, which would be the cheapest option for society to support housing. The change leads students to rent studio apartments and even two-room apartments, where they can receive housing support with less difficulty and significantly more than before. At the same time, demand shifts away from large shared rental apartments, which are widely available, to small rental apartments, which are in short supply. In her statement, Director General Aaltonen noted that "Kela has initiated preparations related to the reform of social security regarding how to unify social security. One target is the consistent use of the household concept across different benefits. Ultimately, everything depends on legislators, whose will Kela implements in terms of benefits." After Vuokraturva made its warning public yesterday, Satu Hassi, the chairperson of the Environment Committee of Parliament, shared her perspective with Vuokraturva's Timo Metsola as follows: "I share your concern. The Environment Committee of Parliament noted this issue in its report and stated that shared living should not be made less attractive. Kela doesn't seem to have heeded this, and I too have thought that this will happen: students will stop renting shared apartments, leading to increased demand, prices, and rents for studio apartments." In 2016, Kela paid out housing support amounting to 1.9 billion euros, which is an 11% increase from the previous year. At the end of 2016, there were 267,400 households receiving general housing support, a record high. Nearly 860,000 individuals were covered by the housing benefits paid by Kela by the end of the year. (source: www.kela.fi/-/yleista-asumistukea-maksettiin-vuonna-2016-yli-miljardi-euroa) When discussing housing support, we are dealing with a matter of significant scale—pertaining to both the funds used from society and the number of people dependent on such support, as well as the balance of the housing market. When both Kela's and Parliament's knowledgeable and respected representatives express that the situation requires corrective measures, we need not contemplate this aspect further. Now, it is crucial to quickly and collaboratively agree with the government on how to rectify the issue. Changing legislation is slow, but fortunately, regulations can quickly and conveniently address the most glaring discrepancies. *** Finally, I would like to highlight an aspect that has not received much attention in public discourse. The conversation is now heated regarding the fact that as a result of the change, students coming into the fold of general housing support are directing their demand away from large shared rental apartments, which are readily available and where they can manage with minimal public support. Additional demand is shifting towards small rental apartments, which are in short supply and require considerably more public assistance to live in. However, it has so far received little attention that this distorting effect of general housing support, which reduces the search for affordable housing options, does not only concern students. It affects all single individuals receiving general housing support in Finland. The outdated understanding of the household concept practically prevents them from living in affordable shared apartments, even if they wish to. It is no wonder that housing support costs are skyrocketing. Timo Metsola Chairman of the Board Phone: 010 2327 300 www.vuokraturva.fi www.myyntiturva.fi Sender: viestinta@kela.fi Sent: August 4, 2017, 12:02 Kela closely monitors the impacts of housing support reform Timo Metsola, the Chairman of Vuokraturva, criticized the change in student housing support on August 3 and called for a swift revision of the household concept. According to Metsola, the change accelerates the growth of housing support costs. From August 1, 2017, students transitioned from receiving student housing allowances to the general housing support scheme. The majority of students benefit from this reform. It allows support to be more accurately targeted to those students with low incomes relative to their housing expenses. Kela is closely monitoring the effects of the legislative change on housing support and on the broader social security system through research. Different benefits have varying definitions of household that do not meet today’s needs. Several benefit laws require updating and unifying the individual, family, or household concepts as individuals move from one benefit to another. Kela has consistently raised this issue, most recently when the decision regarding students' shift to general housing support was made. Kela has launched preparations related to the reform of social security concerning the unification of social security. One area of focus is the use of a consistent household concept across different benefits. Ultimately, everything depends on legislators, whose will Kela implements concerning benefits. Elli Aaltonen, Director General Kela Sender: Timo Metsola Sent: Thursday, August 3, 2017, 9:32 Subject: VUOKRATURVA: The change in student housing benefits is downright nightmarish for the total amount of housing support to be paid. Vuokraturva Market Comments: The demand for studio apartments in the rental market is still greater than the supply. This is reflected in the rising rents for studio apartments and the fact that many tenants have to settle for accommodations that do not fully meet their needs. The abundant new construction of two-room apartments has increased the supply of two-room units in some areas to exceed demand. From an investor's perspective, renting out a two-room apartment is now generally associated with notably more uncertainty regarding realized rental levels and empty months compared to studio apartments. This has made studio apartments even more attractive investment targets and has further escalated the already high sale prices of studio apartments. Larger rental apartments are available in abundance and there are plenty of alternatives. Students transitioned from the student housing allowance scheme to the general housing support scheme on August 1. This change even doubled the support that an individual student can receive for their housing. Simultaneously, the change tightened the criteria for receiving housing support in shared apartments since roommates are often interpreted as belonging to the same household, with one person's income affecting the other person's support. Considering the concerning statements regarding the unsustainable rapid growth of housing support costs voiced by Kela's esteemed Director General Elli Aaltonen and her predecessor Liisa Hyssälä over the past year, such a change in student housing support is, in terms of the total amount of housing support to be paid, utterly nightmarish. The change in student housing support directs students away from affordable shared apartments, where housing support would be cheapest for society. It instead leads students to rent studio apartments and even two-room apartments, where they can receive housing support more easily and in greater amounts than before. At the same time, demand shifts away from large rental apartments available for shared use, focusing instead on small rental apartments that are in scarce supply. Even a rudimentary understanding of cause-and-effect relationships reveals that such a change inevitably accelerates the already unsustainable rapid growth of housing support costs. It is surprising that Kela has not seemingly attempted to ensure that the meaning of the household concept, which is still very much understood in an outdated manner in Finland, would be updated in conjunction with this change. It is in society's interest to encourage students towards affordable housing forms, where they require only a small monthly support amount. A multi-occupant shared apartment is precisely this kind of living arrangement. Living in a studio costs even twice as much as living in a shared apartment, and even more for a two-room apartment. However, the change could make it cheaper for a student to live alone in a two-room apartment than affordably in a large shared apartment. If co-inhabitants were not interpreted as belonging to the same household against their disclosed intentions, this absurd problem would be resolved. Correcting this discrepancy is critically important. Changing the definition of a household can be accomplished quite swiftly if only there is the will and common sense. I fear that otherwise this absurd situation will lead to housing support costs spiraling out of control, resulting in a subsequent adjustment to housing support being even more unsuccessful under urgency and pressure. Timo Metsola Chairman of the Board Phone: 010 2327 300 www.vuokraturva.fi Vuokraturva is the most well-known rental agent and outperforms all other rental agencies in reliability, brokerage fees, property selection, visibility of listings, website, customer service, and staff expertise. ## Announcements ## Major Change to Student Housing Allowance in August Not Yet Visible – Vuokraturva's Market Comments on Rent Statistics Release Day Market rents for privately funded housing have been developing quite moderately for a long time, and this trend continues. According to Statistics Finland, rents for privately funded apartments increased by 0.1% in the capital region and 1.4% elsewhere in Finland from January to March compared to the previous year. Rents for privately funded studio apartments remained unchanged in the capital region compared to the previous year, while in other parts of Finland, rents for studios increased by 1.3%. The highest increase in rents for privately funded rental apartments occurred in large cities, with Oulu (2.1%) and Tampere (1.9%). The most moderate development was seen in Espoo (0.2%) and Vantaa (-0.3%). Vuokraturva believes it is noteworthy that the change in Helsinki has remained near zero for the fourth consecutive time when looking at quarterly developments. Key reasons include the abundance of rental apartments and previous cuts to housing allowances. However, the most significant one-time change is still forthcoming. From the beginning of August, students will transition from general housing assistance to a housing supplement within study support. This will significantly reduce housing support for students. For example, in Helsinki, the maximum housing support for a single student during study months will drop by a quarter. Additionally, the support will completely cease during the summer months when students are not studying. For a student living alone in Helsinki who studies nine months a year, the maximum housing support will decrease by as much as 44% from the current level. Currently, a single student studying nine months a year in Helsinki can receive a maximum housing allowance of 394.10 euros per month, equating to 4,729.20 euros per year. Starting in August, the student can receive a maximum of 296 euros per month and 2,664 euros per year as a housing supplement. This is a substantial one-time change that affects all students simultaneously. Only students living with their own or a partner's child will remain under the general housing support scheme. As students receive significantly less support for housing, a larger portion of their rent will have to be covered by themselves. This inevitably increases the attractiveness of affordable housing and shifts the demand for housing. Generally, this change is expected to have a downward effect on rents; however, as demand for the most affordable apartments rises, there may not be enough to meet all needs. This increased demand could, according to the laws of supply and demand, lead to an increase in rents for the most affordable apartments. So far, the upcoming significant change in student housing has been surprisingly under the radar. In the coming summer, new students will indeed consider this change when pondering available housing options and the sufficiency of their finances. "It is difficult to say to what extent current renting students anticipate the upcoming change, or whether they will react only after they notice that they are spending significantly more of their own money on their current rent," reflects Vuokraturva's Chairman Timo Metsola. "Overall, it seems that the magnitude of the change coming for students in August has not yet been well understood," Metsola states. Since the incomes of cohabiting partners will no longer affect the amount of the housing supplement in the future, the August change will likely increase the popularity of shared living arrangements. By sharing the rent of a larger apartment, the amount each person pays will be less than in a studio. Thus, even with a smaller allowance, it may still be possible to continue living in an affordable area. For more information: Timo Metsola Chairman of the Board Phone: 010 2327 300 www.vuokraturva.fi Vuokraturva is the most reliable, well-known, and best-rated rental intermediary. (Taloustutkimus Oy) # Blog ## The Housing Shortage for Students Is Like a Taxi Queue During the Holiday Season Every year, new students rush to apply for rental apartments as summer comes to an end. News headlines lament an even worse situation than previous years, with lines at apartment viewings winding out onto the street and frustration palpable. It is true that there is a shortage of rental apartments, but this is a year-round issue. The chaos at the end of summer does not stem from a collapse in the availability of rental apartments, but rather from a fast and steep spike in demand. Although the peak in demand generated by new students is short-lived, the oversupply is so significant that unhealthy phenomena can occur. In recent years, the auctioning of rental apartments has been most talked about in relation to these summer peak problems. This is a situation where a landlord or rental agent turns into an auctioneer at an apartment viewing, trying to get as high a rent as possible. Sometimes the auctioning is completely open, while at other times it is masked as innocent. A landlord might casually mention to a group filling out rental applications at the viewing that if the apartment seems just right, they could write a proposed rent offer in the application corner. And the message is certainly received. I believe that high rents can be asked for, as long as it is done openly and the actual rent request is disclosed honestly in advance. Alternatively, a listing could include a note such as: “Starting rent is 700 euros per month, but at the viewing, offers for rent are accepted, and the apartment will be rented to the highest bidder.” This way, each applicant can consider whether they want to participate in such an auction or not. Often, getting to a specific apartment viewing may require the tenant to rearrange their work shifts. I find it unreasonable if it becomes clear only at the property viewing that, in reality, the apartment is being rented out for a rent different than what was advertised. Another glaring issue at the end of summer is apartment scammers who market properties on online real estate sites that do not actually exist. The story often goes that the landlord lives abroad and asks the desperate apartment seeker to pay a deposit to a foreign account without seeing the apartment. In reality, there is no rental apartment available, and the deposit may have been requested from several unwary applicants through the same fake advertisement. People's thoughtlessness can be astonishing. But is it really surprising if a tenant in a desperate situation cannot resist the offer of a cheap, well-maintained apartment in a prime location after having gone through numerous expensive dumps without being chosen for any of them? Previously, competition for apartments also involved agreeing to inappropriate proposals from middle-aged landlords. But fortunately, times have changed in this respect, and this perhaps most sorrowful indication of the issues caused by the mismatch between supply and demand is fading into history. Overall, the picture of the annual housing chaos is rather bleak. What can be done about it? The key is to understand that the extreme peak of the problem is indeed due to almost all new students searching for housing at the same time. The situation is like a taxi queue at a holiday party in the early morning; there are too many people out at once, and the taxi operators run out of cars. Outside of this peak in demand, getting a taxi is much easier. Two years ago, Vuokraturva suggested that educational institutions should stagger the admission of new students more broadly across the autumn and spring semesters. The few students who are currently able to start their studies in January find rental apartments significantly more easily. If one large spike could be divided into two smaller ones, the most glaring seasonal problems in the rental housing market would be solved at once. Moreover, the needs related to the timing of study start dates have generally changed from past decades. Staggering the timings of studies would serve more than just housing searches. Most conscripts who start military service in the summer now return home before the turn of the year. Last autumn, 37,000 students participating in the matriculation exams aimed for their diploma and those retaking exams took part. If the reform were implemented, those who did not succeed in spring entrance exams would no longer have to wait a year for another opportunity if they could try again in just six months. The possibility of starting studies in January would thus serve a surprisingly large number of people. At the time, then Education Minister Henna Virkkunen, then Housing Minister Jan Vapaavuori, and then Prime Minister Matti Vanhanen all publicly supported Vuokraturva's proposal. All that remained was the implementation of the proposal. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Rental Market for Students and Young Adults Severely Inflated The situation in the rental market has changed The rapid cooling of the housing market, which has been at record levels throughout the 2000s, has led to a quick increase in the popularity of rental living. Well-off salary earners, who have sold their own homes but strategically do not want to buy a new property in the current market situation, are now competing for the same rental apartments with students. From the perspective of students, this transition has partially ruined the rental market. The rents for privately financed rental apartments are sharply rising due to high demand, and there are not enough student apartments to go around. Currently, there is a record number of applicants in the queues for student apartments in the Helsinki area, with demand for all types of housing, from shared rooms to family apartments. Those seeking privately financed rental apartments through Vuokraturva in the capital region are 50% higher than normal. In Espoo, emergency accommodation has been arranged for students of the Technical University in guild guest rooms. The situation in Tampere is tight, and according to Turun Sanomat (July 30), there have been approximately half as many student housing applications in Turku compared to last summer. The situation is not easy outside the largest growth centers either. In Hämeenlinna, only one in two applicants for student apartments can be offered housing (HS July 25), and even in Pori, YH-Asunnot reports that all studio apartments have already been rented (Uusi Aika July 29). Foreign exchange students find themselves in a particularly difficult position. In Helsinki and Tampere, a system is being tested where they must pay for the summer months they will not spend in Finland. According to the educational administration office of the Helsinki School of Economics, their rents can even double (HS July 21). Where does all of this lead? The inescapable conclusion is that students will increasingly take into account the rental market situation of a location when choosing their study place. As the capital region and other large cities price themselves out of students' affordability, this may benefit universities, higher education institutions, and schools in locations where affordable rental apartments are readily available. For instance, Jyväskylä believes in the attractiveness of affordable rental housing (Ylen radio news July 17). The amount of rent may determine whether one can focus entirely on studies or must also work alongside studying. This will certainly prompt many students to reconsider their options. The steep rise in rents forces not only students but also other young adults and low-wage workers to ponder the viability of their residential locations. It can be reasonably questioned whether the current path will eventually narrow the central area of the capital region to only high-income individuals, with other workers commuting from outside the Kirkkonummi – Hyvinkää – Porvoo sector for work. This does not seem to align with the housing strategies set forth in celebratory speeches. What can be done? Currently, the housing supplement of student financial aid is not tied to any index, so despite the rise in rents, the benefits have remained stagnant. Since even inflation adjustments have not been made, this objectively means that the benefits have decreased in real terms. While increasing housing benefits is not desired to further fuel the rise in rents, the untenable position of students must also be acknowledged. Landlords cannot be declared the villains in this story either. According to Statistics Finland's data released in spring, the average rental return from privately financed rental apartments in Helsinki is 3.2%. It is important to remember that about two-thirds of privately financed rental apartments are owned by private individuals. While the average dividend yield of Finnish publicly listed companies has simultaneously been 5.4% (Kauppalehti August 4) and even bank deposits can yield returns of 5%, it is clear that the sustainability of rental apartments is at risk if rental yields cannot be increased from their current state. Part of this problem may ironically be resolved by a decrease in property prices. In this case, the calculated rental yield for investors would improve, and those able to purchase their own homes would return from the rental market back to owner-occupied living. However, the current fear of falling property prices is increasing the sale of rental apartments, which in turn exacerbates the imbalance between the demand and supply of rental apartments. Fundamentally, the roots of the problem can be traced to the short-sighted land use and housing policies in growth centers. This topic has been extensively examined in the Real Estate Journal, issue 6/2008, pages 38-41. TIMO METSOLA Chairperson of the Board Vuokraturva ## Blog ## Situation of Students in the Rental Market is Good – Now is the Time to Act if You Want an Apartment for the Fall The search for apartments by new students has intensified towards the end of July, although there are still fewer seekers compared to the summers before the pandemic. Compared to early summer, competition for the most desirable apartments has clearly tightened. It is crucial for young people to understand that a friend's experience of finding an apartment easily in June does not mean that securing an apartment in August will be equally straightforward. If one is in need of an apartment for the fall and the matter is still unresolved, there is no time to waste. The pandemic has increased remote studying, and only some educational institutions will start the upcoming fall with full in-person classes. Therefore, a smaller group of new students will move to their new study locations immediately compared to the years before the pandemic. In this situation, personalized service can be offered to apartment seekers, and there is no need to participate in mass viewings. On the other hand, for applicants who start searching too late, the absence of public rental apartment viewings can feel like a problem. As the number of available apartments decreases towards the end of August, latecomers may find it challenging to secure apartments in desirable areas, as those who acted in a timely manner are already negotiating directly with agents and landlords for their rentals. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## A Particularly Challenging Autumn for Students in the Rental Housing Market The uncertain economic situation is increasing the popularity of rental housing as a primary living option among students. The caution of new students and their parents regarding buying owner-occupied homes has increased. First-time buyers are now primarily young people who have already transitioned into stable employment and have faith in the stability of their jobs. Even the state-provided new 3000-euro support for first-time home buyers is not enough to alleviate students' concerns about the future development of housing prices and the fact that part-time jobs required by students are increasingly difficult to find in the current economic situation. Students are facing an exceptionally difficult autumn in the housing market. Vuokraturva suggests that in the future, more educational institutions should allow students to start their studies not only in the autumn but also at the beginning of the spring semester. This way, the typical autumn spike in rental housing demand would level off. The number of small rental apartments needed by students in growing urban centers has not significantly increased from previous years, despite unprecedented demand. The main problem lies in zoning, which has hindered the new production of small apartments. On the other hand, the prices of used studios and one-bedroom apartments have risen to such heights considering the economic situation that experienced real estate investors are unwilling to purchase them for rental housing. First-time home buyers are also wondering whether the timing for buying a first home is ideal when buyers are so skeptical about housing prices that the government even offers financial incentives worth thousands of euros if a young person dares to buy a first home. The belief in the future development of housing prices is further undermined by the fact that large construction companies are also hesitant to start new owner-occupied housing projects. They do not trust that there will be demand for homes at current prices in the future. Students are facing a particularly difficult autumn because the confirmation of study places causes a problematic spike in the demand for rental apartments compared to the normal situation, which is already busy. The shortage of small apartments is likely to be more broadly circumvented this year through shared housing, where students rent a larger apartment together. The affordability of larger apartments compared to small ones increases the attractiveness of communal living. The students in the best position are those whose study place is confirmed well in advance, allowing them to start their housing search early. Those searching for accommodation at the last minute may likely have to be accommodated initially on mattresses in gymnasiums, as has happened in previous years. Vuokraturva suggests easing the housing plight of students by allowing more educational institutions to facilitate the beginning of studies at the start of both the autumn and spring semesters. The overwhelming majority of educational institutions currently schedule the start of studies for the autumn. In institutions where studies can begin in January, students are significantly better positioned when it comes to securing housing. Students' housing problems intensify every autumn. A broader staggering of study starts in both the autumn and spring semesters would level out the spike in the rental market caused by new students and improve and equalize the position of students. Forecast for the development of market-based rents from July to December 2009 NEW RENTAL AGREEMENTS apartment type, annual change 1 bedroom, +3% 2 bedrooms, +5% 3 bedrooms, +1% 4 bedrooms, -4% 5 or more bedrooms, -6% OLD RENTAL AGREEMENTS apartment type, annual change 1 bedroom, +7% 2 bedrooms, +6% 3 bedrooms, +4% 4 bedrooms, +2% 5 or more bedrooms, +2% For more information Timo Metsola, Chairman of the Board, p. (09) 6877 550 Vuokraturva Oy in brief Vuokraturva is a market leader in rental apartment brokering and acquisition services for investment apartments. Vuokraturva manages the housing stock of private individuals, institutions, and investment funds. www.vuokraturva.fi ## Blog ## Students Finding Housing in Summer Easier than Usual – It's Now Easy to Get a Desired Rental Apartment July has traditionally been a busy time in the rental market as a large number of new students search for apartments at the same time. As a side effect of the high demand spike, many previous summers have seen rental prices surge and even the auctioning of rental apartments. The pandemic has increased remote studying, and as last year, only some educational institutions will begin full in-person classes this coming fall. The consequences are visible in the rental market, as a significantly smaller number of new students are moving to their new study locations right away compared to previous years. For the students moving to their study locations now, this change is good news. There’s no need to fight for a rental apartment, nor do they have to participate in mass viewings with dozens of others. Young apartment seekers can receive personalized service, and it is relatively easy to get a desired apartment in a good location. However, it is a prerequisite that their credit records are in order. About ten percent of young adults aged 20-30 have payment default markings (source: itla.fi), and for them, obtaining a rental apartment often requires a guarantee from parents, grandparents, or another financially stable close relative. At the same time that obtaining a rental apartment has generally become easier and the rental shortage has diminished, the gap between those with payment default markings and other young adults has widened. A draft law that was under public consultation in the spring suggests that payment default marks would be removed one month after the payment underlying the mark has been settled. Personally, I understand the objectives and benefits of the legislative change. However, I am simultaneously concerned that such a change could allow the already troubling debt cycles of young people to be hidden, prolonged, and worsened. To prevent that from happening, I believe the change should coincide with the planned implementation of a positive credit register. This would genuinely improve the position of young individuals suffering from small and already resolved payment defaults in the rental housing market. It would also prevent a situation where, due to a lack of information about long-term payment issues, landlords become more cautious, and an increasing number of young adults require a guarantor to secure a rental apartment. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Official Inquiry on the Scheduling of Study Start Dates Between Autumn and Spring Vuokraturva suggested in its market review on July 1, 2009, that more educational institutions should allow students to start their studies not only in the autumn but also at the beginning of the spring semester. This would help to balance the annual peak in the demand for rental housing every autumn. Vuokraturva is now requesting an official inquiry on the matter. The preparation of the inquiry should involve experts from both the education sector and housing issues. Vuokraturva's justifications are as follows: - The increase in youth unemployment provides grounds for exceptional measures, according to data published by Statistics Finland on July 21, 2009. If there is a risk that a large number of young people will be left without either a study place or a job, consideration should be given to increasing the number of admission places in educational institutions. New admissions as early as January could offer a quick solution for young "dropouts." - Vuokraturva's proposal has already gained support from Minister of Education Henna Virkkunen, Minister of Housing Jan Vapaavuori, and Prime Minister Matti Vanhanen, so there are political foundations for the inquiry. - A wider scheduling of study start times, including the beginning of the spring semester, would particularly benefit those completing their military service at the end of the year and those graduating from high school in the autumn. - Educational institutions and universities would not necessarily need to organize two annual intakes for students in the future; an alternative solution could be that some of them admit students only at the beginning of the spring semester. - The problems associated with student housing shortages and rising youth unemployment are complex, and thus there are no easy solutions. Implementing Vuokraturva's proposals would generate numerous new issues, making it necessary to assess both the positive and negative effects through a sufficiently broad expert inquiry. If relief for young people’s situations is desired already by the beginning of next year, there is no reason to delay the start of the inquiry. For more information Timo Metsola, Chairman of the Board, Vuokraturva Oy, p. 041 5280 330 Vuokraturva in Brief Vuokraturva is the market leader in rental housing brokerage and investment property acquisition services. Vuokraturva mediates housing stock from private individuals, institutions, and funds investing in housing. www.vuokraturva.fi Looking for the perfect home for you? We have a genuine desire to help. Start by exploring our available properties for sale. You can easily move forward with just a couple of clicks. ## Buy your own or rent after all? Both options have their pros and cons. If you find it difficult to choose, check out the advice from Vuokraturva’s experts, which will facilitate and expedite your decision-making process. ## Homebuyer’s Information Bank In this section, we have compiled a comprehensive amount of useful information for those planning to purchase a home. If you can't find what you're looking for, you can also contact us and ask more from our experts. We apologize, but you do not have access to this page. Homepage ## Blog ## One Million Square Meters of Vacant Office Space in the Capital Region to Aid Refugees The placement of large groups of refugees in sparsely populated areas without job opportunities is not optimal for the refugees themselves or for society. On the other hand, the capital region faces a chronic problem with old office spaces, over one million square meters of which are currently vacant. These spaces are mostly owned by pension companies, and the problematic situation has been developing since the last decade. To date, the large-scale conversion of these spaces into housing has not been successful, largely due to zoning regulations and the considerable depth of the buildings. Now, in this moment of crisis, these ready, warm, and dry spaces could unexpectedly be a blessing. If we can demonstrate flexibility and common sense rather than hiding behind regulations, a large number of people can be emergency housed in completely vacant indoor spaces instead of in poorly equipped tents heated by stoves. This can particularly be achieved in the capital region, where, after receiving asylum and work permits, there are the best chances for employment. Positions such as cleaning staff, kitchen aides in restaurants, or other similar roles, where proficiency in Finnish is not necessary, can provide them with the opportunity to become a productive part of their new homeland's society in the future. This opportunity, or the lack thereof, is crucial for independent living and integration. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Refugee Situation Transforms Badly Depopulated Areas into Strong Growth Regions At this current stage of the refugee crisis, there is an urgent search for additional emergency accommodation as those already found fill up almost immediately. Soon, the next phase of the accommodation issue will become relevant, namely finding actual housing for those granted asylum. The total number of available apartments is significant, but due to the high costs of new construction, it is not realistic to accommodate the massive influx of asylum seekers in newly built apartments. The resulting apartment turnover chains from the completion of new housing may ultimately free up apartments for refugees in the lower segment of the housing market, but this mechanism is far too slow and multi-step to address the imminent acute housing shortage faced by refugees. The only realistic and critically viable option seems to be directing asylum seekers to depopulated areas. There, housing is very affordable, and there are a substantial number of ready and vacant units—approximately 200,000. It is difficult to imagine that this possibility would be overlooked. Ideally, the majority of refugees would be placed in growth centers near potential job opportunities, but the lack of available housing inevitably limits the achievement of this goal. In practice, refugees will have to be directed to the worst depopulated areas out of a lack of alternatives, consequently making these areas unexpectedly some of the strongest growth regions. To simplify, the list of depopulated areas will shift to the top of the list of growth areas. Who would have believed this just a few months ago! This change is also very interesting from an investment perspective. In Finland, there are municipalities where a two-bedroom apartment can be purchased for 10,000 euros. We also have areas where one can buy a detached house for that price. Just a few months ago, investors showed no interest in these properties, despite their negligible cost, because there were no tenants available. If the situation suddenly changes, it could open up potentially profitable opportunities for risk-tolerant real estate investors. When examining this equation, one might envision fantastical returns, but in the long term, there is a catch in this paradise as well. The vast majority of those granted asylum will likely want to find employment in the future. Job opportunities are scarce in remote areas, so over time, the majority of refugees will likely seek to move to larger cities in search of work—just as local Finns from remote areas have done before them. The global trend of urbanization will not stop here. For example, in Pori and Kotka, vacant apartments in suburbs may encounter refugee populations— and investors—in an interesting way. Timo Metsola Chairman of the Board Vuokraturva ## Main Menu - Front Page - Tenants - Landlords - Sellers - Buyers ## Message Sent, Thank You! Go to the front page » ## Customer Service I am looking for housing: Mon–Fri 10 AM–4 PM Property Owners: Mon–Fri 8 AM–8 PM For those who have already rented: Mon–Sun 8 AM–6 PM ## Offices ##### Helsinki Office and Region Mon–Fri 9 AM–5 PM Industrigatan 21, Ground Floor 00510 Helsinki ##### Tampere Office and Region Mon–Fri 11 AM–5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Region Mon–Fri 11 AM–5 PM Mariegatan 6 20100 Turku ## Blog ## A Return to the Time When Affordable Renting Was Possible Even in Desirable Areas Seems Unlikely During the era of rent regulation, even in areas where ownership properties were extremely expensive and only accessible to the wealthy, middle- or low-income individuals or families could rent affordable apartments. The price differences between properties could be steep, but the rental price differences were relatively small. Rent regulation was abolished in the early 1990s amidst a recession. From the recovery of the recession began a rise in property prices that has continued to this day. Significant differences in selling prices between residential areas have emerged, and in the most expensive areas of Helsinki, the prices per square meter are even three times higher compared to the cheapest areas. Despite this, the differences in rental prices remained significantly more moderate for a long time. For example, just two years ago, a student studying in downtown Helsinki could rent a studio in Kamppi with a rent that was only about 15–20% higher than the rent for a similarly sized apartment in places like Kannelmäki, Tapulikaupunki, or Roihuvuori. Even a low-income student could thus live in one of the most expensive neighborhoods in the country, in areas like Ullanlinna or Kaivopuisto. This would not have been an option for ownership properties. If buying a home in Helsinki had even been possible, it would have had to be purchased at less than half the price from much further away. Rental levels, therefore, did not much reflect housing prices or their relative differences until 2006. This can be seen as a direct continuation of the situation that arose during the rent regulation era, especially as the early 2000s saw a record boom in homeownership, while the rental market experienced a quieter period. In the past year and the current year, the situation has surprisingly changed quickly. Part of the reason for this rapid shift is certainly the temporary transition to renting for financially capable households that sold their homes at a good price. Families accustomed to steep price differences in ownership properties in various areas were amazed to find rental prices in those same areas nearly on par and realized they could now choose an apartment in their dream neighborhood from the rental market, which they could not afford in ownership housing. This created spikes in demand that disproportionately increased the rental price differences between neighborhoods. The rapid growth in the popularity of rental housing has also raised the general rental levels, especially regarding new rental agreements, which is why some people have moved further away to avoid rising living costs. The surge in demand for rental apartments in the most desired and valued areas, combined with migration seeking lower rents, has in a year and a half shifted the inter-area price differences of properties to be nearly equivalent to ownership home prices on the rental side as well. Meanwhile, high demand and insufficient supply have generally raised rental levels across the board. Current market rents mean that, for example, a low-income student would no longer seek to live in Kamppi but would travel much further from a suburb to study downtown. It seems that a return to the past is no longer necessarily possible. Homeownership and renting are alternatives to each other, and in a free-market economy, it is logical that both prices and rents vary according to the desirability and valuation of the residential area. In fact, in many metropolises (e.g., New York and London), renting in the very center is relatively even more expensive than owning a home. The situation in Finland, which has long been completely different, was an extraordinary exception in the free rental market, generally only possible in countries where rents have been artificially regulated downward (e.g., Sweden). Timo Metsola Chairman of the Board Vuokraturva Oy ## The Best Investment in Real Estate is Made in Areas Where There is Little Construction – Not a Lot Review for the Year 2018 The interest in infill construction is expected to grow as urbanization progresses in 2018. Overall, there should not be large changes in the housing market in 2018. The best investment in real estate is made in areas where there is little construction – not much. First: Did Our Previous Predictions Come True? To begin with, a few words about the reviews from previous years. At the beginning of the decade, we were the only entity to predict that the right to deduct mortgage interest might decrease. The right to deduct was considered almost sacred. However, since 2012, the right to deduct began to diminish. At the beginning of 2013, we anticipated that prices for larger apartments would start to decline, and a year later, that prices for older single-family homes could drop by several percent in real terms on many areas. We were among the first to see that the sales market for apartments would practically disappear almost entirely in some regions, and that banks might no longer finance apartments in these areas in the future. These viewpoints were considered odd, and some experts deemed our thoughts even “comic.” Today, however, the idea of a long-term decline in prices for single-family homes in areas with declining populations, along with dysfunctional housing markets, is a well-known truth that is taken for granted. When looking at housing prices across the country, they have, according to Statistics Finland, decreased in real terms during this decade. Our review from last year is also interesting in hindsight. We looked at how the position of tenants would clearly improve if it were possible to take a guarantee from another person for all rental agreement obligations. This was not possible a year ago, as experts generally believed that a security and a guarantee were practically the same thing, and thus the maximum amount of security and guarantee was interpreted as equal to three months' rent. The Supreme Court made a preliminary ruling on this matter at the end of 2017, aligning with our position. The ruling allows for guarantees in accordance with our review. Looking Forward We believe that this Supreme Court preliminary ruling will be a positive development for the rental market in 2018. The ruling, in particular, boosts the position of the less fortunate in the rental market. Guarantees for rental agreement obligations could be an effective and economical way to support migration for work. President Niinistö opened a discussion about this in YLE's electoral debate. The state could guarantee rental contract obligations for those moving for work. As a result of the state's guarantee, these individuals would become the most desirable tenants even in private rental markets, thus enhancing the functioning of the job market. The guarantee would not necessarily cost the state much, as most tenants would handle their rental obligations appropriately. In our reviews, we have been surprisingly successful in forecasting the future. Below, we predict the most interesting phenomena in the housing market for 2018. Urbanization is a strong global trend. Intensification of cities through infill construction is expected to increase as the trend continues. Infill construction results in apartments that are very attractive to potential buyers for three main reasons. First, location is the most critical aspect for an apartment in the long term, and the best locations can only be increased through infill construction. Second, infill construction is carried out in pre-built environments. Functional transportation connections, schools, playgrounds, parks, and services are already in place. This makes infill construction the most economical way for cities to expand their housing supply. An apartment resulting from infill construction provides residents with easy access to existing amenities and allows them to choose from the best areas where infill construction is happening. Third, the price development of new apartments in prime locations from infill construction is more predictable and likely better than in entirely new areas. Prices have developed more favorably in established areas of growth centers than in new areas. New becomes old quickly. A new apartment area quickly turns old as a completely new building is constructed next to it. Who would want to pay the same price for a few-years-old apartment as for a completely new one built next door? In contrast, an infill construction project remains new much longer, as neighboring buildings are older and there is no competing new construction on the same scale. Infill construction can leverage the returns on an older investment property. Purchasing a small apartment in a prime location years ago has been a small jackpot for investment purposes. Infill construction could turn that into a Eurojackpot win. When repairs are needed, you may not have to pay much for them, or if you can benefit from infill construction, in the best-case scenario, you might even be able to exchange an old one for a new one. Our analyses indicate that an old apartment is a better investment than a new one for three main reasons. 1. Rental yields are higher for older apartments than for new ones because the rent difference between an old and new apartment is smaller than the price difference. 2. Price development is likely better for older apartments. Studies comparing price development of apartments in new areas to those in older ones support this. New is new, but all others are more or less old. Old apartments, regardless of their actual age, fundamentally belong to the same category of old apartments. A new apartment first becomes somewhat new and then old. Thus, a new apartment falls out of the novelty category until it becomes old, which weakens price development for new apartments. After old apartments, there is only one positively developing category – ancient. 3. There is much known information about old apartments and their surroundings. An old apartment is situated in a built environment, which is usually located in better locations than new areas. It is also rare for an old apartment to involve a large shareholder, such as a real estate fund, which can exert considerable influence and whose operations may be unpredictable. It's also worth remembering that owning an old apartment may include options for infill construction through the housing company. However, there are also dark clouds in the housing market. Even in the capital city region, there are apartment buildings that can no longer receive loans from banks because the amount of loans is already too high in relation to the value of the apartments. We believe that this will become an increasingly debated issue and problem in 2018. Repairs are unlikely to be made if the housing company cannot obtain loans from the bank, as repairs would need to be paid directly by the shareholders. Many shareholders might not have this possibility. The situation is dangerous. It is better for property buyers to purchase apartments from housing companies with little or no debt. In our view, the importance of the amount of debt a housing company has will significantly increase the attractiveness of an apartment. In Sweden, apartment prices have started to decline. It is noteworthy that prices have decreased more in Stockholm than elsewhere in Sweden. It is often assumed that housing prices will hold up best in Helsinki and other growth centers during market fluctuations in Finland. However, this is not statistically correct. If housing prices in Finland begin to decline, it is likely that prices will drop most in areas with the highest prices. For example, in Helsinki more than in Varkaus, and in Ulaanlinna more than in Malmi, even though the opposite is generally believed. The decline in apartment prices in Sweden is a good example of this. Regarding rental markets in growth centers, we see a balanced situation. We believe that the rents for new rental agreements for studios will remain stable or increase slightly. In terms of studios, demand and supply are generally balanced at this time. For two-room apartments and larger, the supply of rental apartments exceeds demand. However, as rent levels are already moderate, it seems that new rental agreements will remain roughly at the current levels, with the exception of new and newer two-room apartments in new areas, whose rents will decrease slightly. This is due to a significant number of new two-room apartments being completed in certain areas during 2018. In previously concluded rental agreements, we will continue to see rent increases that are not based on market conditions but on the rent increase clauses documented in those agreements. The views expressed in this review are likely under baseline scenarios. Therefore, the outlook for the housing market in 2018 is expected to resemble that of 2017, and no major changes should be anticipated. Instead, a powerful situation-changing black swan could come unexpectedly if there are drastic changes in the world economy, the Eurozone, or the Nordic countries. Helsinki, February 2, 2018. Jaakko Sinnemaa CEO, Asuntosalkku Oy and Asuntosalkku Suomi Oy Through our real estate portfolios, we own nearly two thousand apartments in the capital region, suburban municipalities, Tampere, Turku, Lahti, and Tallinn. Our properties are located in nearly 750 different housing companies and properties. Asuntosalkku Eesti Oy invests in Tallinn apartments, making us the largest market-oriented landlord in Estonia. ## Commuting is an Effective Tool Against the Disadvantages of High Rents and Prices The HSL ticket price reform on April 27, 2019, removed the significance of municipal borders in the pricing of public transport tickets in the metropolitan area. Previously, the pricing was based on municipal boundaries. Now, the new zones are based on actual distances. This makes commuting across the borders of metropolitan cities easier and serves effectively as a remedy for the issues posed by the soaring rents and prices in the most desirable areas. There are 50 train departures daily from Hämeenlinna. The journey to Pasila takes 59 minutes, and to downtown Tampere, it takes 41 minutes. The rents, prices, and availability of apartments in this green small city are incredibly attractive compared to Helsinki and Tampere. Nevertheless, commuting times hardly differ from internal travel times within the metropolitan area during peak hours. One partner can work in Tampere, while the other works in Helsinki. Statistics Finland today released fresh information on the high cost of housing rents. However, it also highlighted how much rents decrease when one moves slightly away from the hottest demand areas. Distance affects rents and prices more than what the actual commuting times in everyday life might suggest. Urbanization is currently very rapid in Finland, threatening the vitality of medium-sized cities. We have repeatedly warned about this. Growth is only in the largest centers, where the level of living costs poses a significant challenge. This cannot be resolved solely through new construction, as the costs of new building are so high. To assist, we need convenient and quick public transport connections that facilitate commuting. This aspect has recently been somewhat forgotten in public discussions. The desire to live close to one’s workplace is undeniably increasing, especially among families with children. However, it must not be forgotten that, firstly, this change in preferences does not apply to everyone but clearly to a specific segment of households, and secondly, especially in the metropolitan area, the idea of relocating closer to work is financially realistic only for some families. So why is there so much room for improvement in utilizing the opportunities that commuting offers? One might think that commuting times and costs create a kind of smooth circles in the water. In reality, fast, relatively affordable, and ecological rail transport creates surprisingly good commuting opportunities even from quite far away. However, how little these opportunities are currently reflected in the housing market becomes equally evident when comparing cities in the metropolitan area or when comparing areas along the railway line between the capital and Tampere. It is true that living in the most desirable areas of the largest growth centers has become relatively expensive in Finland compared to international standards. At the same time, it is true that one can cut housing costs by about half from that level and still live at a reasonably commutable distance, especially by international comparisons. Naturally, this is just one perspective on housing costs. However, it is one that should not be overlooked. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Major Changes to Student Housing Support on Friday In two days, on Friday, a significant change will occur, impacting approximately 150,000 students, as their housing support will collapse. Conversely, around 50,000 students will see an increase in their housing support. The hardest hit will be students paying high rents for single apartments. Many students living with a working partner or roommate will benefit from the change, as their housemates' income will no longer affect their own housing support. The demand for the most affordable housing solutions is expected to rise due to this change, and because of insufficient supply, rents for the cheapest studio apartments may increase. As cheap studios are not available for everyone, the popularity of shared living arrangements will likely grow. At the same time, the demand for two-room apartments that do not require passing through the other room to access the kitchen or bathroom is expected to increase, as they are suitable for two roommates living together. The demand and rental rates for expensive studio apartments will trend downward. Almost all students will transition from general housing support to the housing supplement within student financial aid, which must be applied for separately and can only be received for the same months as the student aid itself. Therefore, the majority of students' housing support from the upcoming August will be €0. Not all students will be affected by this change. Students living with their own or their spouse's child will remain under general housing support. Although the housing support will decrease for most students, the amount of the housing supplement within student financial aid is easier to predict, as the criteria for determination are simpler than those for general housing support. www.kela.fi/opintotuki-asumislisa#kuinka-paljon-voit-saada New students starting their studies in the fall have taken the change into account well, as they sought more affordable housing this past summer. Conversely, students who began their studies earlier have not yet sought to update their housing situation or switch to more affordable apartments. There is a risk that the situation regarding housing applications will become congested later, making it challenging to find affordable housing for everyone concurrently. "It seems that the downgrade in housing is not appealing to students. Surprisingly many plan to address the challenges brought about by the support change by taking out more student loans. However, I don't believe that paying rent with debt is a sustainable solution in the long run. It may work for a few months, but eventually, the practicality of moving to a more affordable apartment will likely take precedence," says Timo Metsola, Chairman of the Board of Vuokraturva. "Many would like to work more. However, with part-time jobs being scarce right now, increasing one's income is not easy for students," Metsola says. In previous decades, it was quite common for students' parents to buy apartments where the studying young person would live. "The housing market is currently a buyer's market, and property prices have decreased. It's possible that living in an apartment owned by one's parents will become a bit more common again. However, in such cases, one can only receive a housing supplement of up to €83 per month. If finding a suitable apartment becomes difficult, we might see a resurgence of this phenomenon," Metsola speculates. For more information: Timo Metsola, Chairman of the Board, p. 010 2327 300 ## News ## Rent for Small Apartments Rising Rapidly in the Capital Region The rent for privately financed studio apartments and small two-room apartments has increased exceptionally quickly in the capital region over the summer. In the most popular areas, the rents for small apartments have risen by as much as 10 percent since spring. The summer was very active in the rental market in the capital region. The increasing demand for rental apartments is due to rising interest rates, which have made renting more attractive compared to home ownership. According to Vuokraturva's statistics, demand exceeding supply has accelerated rent increases exceptionally quickly. Vuokraturva also warns that rent increases may continue in the fall due to the demand spike caused by students. The increase in rents has been fastest in the city center and along the metro line. The growth of rents for larger two-room apartments and bigger properties has been more moderate, but the rise in rents for small apartments is likely to have a ripple effect on the entire stock of privately financed rental apartments in the capital region over time. The rapid impact of increasing demand on rent levels is essentially a result of an insufficient number of rental apartments in the capital region. The problem is exacerbated by the fact that some of the rental stock no longer meets the current requirements of apartment seekers in terms of condition or location. This contributes to extremely competitive conditions for quality rental apartments. For more information: Timo Metsola, Chairman of the Board, tel. 041 5280 334 Vuokraturva Oy in brief Vuokraturva is a market leader in rental brokerage for apartments in the capital region. Vuokraturva rents out residential properties owned by private individuals and institutions and works closely with the Finnish Landlords Association and the Central Union of Tenants in Finland. www.vuokraturva.fi # Press Photos ## Timo Metsola, CEO, Chairman of the Board, Vuokraturva Oy Download timo-metsola-pressimage-1-2023.jpg (3150 × 4724) Download timo-metsola-pressimage-2-2023.jpg (3150 × 4724) Download timo-metsola-pressimage-3-2023_0.jpg (3150 × 4724) Download timo-metsola-pressimage-4-2023_0.jpg (3150 × 4724) Download timo-metsola-pressimage-5-2023.jpg (3150 × 4724) Download timo-metsola-pressimage-6-2023.jpg (1715 × 2341) Download timo-metsola-pressimage-7-2023.jpg (1745 × 4722) Download timo-metsola-pressimage-8-2023.jpg (689 × 991) Photographer: Meeri Utti ## Privacy policy Vuokraturva Oy is a company that provides rental agency services and property investment services. This privacy policy applies to the processing of personal data belonging to Vuokraturva's customers, such as landlords, rental property applicants, property sellers, and property buyers, as well as personal data processing that complies with the principles of the Whistleblower Protection Act regarding whistleblowing reports submitted via Vuokraturva’s internal whistleblowing channel. We will set out the following below: - our contact details - what kind of data we collect - where the data is collected from - for what purpose the data is collected and the legal basis for processing data - how long the data is stored for - to whom data is disclosed and transferred - how we protect the data - what rights the data subject has We kindly request that you read the content of the privacy policy carefully. #### 1. CONTACT DETAILS Controller: Vuokraturva Oy Business ID 1543822-4 Teollisuuskatu 21, ground floor FI-00510 Helsinki Person in charge of data file matters: Timo Metsola telephone +358 (0)10 2327 300 timo.metsola@vuokraturva.fi #### 2. DATA CONTAINED IN THE DATA FILE The following basic information will be processed for all data subjects: - The data subject's basic information, such as their name, address, language, age, telephone number, e-mail address - Permissions and restrictions, such as direct marketing consent and restrictions - Areas of interest and other information electively provided by the data subject - Event data - Personal ID number for reliable identification - Data concerning whether the person is a politically exposed person ("PEP") - Data relating to invoicing and debt collection - Data relating to the customer relationship and contractual relationship, such as products and services, their date of use, relevant customer wishes, service salesperson details, data concerning the number, type and purpose of keys, reception and handover, and service-related contact and events With regard to landlords and property sales, the following will also be processed in addition to basic data: - Ownership relationships and data concerning the property to be leased or sold, such as address, property register or housing company data, condition and renovation data, mortgage, maintenance payment and debt data, size, number of rooms, vacancy date, asking rental or sales price, data on whether the site is meant to be used by spouses as a shared home, and additional information about the site provided by the customer For tenants, relocation service users, and rental property applicants, the following information will be processed in addition to basic data: - Employer - Nature of employment relationship (agreement for an indefinite term, fixed-term agreement) - Student status, educational establishment, training programme - Property search criteria - Date on which the tenancy agreement begins - Financial data and income, as well as other information relating to the assessment of rental solvency - Any security, guardian or representative relationship or contact person In addition, we may process other data provided electively by the data subject in connection with their application or other contact. We also observe data on the use of our online services as outlined in section 10, “Cookies”. We do not combine data observed through cookies with data on an identified customer. In addition to basic data, the following are processed in connection with reports submitted via Vuokraturva’s internal whistleblowing channel: - Information provided by the whistleblower to the whistleblowing channel, to the extent required in order to investigate the case. #### 3. REGULAR SOURCES OF DATA Personal data is collected at registration, when services are used, or otherwise directly from the data subject. Personal data may also be collected and updated using the population register and a register of restrictions maintained by Suoramarkkinointiliitto, and other corresponding registers. #### 4. PURPOSE OF PERSONAL DATA AND LEGAL BASIS FOR PROCESSING DATA Personal data is used to take care of, manage, and develop the customer relationship and to market services as set out below: - **Agreement**: In order for us to carry out a rental or sales commission, we process our client's personal data in order to present and market a site, to match a landlord with a tenant or a buyer and a seller, and to invoice for the commission. Personal data is also processed in applications, offers, counteroffers, and in sale and rental documents and their appendices as part of contractual negotiations. - **Consent**: We request consent to process the personal data of a rental property applicant or buyer of a property in order to e-mail the applicant information on properties which have recently become available. We may also request the customer's request for direct electronic marketing. Consent can be withdrawn at any time. - **Legitimate Interest**: We process data for marketing, profiling, preventing and investigating fraud and misuse, to advance or defend legal claims, and for internal purposes within the Vuokraturva group, such as for developing business operations. These purposes are necessary for our business operations and are justified based on the business relationship between the customer and Vuokraturva and are therefore in our legitimate interest. The data subject may oppose processing as set out below. - **Statutory Obligation**: We process data on whether our customer is a politically exposed person, or "PEP", in order to adhere to what is known as the money laundering act. We store receipts and other correspondence relating to business transactions for six years from the end of the calendar year during which the financial year ends, in order to adhere to the Accounting Act. For example, the processing of personal data in the aforementioned situations is based on adherence to a statutory obligation. If so caused by other factors highlighted in this privacy policy, the storage time may be longer than stated in this section. The forms used to collect personal data specify separately the data that is mandatory from a service provision perspective and the data that the data subject can provide electively. For example, the customer may prefer not to provide information on their interests, but this then means that we are unable to customize sites offered to the customer or any other service offered. #### 5. DURATION OF DATA STORAGE We store the customer’s/user's data for as long as necessary to fulfill the purposes defined above and to comply with legislative requirements: - Section 10 of the Act on Real Estate and Rental Agencies (Välitysliikelaki 1075/2000) stipulates that agencies must store the data and documents (including apartment applications and purchase offers) relating to a commission for five years after the commission ends. The aforementioned five-year storage time is a legal minimum requirement, and we store data and documents for 12 years. This is because the limitation period for tort liability is 10 years, and we wish to account for the duration of processes that may begin towards the end of the limitation period. - We store data relating to the Relocation service for 12 years due to the 10-year limitation period for tort liability and to account for the duration of processes that may begin towards the end of the limitation period. - For reports submitted via Vuokraturva’s internal whistleblowing channel, we retain data for the period required by legislation. Vuokraturva’s internal whistleblowing channel is called First Whistle and it runs on Juuriharja Consulting Group’s server. The user may also influence the length of the data storage period as set out in section 8 below, which outlines the data subject's rights. #### 6. DISCLOSURE AND TRANSFER OF DATA The Vuokraturva-yhtiöt group: We may process customers' personal data within the Vuokraturva-yhtiöt group. - **Authorities**: We may disclose customers' personal data in a manner required by demands from competent authorities or other parties, but nevertheless in a manner that conforms to valid legislation. - **Business reorganization**: If we buy, merge or otherwise reorganise our operations, customers' personal data may be disclosed to the buyer and their negotiators. - **Measurement and targeting**: We may use the customer's personal data to measure and target digital marketing in accordance with valid legislation. - **Debt collection and legal claims**: We may disclose personal data to third parties if it is necessary to implement the agreement, investigate possible criminal offences or compile, present, or defend a legal claim. In addition to staff at Vuokraturva Oy, Vuokraturva-sopimus Oy, Takausvakuus Oy, and their parent company Vuokraturva-yhtiöt Oy, IT partners City Dev Labs / W3 Group Finland Oy, Jalo IT Oy, and Cinia Oy also have access to customer data and customer information systems, as do their members of staff for whom access is necessary to perform their duties. - Concerning Vuokraturva’s internal whistleblowing channel, Juuriharja Consulting Group Oy, which developed the service, processes the personal data - such as name and contact information, technical data relating to software, and other personal data that can be linked to a natural person - of Vuokraturva Oy’s main users and whistleblowers (“Data subjects”) as part of its obligations. Whistleblowers may also save other people’s personal data in the Whistleblowing channel. In its role as platform provider, Juuriharja acts as the processor of the personal data as meant in the GDPR, and Vuokraturva acts as the Controller of the data in accordance with data protection legislation. Any subcontractors used by Juuriharja to provide the service will act as Subprocessors. When using the aforementioned and other subcontractors, we guarantee through contractual arrangements that the data will be processed in accordance with valid legislation and this privacy policy. Data is not regularly disclosed outside of the European Union or the European Economic Area. #### 7. CHECKS OF LISTS OF FINANCIAL SANCTIONS AND FROZEN FUNDS PLUS PREVENTION OF MONEY LAUNDERING AND TERRORIST FINANCING The collected identification data and other personal data are used to check lists of financial sanctions and frozen funds. The collected identification data and other personal data may be used to prevent, detect and investigate money laundering and terrorist financing. The collected identification data and other personal data may be used to investigate money laundering and terrorist financing for criminal investigation and such crimes as were committed to gain the assets or proceeds of crime subject to money laundering or terrorist financing. #### 8. PROTECTION OF THE DATA FILE The right to access the data file requires user credentials assigned by the main user of the customer database. The main user also specifies the user access level set for users. A personal password is required to initialize the application. The use of the data file and logins to it are monitored. Data is collected into the service's shared databases which are secured by means of firewalls, passwords, and other technology. The databases are located in locked spaces and only persons specified in advance are allowed to access the data. Only personnel with access to the data are permitted on Vuokraturva Oy's premises, where the data is processed and stored. #### 9. RIGHTS OF THE DATA SUBJECT - **Checking, rectifying, transferring, and erasing data**: The customer has the right to check the personal data stored about them. At the customer's request, we will rectify, supplement, or erase data that is erroneous, incomplete, or obsolete with regard to the purpose of processing. The customer may also have the personal data that we process automatically on the basis of consent or an agreement transferred by contacting our customer service. - **Right to oppose and restrict data processing**: The customer can oppose data processing based on legitimate interest on grounds relating to their personal situation. For example, in such cases processing will be restricted for a period while the grounds to oppose processing are assessed. Processing can also be restricted if the customer disputes the accuracy of personal data, whereupon processing will be restricted for a period while we ensure the accuracy of the data. - **Withdrawal of consent**: The customer can withdraw its consent at any time by contacting our customer services or through another separately available method. - **Right to complain**: The customer has the right to make a complaint to an authority if it deems its data to have been processed in a manner that breaches this privacy policy and valid legislation. Authority contact details can be found at the address www.tietosuoja.fi. Please click here if you would like to block Vuokraturva Oy's electronic direct marketing. Please note that the objection to direct marketing also applies to the search alert. This means that you will be unable to receive emailed information about rental properties that meet the search criteria selected for your search alert. #### 10. COOKIES The Vuokraturva.fi website uses cookies. The website sends a cookie – a small text file that is saved on the user’s terminal device – to the user’s browser. Most Internet browsers automatically accept cookies, but you can choose to edit your browser’s settings and disable cookies at any time. You can change your cookie settings on our website using the CookieHub cookie acceptance service. You can choose which cookies to accept and which to reject in the pop-up window. You can change your selection at any time using the “Cookie settings” menu at the bottom of the website. The website uses both temporary session cookies, which close when you close your Internet browser, and permanent cookies, which are saved on your terminal device. Cookies help to ensure the site runs correctly from a technical standpoint (necessary cookies). Cookies can help us to use data obtained from cookies to calculate e.g., the number of browsers visiting our website and use this data to analyze site use through e.g., statistical monitoring. They provide us with the opportunity to review and monitor what interests our users, and thereby develop our website. All collected data is anonymous, and it is not possible to link actions performed online to a certain individual. Advertising cookies help us to choose the best and most interesting advertisements for you and to target advertisements to the right audience. Some third-party providers may also use cookies or web beacons (single pixel image files) so that you see advertisements of your preference when you visit different websites. More detailed information about the use of cookies is available by clicking the “Cookie settings” button. The data collected using cookies does not provide us or third parties with any personal data, such as your name or contact details. Third-party advertisers may use technology that measures the efficacy of advertisements. To this end, they may use web beacons (e.g., single pixel GIF files) that are placed on our website to collect anonymous data. Having obtained anonymous data from user visits on this and other websites, advertisers may design advertisements for products and services that might interest the user. ## Blog ## Permanent Decline in Housing Prices Threatens Medium-Sized Cities – Helsinki Requires Mini-Apartments for Transition to the Capital The permanent decline in housing prices threatens not only sparsely populated areas but also medium-sized cities. Helsinki and the wider capital region, on the other hand, need mini-apartments as a stepping stone for moving to the capital, so that the price of the most affordable housing option does not become unsustainable. Ahead of the elections, it is essential for political parties to address the two biggest problems in the housing market, which threaten Finland's competitiveness if they escalate. First, some background. Up until the last decade, housing prices rose and fell in a similar manner in growth centers, medium-sized cities, and rural areas, as they had done for decades. However, 2010 proved to be a turning point. Since then, housing prices in declining municipalities have dropped, while prices in growth centers have increased. ### SMALL DECLINING MUNICIPALITIES ARE IN TROUBLE, LIKE IN SWEDEN During this decade, we have had to recognize that urbanization is not only upheaving the rest of the world but also Finland. Similar to what was already witnessed in Sweden over a decade ago, it has reluctantly been accepted that small, declining municipalities in rural areas are facing inevitable stagnation and assimilation into larger neighboring communities. The sharp decline in population has simultaneously caused a permanent over-supply of housing, an unavoidable consequence of which is the endless drop in housing prices. This declining trend now appears to continue regardless of economic cycles. Even the negative interest rates and robust economic growth of recent years have not helped. The only theoretical solution to restore the balance of supply and demand for housing in a small declining municipality would be the demolition of permanently unnecessary homes. A year ago, I proposed a scrappage subsidy for housing. However, the chances of success from a policy perspective are very slim. Thankfully, the supported demolition of ARA properties has been eased, but broader support for demolition does not seem politically realistic. Therefore, resources should primarily be directed towards the next two challenges I will describe, which have more realistic possibilities for resolution. ### PERMANENT DECLINE IN HOUSING PRICES ALSO THREATENS MEDIUM-SIZED CITIES IN THE FUTURE In declining municipalities in sparsely populated areas, it is practically already recognized that housing prices will never rise again. The biggest challenge for the housing market in the next election term will be to prevent medium-sized cities like Savonlinna, Varkaus, Kouvola, Hamina, Forssa, Kokkola, and Kemi from falling into the same perpetual cycle of decreasing housing prices. Housing market data warns that such a scenario may already be a reality. In addition to the price decline that began in 2010, these medium-sized cities are also suffering from a decrease in transaction volumes, despite significant interest rate stimulus and economic growth at the national level. The gradual withdrawal of large real estate agencies from medium-sized cities is also a troubling signal. Banks can interpret these signs, which negatively impact the collateral values of homes and the interest margins on local housing loans. This creates a self-reinforcing cycle. I want to be cautiously optimistic and believe that the situation for medium-sized cities is not yet lost. However, decisive and diverse measures are required. There is unlikely to be a single magic solution. The most important thing is to initially recognize and acknowledge the problem. If the current trend continues, the situation will worsen over the next four years more than our nation can afford. Hardly anyone wants Finland to be a place where the future of medium-sized cities is solely a downward slope. The topic is sensitive, and discussing it may not please those being helped. Nevertheless – or perhaps precisely because of this – acknowledging the problem across the political spectrum is extremely important. In cold numbers, those particularly at risk are cities with fewer than 50,000 residents, but also some cities with populations between 50,000 and 100,000. This is chilling to note. The issue has mainly been discussed in public through euphemisms or by presenting individual example cities. However, it is a large structural problem affecting the entire country, the resolution of which cannot rest solely on individual municipalities. Ahead of the elections, it is vital to understand that the state and the new parliament must intervene. Furthermore, political parties should be alert with their own proposed solutions when negotiating the government program in the spring. Dreaming of repopulating declining municipalities is downright harmful. It is important to focus on saving what might still be salvageable. ### HELSINKI AND THE CAPITAL REGION NEED MINI-APARTMENTS AS A STEPPING STONE FOR MOVING TO THE CAPITAL The second major challenge for the housing market in the next election term is related to the capital region, whose development is crucial for Finland’s economic growth and competitiveness. The capitals in the Baltic Sea region compete for investments, top employees, and sectoral concentrations with attraction factors, each having its strengths and weaknesses. Helsinki's Achilles' heel is expensive housing. The fact that the housing situation is even more problematic in Stockholm does not alleviate the issue. On the contrary, it is unfortunate that Helsinki currently cannot achieve as much competitive advantage over Stockholm as it could from a better housing situation. Although the supply and price levels of other housing types are in good shape compared to Stockholm, Helsinki is hindered by the fact that the cheapest possible housing option is also nearly unbearably expensive in Helsinki. Mini-apartments are available only in a small fraction compared to their demand. This presents a significant problem for both locals and those moving to Helsinki for work or studies, as well as for the overall development of the capital. The situation unfortunately complicates Helsinki's competition for young talent with Tallinn. Additionally, the high cost of the most affordable housing solution inflates our housing support expenses, as is well-known. What is the cause of the problem in Helsinki and the entire capital region? Strong net migration, combined with interest rate stimulus, economic growth, investor demand, and restrictions on building small studios, has gradually driven up the price of even the most affordable housing option, the small studio, to a problematic level. As construction of small studios has been heavily restricted while favoring the construction of larger studios and small two-room apartments, chronic over-demand for mini-studios has over time driven their prices and rents to unreasonable levels. In practice, the prices and rents for very small mini-apartments have risen remarkably close to those of clearly larger studios and small two-room apartments due to the shortage. This represents a significant market distortion. The mechanism is somewhat analogous to a situation where there are no affordable hotel rooms in a city because a large public event has filled all accommodation capacity, forcing even modest hotels to price their rooms high. When there aren’t enough rooms available for everyone, even a modest room can demand an unreasonably high price. However, in the capital region's housing market, this scenario is not momentary but permanent. Furthermore, limiting the construction of mini-studios prevents the supply of modest options from increasing to meet demand. Helsinki and the entire capital region need actions that will lower the price of the most affordable housing option. A sufficiently small and inexpensive mini-studio will suffice for this. It acts as a stepping stone for those moving to the capital for work or study. Residents typically do not stay long in such a mini-apartment. Once the probation period ends, wages increase, or life circumstances change, the apartment is often quickly exchanged for a slightly larger one. This way, the mini-apartment becomes available for the next tenant in need. Frequent turnover of tenants in such apartments is not problematic but rather natural and desirable. A modest, affordable apartment has served its purpose by acting as a stepping stone for relocating to the area. A successful example of this is Oulu. When the most affordable housing option is priced reasonably, it is easy to come to work or study in that area. This, in turn, is an attraction factor for business location. To date, significantly cheaper mini-studios have only been permitted to be constructed in Vantaa within the capital region. The experiences have been encouraging. They have shown that the rents of the most affordable studios in the capital region do not need to start at six hundred or seven hundred. It has been observed that a five hundred euro rent level is feasible even in Vantaa’s market-rate new developments. The state should direct cities in the capital region to produce housing at this price level through agreements like the MAL agreements. In practice, this would mean bundling transportation investments with the creation of small inexpensive apartments. It is essential not to build only mini-studios. It would suffice to have these mini-studios represent 5-10% of all newly constructed apartments. While this may seem like a small amount, it is likely sufficient for the real price of mini-apartments and consequently the most affordable housing form in the capital region to decline significantly during the election term. One reason is the quick turnover. Nearly every mini-apartment will have served as a stepping stone for multiple newcomers to the capital within four years. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Solution to Niinistö's Proposal Could Be a Scrappage Bonus for Housing in Declining Areas The government pays a scrappage bonus for the scrapping of old cars. It may be worth applying the same logic to housing in declining areas, and this could be one solution to the issue that President Niinistö raised during his election debate on YLE on Thursday. Moving for work is challenging if there are no buyers for a private residence located in a current declining area. The situation is exacerbated by the fact that too many are unsuccessfully trying to sell their apartments in that area relative to the demand. Understandably, potential buyers in that locality may be hesitant to make a purchase decision. As a result, the housing transactions that are needed, where both the seller and the buyer have a genuine need, do not occur. If we accepted that the most hopeless cases in the housing market should be removed and that the state would participate in the difficult decision by paying a scrappage bonus, it would significantly improve the housing market at a national level. A reduction in oversupply would help balance demand and supply, even in declining areas, and housing transactions could start occurring again. This would prevent the complete paralysis of the housing markets in communities suffering from population decline, which is a problem that is socially problematic in many ways. What then would be the level of scrappage bonuses for unnecessary and problematic housing stock, and how would it be determined on a case-by-case basis? The Housing Finance and Development Center ARA could be a suitably neutral entity to consider this. It must be kept clear that the oversupply that paralyzes the housing market in declining areas is a problem that will not resolve itself with time. If nothing is done, the problem will only worsen. It is a socio-philosophical question whether to support those who own housing in areas with declining prices. One could justifiably view this as part of supporting a structural change that improves societal structures. This is especially important because removing barriers to moving for work is in the shared interest of all Finns. Personally, I also see such solidarity as an essential social glue, which is a morally correct value choice. However, if support is to be given to those suffering from declining property values in stagnant areas, it must be done in the manner I have suggested. This would support those moving for work while also providing, through the reduction of oversupply, the means for better-functioning housing markets for those who continue to reside in declining areas. Support should not be given solely to those leaving the declining area in a way that leaves the local oversupply issue unresolved. Otherwise, it would be tantamount to handing down a death sentence to the housing markets of fading communities, and indirectly to their services and overall future. I hope that those who may prepare and make decisions following the presidential initiative take this into account. Timo Metsola Chairman of the Board Vuokraturva ## Relocation Finland Service Vuokraturva's relocation service offers a cost-effective solution for addressing housing needs for your employees. The content of the service is always tailored to the customer's requirements. In other words, you only pay for the services you truly need. Based on our experience, relocation services are often comprehensive but also expensive. Our goal is to identify what the customer needs and, based on that, to create a suitable service package. Our position as a market leader in rental housing brokerage provides excellent foundations for producing relocation services as well. We have both large and small companies, publicly funded entities, and private individuals as our customers. Fill out the contact request below or call us at 010 2327 300, and we can discuss your needs in more detail. Our Relocation Finland service is available in the Helsinki, Turku, and Tampere regions. #### Typically, the service package includes these services: - We compile image collages for the customer of the homes that best meet their wishes. - We arrange viewings of the properties according to the customer's requests. - If necessary, we pick up the customer with Vuokraturva's car, for example from the airport, from the hotel, from their current residence, or any other place they wish, which we can also drop them off at after the tour. - When a suitable home is found, we handle negotiations regarding the lease and its terms on behalf of the customer. - We take care of the paperwork and ensure that the customer receives the keys to the property in due time. - We document the condition of the property with a specific assessment and taken photographs for the purpose. - We assist the customer in practical matters related to the residence, such as entering into electricity, water, and waste management agreements, as well as obtaining internet and home insurance. - We provide guidance to the customer on matters related to local services and transportation connections. The price for the service package is €1,757 (€1,400 + VAT 25.5%). The content of the package is planned together with the customer to ensure it meets their needs. If necessary, we also assist with obtaining moving services, registration and permit matters, as well as daycare and school issues. Other services you may need can also be included in the service package. Video presentation of the relocation service. ## Ready to get started? Leave a contact request, and our broker will reach out to you and things will start rolling. ### Relocation Finland Service Vuokraturvan relocation service offers a cost-effective solution for organizing housing matters for your employees. The service content is always tailored to meet the client's needs. This means you only pay for the services you actually need. Our experience shows that relocation services can be comprehensive but also expensive. Our aim is to identify what the client needs and build a service package based on those needs. Our position as the market leader in rental brokerage provides an excellent foundation for providing relocation services. Our clients include large and small companies, publicly funded organizations, and individuals. Please fill out the contact request form below or call us at +358 10 2327 300, and we can discuss your needs in more detail. Our Relocation Finland service is available in the Helsinki, Turku, and Tampere areas. Typically, the service package includes the following services: - We compile visual summaries of apartments that best match the client's wishes. - We arrange viewings of apartments according to the client's preferences. - We can pick up the client, if necessary, with Vuokraturva's car, for example, from the airport, hotel, their current residence, or another location, and we will take them back after the tour if needed. - Once a suitable apartment is found, we handle the negotiations regarding the lease agreement and its terms on behalf of the client. - We take care of paperwork and ensure that the client receives the apartment keys on time. - We document the condition of the apartment with a separate condition report and purposefully taken photos. - We assist the client with practical matters related to living, such as signing up for electricity, water, and waste disposal services, as well as acquiring internet and home insurance. - We provide guidance on services and transport connections in the residential area. The price of the service package is €1,757 (€1,400 + VAT 25.5%). The content of the package is designed to be meaningful in collaboration with the client. If needed, we can also assist with relocating services, registration and permit matters, as well as daycare and school inquiries. The service package can also include other services you require. Relocation service video presentation ## Let’s Get Started Leave a contact request, and our broker will get in touch with you, and we can start moving things forward. The information entered in the form will be sent via email to Vuokraturva's customer service. Read more. ## Päävalikko - Home - For Tenants - For Landlords - For Sellers - For Buyers Selling or renting an apartment both have their advantages. Which option turns out to be better depends on your situation and future plans. We have assisted thousands of clients in reaching the best option for them through personal discussions. It helps that we both rent and sell, meaning we are impartial in this regard. The client's situation is what matters. Our experienced real estate agent, Jaana Korpi, is at your service for these confidential discussions. Her years of experience in selling apartments combine with decades of experience as a landlord and as a board member of Suomen Vuokranantajat ry. ### Jaana Korpi Team leader, LKV, LVV 041 5280 341 ## Customer service Property seekers: Mon-Fri 10:00 – 16:00 Property owners: Mon-Sun 8:00 – 20:00 Property rentee: Mon-Sun 8:00 – 18:00 ## Offices ##### Helsinki office and operating area Mon-Fri 9:00 – 17:00 Teollisuuskatu 21, ground floor 00510 Helsinki ##### Tampere office and operating area Mon-Fri 11:00 – 17:00 Sammonkatu 18-20 33540 Tampere ##### Turku office and operating area Mon-Fri 11:00 – 17:00 Maariankatu 6 20100 Turku # We take responsibility for the environment and Finnish work ### Vuokraturva holds a WWF Green Office certificate All Vuokraturva offices in Helsinki, Turku, and Tampere have been awarded a WWF Green Office certificate. The WWF Green Office environmental management system is built around seven themes that are the most significant sources of environmental impacts in offices. These themes are management; communications and engagement; energy and water; procurement; recycling, sorting, and cleaning; travel; and food. The WWF Green Office system can help a company to reduce its carbon footprint and promote the more sustainable use of natural resources. The WWF Green Office environmental management system enables us to carefully evaluate and account for our business operations’ impact on the environment. Based on WWF Green Office reporting by Vuokraturva, carbon dioxide emissions from Vuokraturva’s business operations fell by approximately 23% from 2022 to 2024. When you rent, sell, or buy a property through us, we take pride in providing a service based on sustainable operating principles and in seeking and developing increasingly environmentally friendly solutions. ### Vuokraturva has been awarded the Key Flag symbol The Association for Finnish Work has awarded Vuokraturva the Key Flag symbol in recognition of its service, which is produced in Finland and promotes Finnish employment. The primary criteria for the award is that the service is produced in Finland. Companies that wish to apply for the Key Flag symbol for services must fulfill the following criteria: the minimum domestic content of the service must be at least 50 percent of the break-even cost, the company must have significant domestic ownership, and company management must be located in Finland. The company’s head office must also be located in Finland. ### Vuokraturva holds a Strongest in Finland Platinum Certificate The Strongest in Finland certificate is a sign of the company’s positive financial key figures, creditworthiness, background information, and good payment behavior. The certificate is a sign that the company’s operations are on a sustainable basis. Only 5.5 percent of Finnish companies are eligible for the Strongest in Finland Platinum certificate. ### Vuokraturva is a major sponsor of The Helsinki Mother and Child Home Association The Helsinki Mother and Child Home Association (Helsingin Ensikoti ry) is an NGO providing child welfare services to support families who are expecting a baby or have small children so that every child can have a good start in life. The Helsinki Mother and Child Home Association calls companies that provide support to the association sponsors, and companies that provide larger donations are called major sponsors. ### Vuokraturva sponsors 100 children worldwide through SOS Children's Villages' sponsorship programme Every child has the right to live in a family that cares for and about them. The best place for a child to grow up is with their own family. Despite support, this isn’t always possible. In such cases, the child needs a foster home. In SOS Children’s Villages, children who have been removed from their parents’ care live together with their foster parents and siblings and are supported by the community. The children are given a safe, stable, and caring home and a new chance at life. They are given access to education and health care, and individual support and therapy to help them recover from trauma, for example. ### Vuokraturva sponsors the Association of Friends of the University Children's Hospitals’ mental health support programme Up to 20 percent of children and young people in Finland experience mental health issues. The Kummien Mielen tila campaign is fundraising to help them. The campaign and support from sponsors will help to fund proven and effective mental health treatment methods and make them available to children and young people all over Finland. Please give your consent to the use of marketing cookies to see the content. # Find tenants quickly and conveniently We find good tenants for your property. We make things easy for you. Vuokraturva is a market leader and has leased more than 150,000 properties. Contact us, and we’ll take care of the rest. ## We will find good tenants for your property Vuokraturva is a market leader in letting for good reason. We can let your property securely with over 25 years of experience and a strong understanding of the current housing market. Our commission is 100% tax-deductible from rental income tax and is charged at one month’s rent + VAT (i.e., 1.255 times one month’s rent). Vuokraturva operates in the capital region, Uusimaa, as well as in Tampere, Turku, and the surrounding areas. ## We make life easy Vuokraturva handles everything related to letting from start to finish on behalf of the landlord. The service includes an inspection of the property, an estimation of the rent level, photography and video recording of the property, marketing, arranging viewings, applicant background checks, contract negotiations, drawing up lease agreements, checking that a security deposit has been paid, key handovers, and an extra guarantee on the first year of rent payments. Vuokraturva also provides help and advice throughout the lease agreement. ## How it works Contact us To get started, call +358 10 2327 300. Or ask us to get in touch! We are happy to discuss your apartment and our services without any obligation to commit to us. The aim is to provide the information you need to be able to make letting-related decisions. We can also agree on a meeting for the property, still without any obligation for you. If you’ve already made your decision or you have used our services before, we can help very quickly. We can draw up a commission for letting your property immediately after our first contact, if necessary. An expert visit Our agent will take a thorough look at your property and determine the right level of rent with you. The letting market is currently more challenging than in previous years, as the supply of rental properties has increased. Determining the right level of rent now requires more professional expertise. Due to its large number of let properties, Vuokraturva has an advantage in rental pricing based on its precise knowledge of the ever-changing market. Decisions on how much rent to charge and other terms of the lease are always made after thorough discussion and consideration with you. Property marketing and presentations begin We market your flat with pictures, videos, and professional expertise. We provide potential tenants with personal service and highlight the best aspects of your property. We market properties on various platforms including Oikotie, Vuokraovi, YouTube, and Vuokraturva’s own portal. We also carry out precision marketing for people who have set up a search alert to help them look for a property. Additionally, we still use traditional newspaper listings and make very effective use of property presentation videos. We contact the property manager to find out about any upcoming renovations and order the necessary documents on your behalf. We make sure that all of the necessary and required information is presented appropriately in marketing materials. A tenant is found We take care of contract negotiations and documents for you. We thoroughly investigate potential tenants’ backgrounds, interview candidates, and provide preliminary information about the terms of the lease agreement. We check income and credit information and provide a guarantee for the first year’s rent payments. You make the final decision on selecting a tenant. We draw up lease agreements and appendices and manage the signing of the agreements. We will also hand over the keys and ensure that the security deposit has been appropriately provided. We will invoice you for the cost of the property manager’s certificate package plus commission, which is one month’s rent + VAT (i.e., 1.255 times one month’s rent). These costs are 100% tax-deductible from letting income. The Vuokraturva-sopimus guarantees rent payment and the cost is included in our commission. Vuokraturva is responsible for the high quality of its work. The Vuokraturva-sopimus guarantee gives you an extra guarantee of the first year’s rent payments. You can feel safe and secure knowing that your tenant was carefully selected. If a tenant doesn’t pay rent, the Vuokraturva-sopimus guarantee will cover it. The Takausvakuus Security Guarantee helps when there is fierce competition for good tenants. The Takausvakuus Security Guarantee offers tenants an alternative to a monetary security deposit and makes it easier to rent a property when there is fierce competition around the size of security deposits. This guarantee is only used if both the lessor and the tenant so wish, but it is rapidly becoming increasingly common in the current market situation. In addition to competition around security deposits, the Takausvakuus Security Guarantee may also allow a tenant to start a lease agreement earlier than would otherwise be possible, as the tenant does not first need to wait for the previous property owner to return their security deposit. The tenant pays a one-off fee in advance for the Takausvakuus Security Guarantee service. The fee is 18% of the guarantee that replaces the security deposit. There are no monthly payments or hidden costs for the tenant. The Security Guarantee does not incur any costs to the lessor at any point, and the lessor does not need to keep or return the security if the Takausvakuus Security Guarantee is used. About Takausvakuus Oy in brief Takausvakuus Oy is a company owned entirely by Vuokraturva-yhtiöt Oy. From Takausvakuus Oy, tenants can purchase a maximum of five years of suretyship for an amount equivalent to the contract deposit in the lease agreement. After five years have passed, the tenant may, if necessary, purchase a new Takausvakuus Security Guarantee if the lease agreement is still ongoing. We also provide assistance during the lease We are at your service throughout the entire lease. You can always turn to us for help! The help and support offered by Vuokraturva doesn’t end once you’ve signed a lease agreement and handed over the keys. That is when the lease agreement between the landlord and tenant is only just beginning and usually continues for several years thereafter. There are many situations in life in which it is nice to be able to ask for a professional’s advice or reassurance. Vuokraturva doesn’t charge for this; it is all included in our services. ## Vuokraturva is the most reliable, well-known, and reputed rental agency. ## Contact request Submit a contact request and our agent will contact you to get things moving. If you want to call us right away, you can reach us on +358 10 2327 300. #### Other questions that customers have asked us Where do you operate? We operate in the capital region, in Uusimaa, and in the Tampere and Turku regions. A more detailed description of where we operate can be found in our information materials. Where can I find more information about property rental legislation and practices? You can find the information in our information package which contains summary details related to property rental. What languages does Vuokraturva provide service in? We serve our customers in Finnish and English. These are also the languages in which we draw up agreements. ### Rental Protection Ltd's prohibition of electronic direct marketing If you wish to prohibit electronic direct marketing from Rental Protection Ltd, you can do so using this form. Please note that the prohibition also applies to search alerts. In this case, you will not receive information via email about rental properties that match your search criteria based on the alerts you have set up. The information entered in the form will be sent via email to Rental Protection's customer service. Read more. ## Clarification on Permissible and Prohibited Questions at Apartment Viewings Last spring, a clear issue emerged regarding rental apartment viewings. There were no clear rules on what can be asked of applicants during these viewings and what cannot. At the same time, landlords were collecting more and more detailed information about tenants, as landlords who were scared by the recession wanted to obtain more precise information about tenant candidates to minimize their own financial risks. The situation was, to put it mildly, chaotic. Renters were asked for credit information as well as monthly income, payslips, information regarding children, and in some cases even sexual orientation. Experts were also divided on where the line between permissible and prohibited questions lies. After two years of work, a joint task force from six key industry players and the Data Protection Authority has today published guidance that provides clear answers to these questions. I was a representative of Vuokraturva in the task force, and I consider it very good that this guidance was published before the busy summer season in the rental market and the influx of students. When viewings are crowded and competition for rental apartments is fierce, clear rules are needed more than ever. Particularly regarding privately funded apartments, the situation has been unfortunately confusing. Practically, things have been manageable during viewings, but unclear situations have occurred continuously, particularly regarding whether a payslip needs to be presented upon request or not—there has been conflicting information about this. The new guidance now clarifies these issues. Monthly income may be asked at the viewing, as income is the most important factor in assessing the tenant's ability to pay rent. To verify the accuracy of the information provided, the broker may ask the tenant for a payslip during the final decision-making process, but the broker cannot pass it on to the landlord without separate consent. Similarly, evidence may be requested for pensions or unemployment benefits. The collection of information regarding the tenant's relatives has also been clarified. A tenant does not need to provide the names of their children, but the number of children and their birth years are information that the broker may require. The personal identity code and income of the tenant’s spouse or partner may also be asked and verified, as the spouse is equally responsible for the rent during the time they live in the apartment, even if they are not listed as a tenant on the rental agreement. This is something many may not even consider. Information about sexual or religious orientation or any other information not directly related to the tenancy does not concern the broker or landlord. Renting an apartment does not require full disclosure of personal life. The broker or landlord also does not have the possibility to obtain information about any criminal record of the tenant. This may not seem fair in all situations according to common sense, but the Criminal Records Act prohibits the transfer of this information for rental purposes. However, a tenant can voluntarily share extensive information with the broker and landlord, and collecting such information is allowed if the individual provides consent. The new guidance will also bring changes to rental agreements. Previously, rental agreements included the tenant's and landlord's names, address, and telephone numbers, and often also an email address. For tenants, the date of birth may have been noted. The new guidance introduces a significant change to this practice, as henceforth, both the tenant's and landlord's full personal identity codes must be clearly recorded in the rental agreements. This also emphasizes the importance of the broker carefully adhering to data protection laws when processing this personal data. I consider the completion of this guidance an important milestone in the development of the Finnish rental housing market. All kinds of ambiguities and situations that even slightly resemble dishonesty are poison to the trust between tenants, landlords, and brokers. Clear rules facilitate everyday transactions and save everyone time. I see it as an important and significant achievement that representatives from various parties were able to work together diligently and unanimously endorse the outcome for the benefit of the rental market. The new guidance can be read here: [Guidance Document](https://www.vuokraturva.fi/pdf/Vuokrauksen%20tietosuojaohje%206.6.2011.pdf) Representatives from the Office of the Data Protection Authority and Vuokraturva Oy were joined by the Finnish Association of Property Management, the Finnish Real Estate Agents Association, the Finnish Landlords' Association, the Housing, Office, and Construction Association RAKLI, and the Tenants' Association VKL. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Combating Segregation by Placing Rental and Ownership Apartments in the Same Building Helsinki and other growth centers in Finland are internationally well-mixed and diverse compared to residential areas. Urban planning policies have been successful, as various types of residential buildings, from valuable ownership apartments to different rental homes, have been permitted in the same neighborhoods. This has resulted in relatively low levels of regional segregation compared to international standards. However, segregation has been increasing recently, and new measures are needed to ensure areas remain mixed and diverse. A key problem is that even if rental and ownership buildings are next to each other, everyone knows which is which, and a building's reputation depends on this. This phenomenon is countered worldwide by placing subsidized rental apartments and privately funded ownership apartments in the same buildings and entrances. In Finland, the approach has been to plan residential buildings in blocks or at most by individual buildings. However, this will no longer suffice for mixing in the future, as block-level segregation is already substantial. In the future, regional segregation at the block level would decrease significantly if different types of housing were located within the same building. This way, both the owner of a high-end apartment and a resident of a publicly subsidized rental apartment could share the same front door. Supported rental apartments, Hitas apartments, or housing rights apartments, which may eventually become cooperative apartments, could be placed in the same building as high-end ownership properties. This would represent genuine mixing policy, with a common entrance regardless of income or social class. New York reports on sustainable development at the city level, while typically, such reports focus on the state level. New York combats segregation by putting rental and ownership apartments in the same building. Helsinki is planning to follow New York's example, and doing so would also be progressive. Jaakko Sinnemaa CEO, Asuntosalkku Oy and Asuntoturva Oy, 041 5280 329, jaakko.sinnemaa@asuntosalkut.fi Through our real estate portfolio, we own nearly two thousand apartments in the capital region, surrounding municipalities, Tampere, Turku, Lahti, and Tallinn. Our apartments are located in nearly 800 different housing companies and properties. A subsidiary of Asuntosalkku Oy invests in apartments in Tallinn, making us the largest market-driven landlord in Estonia. Our balance sheet total is approximately 185 million euros. ## Seven Tips for the Housing Company’s Annual General Meeting – This is How Property Value Easily Increases The annual general meetings of housing companies are approaching. The following measures will make the financial management of the housing company more sensible and increase the value of the apartments. The housing fee in housing companies consists of maintenance and financing fees as well as utility charges. It is in the homeowner's interest that the company’s costs are transparent. Apartments with low maintenance fees fetch higher sale prices. Residents and buyers value low maintenance fees. Therefore, nothing extra should sneak into the maintenance fee; utility charges and renovation funds should be kept separate. However, this is not always the case. 1. The maintenance fee should only cover maintenance expenses The purpose of the maintenance fee is to cover only maintenance costs. A low maintenance fee attracts potential buyers and makes them willing to pay more for the apartment. The value of the apartment increases whether it is for sale or not. So keep the maintenance fee as low as possible. 2. Utility charges should be billed separately and cover the actual costs of usage The amount of the water bill should be determined based on the actual costs of water and wastewater. Additionally, 1/3 of the year-round heating costs should be added to the water bill, as it represents the cost of heating the water. Other charges such as electricity, sauna, laundry, parking space, cable TV, and broadband fees should also be billed separately. This way, they do not become hidden costs in the maintenance fee, raising it unnecessarily. The maintenance fee and utility charges are deductible in property income taxation, regardless of the expense categorization. 3. Avoid collecting repair fees altogether There is no need to collect funds in advance for repairs, as repairs can also be paid for afterward. If a repair fee is collected and the apartment is sold before the repair is carried out, you effectively lose the money. Repair fees are usually capitalized, meaning they are also not deductible in property income taxation. 4. Unexpected and occasional costs should be covered with extra maintenance fees It is unwise to prepare for unexpected events with a higher fee. A higher fee is paid regardless of whether anything unusual occurs, reducing the attractiveness of the company’s apartments. An additional maintenance fee is deductible in property income taxation. 5. Old deficits, previous repairs, and other messes should be funded with extra fees or a new financing fee, not by raising the maintenance fee Deficits should not be addressed by increasing the fee, as this paints an inaccurate picture of the company’s current cost level and tends to keep the fee higher even after the deficits are covered. Old deficits are not current year maintenance expenses and do not belong in the maintenance fee. 6. Repairs financed through the housing company's loan or additional maintenance fees Large repairs should be financed using the housing company’s loan. Shareholders pay this with a financing fee, which the housing company accounts for in its bookkeeping, making it deductible from the property income. Smaller repairs should be funded with an additional maintenance fee, thus keeping the actual maintenance fee lower. 7. No excessive cash reserves An appropriate level of cash for a housing company is equivalent to 1-2 months' worth of maintenance fees. If the cash reserve is greater, the maintenance fee should be reduced for the entire year without allowing free months in terms of the fee. Also, remember to compare all contracts and negotiate prices; discounts can almost always be obtained. It is also advisable to compare loans with banks. By following the action list, in some cases, the maintenance fee has been halved. Jaakko Sinnemaa CEO, Asuntosalkku Oy, Asuntosalkku Suomi Oy Asuntosalkkumme kautta omistamme lähes kaksi tuhatta asuntoa pääkaupunkiseudulla, kehyskunnissa, Tampereella, Turussa, Lahdessa ja Tallinnassa. Taloyhtiöt ovat meille tuttuja, sillä asuntojamme sijaitsee yli 700 eri taloyhtiössä. Asuntosalkku Eesti Oy sijoittaa Tallinnan asuntoihin, ja olemme Viron suurin markkinaehtoinen vuokranantaja. ## Whistleblower Protection and Internal Reporting Channel The whistleblower law that came into force in Finland on January 1, 2023, the Act on the Protection of Persons Reporting Irregularities in Violation of EU Law and National Legislation (1171/2022), requires protection for those reporting violations. The law is based on an EU directive that took effect in the autumn of 2019 (the so-called whistleblower directive). The law establishes a framework for how to report violations or illegal activities and what kind of protection is afforded to the reporter. The law obligates all companies with over 50 employees to establish an internal reporting channel for reports. Those protected under the law include the company’s current and former employees, temporary workers, and interns. Vuokraturva’s internal reporting channel operates through the First Whistle reporting system on Juuriharja Consulting Group's server and is not part of Vuokraturva's website. Go to Vuokraturva’s reporting channel: https://firstwhistle.fi/vuokraturva Before writing a report, it is advisable to familiarize yourself with the instructions prepared by Juuriharja Consulting Group for reporters: https://www.juuriharja.fi/en/for-whistleblower-faq Through the same reporting channel page, you can report, return to a report you have made, and communicate with those handling the report. You will receive information about the receipt of your report within seven days of its submission. The following individuals will participate in the handling of reports submitted through Vuokraturva Oy’s reporting channel: Hanna Häkli, Administrative Manager; Katja Ekholm, Service Director; and Timo Metsola, Executive Director. Reports are handled meticulously, and decisions about any further actions are based on the handling of the reports. You will receive feedback from the report handlers via the First Whistle service within three months of receiving the acknowledgment message. In Vuokraturva’s data protection description, you can find information on how personal data is processed regarding reports made via the reporting channel. If you have any questions about the data protection aspects of the reporting channel, you can contact Hanna Häkli: hanna.hakli@vuokraturva-yhtiot.fi The Chancellor of Justice maintains a centralized reporting channel for authorities, which can be found at: https://turvaviesti.gov.fi/ilmoituskanava-rapporteringskanal. If a company has an internal reporting channel, reports should primarily be submitted through the company's own reporting channel. # Blog ## Does the Constitution Favor Rental Housing? The task of public authority is to promote everyone’s right to housing and support self-managed living arrangements. This is stated in the Constitution of Finland. But does this imply that the public authority's role is to support homeownership more strongly than rental housing? Or could it mean that support for self-organized living arrangements for persons with disabilities or the elderly should be prioritized over institutional care? In early September, I participated in a discussion program on Yleisradio with the CEO of the Hypoteekkiyhdistys, Matti Inha, who raised the idea that the Constitution already stipulates that homeownership should be supported as the primary form of housing. I became interested in pondering whether the Constitution really dictates that homeownership must be the primary choice in our society, with rental housing being a secondary option. I haven’t yet considered approaching the Constitutional Law Committee regarding this issue, but it’s interesting enough that I have dedicated a blog post to it. Let’s initially forget about the Constitution and consider the matter based on common sense. Homeownership and housing savings are generally positive aspects of Finnish society, and I doubt anyone will strongly disagree with this. But can we say that rental housing is socially inferior to the extent that public authority should always support homeownership more? Can we think that the law has made a decision about the hierarchy of housing types on behalf of citizens? Reflecting on this issue, at least from the current value standpoint, it seems that everyone should have the right to choose their form of housing freely, from a neutral perspective. Returning to the Constitution, it unequivocally states that the public authority's role is to support self-managed living arrangements (§ 19). So, what does self-managed living really entail? Is self-managed living when a citizen works and pays rent from their net income for a market-rate rental apartment that the state has not subsidized, and where the landlord also pays taxes on the rental income? In this case, there’s no reliance on state funding, and in fact, the state collects more tax revenue than if the tenant owned the apartment they live in. One could thus argue that arrangements are made self-sufficiently here, with no outside help requested or received. What if the situation involves a state-subsidized ARA rental apartment, and the tenant receives housing benefits or basic social assistance? From the perspective of defining self-managed living, this becomes a more complex situation since outside support has been received. However, public authority support cannot be deemed evidence that the living arrangement is not self-managed. After all, we must remember that this is precisely what the Constitution mandates: to support the arrangement of self-managed living. Perhaps in this case, we are merely adhering to the law. As someone new to the interpretation of the Constitution, I decided to do a bit of research online to see in what contexts references to this constitutional interpretation are made. The references seem to relate to situations where, for example, the support for an elderly visually impaired person living at home is justified by this constitutional clause. Based on the material I found, whether the individual's home is a rental or owned does not appear to be particularly significant. Thus, as a novice interpreter of the Constitution, I conclude that the law aims to assign the public authority the task of supporting self-managed living in a citizen's own home instead of institutional living. This home could just as easily be an owned home, a rental apartment, or even a right-of-occupancy apartment. If Matti Inha or someone wiser than I knows better, I welcome corrections. But until then, I argue that the Constitution does not stipulate that supporting homeownership is more important than supporting rental housing. If it did, that would represent quite a significant value choice for the nation. One-third of households live in rental housing. Timo Metsola Chairman of the Board Vuokraturva Oy ## Announcements ## Styling is No Longer Enough; Selling Real Estate Requires More Just five years ago, styling a home was a new approach in real estate sales. It initially boosted sales and increased selling prices. Now, people have learned to see through styling. If a property has flaws, simply covering them up is no longer effective. Buyers must be presented with well-thought-out renovation plans that will actually make the property appealing and functional. Assuming that buyers can come up with these ideas themselves during a short showing means that many deals will fall through. Today, Friday at 1:00 PM, a new concept by Myyntiturva and Kehrä Interior will be presented at a property for sale in Siltasaari, Helsinki, at Säästöpankinranta 4. This concept brings professional renovation plans alongside property listings for showings. When a home showing includes not just the broker but also an interior designer or architect, the possibilities for discussing different renovation options during the showing rise to a whole new level. This is crucial because every second buyer is also planning a significant renovation. "Essentially, this is about shifting from deceiving buyers to helping them," says Timo Metsola, Chairman of Myyntiturva. "Homes are expensive, and renovations can be costly. It's crucial for clients to have an honest understanding of a property’s strengths and weaknesses, as well as the costs of necessary renovations, before purchasing. Otherwise, buyers may either end up making poor deals or may be too fearful to make a purchase at all. The truth is, for an average person, it's quite difficult without professional help," Metsola continues. Since around the middle of the last decade, the need for renovations in properties has been disguised by styling. “Even light styling worked well in the past few years, but gradually its effectiveness has diminished, and creating artificial impressions has started to appear dishonest in the eyes of property buyers,” Metsola notes. In light styling, a property is cleared of everyday items and often furnished with rented furniture. A skilled stager can minimize the weaknesses of a property. Moreover, elegant and stylish furnishings can make even a modest home feel exquisite. Real-life realities can be overlooked. A sleek sofa may be genuinely uncomfortable to sit on, and very few buyers would actually read the fashion magazines placed on a trendy coffee table. However, a carefully constructed illusion can make an average property look stunning. The truth becomes evident after the sale when an empty property looks entirely different. These experiences have led people to increasingly recognize styling for what it is during showings. Sometimes, styling can even backfire. "Myyntiturva and Kehrä Interior want to take styling a step further. We do not wish to mislead the buyer but rather show them the property’s shortcomings honestly and then offer good ideas on how to most sensibly address them with renovations and what changes a professional would make to the property," says Timo Metsola, Chairman of Myyntiturva. LAUNCH EVENT The launch event will take place in an actual property for sale today, Friday, from 1:00 PM to 1:30 PM at Säästöpankinranta 4 A, Siltasaari, Helsinki. During the event, there will be an opportunity to take illustrative photos in a property showing according to the new concept. FURTHER INFORMATION Timo Metsola, Chairman, Myyntiturva, p. 09 6877 550 BRIEF INFO ABOUT VUOKRATURVA OY Vuokraturva is a market leader in property rental mediation and investment property acquisition services. Vuokraturva mediates rental properties for private individuals, institutions, and funds investing in properties. Myyntiturva aims to revolutionize property brokerage fees and achieve market leadership in real estate brokerage in the metropolitan area as well. www.vuokraturva.fi www.myyntiturva.fi ## The story of Myyntiturva In 2009, Vuokraturva’s major client, an investor, wanted to sell more than one hundred small flats in the Helsinki Metropolitan Area all at once. All the flats were studios or one-bedroom flats. Demand for such flats was extremely heavy in the market, and the task seemed straightforward. To obtain competitive commission offers, Vuokraturva tendered the work to estate agents. Although small flats sold quickly, often even before preliminary viewings and at prices higher than asking, the commission offers from the estate agents were only 10-15 percent lower than their usual rates. This meant that the client would have had to pay an average of ten thousand euros in commission for every flat. Vuokraturva found the commission rates unreasonable and, frustrated with the price cartel-like situation, ultimately sold the flats at a fixed commission of 1500 euros + VAT per flat. The flats sold quickly, the prices were favorable, the client was pleased, and Vuokraturva made a reasonable profit with the fixed commission rate. Timo Metsola, the Chairman of Vuokraturva’s Board of Directors, publicly commented on the case as an alarming example of how wide the gap had become between the sales commissions of small flats and the actual amount of work involved. There were some headlines, but no real changes occurred. What was initially intended as a one-off project turned into a wave of inquiries from clients wishing to sell their flats. Consequently, Vuokraturva initiated a small-scale pilot project to sell its private clients’ flats. After reviewing the project results in autumn 2011, a rather surprising conclusion emerged: Vuokraturva had achieved a margin of about 25 percent by charging a reasonable fixed commission. The outcome was extraordinary, and once again, Vuokraturva made the results public. The question posed was: If a company specializing in rental property brokerage could make a profit as a side business with low commissions, how was it possible that estate agents, who are supposed to be experts in the field, could not do the same? Although the matter sparked discussions in the press and on the radio, estate agents chose to remain silent, hoping the issue would fade away. In spring 2012, Vuokraturva’s management faced a pivotal decision: accept that commission rates in property sales were high and would remain so in Finland, or take proactive measures to effect change by establishing a competitor to challenge the traditional commission rates. After several weeks of contemplation, they chose the latter, resulting in the creation of Myyntiturva. In the 2020s, Myyntiturva has emerged as a pioneer in the digital real estate industry. With an almost paperless office, Myyntiturva operates more efficiently, environmentally friendly, and responsibly than ever before, while still providing excellent in-person customer service. ## The Story of Vuokraturva Vuokraturva started off as a one-man company in the 1990s. It was run by 23-year-old Timo Metsola, now Chairman of the Board of Vuokraturva and its subsidiaries. The company was established in 1998 with the name Uudenmaan Takuuvälittäjät. The following year the name changed to Suomen Vuokraturva, which in 2006 became shortened to Vuokraturva. The first years were difficult and there were many competitors. But right from the start, Vuokraturva had something that set it apart from others: taking responsibility for rent being paid. In exchange for the brokerage fee, the landlord receives a guarantee for the entire first year of rent. A brokerage law entered into force in 2001, causing big changes to the old operating models of large competitors. The agility of Vuokraturva and the guarantee received by landlords gradually changed the entire market. Vuokraturva eventually became the market leader of the field in 2003. At the same time, Timo Metsola, known as a candid speaker, established his position as a figurehead of the entire industry. Over the next years, Vuokraturva expanded its operations into real estate investment services, finding and purchasing good investment properties for clients as a turnkey service. Attitudes towards real estate investment changed. In November 2005, the front page of the main national newspaper's Sunday edition boasted a joint advertisement of Vuokraturva, the Central Union of Tenants, and the Finnish Landlord Association, stating that a real estate investment is an investment into Finland. This was a completely new way of thinking. The landlord was not an exploiter but an important pillar of society. Growth continued. 2007 saw the establishment of the Asuntoturva property funds, winning a contract to manage properties for the European Chemicals Agency, and expansion into relocation services targeted at foreign experts. The financial crisis in 2008 significantly increased demand for rental properties, and the intense stimulation of the economy through low interest rates in the following years led to a real estate investment boom. The business of the group expanded strongly. In 2012, Vuokraturva, frustrated with high real estate agency fees, launched Myyntiturva, which offers the same brokerage service with an affordable fixed agency fee. The service has been a great success and changed the fee practices of the entire field, making fees more moderate. Although the business of our group has grown and diversified, many of our customers have been loyal to us since the 90s. We have come a long way with these customers, and in many ways, they form the foundation of our work. Timo Metsola, who started as the only employee, is still involved in the day-to-day life of the company and developing the group and new services. With an almost paperless office and the industry’s best digital services, Vuokraturva in the 2020s is faster, safer, more responsible, and more environmentally friendly. ## Blog ## Transition of Generations Threatens to Reduce Rental Housing Supply A quarter of a million rental apartments in Finland are owned by private individuals, who account for 65.8% of Finland's privately financed rental apartments. A significant portion of these private landlords are elderly retirees, with the average age of landlords around 60 years. Thus, numerous generational transitions are imminent. During inheritance distribution, the majority of these rental apartments are at risk of being sold and converted into owner-occupied apartments. There are several reasons for this. Firstly, the younger generation simply isn't interested in the effort associated with being a landlord. Heirs are generally wealthy, busy middle-aged individuals who do not wish to deal with phone calls from tenants about broken oven doors or investigate water damage claims as their parents once did. Additionally, the rising property values have made inheritance taxes heavy, adding financial pressure to sell the properties. As the average rental yield remains around 3%, and maintenance costs are rising quickly, converting properties into cash and redirecting the funds elsewhere becomes an attractive option for heirs. This vision is grim for tenants. The situation is particularly problematic because the quarter of a million rental apartments owned by private landlords are concentrated in the very types of housing where the transition to ownership would be most detrimental to the rental market. Private rental apartments are notably skewed towards small apartments and the metropolitan area. Thus, the decrease in supply in these segments will inevitably lead to higher rents and further commuting. The issues associated with generational transitions have already been relatively well recognized regarding businesses and farms, and legislators and tax authorities have rushed to assist. However, rental properties are generally considered personal assets of the landlords. Since this isn't a business operation, the tax relief systems created for generational transitions of businesses and farms do not apply to rental properties. The rental market requires its own generational transition system, but the times are far from favorable for new tax reliefs. Everyone understands this, but the unfortunate price may be a worsening shortage of rental housing and further increases in rents. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Finnish Tenants Are Diligent Rent Payers – A Blessing for Investors In many countries, poor rental payment morals pose an obstacle to the development of rental housing markets. Investments in rental properties are avoided because tenants pay when they can, leading to delayed payments and significant credit losses. Despite the challenges in the Finnish housing market, this issue affects us surprisingly little. So little, in fact, that landlords are astonished when rents go unpaid. "After all these diligent tenants, it never even occurred to me that something like this could happen to me," said a private landlord at the end of a training session. It is remarkable how seldom this advantage of Finnish real estate investment is highlighted anywhere. However, even experienced landlords can become overly complacent in their confidence. Diligence in rent payment is part of the Finnish way of life, but it is not a given for every tenant. This strong rental payment ethic cannot be attributed solely to responsibility and straightforward principles. A significant contributing factor is that historically, the risk of being quickly evicted from a rental property in Finland has been greater than in Sweden or Southern European countries if rent payment is forgotten. When combined with the chronic rental housing shortage in growing urban centers, tenants are reluctant to risk losing their rental homes. This is part of our national characteristics rooted in historical eviction practices. If something must go unpaid in a tight situation, it is generally something other than rent in Finland. The Finnish housing and social assistance system also plays a role here. In contrast, in Southern European countries, it may be seen as nitpicking if rent is unpaid for, say, three months and the landlord sternly addresses the situation. In a similar case in Finland, a court could already terminate the rental relationship immediately without notice. This significantly limits the credit loss risks for private landlords and even larger real estate investors. The vast majority of Finnish tenants are diligent rent payers, often living in the same property for extended periods and rarely seeking new rental homes. Therefore, they are seldom seen at rental viewings. For instance, if they realize that their rent payment has been delayed by a few days due to a vacation, they will contact their landlord or at least rectify the situation immediately. When this is the mainstream behavior, it may be easy to forget that not everyone operates this way. There are also those who never intended or do not have the means to pay rent in the first place. These individuals frequently seek new rental homes, as their previous arrangements often fall through quickly, and this small group can be found at rental viewings often. Thus, although their share of all tenants is small, their share of those seeking rental homes at viewings is surprisingly large. By carefully investigating tenants' backgrounds and making well-considered tenant selections, the risk of unpaid rents can be limited effectively in the Finnish rental market. This is exemplified by the fact that the entire first year's rent for tenants mediated by Vuokraturva can be guaranteed, even though the fee for this guarantee is only one month’s rent plus value-added tax. The good payment morals of Finnish tenants provide a solid foundation for the rental housing market. It can justifiably be said that tenants do their part for a functioning rental market. Landlords, planners, builders, and government authorities should strive to do their part just as well. Timo Metsola Chairman of the Board Vuokraturva Vuokraturva is the most reliable, well-known, and best-reputed rental agent. ### Looking for a good tenant or considering selling? If you need a reliable tenant, we will find one for you. If your wish is to sell your property at just the right price, we will make it happen. Get in touch, we take care of everything on your behalf – while you can relax. ### Looking for a new home? We help you find the home of your dreams. So get to know our available rental and sales objects and prepare to be delighted. ## Database Useful information for landlords, tenants, sellers, and buyers. ### Solid professionals in housing at your service Vuokraturva, which started as a one-person company, is the market leader in the industry and employs a hundred housing professionals at three locations in Helsinki, Turku, and Tampere. Vuokraturva is the most reliable rental agency (Taloustutkimus). Myyntiturva, which focuses on the sale of properties, is part of Vuokraturva Oy and sells, unlike almost all its competitors, properties with advantageous, fixed brokerage fees. ## Blog ## Effects of Recession on Tenants Interest in rental housing increases during times of economic recession. Renting is considered more financially acceptable during times of scarcity than in periods of economic growth. Additionally, changing apartments to meet family needs is generally easier in the rental market than selling a property in the current economic climate. Renting is perceived as safe and appealing compared to purchasing a home and taking on a mortgage. Economic realities always influence housing solutions. Paying a mortgage while unemployed can be impossible. The expertise of professional landlords becomes increasingly relevant during a recession. A positive aspect is the heightened awareness of institutional landlords regarding new renovation grants. Renovations that are correctly planned have been expedited to secure a 10% grant from the government. Utilizing this grant reduces the pressure for rent increases related to the renovations. For tenants, the amount of rent is always a significant item in the family budget. Recession increases residents' interest in their living environment. The maintenance of yards and outdoor areas becomes a point of focus. Long-term outdoor maintenance efforts can influence rental increases. In addition to cost savings, community work plays an important social role. Landlords should support joint events for residents. When neighbors get to know each other, living comfort improves, leading to a stronger commitment to the local environment. The tightening of the rental market is reflected in applicants seeking rental housing. Today, landlords are particularly interested in a tenant’s ability to pay rent. Payment capability is investigated thoroughly, which leads to situations where unemployed applicants have difficulty securing apartments in the private rental market. A situation favorable for tenants arises in that rent increases remain in line with contractual agreements. Landlords are not interested in substantial increases. Simultaneously, landlords value and hold on to good tenants who fulfill their obligations (primarily timely rent payments) according to the contract. Flexible attitudes towards payment plans are also common when a tenant communicates potential payment difficulties in a respectful and negotiating manner. It is widely known that unemployment funds are experiencing backlogs. The tightening economy also impacts landlords. Some landlords are unwilling to provide rent reductions for renovations during a recession. With other income and returns declining, there is a tendency to extract as much as possible from tenants. In such cases, landlords may not be interested in reducing rent due to the inconveniences caused by renovations. Anne Viita Executive Director Tenants' Union of Finland ## Blog ## Once Again, an Entire Year Lost in Addressing Students' Housing Situation This summer, the demand for rental apartments is exceptionally high, and the housing shortage for students is the largest it has been in ten years. Last summer, Vuokraturva suggested that as a solution to the annual housing shortage for students, the start of studies should be staggered more broadly between the autumn and spring semesters. The holiday season at the turn of the year tends to be the calmest time on the rental market. In the few educational institutions where it is already possible to start studies in January, new students are in a much better position regarding apartment hunting than those starting in the autumn. During the turn of the year, there is even an oversupply of rental apartments. Minister of Education Henna Virkkunen and then Prime Minister Matti Vanhanen announced last summer that they would support the idea. Housing Minister Jan Vapaavuori also endorsed the initiative. A year has passed, but relief for the annual summer housing crisis faced by students has not been achieved; on the contrary, it has worsened. As the spring semester ends, both families with children and students looking for housing all activate at the same time. The housing demand is particularly high among new students flooding the rental market as their places in educational programs are confirmed. Students are in an unequal position to each other, as obtaining housing becomes more difficult the later their acceptance into their educational institutions is confirmed during the summer. It is often claimed that the rental housing shortage is a perennial problem. I consider this mindset particularly dangerous, as it especially frees decision-makers from responsibility for resolving the issue. The challenges of the rental market can be solved, like almost all other problems. The difficulty of the issue should not lead to giving up and washing one's hands of it, but rather to more determined efforts. I hope that decision-makers will have the strength not only to support good initiatives but also to see them realized. The change to the selection process for higher education students advocated by Minister Virkkunen, which makes it less focused on entrance exams, will already alleviate some of the issues related to the biannual admission of new students. However, for now, the resistance of educational institutions has at least temporarily prevented the broadening of this staggering. In such a multifaceted issue, the interests of students should nevertheless outweigh those of educational institutions. The needs related to the timing of study start dates have significantly changed from past decades. Most of those commencing military service in the summer are now discharged by the turn of the year, and 36,000 students participated in the matriculation examinations last autumn, either aiming for a degree or seeking to improve their grades. The possibility of starting studies in January would serve surprisingly many. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Housing Company Loans Must Be Distinguishable Between Repair Loans and Construction Loans In the future, it will not be possible to obtain affordable loans for pipe renovations if repair loans and construction loans are not kept separate. Loans linked to the repair of houses are a different type of debt than the increasingly common housing company loans related to the construction of new buildings. Both are currently referred to as housing company loans. A change is necessary to ensure that repair loans for housing companies remain affordable and that the curbing of tax benefits for real estate investors does not hinder the renovation of apartment buildings. Vanhanen has rightfully called for more options. Finnish citizens have not had to fear, for example, that their own or their spouse's unemployment might lead to a bank refusing to grant a loan for financing a housing company's pipe renovation. Unlike in most other parts of the world, in Finland, the housing company handles loan negotiations on behalf of all shareholders and takes the loan in the name of the housing company. Shareholders do not have to go hat-in-hand to the bank themselves. Now, this seemingly self-evident situation is at risk. The reason is that housing company loans have started to be used not only for repairs but also for the construction of new buildings. This has increased the size and risks associated with housing company loans. As the purpose of housing company loans has shifted to new construction, the size of these loans has typically grown to 60–80 percent of property values. In contrast, when loans are taken for repairs, they typically amount to about 30 percent of property values. Therefore, loans associated with repairs are fundamentally different in nature and size from those taken to finance new construction. Over the decades, banks have worked hard to ensure that international entities, from which Finnish banks receive their refinancing, understand what a housing company is. This is a unique feature of the Finnish housing market, wherein people own apartments collectively through a common enterprise. A board and property manager are elected for the housing company, responsible for the building, repairs, and administration. However, from the perspective of international financiers, housing companies sound suspiciously like risky real estate investment firms, for which loan terms are stricter. Finnish banks have managed to convince these financiers of the conservative nature and low risks associated with loans to housing companies, allowing housing companies to secure funding relatively easily and at low interest rates. However, a snake has now slithered into this idyllic situation. Now, we are seemingly gambling with the international reputation of all housing company loans, as these loans are increasingly used for the massive construction of new buildings, with buyers mostly being investors. Loans are tied to properties that automatically transfer to the current owner without any scrutiny or control mechanism. Nobody can track the accumulation of loans for individual persons. This creates an unfortunate setting reminiscent of the causes of the subprime crisis. These elements are precisely the sorts of speculative arrangements that international financiers of Finnish banks have suspected and feared regarding housing company loans. As a result, it appears that obtaining loans for all of Finland's approximately 90,000 housing companies will become more difficult and expensive. The effects will also impact those living in long-built and fully paid-for apartments when the next pipe or facade renovation occurs. Large housing company loans and the accumulation of these loans carry other risks as well. A housing company loan is the responsibility of the housing company, but all shareholders are ultimately collectively responsible for repaying the entire association loan, including those shareholders who have already paid off their share. *** What should be done about the situation? Realism necessitates acknowledging the facts, namely that the fundamental situation is here to stay and a return to using housing company loans solely for building repairs does not appear possible. The arrangement has become so common in new construction that prohibiting it would have unpredictable consequences. The solution is to clearly distinguish between these two types of housing company loans: repair loans and new construction loans. This distinction allows for different tax treatment of loan types, more precise and effective regulation, and distinct handling in banks' risk management. It also enables the separate statistical tracking of housing company repair loans and new construction loans, which facilitates the recognition of problematic trends. The goal should be that new construction loans do not negatively affect the terms on which the approximately 90,000 housing companies in Finland can obtain loans for necessary repairs. Furthermore, the aim should be to ensure that the removal of the perceived inappropriate tax advantage related to new construction loans for private real estate investors does not inadvertently eliminate the tax benefit related to repair loans in rental income taxation. The potential removal of the tax advantage related to new construction would mean that private landlords would no longer be able to deduct repayments of housing company's new construction loans recorded as income in the housing company's accounts from their rental income taxation. In my opinion, it is essential to maintain this deduction right concerning housing company repair loans. It is unreasonable to create an artificial incentive for real estate investors to oppose essential repairs since the current model for repair loans has functioned without issues for decades. In a renovation, elements such as pipes and roofs, which were once in good condition but are no longer, are repaired once again. Like routine maintenance, renovations are about maintaining the building's condition against the wear and tear of time. I believe the memorandum from the Ministry of Finance (authored by special expert Matti Matinen on June 29, 2020) does not sufficiently take this perspective into account despite otherwise careful and commendable conclusions. Last week, Finance Minister Matti Vanhanen stated that he had requested additional options. I hope that in this further consideration, options will include retaining the tax deduction rights for renovations and distinguishing housing company loans into repair loans and new construction loans. It is crucial that housing companies in Finland remain in good condition in the future. The use of housing company loans for new construction and the regulation of the current disorderly situation should not jeopardize the loan markets or tax treatment for essential renovations of housing companies. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Tampere Judo’s Pasi Luoma Receives the Vuokraturva Award for His Extensive Contributions to Judo Pasi Luoma has been awarded the Lifetime Achievement Award for his significant contributions to judo. The selection criteria state: “Pasi Luoma has been one of the significant driving forces in Finnish judo throughout his long, intensive, and diverse judo career, first in Tampere’s Fusegi and then in Tampere Judo after the club merger, where he currently serves as the executive director. This award aims to show respect for Pasi's entire extensive career in the sport. In addition to club and recreational activities, Pasi Luoma has made a remarkable contribution to Finnish competitive judo. Even as a youth, he represented Finland in the European Championships. His best achievement as an adult competitor was winning the Nordic Championship in 1980. The magnitude of his contributions to competitive judo is well illustrated by the fact that the only Finnish judoka at the 2016 Rio de Janeiro Olympics, Juho Reinvall, was trained by Pasi. Moreover, Pasi has contributed to judo through numerous meetings, discussions, the board of the Judo Federation, as a caretaker, hard worker, and background influencer from the 1970s to the present day. Pasi's lifetime work for Finnish judo is something that the entire judo community has significant reasons to express their deep gratitude.” The recipient of the award was chosen by the previous awardee, Olli Paasimaa. Presenting the recognition were the chairman of the Finnish Judo Federation, Marko Laaksonen, and Pasi's long-time friend Seppo Myllylä, with whom Pasi traveled to Japan to practice judo in the 1970s. Myllylä described the awardee as follows: “Pasi is a judoka who doesn't make a fuss about his accomplishments. He embodies the humility and focus required in martial arts. I have never heard Pasi boast about any of his achievements. Instead, he has done a lot to support and help others.” Congratulatory Coffee Open cake and coffee will be provided today, September 12, at 3:30 PM at the Energia Arena café before the official opening of the youth European Championships, which starts at 4 PM. Vuokraturva Award in Brief The Vuokraturva Award is a recognition granted for extensive lifetime work done voluntarily for a non-profit sports club. The award is given biannually to an individual who, according to the aforementioned criteria, has made an exceptionally valuable and honorable lifetime contribution to judo in Finland. The award amounts to €10,000. The current awardee is selected by the previous award recipient, together with a representative of Vuokraturva. This award was granted today, September 12, 2019, for the second time, and the recipient was chosen by the previous lifetime awardee Olli Paasimaa from Hämeenlinna Judo Club together with Vuokraturva representative Timo Metsola. For more information: Marko Laaksonen Chairman, Finnish Judo Federation, p. 040 568 4986, marko.laaksonen@judoliitto.fi Timo Metsola Chairman of the Board, Vuokraturva, p. 010 2327 300, timo.metsola@vuokraturva.fi # Office in Tampere ### Address Sammonkatu 18-20, 33540 TAMPERE See here how to find us >> Tampere office's area of activity Kangasala Lempäälä Nokia Pyynikki Tampere Toijala Ylöjärvi ### Vesa Rinne Office Manager, AFM, AHM 041 528 0360 vesa.rinne@vuokraturva.fi ### Enni Tiira Rental Agent, AHM 0415280 418 enni.tiira@vuokraturva.fi ### Jaana Enoranta Sales Manager, AFM, AHM 041 528 0354 jaana.enoranta@vuokraturva.fi ### Annaliina Keronen Rental Agent, AFM, AHM 041 5280 506 annaliina.keronen@vuokraturva.fi ### Katja Sepponen Agency Secretary, AFM, AHM, KISI 041 528 0463 katja.sepponen@vuokraturva.fi ### Heidi Diov Sales Manager, AFM, AHM 041 528 0365 heidi.diov@vuokraturva.fi ### Laura Suhonen Agency Secretary, AFM, AHM On parental leave ## Customer Service I am looking for housing: Mon–Fri 10 AM–4 PM Homeowners: Mon–Fri 8 AM–8 PM For those who have already rented a home: Mon–Sun 8 AM–6 PM ## Offices ##### Helsinki Office and Region Mon–Fri 9 AM–5 PM Industrigatan 21, ground floor 00510 Helsinki ##### Tampere Office and Region Mon–Fri 11 AM–5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Region Mon–Fri 11 AM–5 PM Mariegatan 6 20100 Turku ## Announcements ## Accurate Data on Rental Prices Development in the Capital Region Here are exceptionally accurate details regarding the development of market rents in the capital region. The data was obtained by comparing rental agreements for 1,748 individual market-rate apartments made in 2013 with previous rental agreements for the exact same apartments. The changes in rent for each individual apartment were calculated separately. This is based on a joint project by Statistics Finland and Vuokraturva. The data was extracted as a sample from the Vuokraturva system and analyzed at Statistics Finland. The project achieved such a level of precision that the percentage annual change in rents is reported in the attached document to two decimal places. Additional information about the project can be obtained from the chairman of Vuokraturva's board, Timo Metsola at 010 2327 300, and the development manager at Statistics Finland, Ilkka Lehtinen at 050 383 7285. The precise data only concern the rents of new rental agreements, unlike the quarterly statistics published today at 9 AM regarding rents in the last quarter of 2013. Vuokraturva's market comments: - Market rents for new rental agreements increased significantly faster than inflation in 2013 only for studios. In two-room apartments, the increase was close to inflation, meaning real rents increased very little if at all. In three-room apartments and larger homes, rents for new rental agreements decreased. - December was a calm month in the rental market across all major cities. - In January 2014, the market slightly picked up, but the rental market is still experiencing a quiet mid-winter period. - The supply of rental apartments is currently relatively abundant compared to demand. Tenants have the opportunity to take advantage of the situation by applying for apartments now, when there are quite a few options available and there is no seasonal increase in rent requests. Statistics Finland 27.1.2014 (publication 7.2.2014) VUOKRATURVA DATA, rental agreements that started in 2013, comparing two consecutive rentals of the same apartment, excerpts from 1748 units. Area: Helsinki, Espoo, Vantaa, and Kauniainen Number of rooms 1 room 2 rooms 3+ rooms Change % 3.08 1.90 -0.41 ## Blog ## Oversized Apartments: The Future's SUVs Some may remember how quickly the perception of SUVs changed in the last decade as the importance of climate initiatives and running costs increased in the automotive world. Hummers went from being among the most desired vehicles to some of the most rejected. In terms of housing, this development is yet to come. For a long time, it has been thought that living space in Finland is problematic and that we must increase the size of apartments, even forcibly. However, when we consider the half a million cabins and vacation homes that Finns own, we realize that living space and quality of life are surprisingly ample for our latitude. The energy consumption of buildings is the single largest challenge in our northern country's climate initiatives. There is a significant risk that large apartments, high ceilings, and impressive villas are actually becoming a problem rather than an ideal. Finland is committed as a party to the Kyoto Protocol to reduce emissions of carbon dioxide, methane, and nitrous oxide to 1990 levels during the period of 2008–2012. We have our work cut out for us, and future requirements will only tighten. The energy efficiency measures began with new buildings but are now shifting to the existing housing stock. At the same time, the price of energy is rising, and taxes loom. Oversized apartments consume more energy at these latitudes than appropriately sized ones designed for their purpose. They also cost more to build and have a greater environmental burden. This fact is quite impossible to deny. It is important that an apartment matches its size and execution to the actual space needs, without unnecessary square footage wasting energy and raising construction costs. A ten-member family requires a different type of apartment than a four-member family. However, large size is no longer an intrinsic value or status symbol for apartments; real space needs will prevail. Just as border guards still traverse wilderness routes in SUVs, the car stock on smooth asphalt has quickly evolved in a different direction. A person commuting in a massive SUV is no longer met with admiring glances or enjoys high social status as before. In our latitudes, it is necessary to heat in winter. On the other hand, there are limits to the endless increase of insulation thickness because in summer, we already have to use energy to cool down overly well-insulated houses to rid ourselves of excess heat. The larger the apartments are, the more energy is consumed for temperature control, both ways. But do Finns still only want larger apartments? Or do they? Small ownership and rental apartments are typically the first to be snapped up. When construction companies start new projects, small apartments are usually reserved first before the shovel even hits the ground. If it is said that there are too few large apartments and too many small ones, why do people not seem to understand this, but act completely contrary? One reason may lie in changing family sizes. Helsinki is not all of Finland, but the numbers from our capital are quite striking: - The proportion of families with children among Helsinki households has plummeted to less than half of what it was: 56% (1960) to 24% (2008). - The proportion of single-person households in Helsinki has tripled: 17% (1960) to 50% (2008). - About 75% of Helsinki households consist of one or two persons. - This is an international trend. In other European capitals, single-person households are also becoming more common. - There are about 150,000 single-person households in Helsinki, but when all forms of housing are considered, there are only about 65,000 studio apartments. For every ten single-person households, there are thus 4.3 studio apartments, explaining the fierce competition and high prices for them. - Nationally, the decline in family size isn't as sharp, but the trend is clearly the same throughout the country. There are many singles, children are being had later, and the number of elderly people living alone is increasing. Ever-smaller families do not necessarily want larger apartments, especially if property and energy taxes are rising and housing costs continue to grow. A reasonably sufficient number of square meters will suffice. We come to the question of how many square meters, heated year-round to tropical temperatures, a person actually needs to live here near the Arctic Circle. And what size apartment fits with the desired carbon footprint. Perhaps in the future, the average size of apartments in a new condominium should not be at least, for example, 75 square meters, but rather the average size should be a maximum of 75 square meters. A turnaround in the square meter norms might be on the horizon. Social interaction is also changing, and more and more people are meeting friends in cafes, restaurants, or through hobbies rather than at home. Facebook and other virtual social interactions require little physical space. When social media communication is easy, overnight stays at friends’ homes appear to be less common. Guest rooms often, in my experience, become mere storage for excess items. Particularly the younger generation's way of using their apartments is quite different from that of their parents. Daily life is simply structured differently than before. Young singles utilize their apartments similarly to how their parents use a hotel room while vacationing in Barcelona. A good location is crucial. In that case, even a small base will suffice since it's primarily for sleeping and showering, after which it’s off to the city, work, cafes, and hobbies. Few are willing to pay for oversized hotel rooms if they don’t truly need them. Buildings have long lifespans, at least 50 years, often much more. Now that we are producing new apartments in a situation where international megatrends include declining family size and energy savings, we should anticipate the pressures on housing that might arise in 30 years’ time. I personally believe that the trend will move towards well-planned, compact, energy-efficient living that avoids unnecessary square footage. I do not foresee a rosy future for the SUVs of the housing world. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## The Shipyard's Silence Reflects on the Rental Housing Market in Turku The expected simultaneous release of over three hundred rental apartments following the completion of the cruise ship Allure of the Seas will significantly affect the rental housing market in the Turku region in the coming months. It is likely that in many areas, the supply of rental apartments will temporarily exceed demand. The risk of oversupply is heightened by the timing of the release of apartments previously occupied by shipyard workers, which coincides with the last months of the year, typically the quietest period for rental demand. Therefore, landlords will need to consider their rental pricing more carefully than usual. On the other hand, this may be good news for potential tenants as there will likely be more affordable options available in the coming months. "Changes will probably be more visible in the rental market than in property sales," predicts Arttu Mettälä, director of Vuokraturva's Turku office. "The turn of the year is also generally a stagnant phase in the rental market." "In real estate sales, the situation may be seen as temporary since rumors of new orders have intensified in recent weeks. For instance, the impact of one poor employment year on property sales may not be dramatic. The transition from planning to production and creating jobs takes time, and the rental market is more attuned to current realities," Mettälä explains. "If the supply of rental apartments exceeds demand, the effects will be immediately visible in Turku's rental market." ADDITIONAL INFORMATION Arttu Mettälä, Director of the Turku Office, tel. 0400 789 222 ABOUT VUOKRATURVA OY Vuokraturva is the market leader in rental property brokerage and investment property acquisition services. Vuokraturva manages rental housing portfolios for individuals, institutions, and real estate investment funds. www.vuokraturva.fi # Find the rental property or apartment of your dreams It’s easy to find and apply for a rental property or apartment. The apartment search function displays all properties available to rent. View properties and apply as a tenant using your online banking credentials. Set up a search alert to stay up-to-date with new properties that become available to rent. ## How are tenants selected? Lessors will preliminarily choose their tenants based on applications. The applicant chosen by the lessor will be able to view the property in a showing organized for the applicant individually or together with a small group. It is also possible to view a property entirely online with our video showings. ## Other frequently asked questions You can find the answer to other questions about applying for a rental property in our Frequently Asked Questions. #### Translation problems? #### SEE OUR GLOSSARY OF TERMS USED IN RENTAL PROPERTY ADS >> ## Infokit In this section we have compiled a comprehensive list of useful information on rental housing. ## Press Release ## Press Conference on the Development of Apartment Rents in 2007 Vuokraturva, Statistics Finland, the Finnish Landlords Association, and the Central Union of Tenants are organizing a joint press conference on the development of apartment rents. The aim of the event is to provide a comprehensive picture of a topic that has generated a lot of discussion and conflicting news, especially in the capital region during the autumn and winter. The perspectives of different parties in the rental market will also be highlighted. The press conference will take place on Thursday, February 21, 2008, from 11:00 AM to 12:00 PM at the Näköalakabinetti of Hotel Torni, located at Yrjönkatu 26. Statistics Finland will publish the annual statistics on apartment rents for the year 2007 on the same day at 9:00 AM. Ilkka Lehtinen, the development manager at Statistics Finland, will open the event by presenting the annual statistics on apartment rents for 2007 and highlighting key information related specifically to the capital region. Timo Metsola, chairman of Vuokraturva's board, will provide background on Vuokraturva's observations regarding the distribution of demand for rental apartments among different size categories and residential areas in the capital region in 2007, as well as reflect on signs of future development. "Obtaining accurate and sufficiently detailed information on the development of apartment rents is very important, otherwise, for instance, decision-making in social policy may be based on misconceptions," notes Anne Viita, executive director of the Central Union of Tenants. "Compared to the prices of owner-occupied housing, renting is currently more affordable in the capital region than it has been in over ten years. Against this backdrop, the upward pressure on rents is logical. Many other factors also drive up rental prices, such as the often unfavorable short-term leases for landlords," analyzes Antti Arjanne, chairman of the board of the Finnish Landlords Association. The press conference will be held on Thursday, February 21, 2008, from 11:00 AM to 12:00 PM at the Näköalakabinetti of Hotel Torni, located at Yrjönkatu 26. The event is open to the media. For more information: Timo Metsola, chairman of the board, Vuokraturva Oy, phone: (09) 6877 550 ### About Vuokraturva Vuokraturva is a market leader in housing rental services and investment property acquisition services in the capital region. Vuokraturva rents properties owned by individuals and institutions and collaborates closely with the Finnish Landlords Association and the Central Union of Tenants. Vuokraturva also arranges housing for, among others, employees of the chemical agency and the international staff of the University of Helsinki. www.vuokraturva.fi ## Press Release ## Press Conference on the Housing Market Situation Vuokraturva, Statistics Finland, the Finnish Landlords Association, and the Central Union of Tenants are organizing a joint press conference on the housing market situation on August 7, 2009. Additionally, Olli Salakka, CEO of VVO, will provide the perspective of a large landlord. Each organization will reflect on the current contradictory situation in the housing market from their point of view. The participants will also aim to present concrete proposals to address prolonged structural problems. Statistics Finland will present and comment on the rental statistics for housing from the second quarter of 2009 during the event. The press conference will be held on Friday, August 7, 2008, from 11:00 AM to 12:00 PM at Hotel Torni in the Viewing Cabinet, located at Yrjönkatu 26, Helsinki. Paula Paavilainen, Chief Officer at Statistics Finland, and Ilkka Lehtinen, Development Manager, will present and comment on the rental statistics for housing that will be published on the same day. Timo Metsola, Chairman of the Board of Vuokraturva, will present a summary of the student rental housing market and the housing situation for the fall. Antti Arjanne, Chairman of the Finnish Landlords Association, will discuss why meeting the demand and supply of rental housing has been so difficult year after year. Anne Viita, Executive Director of the Central Union of Tenants, will share the impacts of the recession on tenants' situations. Olli Salakka, CEO of VVO, will provide insights from the perspective of a large landlord owning approximately 38,000 rental units. ### Time and Location The national press conference will take place on Friday, August 7, 2008, from 11:00 AM to 12:00 PM at Hotel Torni in the Viewing Cabinet located at Yrjönkatu 26, Helsinki. Local events focusing more closely on regional situations will be held simultaneously in Turku, Tampere, and Lahti. - **Turku:** Hotel Scandic Julia, Eerikinkatu 4 - **Tampere:** Hotel Ilves, Hatanpään valtatie 1 - **Lahti:** Congress Center Fellmanni, Kirkkokatu 27 After the events, there will be an opportunity to take illustrative pictures in rental apartments. The events are open to the media. Welcome! ### Additional Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 ### About Vuokraturva Oy Vuokraturva is the market leader in rental brokerage and investment property acquisition services. Vuokraturva manages rental properties for individuals, institutions, and investment funds focused on real estate. www.vuokraturva.fi ## Press Releases ## Press Conference on the Rental Housing Market for Students The Helsinki Region Student Housing Foundation, Hoas, has received a record 6,000 housing applications. The rents for market-based housing have increased. This autumn, students may find it harder than ever to secure accommodation since the 2000s. Perspectives on solving the problem vary. According to the Finnish Landlords' Association, more rental apartments could be made available if landlords received better returns. Conversely, the Tenants' Central Association argues that the current rent levels are already unsustainable. Vuokraturva, Statistics Finland, the Finnish Landlords' Association, and the Tenants' Central Association are organizing a joint press conference regarding the state of the housing market. The press conference will be held on Thursday, August 7, 2008, from 11:00 AM to 12:00 PM in the Observation Cabinet of Hotel Torni at Yrjönkatu 26, Helsinki. After the event, there will be an opportunity for illustration pictures to be taken in rental apartments. The event is open to the media. Statistics Finland will present and comment on the rental price statistics for the second quarter of 2008 to be released on the same day during the event. For more information Timo Metsola, Chairman of the Board, Vuokraturva Oy, tel. (09) 6877 550 ### Vuokraturva Oy in Brief Vuokraturva is the market leader in rental brokerage and investment property acquisition services in the Helsinki metropolitan area. Vuokraturva leases residential properties owned by private individuals and institutions. www.vuokraturva.fi ## Announcements ## Press Conference on the Situation of the Rental Housing Market in the Capital Region Vuokraturva, in cooperation with Statistics Finland, the Finnish Union of Landlords, and the Central Association of Tenants, is organizing a press conference on the situation of the rental housing market, with the main speaker being Minister of Housing Jan Vapaavuori. The press conference will take place on Wednesday, May 7, 2008, from 11:00 AM to 12:00 PM at Restaurant Loiste, located at Kaivokatu 3, 10th floor in Helsinki. Statistics Finland will publish the latest quarterly statistics on rental prices the same morning at 9:00 AM. Minister of Housing Jan Vapaavuori will give the keynote speech regarding the rental housing market. Ilkka Lehtinen, development manager at Statistics Finland, will present the statistics on rental prices for the first quarter of 2008 and highlight the main findings from the data. Timo Metsola, chairman of Vuokraturva's board, will explain the changes in rental housing demand among different sizes and residential areas and will discuss the role of housing funds as fulfillers of the expectations set for the availability of rental housing. Tenant and landlord organizations will present their perspectives during the event. “It is essential for the development of the capital region's economy that low- and middle-income households can still afford to live in the vicinity of the capital city in the future,” states Anne Viita, Executive Director of the Central Association of Tenants. “The situation is not hopeless, but it is challenging. It is not an exaggeration to say that corrective actions are already urgently needed,” emphasizes Antti Arjanne, Chairman of the Board of the Finnish Union of Landlords. The press conference will be held on Wednesday, May 7, 2008, from 11:00 AM to 12:00 PM at Restaurant Loiste, Kaivokatu 3, 10th floor. The event is open to the media. For more information: Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 ### Vuokraturva Oy in Brief Vuokraturva is the market leader in apartment rental brokerage and investment apartment acquisition services in the capital region. Vuokraturva rents out residential properties owned by individuals and institutions and works closely with the Finnish Union of Landlords and the Central Association of Tenants. Vuokraturva also arranges housing for, among others, employees of the Chemicals Agency and the international staff of the University of Helsinki. ## Press Releases ## Press Conference on the Publication Day of 2008 Rental Statistics Vuokraturva, Statistics Finland, the Association of Finnish Landlords, and the Central Association of Tenants are organizing a joint press conference on the development of rents and the outlook for rental housing supply on Friday, February 20, 2009. The conference will present different perspectives on the opportunities for rental housing construction in combating the recession and will comment on both the established and planned state support measures. A market comment on the new rental housing production will be provided by Erkka Valkila, CEO of SATO. Paula Paavilainen, a senior actuary from Statistics Finland, will present the annual rental statistics for the year 2008. Timo Metsola, Chairman of the Board of Vuokraturva, will discuss the impact of state support measures on rental levels in the future. Additionally, the discussion will cover the encouraging aspects of the decided and planned support measures for different types of landlords. Pertti Varakas, Vice Chairman of the Association of Finnish Landlords, will highlight ways to increase private individuals' interest in investing in rental properties at this time. Anne Viita, Executive Director of the Central Association of Tenants, will address the impact of layoffs and terminations on families' ability to pay rent, as well as the actions that society can take in this regard. Erkka Valkila, CEO of SATO, will offer an overview from the perspective of a large property investor regarding the current operational conditions for new rental housing production. ### Time and Place The press conference will be held on Friday, February 20, 2009, from 11:00 AM to 12:00 PM at Hotel Seurahuone, Kaivokatu 12, Helsinki (across from the train station). After the conference, there will be an opportunity to take illustrative photos in rental apartments in downtown Helsinki. The event is open to the media. ### Additional Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 ### About Vuokraturva Vuokraturva is the market leader in apartment rental mediation and investment property acquisition services. Vuokraturva mediates properties owned by individuals, institutions, and real estate investment funds. www.vuokraturva.fi # Knowledge Base ### Rental Knowledge Base - Guide to renting an apartment - Frequently asked questions about applying for rental apartments - Instructions for the new tenant - Form templates - Rent increase calculator - Employment housing benefits calculator - Final cleaning and normal wear and tear - Good rental practices - Roommate rental law - Rental privacy guidelines - Insurance for tenants, owners, and housing companies - Glossary of terms used in rental apartment advertisements FI-EN - Rental services for landlords ### Real Estate Knowledge Base - Guide for home buyers and sellers - Making an offer on a property - Real estate terminology - Real estate transaction law - Good brokerage practices - Tips from industry literature ## Privacy Policy Vuokraturva Oy is a company providing rental brokerage and property investment services. This privacy policy concerns the processing of personal data of Vuokraturva's customers, such as landlords, rental apartment applicants, tenants, property sellers, and buyers, as well as the processing of personal data in accordance with the principles of the Whistleblower Protection Act in connection with the handling of reports made through Vuokraturva's internal whistleblowing channel. Below, we describe in detail, among other things: - what our contact information is - what kinds of information we collect - where the data is sourced from - the purposes for which the data is used and the legal basis for processing - how long the data is retained - to whom the data is disclosed and transferred - how we protect the data - what rights the data subjects have We kindly ask you to familiarize yourself with the contents of the privacy policy. #### 1. CONTACT INFORMATION Data Controller: Vuokraturva Oy Business ID 1543822-4 Teollisuuskatu 21, ground level 00510 Helsinki Contact person for data matters: Timo Metsola Phone: 010 2327 300 timo.metsola@vuokraturva.fi #### 2. DATA CONTAINED IN THE REGISTER For all registered persons, the following basic information is processed: - Basic data of the registered, such as name, address, language, age, phone number, email address - Consent and prohibition information, such as direct marketing consents and prohibitions - Interests and other information provided by the registered - Event data - Personal identification number for reliable identification - Information on whether the person is a politically exposed person (PEP) - Billing and collection-related information - Information related to the customer relationship and contractual relationship, such as products and services, the date of use, customer-related requests, details of service providers, information on the number and types of keys and their purposes, receptions and handovers, and communication and events related to the service. For landlords and property sellers, in addition to basic information, the following information is processed: - Ownership and related information on the property for rent or sale, such as address, real estate register or housing company information, condition and renovation details, mortgage, fee, and debt participation information, size, number of rooms, availability, rental or asking price, information on whether the property is intended to be used as a common home by spouses, as well as additional information provided by the customer about the property. For tenants, relocation service users, and rental apartment applicants, in addition to basic information, the following information is processed: - Employer - Nature of employment (permanent, temporary) - Student status, educational institution, study program - Rental application criteria - Start date of the rental relationship - Financial information and income, as well as other information for assessing rent payment ability. - Possible guarantee, guardian, or representative relationship or possible contact person. In addition to the above, we may process other information voluntarily provided by the registered during the application or other contact. We also observe information from the use of our online services as described in section 10 "Cookies." We do not link data observed through cookies to information about identified customers. For reports made through Vuokraturva's internal whistleblowing channel, in addition to basic information, the following data are processed: - Information provided by the reporter to the extent required for investigating the case. #### 3. REGULAR SOURCES OF DATA Personal data is collected during registration, while using services, or otherwise directly from the registered. Personal data may also be collected and updated from the population register and the Finnish Direct Marketing Association's maintained prohibition registry and other comparable registers. #### 4. PURPOSE OF PERSONAL DATA USE AND LEGAL BASIS FOR PROCESSING Personal data is used for managing and developing customer relationships, as well as for marketing services in the following ways: - Contract: To execute rental or sales engagements, we process the personal data of our clients to present and market the property, connect the renter and tenant or seller and buyer, and to invoice the engagement. Personal data is also processed in applications, offers, counter-offers, sale and rental documents, and their attachments as part of contract negotiations. - Consent: We request the consent of the rental apartment applicant or property buyer for the processing of their personal data to send information about available properties via email. We may also request the client's consent for electronic direct marketing. The given consent may be revoked at any time. - Legitimate interest: We process data for marketing, profiling, preventing and investigating fraud and abuse, presenting or defending legal claims, and for internal purposes of the Vuokraturva Group, such as business development. These purposes are necessary for our business and justified based on the substantive relationship between the customer and Vuokraturva, and therefore in accordance with our legitimate interest. The registered may oppose processing as described below. - Legal obligation: We process information, such as whether our client is a politically exposed person (PEP), to comply with anti-money laundering legislation. We keep records of documents and transactions for six years from the end of the calendar year during which the financial year ends, to comply with accounting laws. For the situations mentioned above, the processing of personal data is based on compliance with a legal obligation. If other factors presented in this privacy policy arise, the retention period may be longer than mentioned above. In the forms for collecting personal data, it will be separately indicated which information is mandatory for providing the services and which can be voluntarily provided by the registered. Customers may choose to omit, for example, their interests, but in this case, we will not be able to customize the properties or services offered to them. #### 5. DATA RETENTION PERIOD We retain customer/user data only for as long as necessary to achieve the purposes described above and to comply with legal requirements: - According to Section 10 of the Real Estate Brokerage Act, brokerage firms must retain data related to engagement and documents (including housing applications and purchase offers) for five years from the end of the engagement. However, this five-year retention period is a minimum legal requirement, and due to the ten-year expiration period of liability for damages and the potential duration of processes that started towards the end of the expiration period, we retain data and documents for 12 years. - For relocation service-related data, we retain information for 12 years due to the ten-year expiration period of liability for damages and the potential duration of processes that started towards the end of the expiration period. - For reports made through Vuokraturva's internal whistleblowing channel, we retain data for the period required by law. Vuokraturva's internal whistleblower channel operates on servers provided by Juuriharja Consulting Group under the name First Whistle. Users can also influence their data retention period through the options described in section 8 below. #### 6. DISCLOSURES AND TRANSFERS OF DATA Vuokraturva Group: We may process personal data of customers within the Vuokraturva Group. - Authorities: We may disclose personal data to competent authorities or other parties as required, in accordance with applicable laws. - Corporate Transactions: If we purchase, merge, or otherwise reorganize our business, customer personal data may be disclosed to buyers and their advisors. - Measurement and Targeting: We may use customer personal data for measuring and targeting digital marketing in accordance with applicable regulations. - Collection and Legal Claims: We may disclose personal data to third parties if necessary to enforce contracts, investigate possible violations, or to prepare, present, or defend legal claims. In addition to Vuokraturva Oy, Vuokraturva-sopimus Oy, Takausvakuus Oy, and their parent company Vuokraturva-yhtiöt Oy, IT partners such as City Dev Labs / W3 Group Finland Oy, Jalo IT Oy, and Cinia Oy will have access to customer data and customer data systems, as well as its personnel who need access to the data to fulfill their duties. For Vuokraturva's internal whistleblowing channel, the First Whistle service developer Juuriharja Consulting Group Oy will process personal data of Vuokraturva Oy's primary users as well as the reporters ("Registered") as necessary to fulfill contractual obligations, including names and contact details, technical information related to the software, and other personal data that can be linked to natural persons. Reporters may also store personal data of other persons in the Whistleblowing channel. Juuriharja acts as a data processor under the Data Protection Regulation in the role of the platform provider, with Vuokraturva as the Data Controller according to data protection regulations. Subcontractors that Juuriharja may use in providing the service act as Sub-processors. In using the mentioned and other subcontractors, we ensure through contractual arrangements that data is processed in accordance with applicable laws and this privacy policy. Data is not routinely transferred outside the European Union or the European Economic Area. #### 7. SANCTIONS AND FREEZING LIST CHECKS AND PREVENTION OF MONEY LAUNDERING AND TERRORISM FINANCING Collected identification data and other personal information will be used for sanctions and freezing list checks. Collected identification data and other personal information may be used to prevent, disclose, and investigate money laundering and financing of terrorism. Collected identification data and other personal information may be used in investigations related to money laundering and financing of terrorism as well as the investigation of the crime related to the property or illicit benefit obtained through money laundering or financing of terrorism. #### 8. SECURITY OF THE REGISTER Access to the register requires a user ID granted by the customer database administrator. The administrator also determines the access level granted to users. The application startup requires a personal password. The use of the register and logins are monitored. Data is collected into joint databases of the service that are protected by firewalls, passwords, and other technical means. The databases are located in locked and guarded premises, and access to the data is limited to certain pre-defined individuals. Only personnel authorized to use the data may move in Vuokraturva Oy's locations where the data is processed and stored. #### 9. RIGHTS OF THE REGISTERED - Right to Access, Correct, Transfer, and Delete Information: Customers have the right to access their stored personal data. Upon the customer's request, we will correct, complete, or delete inaccurate, incomplete, or outdated personal data as required by the purpose of processing. Customers may also request to have their personal data that we process automatically based on consent or contract transferred by contacting our customer service. - Right to Object and Restrict Processing: Customers may object to processing based on legitimate interest, based on a personal situation. For example, in such a case, processing may be restricted for the time necessary to assess the reasons for opposing the processing. Processing may also be restricted, for example, when the customer disputes the accuracy of personal data, in which case processing will be restricted for the period during which we can verify the accuracy of the data. - Withdrawal of Consent: Customers may withdraw their given consent at any time by contacting our customer service or by other means offered separately. - Right to Complain: Customers have the right to file a complaint with the authorities if they believe that their data has been processed contrary to this privacy policy and applicable laws. The contact information for the authorities can be found at www.tietosuoja.fi. If you want to prohibit Vuokraturva Oy from electronic direct marketing, you can do so here. Note that the prohibition of direct marketing also applies to search alerts. In this case, you will not receive information by email about rental apartments matching your search criteria based on the search alert you created. #### 10. COOKIES The Vuokraturva.fi website uses cookies. The site sends a cookie – a small text file – to the user's browser, which is saved on the user's device. Most internet browsers automatically accept cookies, but you can adjust your browser settings and delete cookies at any time. You can modify cookie settings through the CookieHub cookie consent service used on our site. You can choose which cookies you accept and which you do not in the pop-up menu. You can change your choice at any time through the "Cookie Settings" menu located at the bottom of the site. The site uses both temporary session cookies, which close when you close the internet browser, and persistent cookies that remain on the device. Cookies help the site to function properly (necessary cookies). Cookies help us gather information, for example, on the number of browsers visiting our site and analyzing the use of our site, such as statistical monitoring. This allows us to view and monitor user interests and thus develop our website. All collected information is anonymous, and actions performed online cannot be linked to a specific person. Advertising cookies help us to select advertisements that suit you best and target advertisements to the right audiences. Some third-party suppliers may also use cookies or web beacons (e.g., 1-pixel image files) to display ads that may interest you when you visit different sites. The more specific purpose of cookies is explained further in the pop-up window after the "Cookie Settings" button. Data collected through cookies does not provide us or third parties with any personal information such as your name or contact information. Third-party advertisers may also use technology to measure the effectiveness of ads. For this purpose, they may use a beacon (e.g., a one-pixel GIF) placed on our website to collect anonymous data. By obtaining anonymized data from user visits to these and other websites, advertisers can design ads for products and services that may interest the user. Browser Cookie Settings You can prevent or delete cookies in your browser settings. Preventing the use of cookies may affect the functionality of our services. You can find instructions on deleting cookies for common browsers through the following links: - Deleting cookies / Google Chrome - Deleting cookies / Mozilla Firefox - Deleting cookies / Safari - Deleting cookies / Opera - Deleting cookies / Microsoft Edge ## Blog ## Functional Rental Housing Markets are Essential for Favorable Economic Development The government's most concrete initiative to increase housing production is focused on the Helsinki region, where there is the greatest imbalance between housing construction and demand. The Helsinki region's letter of intent is a joint project between the state and the municipalities in the region aimed at increasing housing production through cooperation and determination. Particular attention in the letter of intent has been paid to increasing both state-supported and so-called hard money rental housing production. The insufficient supply of rental apartments has become a significant, if not the most critical, bottleneck for labor supply in the region. This is particularly evident in the low-wage service sectors, but also more broadly in the labor market across both private and public sectors. In the long run, it is not in the interest of any municipality in the Helsinki region for the housing market to pose a significantly greater threat to the favorable continuation of overall economic development than it does at present. However, such a risk exists, particularly due to the lack of rental housing supply. The situation is not helped at all by the fact that many small investors have realized their investments as a result of the long-term rise in housing prices, leading to a decrease in privately funded rental apartments. This is a significant factor for the rental housing market, as over 60 percent of privately funded rental apartments are owned by individuals. One explanation for the development described above is that rents have not risen at the same pace as housing prices. According to some calculations, the real value of rents has even decreased. Significant pressure for rent increases has built up, exacerbated by the growing need for major renovations in the existing housing stock. At the same time, the demand for rental apartments has begun to rise. The price level of owner-occupied apartments and uncertainty in the capital markets have raised the threshold for buying a home. Additionally, demand is fueled by both internal migration within the country and immigration. The difficult situation can only be resolved in one way: supply must be significantly increased. In Finland, compared to Europe, there are fairly good conditions for privately funded rental housing investment. We do not have state rent regulation; instead, the rental market operates in an open market economy. Availability of capital will also improve as the government's housing policy action program, which includes significant societal support through the tax exemption of the REIT system, is implemented to specifically support rental housing production. The current general economic situation naturally brings its own challenges. However, economic cycles come and go; construction is an exceptionally long-term endeavor. For example, zoning needs to be increased and expedited, regardless of the economic cycle. However, a cooling of the rental housing production struggles could also open up new opportunities. Capacity in the industry will be released, which should be reflected in construction costs and thus lead to better alignment of investment return expectations than previously. Jan Vapaavuori Minister of Housing # Tenants Quickly and Conveniently We find good tenants for your property. We make it easy for you. Vuokraturva, as a market leader, has rented out over 150,000 homes. Contact us, and we'll take care of the rest. ## We Find Good Tenants for Your Property Vuokraturva is, for good reason, a market leader in rental mediation. We rent out your property securely, backed by over 25 years of experience and solid insight into the current real estate market. Our mediation fee is 100% tax-deductible from rental income taxation, amounting to the rent of one month plus VAT, (i.e., 1.255 times the monthly rent). Vuokraturva operates not only in the capital region and Uusimaa but also in the Tampere and Turku areas. ## We Make Your Life Easy Vuokraturva handles all actions related to the rental from start to finish on behalf of the landlord. The service includes familiarizing ourselves with the apartment, assessing the rental level, photographing and filming the property, managing marketing efforts, arranging viewings, investigating the backgrounds of apartment seekers, negotiating contracts, preparing rental agreements, ensuring rental security is in place, handing over keys, and providing an additional guarantee for the first year's rent. Additionally, Vuokraturva assists you and provides advice throughout the duration of the rental arrangement. ## How Things Progress Contact us You can get started by calling +358 10 2327 300. Or leave a contact request here! We are happy to discuss your property and our services without you committing to anything yet. The purpose is to provide information based on which you can consider decisions related to the rental. We can also agree to meet at the property without any obligation on your part. If you have already made your decision or if you have previously used our services, it is also possible to move forward very quickly. A rental assignment can be initiated immediately based on just the first contact. ### Expert Initial Visit Our agent will familiarize themselves thoroughly with your property and determine the correct rental level in collaboration with you. The rental market situation is more challenging for landlords than in previous years, as the supply of rental apartments has increased. It now requires more professionalism than before to determine the correct rental level. Due to the large number of rental properties mediated, Vuokraturva has an advantage in pricing based on in-depth knowledge of the continuously changing market situation. Decisions regarding the rent requested and other rental terms are always made after careful discussions with you. ### Marketing the Property and Viewings Begin We market your property with pictures, videos, and professionalism. We provide personal service to prospective tenants and highlight the best features of your property. We promote the properties not only on Oikotie and Vuokraovi but also on YouTube and Vuokraturva's own portal, as well as through tailored marketing to those who have made a rental request. We continue to use traditional newspaper advertisements as well. In addition, we utilize effective presentation videos of the properties. We stay in contact with the manager and investigate future repairs while ordering the necessary documents on your behalf. We ensure that all required and necessary information is available in the marketing. ### We Find a Tenant We handle contract negotiations and documentation on your behalf. We carefully investigate the backgrounds of tenant candidates, interview candidates, and tentatively negotiate the terms of the rental agreement. We verify income and credit checks and provide a guarantee for the first year’s rent payment. You make the final decision regarding the tenant selection. We prepare the rental agreements along with attachments and ensure the agreements are signed. Additionally, we hand over the keys and ensure that the rental security has been provided correctly. We invoice you for the costs of the management certificate package and the mediation fee, which equals one month’s rent plus VAT (i.e., 1.255 times the monthly rent). These costs are 100% deductible in the taxation of rental income. ### Vuokraturva Contract Guarantees Rent Payment Vuokraturva is responsible for the quality of its work. The Vuokraturva contract provides you with an additional guarantee for the first year’s rent payment. You can be calm and trust that the tenant has been selected with care. If the tenant does not pay their rent, the Vuokraturva contract will cover it. The guarantee is included in Vuokraturva's standard 100% tax-deductible mediation fee (one month’s rent plus VAT, i.e., 1.255 times the monthly rent) and incurs no additional costs. ### Takausvakuus Guarantee Aids in Competing for Good Tenants Takausvakuus guarantee offers tenants an alternative to providing cash security. The Takausvakuus guarantee helps to rent out a property in the current market, where there is significant competition regarding the size of securities. The Takausvakuus guarantee is only used if both the landlord and tenant agree to it. In the current market situation, however, it is increasingly common to use it. In addition to the competition for security, the Takausvakuus guarantee can facilitate tenants starting the rental relationship earlier than would otherwise be possible, as the tenant does not need to wait to receive security back from the previous property owner. The tenant pays a one-time fee for the Takausvakuus guarantee service in advance, which amounts to 18% of the value of the guarantee that replaces the rental security. The tenant incurs no monthly fees or hidden costs. ### We also Assist During the Rental Relationship We serve you throughout the duration of the rental arrangement. You can always reach out to us! The support and assistance Vuokraturva offers do not end with the signing of the rental agreement and handover of the keys. That is when the rental relationship between the landlord and tenant begins, often lasting for years. In real life, various situations can arise where it is comforting to consult a professional or ensure something. Vuokraturva does not charge for this, as it is included in our service. ## Vuokraturva is the Most Reliable, Well-Known, and Renowned Rental Mediator. ## The Future Path for Government-Supported Rental Housing The topic of government-supported rental housing becoming increasingly oriented towards the middle class, which I wrote about in my previous blog, sparked a lot of feedback, particularly from city officials and politicians in Helsinki. A common theme in this feedback has been a strong defense of the current model. Vesa Peipinen, chair of the Helsinki Housing Board, commented on the subject to Yleisradio last Thursday: Helsinki's concern is that housing intended for low-income individuals and areas may fall into disrepair. The risk of segregation is being discussed. Therefore, the idea is that alongside low-income residents, there needs to be wealthier individuals as well. This is addressed by allowing those who have become financially stable access to government-supported, affordable rental housing. This way, the residents of subsidized housing do not consist solely of low-income individuals who need financial assistance. However, this method is indeed costly. One might wonder, for instance, if it would disturb perceptions that the waiting room at a social services office consists solely of low-income individuals, would the solution be similarly to start distributing social assistance to middle-income earners who have previously needed support due to low incomes? In other words, should government assistance be provided not only to those in need of subsidized rental housing but also to their financially well-off neighbors to prevent slum-like conditions? At this point, I would call a halt. This is simply something we cannot afford in the future at the current scale. The feared slum-like conditions can be somewhat avoided by investing in subsidized rental housing among owner-occupied housing units. In addition, both the city of Helsinki and other municipalities already have some rental apartments that are located dispersedly among typical condominium associations made up of owner-occupied apartments. According to ARA guidelines, there is no fundamental obstacle to these apartments being used for publicly beneficial rental housing. Developing these kinds of operational models is the long-term path forward for government-supported rental housing. Even then, the neighbor might be a middle-income earner, but they pay the normal price for their housing. And government support is only allocated to those in need. Timo Metsola Chairman of the Board Vuokraturva # Office in Turku ### Contact Information Phone: +358 2 631 1500 Email: turku@vuokraturva.fi Phone Hours: Mon-Sun 8 AM – 8 PM ### Address Mariekatan 6 20100 TURKU See here how to find us >> Office Hours: Mon-Fri 11 AM – 5 PM ### Sakari Lankinen Tenant Broker, AFM, AHM +358 41 528 0413 sakari.lankinen@vuokraturva.fi ### Henna Hakulinen Tenant Broker, AHM +358 41 528 0359 henna.hakulinen@vuokraturva.fi ### Pauliina Ketonen Sales Manager, AFM, AHM +358 41 528 0408 pauliina.ketonen@vuokraturva.fi ### Julia Oksanen Office Secretary, AFM, AHM +358 41 528 0455 julia.oksanen@vuokraturva.fi ### Julia Henriksson Housing Presentator +358 41 528 0501 julia.henriksson@vuokraturva.fi ### Alina Heinonen Office Assistant +358 41 528 0442 alina.heinonen@vuokraturva.fi ## Customer Service I am looking for housing: Mon-Fri 10 AM – 4 PM Property Owners: Mon-Fri 8 AM – 8 PM For those who have already rented a property: Mon-Sun 8 AM – 6 PM ## Offices ##### Helsinki Office and Region Mon-Fri 9 AM – 5 PM Industrigatan 21, Ground Floor 00510 Helsinki ##### Tampere Office and Region Mon-Fri 11 AM – 5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Region Mon-Fri 11 AM – 5 PM Mariegatan 6 20100 Turku ## Blog ## Tax Value Reform for Employment Housing in Helsinki The tax values for employment housing will undergo a radical reform at the turn of the year. Until now, Finland has been geographically divided into just two areas with different tax values: the capital region and the rest of Finland. For instance, apartments in the center of Tampere and those in remote areas of Kainuu have been categorized within the same region when calculating tax values. Starting from the beginning of next year, Finland will be divided into six different areas, each with distinct tax values. This is a significant improvement and a step in the right direction, clearly making the taxation of employment housing fairer. However, it is astonishing that under the new model, Helsinki will now be included in five of these six tax value areas. So, while the whole country is divided into six tax value areas, there are neighborhoods in Helsinki that fall into five of them. Conversely, no other city, such as Espoo, Tampere, or Turku, has been deemed necessary to divide even into two areas. For example, apartments in Westend and those in the center of Espoo will thus share the same tax values. This inevitably raises the question of whether there are indeed neighborhoods in Helsinki where apartments are, on average, in the same tax value category as those in Vihd. In other words, are the right areas grouped together? Secondly, one might ask whether it is justified to divide Helsinki into five areas when no other city is divided even into two. The differences between city centers and suburban areas exist in places other than just Helsinki. The reform is headed in the right direction but is curiously Helsinki-centric. The differences between the central and suburban areas of other large cities remain completely unaddressed. Timo Metsola Chairman of the Board Vuokraturva # Blog ## Labor Mobility and Rental Markets Society would benefit, and individuals would be happier, if everyone residing in Finland could do work corresponding to their education. To achieve this truth, Finland needs functional housing markets that provide a sufficient supply of affordable rental and ownership homes that meet the diverse needs of different families. Currently, the housing markets mainly offer dream homes for the wealthy, the income from whom we have read about in newspapers recently. Living in a rental property is a politically advantageous option for the labor market. Ownership properties tie families to their hometowns, as the proceeds from selling a detached house in northern or eastern parts of the country cannot be used to purchase a comparable property in the neighboring municipalities where jobs are located. It is understandable that a person, with their family, becomes committed to their home and surroundings. Long-term unemployment is a risk if there are no job opportunities in their home municipality. This situation often leads to accepting jobs that do not match an individual's education. In the capital region, the poor availability of affordable rental housing has already become a key constraint on labor mobility and threatens to undermine continued general economic development. The rental and housing markets in the capital region or metropolitan area are not unified. Regional differences are significant both within and outside municipal borders. The numeric shortage of rental properties is the primary problem. According to the Tenants' Central Association, the real issue arises from the fact that even the starting rent for ARA production in the capital region exceeds €10/m². When the size of an apartment is 50 m², it does not require complicated math to understand that the rent is €500. Income limits were removed from state-supported ARA production across the country in the spring of 2008. This development was in line with the wishes of landlords' associations. It was known that ARA rents were so high that the lowest-income individuals could not afford them. Now that the income limit issue has been removed, no supported rental apartments are still being built, even though tenants regard them as good and safe places to live. There is an acute shortage of workers in the service sectors, both in the public and private sectors. The attractiveness of job opportunities is significantly reduced by the high cost of living. At the family level, attempts are made to reduce housing costs by living further away, leading to longer commutes and increased travel expenses. The effects of long days on family life are not even discussed in public. Often, discussions about labor mobility and the functionality of rental housing markets are viewed mainly through the lens of the Double Finland / Traffic Jam Finland issue. Should everyone move south? It is already evident that in the future, there will be new groups emerging in the labor and housing markets. There will be labor migration, refugees, exchange students; all of these factors lead to an increased need for housing. Freedom of labor mobility is one of the fundamental principles of the EU. In addition to this, global capital mobility is a concern, and as a result, foreign investors have shown interest in operating in Finnish markets. Finland needs both foreign capital and labor, and labor requires housing. The prevailing boom of home ownership in Finnish society is not the only proper form of housing for these new groups. Elsewhere in Europe, renting is a common living arrangement for the majority. Housing markets in Finland also need to develop in this direction. Believing that markets have the capacity to balance housing markets has already proven ineffective. The needs for workforce housing must be addressed quickly by producing new apartments. Decisions in housing policy must be made today for the coming decades. In these decisions, it must be remembered that housing policy is part of economic policy, social policy, and increasingly part of environmental policy. Anne Viita Executive Director Tenants' Central Association # Homepage ## Main Menu - Homepage - For Tenants - For Landlords - For Sellers - For Buyers ## Our Offices ##### Helsinki Office and Area Mon-Fri 9 AM – 5 PM Teollisuuskatu 21, Ground Floor 00510 Helsinki ##### Tampere Office and Area Mon-Fri 11 AM – 5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Area Mon-Fri 11 AM – 5 PM Maariankatu 6 20100 Turku ## Blog ## The Connection Between New Apartment Company Loans and the Subprime Crisis: Loans Tied to Properties, Not Buyers Ten years ago, President Obama was fervently trying to sort out the mess in the United States that arose from loans being tied directly to properties without any scrutiny of the buyers' repayment capacity. The result was a massive catastrophe. Upon reflection, Obama handled what seemed like an impossible situation quite well. When Obama visited Finland last week, I was asked what I might have given him to take home. I would have gladly presented him with the large company loans that are causing a similar chaos here, hoping that amidst it all, they would manage to survive, just as the U.S. did previously. Obama chuckled good-naturedly, smiled politely, shook hands, and traveled back to America. The problem, however, remains in Finland. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Large Company Loans for New Properties Have Opened the Floodgates to Housing Sales The sale of new apartments has surged significantly, driven by large company loans that have pushed down apartment prices. A large company loan in a new property is a massive risk that is often overlooked, much like an elephant in the living room; it sits next to the sofa, yet few acknowledge its presence. Currently, approximately 70 percent of company loans for new properties are more of a norm than an exception. These loans enable financing related to the apartment to be transferred from the owner directly to the property itself. No assessment of the owner's creditworthiness is carried out at this stage. This model, familiar from the United States, facilitates the seamless transfer of the loan when the property is sold. In Finland, the traditional model for decades had been that new apartments were sold without debt, meaning they had no company loan. Later, as buildings aged, loans would be taken for renovations, and even then, as little as possible. For example, a retail space owned by the housing company or a former superintendent's apartment might be sold to minimize the need for taking on significant loans. Thus, large company loans were viewed as detrimental and a burden to housing companies. Those housing companies with substantial loans were generally considered "bad," while those with little debt and proactive renovations were deemed "good." Today, things have changed drastically. Large company loans have become a tool for real estate speculation. Construction companies can demand much higher prices for their apartments when a large company loan depresses the actual sale price and obscures the true value of the property. Additionally, with many company loans initially offering a few years of repayment-free periods, the actual future living costs become unclear. A person moving from an old to a new apartment can receive cash from selling their old property that might not even need to go towards the new purchase due to the large company loan. This can feel beneficial, boosting their financial situation and influencing positive spending behavior. What may be overlooked is that the person is now carrying more debt than before. Investors benefit from large company loans because enlightened housing companies account for repayments in their financial statements, allowing investors to immediately deduct these repayments from rental income taxes. This setup is incredibly advantageous for investors. I must regretfully admit that I initially conceptualized and pushed through this model of accounting verification for these housing companies' organizational rules, encouraging investors to confidently count on tax deduction rights. It was only later that I regretted this when the setup excessively overheated the investment market for new properties—far beyond what I could have anticipated. In an effort to prevent a housing bubble, I inadvertently created a kind of apocalyptic beast. It is also not at all clear that this loophole in taxation might not be closed in the future through exceptional arrangements. Alright, many seem to benefit from large company loans. So, what’s the downside? They pave the way for a housing bubble by circumventing one safety mechanism after another. These large loans, which are tied directly to properties without any oversight or control, allowed already over-indebted investors to accumulate even more debt, thereby contributing to the escalation of the subprime crisis in the United States in 2005. I remember when Skanska first introduced this model of large company loans in Finland back in 1999 with the renovated old coffee roastery apartments on Käenkuja in Helsinki. Many, including myself, were horrified by how a debt-laden company could cope with unexpected challenges. There was concern whether buyers understood the risk they were taking on when the housing company was so heavily indebted. For the entire past decade, this model of large company loans remained quite rare. However, in this decade, the model has proliferated significantly in new construction. Even at the decade’s start, I no longer viewed the model as outright dangerous, having grown accustomed to it. Most apartments were acquired by owner-occupiers, providing good diversification. People generally owned just one apartment with a substantial company loan, and they lived there. That seemed fine. I even participated in the further development of the model to attract investors. What began as a good idea and a positive encouragement for property investment conditions spiraled out of control. As the popularity of the large company loans increased over the decade, new properties with these loans have become particularly favored by real estate investors, partly due to my short-sighted tax benefits. Over the years, property prices have risen, along with the amounts of company loans. This trend has resulted in a situation where, in many buildings, most owners are investors who have multiple similar properties in other new projects with large company loans. Investment funds are also involved. This multiplies the risks because, if market turbulence arises, some owners may be unable to pay their share of the repayments. Others must cover their parts, and increasingly, more may find themselves facing payment difficulties. The spiral could ultimately lead to the entire building ending up in the hands of the creditor who provided the company loan. The situation is exacerbated by the fact that alongside the 70 percent company loan, many construction companies arrange an additional 20 percent gap financing. This raises the loan-to-value ratio of the apartment to 90 percent, which I consider extremely dangerous in terms of overheating the housing market. Yes, I am concerned. The dramatic increase in company loans is clearly more problematic than if the owners were to take normal housing loans in their names. When the owners of a housing company take individual loans, the typical controls around over-indebtedness come into play through banks. Banks monitor that loan repayments, even as interest rates rise, do not consume too large a portion of available incomes, and they assess the overall financial situation and risk tolerance of the borrower. Of course, banks are primarily looking out for their own interests, and this filtration is not perfect, but it is still an important measure. When a loan related to a property is tied directly to the apartment through a company loan rather than the owner, there is no such control. The risks associated with these arrangements may not be well understood in the governance of housing companies. Those who care most about these issues are often not the ones ending up as owners or members of the board, as they understandably do not purchase properties from such companies. Moreover, the widespread nature of such arrangements obscures risk perception. People tend to think that the prevalence of something is evidence of its relative safety. However, history in the investment world is filled with cautionary examples demonstrating the fallacy of this reasoning. In some housing companies, risks have indeed been acknowledged. A skilled property manager can facilitate risk awareness. However, not much can be done because the company lacks proper means to lighten a large 15, 20, or 25-year company loan. Individual owners may repay their share of the debt, perhaps via a traditional bank loan, but the company’s administration cannot compel them to do so. Certainly, the housing company board can seek to ensure that the terms of the company loan are as favorable as possible through competitive bidding and hope for the best. Timo Metsola Chairman of the Board Rental Security # Blog ## New Apartments' 70 Percent Company Loans Are Russian Roulette for All Apartment Companies' Loans In December 2013, I discovered how company loans can be used in a way that turns new apartments into incredibly tax-efficient investment properties for landlords. The consequences spiraled out of control, and now the Finnish government is attempting to close the loophole I found back then. At the same time, there is a risk that the direct deduction rights for company loans taken for renovations will also be removed in all situations. On December 12, 2013, I realized that in new developments financed by company loans, loan repayments could be recognized in the company's accounting instead of traditional capital accumulation. This means that not only interest but also loan repayments are directly deductible from rental income for tax purposes. Many property investors do not have to pay any tax at all on their rental income in practice. I presented this insight the very same day to Markus Myllymäki of Lehto Group, who was excited. The explosive development began four months later, when I refined the idea further, and on April 15, 2014, I discovered that an extremely tax-efficient procedure for investors could be recorded in the articles of association of housing companies from the outset. When an investor can trust that this will be done in the company, the value of the apartments increases significantly in the eyes of the investor. I was thrilled with the invention and the huge tax advantage it brought, as it seemed that it could interest even those investors who had not previously invested in real estate. And indeed, it did happen. I imagined that a few dozen apartment buildings aimed at investors might emerge with this model. The reality was different. When competing construction companies noticed investors rushing to buy Lehto Group's apartments, this model became the new standard in the construction industry. Markus Myllymäki sold his Lehto shares in February 2018, got a good price, and left the company. Company loans were taken out in the billions, and over 75% of new apartments had a tenant as their first occupant. At first, I was happy when I noticed I had invented something significant that changed the logic of the entire real estate investment sector. Then I began to get horrified. The feeling was like in the Brothers Grimm's tale "Sweet Porridge." I realized I had made a big mistake. In June 2018, I sent the following message to the media, admitting that the situation had spiraled out of control and was developing in many dangerous ways. There are bad examples from around the world of what can happen if the buyer does not take on debt themselves, but the debt is tied to the apartment. The most well-known example is the subprime crisis in the United States. And that’s not all. The problems caused by the company loan boom from investors for new developments do not only concern new properties; they reflect on the loans of all approximately 90,000 housing companies in Finland. It will not be easy to find affordable loans for renovation work if the cereal and porridge are not kept separate. Timo Metsola Chairman of the Board www.vuokraturva.fi www.myyntiturva.fi --- Sender: Timo Metsola Sent: Saturday, June 2, 2018, at 8:08 AM Recipient: Vuokraturva News Subject: VUOKRATURVA: New Apartments' 70 Percent Company Loans Are Russian Roulette Since All Finnish Company Loan Terms Are Deteriorating Finnish banks have done a great job over decades to ensure that international parties from whom Finnish banks get their refinancing understand what a housing company is. It is a uniqueness and pride of the Finnish housing market, where people own apartments through a shared company. A board and property manager are elected for the company, and they take care of the building, repairs, and management. However, to the ears of an international financier, a housing company sounds like a risky real estate investment company. But Finnish banks have known their business and managed to convince financiers of the conservative nature and low risks of housing companies. Therefore, housing companies have received—and still receive—financing very easily and at low interest rates. As a result of decades of work. Now, everyone is playing Russian roulette with the international reputation of all housing companies, as the maximum amount of company loans has begun to pile up in new housing companies, and buyers are mostly investors. These housing companies resemble the speculative schemes that international financiers feared. The initial years of deferred repayments on company loans exacerbate the situation. Reputation is easy to lose but difficult to regain. The consequence could be that the loan acquisition for all Finnish housing companies becomes more difficult and expensive. This also affects those who live in a completely paid-off apartment in a building that was constructed a long time ago when the next plumbing or facade renovation comes up. Additionally, this would also increase rents, as landlords' costs would rise. In new developments, company loans of around 70 percent are now more the rule than the exception. They make it possible to shift the burden of loans from the owner directly to the apartment itself. No assessment of the owner's ability to carry the debt is performed at that time. This system, familiar from the United States, also means that if the apartment is sold, the loan conveniently transfers with the apartment. In Finland, the traditional model has been that new apartments are sold free of debt, that is, without company loans. Later, when the buildings have aged, company loans have been taken for renovations. And even then as little as possible. For example, a retail space owned by the housing company might have been sold, or a former caretaker's apartment that is no longer needed, so that the company loan did not have to be taken out as much. Large company loans have thus been viewed as bad and a burden for the housing company. Those housing companies that actually have very large company loans have previously been generally regarded as "bad." On the other hand, those that were nearly debt-free and anticipated their repairs promptly were seen as "good." Today, things are significantly different. Large company loans have become one of the new tools of real estate speculation. The construction company can get much higher prices for apartments when the large company loan lowers the actual sale price and obscures the true value of the apartment. Additionally, since company loans often have a few years of deferred repayments at the beginning, the real future housing costs also become obscured. A person changing from an old apartment to a new one receives cash from the sale of their old apartment that, due to a large company loan, does not necessarily go toward the purchase price of the new apartment. The person changing apartments receives what feels like extra cash, which may seem pleasant and positively influence their spending behavior. The fact that the apartment changer is more in debt after the change may get less attention. On the other hand, investors benefit from large company loans because informed housing companies recognize their repayments in the accounting, allowing the investor to deduct the principal repayments of the company loan immediately from rental income for tax purposes. This is an incredibly favorable setup for the investor. Unfortunately, I must admit that I originally invented and promoted the model where this accounting recognition is also recorded in the articles of association of these housing companies, so that investors can more confidently rely on this tax deduction right. Only later did I come to regret this situation when it heated the investment market for new developments much more than I could ever have imagined. From the perspective of preventing a housing bubble, I ended up creating a kind of "monstrous" beast of a revelation. It is also not at all clear that this tax loophole could not be closed with some exceptional arrangement at some point. Timo Metsola Chairman of the Board --- Epilogue The real invention was that the recognition could be recorded in the articles of association when a new housing company is established. This makes the building particularly attractive for investors. Debt shares and financing contributions collected from owners for renovations have been recognized in the accounting of old housing companies for decades, as long as investors managed to get this practice approved at owners' meetings and were aware of this possibility. The main challenge was that the procedure was often unfamiliar to managers at that time. Another challenge was that owners residing in the apartments do not directly benefit from the arrangement, and they often worried that a residential reserve might be needed to ensure that taxable profits do not arise in the company’s accounting. Therefore, despite investors' efforts, the more common approach was to rely on capital accumulation instead of recognition of collected funds. A provision made in the articles of association of the new building secures the use of the recognition method quite well, which was a decisive incentive for investors. The large size of the company loan only increases its attractiveness. Up until 2013, company loans were used in new housing companies to some extent because the transfer tax only needed to be paid on the actual sale price, not on the portion of the company loan. This phenomenon had started to rise to prominence at the turn of the decade. In 2013, this transfer tax benefit related to company loans was removed, but I invented the current model that provides an even greater tax benefit—one that ultimately turned out to be too large over time. # Blog ## Large housing company loans for new apartments are still blocking sales and construction Timo Metsola I expressed my concerns last summer about the knot caused by oversized housing company loans affecting the sale of new apartments, which may not unravel by itself even in a year or two. I pointed out how hopeless such a situation would be, not only for the currently dwindling construction industry but also for the national economy, whose employment and tax revenue impacts from housing construction are significant. I proposed banning housing company loans for new apartments, so that the construction industry and the banks funding it would have a clear new common direction from which to begin disentangling the knot. New apartments would then be sold debt-free, as is done elsewhere in the world. And as was the case in Finland before the housing company loan boom. *** Now, a year has passed since those discussions. The knot in housing construction has only tightened, with unsold new apartments with housing company loans largely still on the market, despite discounts and promotions being feverishly used. In these conditions, practically no one has started to build more new apartments. Not those with large housing company loans, but hardly any others either. The entire sector has been lying helplessly in the flames. It seems that in addition to the already lost year, we will lose the next one as well. There is no guarantee that housing construction will start again next year. My worry last year that we could lose another year or two due to the knot in construction no longer seems exaggerated. One could perhaps say that it is already a reality. There is still a lack of courage to build differently than the established logics of the industry without housing company loans, but there is also no willingness to build more apartments with large housing company loans when the existing ones remain unsold. Used apartments typically do not have large housing company loans, and their sales decreased only about a third even after interest rates rose. In new apartments, there are large housing company loans, and their sales fell by about 90% after interest rates rose. This implies something, although, of course, the high prices of new apartments and their weak downward flexibility also have an impact. The housing construction sector still does not know where a new direction forward can be found. Due to competition and cartel legislation, the sector cannot agree among themselves on the direction and general logic of the industry. This practically means that it is hard to see another quick solution than banning housing company loans for new apartments, where the related fears would not be a problem moving forward. Consumers find it difficult to understand housing company loans, which are business loans and whose logic and liabilities operate differently than those of consumers’ own home loans. If housing company loans were banned, then the new direction for the industry would come from lawmakers, signaling clear frameworks for operation. In these frameworks, banks would also then begin to draft their own financing models. Better and more easily implementable ideas would be very welcome, but none have been heard. Therefore, I repeat my own proposal, as my concern about the housing construction bottleneck only grows stronger. Relying on the situation resolving itself is quite a gamble. It is obvious that when the migration gain in growth centers is strong and housing construction is almost at a standstill at the same time, at some point the tension between these facts will grow so great that the laws of the market economy will inevitably restart housing construction from some foundation. The ongoing housing shortage and rising prices of used apartments drive toward that outcome. But it could take years. And there is no guarantee that when the dam eventually breaks, the European market for construction materials and the availability of foreign labor in the construction sector can meet our domestic needs. At the same time, there may be, for example, the reconstruction of Ukraine with a population of 40 million ongoing, and a Europe-wide shortage of construction materials and labor may have driven costs to problematic heights. It is not wise to accept a situation where housing construction is first nearly completely halted for years and to rely on the hope that a resulting deficit can be quickly closed later. In addition to the fact that housing starts are currently at a record low, the number of building permits applied for is also at the lowest point in its entire statistical history. So, right now, no construction is happening, nor is there even planning for it. It can be justifiably stated that the situation is alarming. Listing and bringing up old speeches is rarely justified. Now, exceptionally, I will do so below to highlight that I believe it cannot be said that the current situation arose unexpectedly, as some claim. The problematic development was evidently predictable six or seven years ago, as seen below. However, the most important thing to understand is that the current situation will also not resolve quickly simply by waiting. Housing construction will begin only when there is a clear view of what foundation it will be built upon in Finland next. And every month lost before that is nearly a billion-euro tragedy for the national economy. ## Housing company loans in 2017 Large housing company loans became a tool for speculation - "The true price of the apartment becomes blurred" [Link](https://www.kauppalehti.fi/uutiset/isoista-taloyhtiolainoista-tuli-keinottelun-valine-asunnon-todellinen-hinta-hamartyy/7e5e6c75-8db4-34f1-b945-97b41d9a2b35) The trade of new apartments is booming - large company loans opened the floodgates of housing sales [Link](https://www.taloustaito.fi/Blogi/blogit-2017/uudisasuntojen-kauppa-kay-kuumana--suuret-yhtiolainat-avasivat-asuntokaupan-padot/#094ce3de) ## Housing company loans in 2018 Real estate investment guru Timo Metsola regrets his invention that heated the housing market: "I created the beast of Revelation" [Link](https://yle.fi/a/3-10237373) "It was like fuel on the flames of the housing investment boom" – Timo Metsola recalls how housing company loans came to Finland [Link](https://www.talouselama.fi/uutiset/se-oli-kuin-bensaa-asuntosijoitusbuumin-liekkeihin-timo-metsola-muistelee-kuinka-taloyhtiolainat-tulivat-suomeen/ec4f2a51-3e6f-31b9-be6e-f784e226bd82) Vuokraturva's Metsola on the housing market: “A terrain where fire nests are smoldering” [Link](https://www.iltalehti.fi/talous/a/201808012201109101) The large company loans for new developments are like Russian roulette – at worst, the loan conditions for all housing companies deteriorate [Link](https://www.taloustaito.fi/Blogi/blogit-2018/uudiskohteiden-isot-yhtiolainat-venalaista-rulettia--pahimmillaan-kaikkien-taloyhtioiden-lainaehdot-huononevat/#094ce3de) ## Housing company loans in the last approximately year Vuokraturva's Metsola: We could completely eliminate housing company loans for new developments [Link](https://www.hs.fi/talous/art-2000009712956.html) The marketer of housing company loans wants to close the loophole [Link](https://www.hs.fi/paakirjoitukset/art-2000010085577.html) Timo Metsola, who was involved in the ideation of housing company loans for new apartments, now regrets: "I made a terrible mistake" [Link](https://www.aamulehti.fi/talous/art-2000010087197.html) Market Raati podcast: Timo Metsola: New housing company loans must be prohibited [Link](https://www.kauppalehti.fi/uutiset/markkinaraati-podcast-timo-metsola-uusien-asuntojen-taloyhtiolainat-kiellettava/6bef6784-a705-44bf-8ce9-3fc18e22698e) There could be a sharp change in housing prices. Experts predict market disruptions. [Link](https://www.hs.fi/visio/art-2000010230001.html) Housing company loans for new apartments will cease, and construction will change [Link](https://www.vuokraturva.fi/medialle/blogi/uusien-asuntojen-taloyhtiolainat-loppuvat-ja-rakentaminen-muuttuu) Housing construction will not start because there is no new direction to take [Link](https://www.vuokraturva.fi/medialle/blogi/asuntorakentaminen-ei-lahde-liikkeelle-koska-silla-ei-ole-uutta-suuntaa-mihin-lahtea) Timo Metsola proposes radical medicine for the housing construction crisis: Completely ban housing company loans [Link](https://www.rakennuslehti.fi/2024/02/timo-metsola-ehdottaa-rajua-laaketta-asuntorakentamisen-kriisiin-kielletaan-taloyhtiolainat-kokonaan/) Timo Metsola Chairman of the Board Vuokraturva ## Blog ## New Average Apartment Size in Helsinki Should Be No More Than 75 Square Meters Vuokraturva suggests a new average size regulation of 75 square meters for residential buildings being constructed in Helsinki. Clearly, a rule allowing a maximum average size of 75 square meters for new apartment buildings would be more logical than the previous requirement of a minimum average size of 75 square meters. Helsinki is facing a severe shortage of small apartments, as the city has only 65,000 studios but 150,000 single-person households. The number of available building plots in desirable locations is limited. This reserve should not be used for developments focused on large apartments, as once the plots are utilized, it will become even more difficult to alleviate the shortage of small apartments. Statistics supporting Vuokraturva's position: - The share of families with children among Helsinki's households has collapsed to less than half of what it used to be: 56% (1960) → 24% (2008) - The share of single-person households has tripled: 17% (1960) → 50% (2008) - Approximately 75% of Helsinki's households consist of one or two persons - This is an international trend: single-person households are also increasing in other European capitals Throughout the 2000s, Helsinki has constructed an inappropriate housing stock that poorly reflects the structure and needs of the capital's households. If the recently freed plots along the central waterfront are used in a similar way, it will cause irreversible damage, the cost of which will be paid through inflated prices and rents for small apartments far into the future. Construction companies are particularly interested in building small apartments, as they sell more reliably. Thus, zoning is the main barrier to the increased production of small apartments in Helsinki. Although the official minimum size requirement has officially been abandoned, in practice, only minor exceptions to old requirements are made. Vuokraturva notes that a significant portion of the total area of a new apartment building does not necessarily need to be allocated to small apartments to meaningfully reduce the average size of the apartments. Several small apartments can fit into the same space that a single large apartment occupies. Therefore, not all new apartments need to be small. These ideas have the support of Minister of Housing Jan Vapaavuori, but not all factions of the Helsinki City Council are in agreement. Timo Metsola Chairman of the Board Vuokraturva Links: Tekniikka & Talous New square meter rule for apartment buildings in Helsinki? http://www.tekniikkatalous.fi/rakennus/article317076.ece?s=r&wtm=-13082009 Kiinteistölehti Vuokraturva: Average size of new apartments should be no more than 75 square meters http://www.kiinteistolehti.fi/uutiset/?id=5019 Rakennuslehti Vuokraturva wants a new size regulation for apartment buildings in Helsinki http://www.rakennuslehti.fi/uutiset/rakentaminen/18607.html MTV3.fi Vuokraturva wants capsule apartments in Helsinki http://blogit.mtv3.fi/kaupunkilainen/2009/08/13/vuokraturva-haluaa-helsinkiin-koppiasuntoja/ Vuokraturva suggests eliminating the apartment size regulation Kauppalehti, August 14, 2009, p. 9: Vuokraturva proposes that the average size regulation for apartments in Helsinki be abandoned. Currently, the rule states that the average size of apartments must be at least 75 square meters. Vuokraturva believes it would be more logical for the average size of apartments in new residential buildings to be no more than 75 square meters. Vuokraturva reminds that there is a strong shortage of small apartments in Helsinki. The city has only 65,000 studios, while there are 150,000 single-person households. The proportion of families with children has collapsed, while single-person households have increased. Approximately 75% of Helsinki's households consist of one or two persons. The main barrier to constructing small apartments is zoning, according to Vuokraturva. # Blog ## End of New Apartments' Company Loans and Changes in Construction Timo Metsola Residential construction and the permits granted for it have collapsed, and there is currently no sign of recovery even in the largest growth centers. Company loans and their skyrocketing interest costs within a year have made buyers cautious. There are many unsold new apartments, and their sales are very slow or at a standstill. The difficulty and uniqueness of the situation is illustrated by the fact that there are individual new projects across Finland where apartments do not sell even when only the company loan portion is considered. In other words, transactions do not take place even at a zero euro selling price because the buyer would have to take responsibility for the company loan associated with the new apartment. In the worst cases, the selling price can be negative, meaning the seller pays the buyer to facilitate the transaction. This peculiar phenomenon became familiar a few years ago with certain golf shares, which could only be sold by paying the buyer to take ownership of them. The large company loans, their inflated maintenance costs, and the shared responsibility extending to neighbors' company loans have become a significant concern, severely frightening the housing market. ## A New Beginning Might Require Abandoning Company Loans for New Projects Entirely It is entirely possible that when privately financed housing construction finally resumes, new buildings will be constructed entirely without the now nearly taboo company loans. This means that the initial phase of the construction revival will likely begin with properties that do not carry company loans. At the same time, there will likely continue to be new projects lingering unsold due to company loans and price levels. If this happens, it would represent a fundamental change for both consumers and construction companies. Previously, construction companies received almost exorbitant prices for their apartments because the large company loan depressed the actual sales price, obscuring the true cost of the apartment. Additionally, company loans often initially had a few years of repayment-free periods, further obscuring the actual living costs. The illusion of an apartment's seemingly low price was completed with a land fund's leasehold, the terms of which the buyer did not fully understand or was not even aware of. All this worked like a charm until interest rates began to rise last year. A significant number of new apartment buyers only understood the hidden risks once they were already overwhelmed. Moreover, the risks associated with the unfavorable lease contracts for new apartments are still poorly understood, as they emerge more slowly than those of company loans. ## Even the Prohibition of Company Loans for New Apartments Would Now Be Possible The current situation gives lawmakers a natural opportunity to completely prohibit company loans for new projects, as their use is likely to be tapering off or winding down anyway in the next new developments. The disadvantages and risks of large company loans are extremely difficult to predict and comprehend in advance. Therefore, company loans for new apartments are poorly suited for consumer transactions that involve substantial financial stakes, as is primarily the case in the new housing market. Ordinary people take on enormous risks in their own finances without understanding what they are taking on. The situation is cautiously far from optimal. However, a positive outcome of the current acute problem could be the opportunity for a larger change in the form of banning company loans for new apartments. Such a change would indeed need to be timed correctly, and right now could be an opportune moment. In considering this, it is essential to reflect on whether it would be easier to comprehend, compare, and anticipate new apartment prices and future living costs if company loans for new apartments were not allowed. Additionally, it should be considered whether there is already enough clear and widespread experience to see that company loans for new projects unnecessarily destabilize the housing market. It is evident that they make the situation more unstable and unpredictable for buyers, sellers, construction companies, lenders, and society as a whole than is generally assumed. ## An Alternative to a Complete Ban A somewhat lighter alternative to a complete ban on company loans would be to reduce the maximum amount of company loans for new apartments from 60% to, for example, 30%. This way, the new buildings would not be over-indebted, while the company loan would still serve a lesser role in addressing, among other things, the financing needs of construction companies. ## Take Responsibility for Your Own Loan and Let Neighbors Handle Theirs In my opinion, the wisest approach would be to take advantage of the opportunity presented by the current exceptional situation and return to a model where the entire housing loan is sought from the bank with the borrower's repayment capacity suitably controlled. Finland has a very functional and genuinely competitive housing loan market compared to international standards, thus providing a good basis for this change from the perspective of a debt-repaying consumer. If we returned to a model where each individual takes their loan independently, then each person would be responsible only for their loan, without needing to consider their neighbor's loans. In the current situation, if an owner experiences payment difficulties, other owners are collectively responsible for their company loan. Even if you have already paid off your portion of the company loan, you could still potentially find yourself covering your neighbors' loan portions. ## Terms of Company Loans Are Worse Than Regular Housing Loans Company loans come with terms that are inferior to consumer loans, being likened to business loans. In certain situations, the bank may even change the loan margin during the loan term or take other actions that would not be possible with a regular housing loan. Additionally, no one monitors repayment capacity for company loans, or how much debt one individual can accumulate in company loans. At the same time, an over-indebted owner poses a risk to the other owners of the housing company, who may end up bearing this responsibility. When the loan is tied to the apartment rather than the owner, similar risks are encountered as those seen during the U.S. subprime crisis. ## Good Intentions, Bad Outcomes The opportunity to rid new projects of company loans should not be allowed to slip away without being seized. At the same time, this would prevent a situation where the current scenario repeats itself in, for instance, ten years when the lessons of the current crisis have been forgotten. I was personally involved in creating this situation back in December 2013 when, in a burst of creativity, I invented that loan repayments on new projects built with company loans could be systematically recorded in the housing company's accounts instead of through traditional funding. This allowed not only the interest but also loan repayments to be directly deductible in the taxation of rental income, meaning many property investors would effectively not have to pay tax on their rental income at all. This possibility sparked interest in property investment among many who previously had no such inclination. Explosive development began four months later in the spring of 2014 when I further refined the idea by suggesting that this extremely tax-efficient method be incorporated into the founding documents of housing companies. As investors could trust that these practices would be followed within the housing company, the value of the apartments significantly increased in the eyes of the investors. In November 2017, I expressed my growing concern about the overheated market and acknowledged that I had made a significant mistake. I publicly voiced my fear that the established model was akin to playing Russian roulette with the financing reputation of all Finnish housing companies, and regarding the risks of overheating in the housing market, I had perhaps created something akin to a beast from the Book of Revelation. ## What Alternatives Exist to Complete Prohibition or Strong Limitations? In recent years, one proposed solution is to reassign company loans in such a manner that each shareholder would be responsible for them individually. However, I believe this model poses quite a few challenges. If we consider a situation where collective responsibility among owners succeeds in being removed from company loans, it could increase the cost of borrowing as the lender's risks would significantly rise in situations of payment difficulties. At the same time, the loan would cease to be genuinely a loan of the entire housing company, where the entire property owned by the housing company serves as collateral, complicating the acquisition of company loans for necessary renovations. Additionally, the poor situation of an individual shareholder, for example, regarding severe payment default marks, could even hinder loan acquisition for the entire housing company. Compared to the current situation, many aspects would deteriorate. Conversely, if the proposed change is merely to ban company loans for new apartments, then every buyer of a new project would independently seek their loan from a bank as a regular housing loan, making the situation very clear. The financing of the new apartment would be in the name of the purchaser rather than the housing company, meaning there would be no collective liability for these loans. Yet, collective responsibility for, say, the housing company's renovation loans could still be preserved and function just as before, making it easier to secure loans for necessary repairs while improving the terms of those loans. ## The Connection between the Looming Recession in Finland and Housing Construction At some point, the construction and sale of new apartments will pick up again. While waiting for that, Finland is slipping into recession, partly because the significance of housing construction to the national economy—along with its subcontracting chains and ancillary effects—is highly pronounced. It would be prudent, considering also the taxpayer's interests and sustainability deficit, to closely examine how society could stimulate a return to healthier foundations for housing construction. At the same time, it presents an opportunity to clarify and permanently eliminate the unhealthy reasons behind the current situation. Timo Metsola Chairman of the Board Vuokraturva Oy *** Previous writings by the same author on company loans and their issues: 10.5.2021 https://www.vuokraturva.fi/medialle/blogi/uusien-asuntojen-70-prosentin-yhtiolainat-ovat-venalaista-rulettia-kaikkien 16.12.2020 https://www.vuokraturva.fi/medialle/blogi/taloyhtiolainat-pakko-alkaa-erotella-korjauslainoihin-ja-rakentamislainoihin 23.2.2020 https://www.vuokraturva.fi/medialle/blogi/vanhojen-taloyhtioiden-korjauslainat-vaarassa-koska-uusien-talojen-yhtiolainat 4.6.2018 https://www.taloustaito.fi/Blogi/blogit-2018/uudiskohteiden-isot-yhtiolainat-venalaista-rulettia--pahimmillaan-kaikkien-taloyhtioiden-lainaehdot-huononevat/#1d401f7c 15.11.2017 https://www.vuokraturva.fi/medialle/blogi/uudiskohteiden-isot-yhtiolainat-avasivat-asuntokaupan-padot Vuokraturva is the most reliable, well-known, and best-reputed rental agent. Taloustutkimus ### Looking for a good tenant or considering selling? If you need a reliable tenant, we will find one for you. If your wish is to sell your property at just the right price, we will make that happen. Get in touch, we will take care of everything on your behalf – while you can relax. ### Looking for a new home? We help you find your dream home. So get acquainted with our available rental and sales objects and prepare to be delighted. ## Database Useful information for landlords, tenants, sellers, and buyers. ### Solid professionals in housing at your service Vuokraturva, which started as a one-man company, is the market leader in the industry and employs a hundred housing professionals at three locations in Helsinki, Turku, and Tampere. Vuokraturva is the most reliable rental agent (Taloustutkimus). Myyntiturva, which focuses on the sale of properties, is part of Vuokraturva Oy and sells, unlike almost all its competitors, properties with favorable, fixed broker fees. ## Announcements ## New Way for Companies to Arrange Rental Housing for Employees The worsening labor shortage and rental housing scarcity in the metropolitan area are putting pressure on employers to provide rental housing for their employees. However, employers do not want to tie up large amounts of capital in property ownership. A new service has emerged in the market, allowing employers to arrange rental housing that meets their employees' preferences as a purchase service. This new service already has dozens of users. The underlying reason for the increasing demand for rental housing is the rise in interest rates, which has made renting more attractive compared to owning. With a growing demand for rental properties, the labor-short metropolitan area simultaneously requires a significant number of new employees, most of whom are looking for rental homes. Companies have noticed that arranging housing needs through the employer is becoming an important competitive advantage when hiring new employees. In response to this need, the largest intermediary of rental housing in the metropolitan area, Vuokraturva Oy, has launched a new service that maps employees' housing wishes at the employer's expense, schedules property viewings according to the employee's timetable, introduces suitable properties with the support of experts, and handles contract matters on behalf of the employee. A smooth moving service package is also provided. "In the future, alongside company cars and other employment benefits, employer-provided housing and other housing services may play a central role as companies compete for skilled labor," states Vuokraturva's CEO Ilkka Hikipää. For more information, please contact: Paula Metsola, Service Manager, Phone: 041 5280 351 Ilkka Hikipää, CEO, Phone: 041 5161 431 ### About Vuokraturva Oy Vuokraturva is the market leader in rental property brokerage in the metropolitan area. Vuokraturva rents both private and institutional housing stock and works closely with the Association of Finnish Landlords and the Finnish Tenants' Association. Vuokraturva also arranges housing for employees of the Chemical Safety Agency. Vuokraturva won the city of Helsinki's tender for brokerage services with maximum points in every category. ## Blog ## Significant Pressure for Change in Real Estate Education In our country, there is a need to clarify the offerings in real estate education. Currently, there is pressure and need for change coming from various European organizations, as well as emerging from the industry itself and its clients. The current Finnish systems do not adequately meet these needs. It is essential for stakeholder groups in education to address this issue, assess the requirements, and determine for whom, in which educational institutions, and with what content real estate education will be provided in Finland going forward. Since the establishment of the Central Organization for Real Estate Agents in Finland in spring 2008, it has been decided to closely evaluate the educational offerings in the organization. A good framework for assessing educational content is provided by the guiding paper from CEPI, the organization for real estate professionals headquartered in Brussels, concerning minimum education requirements in the industry. In recent years, CEPI and its intermediary organization, EPAG, have launched their proposals for a standardized European minimum level of education for real estate agents. This content package has been suggested as a model for pan-European real estate education in CEPI's various member countries—Finland being one of them. The model is structured around 180 ECTS credits. In addition to core skills required for an agent's work (such as sales and marketing), it outlines educational content including entrepreneurship and management skills. This model encompasses many valuable and commendable aspects. Efforts have also been made to incorporate it into the forthcoming European standard for real estate mediation, currently being developed by the European Standardization Organization (CEN). However, the project group, comprising representatives from European countries, meeting in Vienna last week, did not fully accept CEPI's ideas as they were. Instead, it was decided to recommend a slightly lower standard minimum requirement of 120 credits for the educational level of agents in the standard draft. The reduction likely reflects the fact that not all European countries have legislation on this matter, and requirements vary from country to country. However, the real educational need must be evaluated according to requirements, and CEPI is unlikely to abandon its demand for 180 credits and the associated content. For Finns, the European constraints will not become a burdensome issue if we ensure that we proactively develop our own systems in a sensible direction. From the perspective of Finnish real estate practices, it is crucial that European standards guide the profession of agents in the right direction that is also desired in Finland. An example of the Finnish perspective is the view summarized by the Central Organization for Real Estate Agents: real estate mediation is a demanding expert profession that requires strong professional skills, good customer service abilities, simultaneous management of various areas, and a high level of professional ethics. The Central Organization's view aligns well with the European perspective. No one is born an expert in real estate mediation; success in the profession requires not only experience but also adequate and appropriate education. However, theory and practice have not yet converged in Finland's current education system. For instance, the requirement of 180 credits from CEPI poses such a significant challenge that currently, there is not a single institution in Finland whose real estate education content meets these criteria. I believe that those providing real estate education in Finland, along with industry organizations and regulatory authorities, must engage in a strategic discussion on how and within what timeframe to meet the proposed minimum educational requirements. Real estate education in Finland must aim to eventually reach a level comparable to Nordic examples, such as at the university of applied sciences level. The current qualifications from the professional real estate examination launched a few years ago in our country, along with the qualification for the head of a real estate agency which is managed by the Central Chamber of Commerce, provide good interim steps and building blocks for this work. One potential path forward is gradually integrating these components. This combination could create an entity that is greater than the sum of its parts. However, this requires a positive developmental spirit among the responsible parties and also some adjustments to legislation concerning the industry. It is worth addressing this issue and examining the overall picture so that the real estate profession continues to be an attractive option for the new generation—an environment that offers its practitioners a diverse, meaningful, and independent field with the potential for good income as their careers progress. Establishing a dialogue and communication with European decision-makers in the industry will likewise be essential going forward. Aware of this fact, the Central Organization for Real Estate Agents has sought membership in CEPI and EPAG. Approval of the membership has received the support of CEPI's board in a meeting held on September 5th. The membership is anticipated to be finalized on October 10th at the organization's fall meeting in Ghent, Belgium. Helsinki, September 18, 2008 Jukka Malila Managing Director Central Organization for Real Estate Agents For more information on the subject: www.kvkl.fi www.cepi.eu Selling or renting a property both have their advantages. Which option turns out to be better depends on your situation and future plans. We have helped thousands of our customers reach the best option for them through personal conversations. It helps that we both rent and sell, meaning we are impartial in that sense. The customer's situation is what determines the outcome. Our experienced real estate agent, Jaana Korpi, is at your service for these confidential discussions. Her years of experience in selling properties is combined with decades of experience as a landlord and also as a board member of the Finnish Landlords Association. ### Jaana Korpi Team Leader, LKV, LVV 041 5280 341 ## Customer Service I am looking for housing: Mon–Fri 10 AM–4 PM Property owners: Mon–Fri 8 AM–8 PM For those who have already rented a property: Mon–Sun 8 AM–6 PM ## Offices ##### Helsinki Office and Region Mon–Fri 9 AM–5 PM Industrigatan 21, ground floor 00510 Helsinki ##### Tampere Office and Region Mon–Fri 11 AM–5 PM Sammonkatu 18-20 33540 Tampere ##### Turku Office and Region Mon–Fri 11 AM–5 PM Mariegatan 6 20100 Turku # Blog ## The Role of the State and Municipalities in the Housing Market A working group established by Housing Minister Vapaavuori is contemplating how society should contribute to the housing market in the future and which direction it should steer it. Let's consider this matter. The weak matching of demand and supply for housing seems to be the biggest problem in the housing market from the perspective of the average citizen. In general, various sectors believe that market forces will automatically correct such imbalances. Supply usually closely follows demand. However, the regulation exercised through municipal zoning becomes an obstacle that hinders the fulfillment of this mechanism in the housing market and causes artificial price increases in growth centers. Let’s imagine that the issue at hand is not about housing but shoes. The average shoe size for Finns is about 40. If regulations dictated that the average size for new shoes must be 42, this would lead to an oversupply of large shoes. On the other hand, it would increase the value of both new and used small shoes, as there would be a shortage of them. Larger shoes would have to be sold at a discount to clear the inventory. Meanwhile, the price of small shoes, which are in high demand, would rise to compensate for the discounts on the large ones. Fortunately, this example is hypothetical, and such a scenario does not occur in the housing market, or does it? In any case, the size regulation favored by planners does not facilitate housing production that aligns with demand. Instead of forcing rules, we should aim to guide production with incentives. Market forces also have their own wisdom and sense of the market. Additionally, a fundamental mechanism of free markets is that they self-correct. If, for example, too many small apartments are produced relative to demand, market actors will quickly shift their production toward larger apartments. In the long run, this leads to the creation of housing stock that better reflects real demand, even if the pathways in between may be lengthy. Regarding municipalities, what can the state do? Firstly, the targeting of subsidies provided to the housing market needs to be monitored more closely for those in need. Currently, it appears that the number of people requiring housing support is increasing with an uncertain future, while at the same time, financial resources are becoming more constrained. This problem won’t disappear by simply turning a blind eye to it. Moreover, the state should aim to soften the cyclical fluctuations in the construction sector with its actions. Importantly, it’s crucial not to attempt to eliminate these fluctuations entirely. A downturn cleanses the distortions, overpricing, and inflated structures accumulated during an upswing. It thus plays an essential role in restoring efficiency. Excessive stimulus can hinder this correction mechanism, posing the risk that we head into the next upswing with old issues still unresolved. It is particularly important that the state does not add more fuel to the already heated housing market. Therefore, the deadline for receiving the €3,000 first-time homebuyer incentive related to ASP loans should be pushed back two years, so that there isn’t a rush to make purchases. Coming onto the housing market at the wrong time is particularly detrimental for first-time homebuyers. For those exchanging homes, the problem is less significant, as both the old and the new home prices fluctuate with the market cycle. Additionally, the state could influence the shortage of rental housing with a simple tax-related change. If private landlords could deduct renovations from rental income immediately, this would encourage the maintenance of rental properties. Currently, the deduction mainly occurs from capital gains upon sale. While the deduction amount remains the same, changing the timing would incentivize keeping rental properties rather than selling them, as is the case under the current model. Timo Metsola Chairman of the Board Vuokraturva Oy ## Blog ## Government Incentive Money for First-time Home Buyers is Now as Dangerous as Cheese in a Mousetrap In July 2009, the government decided to stimulate the housing market by giving 3000 euros in cash to young people who dare to buy a home under certain conditions. Even at the time of the decision, there were signs that interest rate stimulation was overheating the housing market. However, either these signs were not noticed, or they were simply not taken seriously when making this recovery decision. The result now is that while the Swedish state, outside of the Eurozone, is offering measures to cool down the overheated housing market, the Finnish government is distributing cash to encourage young first-time homebuyers to make purchases with borrowed money – and at the worst possible time. Record low mortgage rates over the past year have created the most serious overheating risk in the housing market among Eurozone countries in Finland. Distributing cash from the state’s budget to stimulate the housing market in such a situation is nonsensical, and this is indeed recognized. However, the problem is that there is no clear solution because the promised benefits cannot be taken away from those who have already begun saving. Although the benefit requires purchasing a home by the end of next year, rising prices mean that homes are being bought as soon as possible to avoid even higher prices. Decision-makers are throwing up their hands, stating that nothing can be done, that the damage has already occurred, and that decisions made are binding. However, Vuokraturva suggests an unexpected solution: the deadline for receiving the subsidy should be extended to the end of 2013. This way, homebuyers would not have to rush to make purchases now during the worst possible time to qualify for the benefit; instead, each individual could quietly wait for what they deemed a more favorable market situation. Current decisions require that ASP saving must begin by the end of next month to be eligible for the benefit. This does not need to be changed, and therefore, extending the deadline for transactions would not cost the government more than current provisions. Sometimes, solutions to difficult problems can be quite simple. We’ll see if decision-makers understand the need to take action on this proposal. I fear that if nothing is done, history will not look kindly on the current mismanagement. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Danger of Renovation Loans for Old Housing Companies as New Housing Companies' Loans Soar A system that has worked for over 90 years is at risk. It is the model that we Finns take for granted, where a housing company takes a loan to renovate the building. They carry out plumbing renovations and repair balconies and other necessary work. The homeowners then pay off this company loan at a low interest rate over a long repayment period. In this model, none of the homeowners need to worry about whether they can obtain a loan. Are my income sufficient, am I too old, or has my spouse been unemployed for too long? But then, people started taking out enormous loans for entirely new buildings, which have nothing to renovate. Referring to a blog I wrote a year and a half ago: "Finnish banks have done a great job over the decades to ensure that those international entities from whom Finnish banks get their refinancing understand what a housing company is. It is a Finnish real estate market specialty and a source of pride, where people collectively own apartments through a shared company structure. A board and a property manager are selected for the housing company, who take care of the building, repairs, and management. However, in the ears of international financiers, a housing company sounds like a risky real estate investment company. But Finnish banks have known their stuff and convinced financiers of the conservative nature of housing companies and the low level of risks involved. Thus, housing companies have received – and still receive – financing very easily and at low interest rates, thanks to decades of hard work. Now, the international reputation of all housing companies is being put at risk as maximum amounts of company loans are being stacked onto new housing companies, most of which are being bought by investors. These housing companies are precisely the kinds of speculative setups that international financiers feared. The initial years of repayment-free periods on company loans only exacerbate the situation. It’s easy to lose a reputation but hard to regain it. The result could be that obtaining loans becomes more difficult and expensive for all Finnish housing companies. This will also affect those who already fully paid off their apartments in older buildings when it’s time for the next plumbing or facade renovation. The Property Management Association reported last Monday that this is indeed what has already happened. Unfortunately, this is just the overture. Basic renovations in housing companies will be a significant headache for many parts of Finland this decade. There will be cases where no loans are granted, and repairs go unmade. Some homeowners will take out loans in their names to do whatever they can themselves. Not everyone will be able to do this. On that basis, it’s challenging to repair, for example, the roof of a communal building. It must be said that the cards regarding housing company loans were poorly played last decade. A system that has worked for ages was ruined, and there seems to be no reverse gear. There is enough self-reflection for me as well regarding my part in this. Time will be the judge of us all. I suspect that the history books will not shower this period with compliments. Timo Metsola Chairman of the Board Vuokraturva The original blog that warned about this topic in June 2018: https://www.taloustaito.fi/Blogi/blogit-2018/uudiskohteiden-isot-yhtiolainat-venalaista-rulettia--pahimmillaan-kaikkien-taloyhtioiden-lainaehdot-huononevat/#2eac7729 ## The Outlook and Challenges of the Freely Financed Rental Housing Market in the Coming Years Rents are rising, and there are factors on the horizon that can be expected to increase rents even faster than during the past year. The rise in selling prices for apartments is just beginning to transition into rents, which have so far increased significantly more moderately than selling prices. The rising costs of renovations also significantly add pressure to increase the rents of the old rental housing stock. Additionally, especially in the capital region, in-migration and the recent increase in popularity of rental housing compared to homeownership affect supply and demand dynamics, meaning high demand is driving up rental prices. Although rent regulation was abolished in the early 1990s, the attitudes and thought patterns stemming from that regulation have long restrained the rise of freely priced rents. Until very recently, large rental institutions have largely adhered to an acceptable general principle that they have rented their freely financed apartments at relatively low, or in practice, below-market rates. In a way, this approach has also been somewhat taken for granted in housing policy, seeing it as an obligation of these players. Generally, there has been a lack of awareness regarding a significant change that has occurred in recent years in this area. Pension funds, insurance companies, and other large landlords are finding it increasingly difficult to justify settling for voluntary lower rent levels than what could be obtained from the market. For instance, pensioners rightly expect that their pension contributions are to yield the best possible returns. Thus, pension funds are under increasing pressure to raise the rents of their owned properties to market price levels. Even the pursuit of long-term leases is becoming an insufficient justification for maintaining low rent levels, as longer leases are often the ones where rent levels lag the most behind market rates. Competition among pension companies and public concern about the magnitude of future pensions do not lessen the pressure to raise rents, and many companies, caught in a difficult position, have decided to sell their apartment holdings to avoid raising rents and the resulting negative publicity. From the perspective of the rental market, this is generally a loss, especially if the apartments are sold as owner-occupied flats. The change described above has only just begun, and its progress is slow because larger rent increases than indices for large housing stocks are gradually being implemented through occasional adjustments made every few years. Despite its gradual nature, the change is inevitable, and it will leave in the early years of the next decade a legacy of the time when large landlords voluntarily rented their apartments at rates below market value. Foundations are likely to continue renting out apartments at substantially lower prices, but at some point, many of these foundations will inevitably have to assess whether renting at market price might better fulfill the foundation's actual purpose. Fortunately, some foundations indeed have the specific mission of providing affordable housing to certain groups. It can be observed that in the coming years, there may be the largest change in the rental housing market since the abolishment of rent regulation. The pressures to raise rents have built up, and they will be released in the coming years for both privately owned and institutionally owned freely financed apartments. An unavoidable conclusion is that both more rental apartments and new investors willing to lock in capital in Finnish rental apartments for the long term are needed in the market. Municipalities and the state are relatively unwilling to take on this role. Solutions are partly being sought by developing models that allow funds to invest more easily in rental apartments. These investment-friendly models also come with the hope that foreign capital could find its way to the Finnish rental housing market in the same manner that it has found its way to Finnish commercial and office real estate since the 2000s. Funds have a slightly idealistic hope associated with them that they will help bring affordable rental apartments to Finland through new construction. If the goal is to achieve quality rental living, this will certainly manifest through new production. However, if the aim is to increase the supply of relatively affordable freely financed rental housing, this can only be realized by getting more of the older housing stock into rental use at more reasonable prices. The pursuit of an affordable rental stock can be likened to new and used cars. If the goal is specifically to obtain an affordable car, it is logical that this car is likely to be used rather than brand new. It is unrealistic to hope that new cars could be made that are cheaper than used cars. On the other hand, if a significant number of new cars enter the market, it will lower the prices of used cars. Affordable rental properties can only be available if investors acquire housing specifically for rental purposes that have relatively low acquisition prices, but on the other hand, the renovation situation is still manageable. With appropriate surface renovation, a comfortable rental home can be created even from an older property. Due to the high costs of new construction, new rental housing production cannot solve the shortage of affordable rental properties in the market. To increase the supply of moderately priced rental properties, it would be optimal to be able to build a substantial amount of new owner-occupied housing, allowing residents to move from the less expensive older owner-occupied housing stock, which could in turn be aimed for wider rental use at more reasonable rents. For this reason, real estate investment trusts (REITs) targeting the housing market should absolutely be allowed to invest freely in the existing housing stock as well. Rental housing and the associated attitudes are on the brink of significant transformation. Comprehensive and informed discussion is necessary, as failure in rental housing policy would reflect on society as a whole. One in three Finnish homes is a rental apartment, and one in six homes is specifically a freely financed rental apartment. TIMO METSOLA Chairman of the Board of Vuokraturva Oy Chairman of the Rental Brokerage Committee of the Finnish Real Estate Agents Association Board Member of the Finnish Landlords Association ## Blog ## Amputation of Colorful Urban Culture – Kindergartens Important to Käpylä Residents Threatened with Eviction The operation of the beloved Steiner kindergarten, Pellava, which has been running on Pohjolankatu for over thirty years, is under threat. The City of Helsinki, which owns the property, wants to evict the kindergarten immediately, contrary to the existing temporary lease agreement. At the same time, Käpylä is threatened with losing one of its key vibrant spots. The reason for the termination of the rental relationship is a report prepared by the Environmental Center in January 2017, which indicated that there were unusual odors indicating possible microbial damage in the old Wooden Käpylä location of the kindergarten. However, the damages are minor and completely repairable. The Environmental Center stated that the matter would continue by preparing a proposal for the Helsinki city environmental committee to issue a repair order. At this point, everything seemed promising. Then, however, the City of Helsinki's real estate department informed the historic kindergarten that no repairs would be made whatsoever. On the contrary, they said you have to leave. The property is being sold, likely for housing, and public space is being transformed into private space. Wait a minute. The capital city hopes for a vibrant urban culture. These are the choices that one should remember when making decisions. The unique kindergarten idyll that Pellava offers to children has been widely admired for decades. One reason for this is that Pellava is not inward-looking but opens its activities to everyone. Pellava's tradition includes engaging the entire Käpylä community in its events. Every autumn, Christmas, and spring, Pellava and its large yard area transform into a collective market for all of Käpylä, where items are recycled, homemade food and pastries are sold, and people socialize together. Hundreds of people gather. Among these traditions are horse-drawn rides, where anyone can take a tour around Käpylä in old horse-drawn carts pulled by real Finnish horses. Additionally, a variety of musical performances have been enjoyed, and, of course, the joy of children's play has been witnessed. If civil servants were able to create something like this in a neighborhood, the achievement would likely be rewarded with many accolades and recognitions, and it would be highlighted as a top achievement that others could look to as a model. Now residents and tenants have created this themselves, and the city's role is to turn off the lights. This makes no sense at all. Therefore, this damage must not be allowed to happen. The Helsinki city environmental committee is discussing the repairs of the Pellava property in its meeting today, February 14. The property is officially part of a nationally significant cultural environment, and the owner, the City of Helsinki, can receive support from the National Board of Antiquities for repairs. According to the zoning plan, the intended use of the property is defined as "maintenance and social facilities," which fits the long-established kindergarten operations. Now it would be good to see the forest for the trees and not make irreversible foolishness. This is also argued in the citizens' petition: www.adressit.com/pelastetaan_pellava Although this is a single case, such a decision reveals the true values of the city. Living urban culture either builds up or withers down with each decision made. It is pointless to only talk about urban culture. Only actions are true. Timo Metsola Chairman of the Board Vuokraturva # We Take Responsibility for the Environment and Finnish Work ### Vuokraturva Has the WWF Green Office Certification All Vuokraturva offices in Helsinki, Turku, and Tampere have been granted the WWF Green Office certification. The WWF Green Office environmental management system covers seven themes, the most significant of which arise from the environmental impacts of workplaces. These themes are management, communication and engagement, energy and water, procurement, recycling, sorting and cleaning, mobility, and food. With the WWF Green Office system, businesses can reduce their carbon footprint and promote the sustainable use of natural resources. Through careful assessment, the WWF Green Office reporting conducted by Vuokraturva shows that the carbon dioxide emissions of Vuokraturva's operations decreased by approximately 23% from 2022 to 2024. When you rent, sell, or buy a property through us, it is our honor that the service is provided valuing the principles of sustainable business and developing more environmentally friendly solutions. ### Vuokraturva Is an Avainlippu Company Enterprise Finland, the Trade Association of Finnish Work, has granted Vuokraturva the Avainlippu symbol as a recognition of services produced and employing people in Finland. The primary criterion for granting the symbol is that the service must be produced in Finland. A company applying for the Service Avainlippu also must have a domesticity rate of at least 50% (i.e., the share of Finnish costs in the self-cost of the service), significant domestic ownership, and management operating in Finland. Additionally, the company’s headquarters must be located in Finland. ### Vuokraturva Holds the Suomen Vahvimmat Platina Certificate The Suomen Vahvimmat certificate is a sign of a company's positive financial key figures, creditworthiness, background information, and good payment behavior. The certificate signifies that Vuokraturva operates on a sustainable basis. Suomen Vahvimmat companies are economic pillars that strengthen and stabilize our economy. Only 5.5% of Finnish companies are entitled to the Suomen Vahvimmat Platina certificate. ### Vuokraturva Is a Major Sponsor of Helsingin Ensikoti ry Helsingin ensikoti ry is a civic and child protection organization that supports expectant parents and families with young children so that every child can have a good start in life. The organization invites its corporate sponsors to be protectors and its largest donors to be major sponsors. ### Vuokraturva Supports 100 Godchildren in the World through the SOS Children's Village Godparent Program Every child has the right to live in a family that cares for and protects them. A child's own family is fundamentally the best place for them to grow. Despite support, this is not always possible. In such cases, children need foster homes. In SOS Children's Villages, children who have lost parental care live together with their foster parents and siblings, supported by the community. They receive a stable, secure, and caring home, along with a new chance at life. They have opportunities for education, access to healthcare, individual support, and therapy for recovering from trauma. ### Vuokraturva Supports the Mental Health Support Program of Lastenklinikoiden Kummit ry In Finland, up to 20% of children and young people have a mental health disorder. The “Kummien Mielen tila” campaign raises funds to help them. The campaign finances effective and evidence-based treatment methods for mental health disorders, which are made available throughout Finland for children and young people with the support of Kummit. ## Blog ## Is the housing market cooling down as autumn approaches? According to preliminary data just released by Statistics Finland, the nominal prices of old apartments slightly increased between April and June. Nationwide, prices rose by 0.3 percent and by 0.7 percent in the metropolitan area compared to the previous quarter. In other parts of the country, prices fell by 0.1 percent. On the other hand, the real prices of old apartments in block and row houses decreased by an average of 1.1 percent nationwide. This real price decline marks the third consecutive quarter. Many people's confidence in the national economy has significantly weakened, according to Statistics Finland’s consumer barometer. However, there is still some confidence in personal finances. Planned tax cuts by the Ministry of Finance might help calm the recent rise in inflation and alleviate the concerns raised by recent economic news. These tax cuts also support purchasing power, employment, and economic growth, allowing for an optimistic outlook on future economic developments. This summer and the approaching autumn can be seen as interesting times for both the housing market and the rental housing market. Has the summer brought back the previous pace, where Finland quieted down to focus on summer activities, or has business continued as before? The summer weather certainly hasn’t kept people indoors. It’s important to remember that the search for a home is not weather-dependent. The needs for finding a new home vary greatly, and decisions are made when the time is right. Autumn marks a new beginning with schools and studies starting anew. Many are also starting new jobs, which often means a new home in a new city or village. Families are currently searching for homes. The long-standing rise in housing prices is behind us – that can be confirmed. However, there do not seem to be any signs that would give cause for concern. On the contrary – as previously mentioned, property transactions are still taking place – now both buyers and sellers have the time to make decisions without rushing. This approach is essential. Real estate agents will continue to need to provide professional, customer-oriented, and high-quality service for successful property transactions. As for the question posed in the headline – I do not believe the housing market will cool down. Even the swimming waters have not cooled, despite Jaakko throwing a cold stone in last week. Wishing you a beautiful late summer and successful transactions, JAANA ANTTILA-KANGAS Managing Director of the Finnish Association of Real Estate Agents ## Announcements ## Efforts to Facilitate Finding Rental Apartments with Bus Transportation from One Viewing to Another Renters often have to attend numerous property showings to find a suitable apartment. This issue becomes more pronounced towards the end of summer when both students and families with children are actively seeking rental properties. The rental market gets congested as the start of school terms approaches, requiring relocations to a new city. Traveling between showings in an unfamiliar city often feels difficult and exhausting, which is why Vuokraturva will begin transporting customers from one exhibition to another using charter services. By hopping on the bus, prospective renters can view up to twenty properties in a single day without the stress of finding their way there or making it in time. Services aimed at rental applicants have traditionally been modest. Due to the strong demand for rental properties, landlords can find tenants without any special service concepts. Nonetheless, Vuokraturva has consistently sought to develop services aimed at renters. In 2007, they launched a free advance viewing system allowing potential tenants to explore apartments prior to public showings. In 2008, they introduced a relocation service for demanding job-related apartment seekers, which employees from the Chemical Agency among others have enjoyed. This year, Vuokraturva is introducing free bus transportation between property viewings. The charter services will operate on weekdays as well as weekends, making it easier for outsiders to become acquainted with available properties. This service will commence at the beginning of August, directly entering the peak season of the year. "In the long term, we believe that those who have the best services for renters will be in the strongest position in the rental market. Competition will intensify in this sector as well. Developing services intended for renters also benefits our landlord clients," emphasizes Timo Metsola, Chairman of the Board of Vuokraturva. Additional Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, p. (09) 6877 550 ### About Vuokraturva Oy Vuokraturva is a market leader in property rental brokerage and investment property acquisition services. Vuokraturva mediates properties from private individuals, institutions, and real estate investment funds. www.vuokraturva.fi # Rental Apartments in Leppävaara ## Brief Overview of Leppävaara Leppävaara is a lively and diverse neighborhood that offers activities for all ages, from a skate park to theatrical experiences. The heart of the area is the Sello shopping center, which attracts visitors with its wide array of shops and restaurants. Additionally, there are plenty of services and recreational opportunities available outside the center of Leppävaara. Housing ranges from modern apartment buildings to quaint single-family home areas. Comprehensive transport connections and ongoing development further enhance the appeal of the area. ### Excellent Transportation Connections Leppävaara has excellent transport connections by train, rapid tram, bus, and car. From Leppävaara station, you can reach downtown Helsinki in about 15 minutes by commuter train. The innovative Raide-Jokeri rapid tram facilitates cross-directional travel. The upcoming Espoo urban railway will add more train services in the coming years and further improve transport connections. The area has also invested in bicycle paths and high-quality cycling routes, particularly along the Raide-Jokeri line. For drivers, Kehä I and Turunväylä provide smooth connections to different parts of the capital region. ### A Comprehensive Range of Services, Culture, and Sports Opportunities The Sello shopping center offers a comprehensive selection of various shops, restaurants, grocery stores, as well as a cinema and Sellosali for cultural events. Adjacent to the shopping center is the Sello library, which also serves as a versatile event venue. Leppävaara offers a wide range of recreational activities: the area includes gyms, a swimming hall, and an outdoor swimming pool, a skate park, and a racecourse. The sports park provides opportunities for athletics, football, tennis, and skiing in the winter. Nature lovers will also appreciate the nearby Laajalahti nature reserve, which offers excellent settings for bird watching and pleasant walks along the seaside. ### Daycare and Schools Nearby Leppävaara has several daycare centers and elementary schools, including Finnish and Swedish language options as well as an international school. The area is also home to a high school and the Omnia educational consortium’s Leppävaara campus. Higher education students are catered to by the Laurea Leppävaara campus. ### We Care About Apartments in Leppävaara – Set Up a Search Alert Vuokraturva is Finland's leading rental apartment broker. We rent apartments from both private individuals and large landlords. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Tenant for an Apartment in Leppävaara? Check out our services for landlords. ### Images of Leppävaara (Note: Images not available.) # Rental Apartments in Matinkylä ## Matinkylä Overview Matinkylä is a vibrant and maritime neighborhood that offers both natural tranquility and the hustle and bustle of a large shopping center. Transportation connections are excellent. The architecture of Matinkylä is a diverse blend of 1970s residential construction and contemporary urban landscape with high residential buildings. Between the buildings, there are nature-friendly walking paths and parks. The neighborhood borders the sea, where the lovely Rantaraitti invites you outdoors year-round. Olari is located next to Matinkylä, just across the Länsiväylä highway, and these neighborhoods form a cohesive urban area. ### Excellent Transportation Connections The Länsimetro (Western Metro) ensures quick connections to both Helsinki and Kivenlahti. The metro ride to Helsinki's Rautatientori takes about 20 minutes. Bus connections are smooth to various parts of Espoo. Drivers can quickly access the Länsiväylä highway. The area also features an extensive network of cycling paths. ### Diverse Services and Recreation Opportunities The Iso Omena Shopping Center offers a wide range of services: a large selection of shops, various cafés and restaurants, and health services. The shopping center also hosts a library, the Matinkylä youth center, and a cinema. There are many options for leisure activities, including dance schools, swimming pools, ice rinks, sports and soccer fields, outdoor gyms, a skate park, BMX track, and dog park. The proximity to the sea adds a unique aspect to recreational activities: Matinkylä's beach provides swimming opportunities, and in summer, you can also engage in stand-up paddleboarding and kayaking. The beautiful Rantareitti, which runs along the shoreline, invites outdoor activities in all seasons. Nearby, the Central Park and the Suomenoja bird wetlands enrich outdoor activities. ### Schools Matinkylä is an excellent choice for families, as it features daycares, primary schools, and a secondary school. A special asset of the area is the Swedish-language daycare, primary school, and secondary school. ### We Handle Apartments in Matinkylä – Set Up a Search Alert Vuokraturva is Finland's leading rental apartment broker. We rent out apartments from private individuals and large landlords. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Matinkylä? Check out the services for landlords. ## Images of Matinkylä # Rental Apartments in Tapiola ## Overview of Tapiola Tapiola is known as a garden city and a vibrant urban center enriched by services, sports, culture, and art. The area's buildings predominantly date from the 1950s and 1960s, showcasing the latest ideas of their time, aiming to create a nature-friendly neighborhood as a counterpoint to urbanization. Architecturally significant works by renowned designers such as Alvar Aalto and Aarne Ervin can be found among the buildings. A modern spirit is brought to the area by the Ainoa shopping center, which is integrated with residential buildings. Residents of Tapiola enjoy a connection to nature, which is beautifully integrated into the undulating landscape of Tapiola. The area's service offerings are contemporary, and the scale of the neighborhood is pleasant. ### Excellent Transport Links Public transport is very convenient; in addition to buses, the metro is also accessible in Tapiola. Nature-themed pedestrian routes entice people to hop off the bus before their designated stops and continue their journey on foot. Drivers benefit from the proximity of the Länsiväylä motorway and Ring I. ### Diverse Service, Cultural, and Sports Offerings The Ainoa and Länsituuli shopping centers provide a rich variety of services for everyday needs. For cultural interests, Tapiola offers a superb array, including the Espoo Museum of Modern Art EMMA, the Espoo Cultural Centre, the Tapiola Sinfonietta, and the city theater, ensuring unforgettable experiences. There are also plenty of sports opportunities, including the Tapiola Sports Park and Esport Arena. In winter, the ice rink allows for ice skating. And of course, being in a garden neighborhood, the area's parks welcome outdoor activities year-round. The Espoo coastal path is also nearby, making it a short distance to beautiful marine views. ### Education Tapiola is home to daycares and schools from primary to high school. The Tapiola School is particularly known for its focus on music. The Espoo Music Institute is also located in Tapiola. Aalto University’s Otaniemi campus is situated close by. ### We Care for Rentals in Tapiola – Create a Search Alert Vuokraturva is Finland's leading rental apartment intermediary. We rent both properties from private individuals and large landlords. If you’re looking for a rental apartment, create a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Tapiola? Check out our services for landlords. ## Rental Apartments in Westend ## Westend in Brief Nestled on the southern coast of Espoo, Westend is the most prestigious residential area in the city. This peaceful, valuable, and unique neighborhood is known for its luxurious seaside homes, stunning villas, and lush, park-like environment. It offers residents privacy and greenery without compromising on services and transport connections. ### Excellent Location Ensures Smooth Transport Links Westend's location right next to Helsinki makes commuting effortless. Thanks to the Länsiväylä road, Helsinki city center is only ten minutes away. The area is served by efficient bus connections and the Länsimetro, making it easy to reach Tapiola station – while Westend maintains its tranquility and privacy. ### Services, Culture, and Leisure – All Within Reach Westend provides its residents with comprehensive services and diverse recreational opportunities. Just a few minutes away in Tapiola, AINOA Shopping Center offers high-quality shopping options, excellent restaurants, and grocery stores. For pampering, local beauty salons, wellness services, and fitness centers ensure your overall well-being. Culture lovers can enjoy the nearby cultural offerings in Tapiola, such as the EMMA – Espoo Museum of Modern Art and the Espoo Cultural Centre. The area is also home to a yacht club called Westend Sailors. Nature is one of Westend's greatest assets. The Espoo Coastal Trail, which winds along the shoreline, entices joggers, cyclists, and leisurely Sunday strollers. Sailing boats glide quietly by, and sitting by the shore allows one to gaze at the horizon, where the sky and sea merge. Summer morning swims in the sea and winter hikes along the snowy beach paths make life here unique. ### High-Quality Educational Opportunities Westend is a family-friendly area with excellent educational options. Westend Park School offers education right in the heart of the community. Also nearby are the Espoo International School and the English School. These institutions make the area highly suitable for international families. ### We Care About Apartments in Westend – Set Up a Search Alert Vuokraturva is Finland's leading rental apartment intermediary. We rent both private individuals' and large landlords' apartments. If you are looking for a rental apartment, set up a search alert here >> ## Landlord! Do You Need a Tenant for Your Apartment in Westend? Check out the services for landlords >> ## Images of Westend (Note: Images are not available in this document.) ## Rental Apartments in Arabianranta ### Brief Overview of Arabianranta Arabianranta is an atmospheric and developing residential area located on the eastern side of Helsinki's city center, known for its cultural offerings and proximity to the sea. The area's strong industrial history is still visible in the urban landscape through impressive factory buildings. In recent years, the area has developed significantly, with modern architecture reflecting its history, including the use of red brick in several buildings. Art is also a prominent feature in Arabianranta, visible not only on the facades of buildings and stairways but also in art courtyards and environmental art installations. Additionally, local art schools reinforce the cultural identity of the area. ### Diverse Transportation Connections In the area, you can conveniently travel by tram and bus. Various operating lines facilitate commuting in the capital. Arabianranta is also easily accessible by bike and on foot. The area has an extensive network of bike paths, and for example, the waterfront routes around Vanhankaupunginlahti offer pleasant and beautiful alternatives for getting around. ### Services, Culture, and Leisure Arabianranta features several cozy cafés and restaurants where you can enjoy quality offerings in a relaxed environment. For instance, the Arabia shopping center serves as a meeting place, providing comprehensive daily services. Culture is a strong part of residents' daily lives, with various art pieces sprinkled throughout the neighborhood. For example, Tapio Wirkkala Park combines outdoor activities, design, and art. The area also hosts events that emphasize urban culture and community. For outdoor enthusiasts, Arabianranta offers beautiful views of Vanhankaupunginselkä. You can walk along the beach park to the other side of the bay to Lammassaari. The Arabianranta sports park allows for versatile activities such as football, basketball, tennis, and athletics. ### Daycare, Schools, and Educational Opportunities The area has several daycare centers as well as the Arabian elementary school. Metropolia University of Applied Sciences' Arabian campus focuses on cultural studies, and Arcada University of Applied Sciences offers studies in several fields in both Swedish and English. Additionally, studying to become a music professional is possible at the Pop & Jazz Conservatory. The educational opportunities are comprehensive and reflect the area's cultural focus. # Rental Apartments in Etelä-Haaga ## A Brief Overview of Etelä-Haaga Etelä-Haaga captivates with its greenery and cozy atmosphere. This pleasant neighborhood is located about five kilometers from the center of Helsinki and offers a peaceful, park-like environment despite its central location, characterized by low-rise buildings and a village-like ambiance. Narrow streets lead you to lush parks and a variety of services. At the Haaga market, you can sense the community spirit, grab fresh bread from a local bakery, and head for a picnic in Kauppalanpuisto. A gem of the area is the beautiful Alppiruusupuisto. The attractiveness of Etelä-Haaga is complemented by good transportation connections and comprehensive basic services. Here, the closeness to nature, smooth daily life, and genuine atmosphere come together! ### Transportation Getting around in Etelä-Haaga is easy, whether by public transport or by car. From Huopalahti station, you can reach the city center in just 10 minutes by train, and the Raide-Jokeri light rail facilitates cross-city travel. Good bus connections are also part of the transportation options. In the summer, it's pleasant to travel by bike, and you can reach the center in about twenty minutes. For drivers, Vihdintie and Hämeenlinnanväylä make travel smoother. ### Beautiful Parks and Diverse Services The green parks of Etelä-Haaga, such as Alppiruusupuisto and Riistavuorenpuisto, as well as the nearby Central Park, encourage outdoor activities and enjoyment of beautiful landscapes. For gardening enthusiasts, the area also features allotment gardens. Laajasuon sports park has fields for ball games, areas for winter skating, as well as facilities for athletics and outdoor workouts. When it rains, you can also exercise indoors, for example, at a gym. Etelä-Haaga has comprehensive basic services: grocery stores, a pharmacy, a library, as well as cafés and restaurants. The nearest larger shopping centers are Kauppakeskus Kaari in Kannelmäki and Tripla in Pasila. ### Schools and Kindergartens The area has several kindergartens and schools. At Haaga Comprehensive School, there are options for sports, arts, and mathematics-natural science emphases. Helsinki's Finnish Community School and Gymnasiet Lärkan provide upper secondary education. At Haaga-Helia University of Applied Sciences' Haaga campus, students can study to become restaurant, hotel, and tourism professionals. ### We Care About Apartments in Etelä-Haaga – Set Up a Rental Alert Vuokraturva is Finland's leading rental apartment intermediary. We rent properties from both private individuals and large landlords. If you are looking for a rental apartment, set up a rental alert here. # Rental Apartments in Herttoniemi ## Overview of Herttoniemi Located near the sea, Herttoniemi is one of the most attractive residential areas in East Helsinki. It combines extensive services, convenient transportation connections, and a closeness to nature as part of urban life. Herttoniemi consists of districts with their own unique character, such as the traditional West Herttoniemi, the seaside Herttoniemenranta, the green Roihuvuori, and the active Herttoniemi business area. Here, the nostalgia of the 1950s meets modern urban culture. The scenic waterfront and beautiful outdoor areas, which can be enjoyed throughout the year, complete the picture. ### Convenient Transportation The Herttoniemi and Siilitie metro stations ensure smooth transportation both east and west. The city center can be reached by metro in about 10 minutes. There is also a bus terminal connected to the Herttoniemi metro station that serves several bus lines. For those driving, Itäväylä provides efficient road connections. ### Abundant Services and Outdoor Opportunities The Herttoniemi area has numerous cafes and restaurants where one can enjoy culinary experiences from around the world. Shopping center Herts offers a good selection of services for daily needs, including several shops and the Herttoniemi library. For those who appreciate history and culture, the Herttoniemi manor features a museum and a beautiful park area. The routes of Herttoniemenranta, the scenery of the old ski jump, and the nature experiences of Kivinokka, along with the beautiful gardens of the allotment gardens, invite residents to enjoy outdoor activities. The Herttoniemi sports park offers a variety of sporting facilities, including football, beach volleyball, and tennis courts, as well as an ice skating rink in winter. There is also a swimming beach where swimming is possible even in winter. ### Schools and Daycare Herttoniemi has several daycare centers in Finnish and Swedish. There are also options for English-language daycare. In addition to primary schools, the area includes a high school. A unique feature of the Herttoniemi community school is its classes focused on Latin and sports. Vocational education can be pursued at the Stadin Ammattiopisto Herttoniemi campus. ### We Care About Apartments in Herttoniemi – Create a Search Alert Vuokraturva is Finland's leading rental apartment broker. We rent apartments from both private individuals and large landlords. If you are looking for a rental apartment, create a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Herttoniemi? Check out the services for landlords. ## Images of Herttoniemi # Rental Apartments in Kallio ## Kallio in Brief Kallio is a vibrant and bohemian district in Helsinki, often referred to as a living cultural hub whose spirit is hard to miss. The narrow streets and tall stone buildings from the early 20th century create a unique architectural ensemble, with layers of history visible in its construction. Notable landmarks include the Hakaniemi Market Hall and the Kallio Church, which rises prominently in the district's silhouette. The atmosphere of Kallio is simultaneously relaxed and lively. Its soulful character stems from its diverse community, attracting a mix of young people, students, artists, and families alike. ### Ease of Mobility Kallio's transportation connections are unparalleled. Smooth commuting is ensured by metro stations in Hakaniemi and Sörnäinen, along with numerous tram and bus lines. The city center is just minutes away. Residents particularly appreciate that everything they need is within walking distance – a car may not even be necessary. ### Vibrant Urban Life Kallio offers a rich array of services. The Hakaniemi Market Hall provides fresh food products, and the area is home to numerous small grocery stores, bakeries, and specialty shops. The restaurant scene is impressive – from Asian cuisine to modern Finnish restaurants, vegetarian spots, and countless cafés, there's something to satisfy every palate. The brunch culture especially thrives on weekends. Kallio is known for its bustling cultural scene. The area hosts several small theaters, art galleries, and venues for music events. Regular events such as the Kallio Block Party and the Kallio Kipinöi festival bring together thousands of city dwellers. There are diverse opportunities for physical activities: Kallio Swimming Hall, gyms, yoga studios, and nearby parks offer possibilities for an active lifestyle. Tokoinranta and Brahenkenttä are popular outdoor areas filled with picnic gatherings in summer. ### Schools and Educational Institutions Kallio provides comprehensive educational opportunities for all ages. There are several daycares and primary schools in the area and its immediate vicinity. Kallio High School is particularly recognized for its focus on arts, providing a creative environment for young people. Vocational and higher education is readily available nearby – the University of Helsinki’s city center campus and universities of applied sciences are easily accessible. Additionally, there are several adult education centers and art institutes that offer hobby opportunities and lifelong learning for all ages. ### We Care About Apartments in Kallio – Set Up a Rental Alert Vuokraturva is Finland's leading rental apartment broker. We rent both private and large landlord’s apartments. If you're looking for a rental apartment, set up a rental alert here >> ## Landlord! Do You Need a Tenant for Your Apartment in Kallio? Check out services for landlords >> ## Images of Kallio # Rental Apartments in Käpylä ## Käpylä Overview Käpylä is a charming and green district located just about five kilometers from downtown Helsinki. The area is particularly known for its idyllic wooden houses, lush parks, and community spirit. The lovely, distinctive atmosphere of Käpylä invites you to take a walk. Depending on your route, you can admire the beautiful wooden homes from the 1920s or enjoy the functionalist architectural style of the Olympic Village. The lush environment is enriched by the nearby Kumpula allotment garden, providing city dwellers with a peaceful oasis in the midst of an urban setting. Käpylä's planning emphasizes a sense of space and greenery. Both detached houses and apartment buildings are surrounded by cozy courtyard areas that offer tranquility and a connection to nature in the heart of the city. This district is an excellent choice for those who value the integration of urban life with nature-oriented and warm living. ### Excellent Transportation Connections Käpylä is well-connected with good transport links for both public transport users and drivers. Tram lines, buses, and commuter trains serve the area, allowing easy access to various parts of Helsinki. The train journey to the city center takes less than 10 minutes. Käpylä’s proximity to the Tuusulanväylä and Lahdenväylä highways facilitates travel by car. ### Services and Cultural and Sports Opportunities Käpylä offers a range of services that cover both everyday needs and leisure activities. There are no large shopping centers in the area, but grocery stores, restaurants, and cafés are found in smaller, atmospheric local establishments. For shopping and larger purchases, you can easily reach the Mall of Tripla in Pasila. Sports enthusiasts can take advantage of the diverse sports facilities in Käpylä, while nature lovers can head to Taivaskallio or Louhenpuisto. The nearby Vanhankaupunginkoski and Kumpula allotment garden also invite outdoor activities and relaxation in beautiful surroundings. Various events, such as village festivals and flea market days, emphasize the community spirit of the area. Additionally, Käpylä’s library hosts author visits and storytelling sessions for children. Music can be pursued at the Käpylä music school. ### Daycares and Schools The area features several daycares and schools, including Käpylä primary school, Kottby lågstadieskola, and a unified school with a focus on sports and home economics. Close by in Kumpula, there is the Helsinki natural sciences high school, and in Valli, Mäkelänrinteen high school, which offers both a general curriculum and a sports high school. One of Stadin Ammattiopisto's campuses provides vocational education in Käpylä. ### We Care for Apartments in Käpylä – Create a Search Alert Vuokraturva is Finland's leading rental apartment broker. We lease properties from both private individuals and large landlords. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Tenant for an Apartment in Käpylä? Check out our services for landlords. ## Rental Apartments in Kumpula ## Kumpula in Brief In Kumpula, you can sense the magic of a genuine urban village with its central location. This historic district is known for its idyllic wooden houses, rolling hills, and lush gardens. What makes Kumpula particularly intriguing is its distinctive architecture: colorful wooden homes with allotment-garden-like yards create an atmosphere that makes you forget you're just a few kilometers from downtown Helsinki. ### Smooth Connections in Every Direction Kumpula's transportation links are excellent in every direction. The area is served by tram line 6 and the Rail Joker, along with nearby bus stops providing access around the city. Cyclists benefit from a comprehensive network of bike paths that make year-round commuting possible. For drivers, access to Lahti Highway and Ring I is smooth—just a 10-minute drive to the city center, but upon returning home, you feel like entering a peaceful retreat. ### From Village Festivals to Outdoor Swimming Pools – Year-round Experiences The heart of Kumpula beats with its rich cultural life and strong community spirit. The area's jewel is undoubtedly the Kumpula Botanical Garden, a small paradise in the middle of the city. This six-hectare area allows you to explore plants from around the world and relax amidst nature. The legendary Kumpula Village Festival attracts thousands of visitors every other year to enjoy music, art, and local ambiance. The highlight of summer is certainly the Kumpula outdoor swimming pool, which offers a summer meeting place with its 50-meter pools, diving boards, and sunny grassy areas. Kumpula's service structure reflects its character as a peaceful neighborhood without a large commercial center. Daily services, as well as cafés and restaurants, can be found in the area or its immediate vicinity. Broader shopping options are located just two kilometers away in Arabia and Vallila. ### Learning Paths for the Whole Family The area has several daycare centers where children can enjoy a safe growing environment close to nature. Kumpula Primary School offers a warm and community-oriented learning environment for younger students. For older students, there are diverse options nearby: the upper school of Arabia Primary School, Helsinki Community Lyceum, and Helsinki Natural Science High School are all within walking distance. Notably, the Kumpula campus houses the faculties of mathematics and natural sciences of the University of Helsinki, bringing academic vigor and internationality to the area with opportunities to participate in science events. ### We Care for Apartments in Kumpula – Create a Search Notification Vuokraturva is Finland's leading rental apartment intermediary. We rent apartments from both private individuals and larger landlords. If you are looking for a rental apartment, create a search notification here. ## Rental Apartments in Oulunkylä ## Oulunkylä in Brief Oulunkylä is a green and pleasant district with excellent transport connections, located about eight kilometers from the center of Helsinki. The uniqueness of the area is emphasized by its historic villa district, garden-like appearance, and layered building stock, which ranges from 19th-century wooden villas to modern apartment buildings. With around 14,000 residents, Oulunkylä offers diverse housing options in a peaceful, nature-rich environment, where the Vantaa River provides a lovely setting for outdoor activities. ### Excellent Transport Connections Oulunkylä has excellent transport links: it takes only about ten minutes to reach the city center by train. The area’s accessibility is further enhanced by the Raide-Jokeri light rail line and bus routes. A comprehensive network of bike paths and the Baana cycle route to the city center, as well as good connections to ring roads, facilitate smooth travel by various modes of transport. ### Services for Sports, Culture, and Leisure In the center of Oulunkylä, there is the Ogeli Shopping Center, which offers various everyday services. The cultural life of the area is provided by the library and adult education center with its events, along with historical walking tours organized by the Oulunkylä Society. Opportunities for sports are diverse: there is a sports park, an ice hall, tennis courts, and outdoor trails along the Vantaa River. A local summer gem popular among residents is the swimming spot at Pikkukoski by the Vantaa River. ### Schools Oulunkylä has Finnish and English-speaking kindergartens. The local primary school is especially known for its music-oriented education, conducted in cooperation with the Helsinki Conservatory. Oulunkylä Community School is a private institution that includes both lower secondary and upper secondary education with special focuses. The adult education center offers opportunities for adult learners. ### We Care for Apartments in Oulunkylä – Set Up a Search Alert Vuokraturva is Finland's leading rental apartment mediator. We rent apartments from both private individuals and large landlords. If you are looking for a rental apartment, set up a search alert here >> ## Landlord! Do You Need a Tenant for an Apartment in Oulunkylä? Check out the services for landlords >> ## Images of Oulunkylä # Rental Apartments in Töölö ## Brief Overview of Töölö Töölö is a charming and historic district where residents enjoy walking distance to nature, culture, and the vibrant heart of Helsinki. The green park, Hesperian esplanade, separates Etu-Töölö and Taka-Töölö. Known for its stone buildings from the early 1900s, Töölö features beautiful blocks with many cafes, restaurants, and small shops nestled within the buildings' foundations. Cultural and historical landmarks include the National Opera, the Temppeliaukio Church, the Olympic Stadium, and the Sibelius Monument by the sea. Töölö combines everything that is valued in Helsinki's most desirable residential areas. It is a calm yet diverse neighborhood, making it no surprise that residents enjoy living here. ### Excellent Public Transport Connections Töölö boasts excellent public transport connections in multiple directions, with buses and trams available. In addition to Helsinki's internal transport, buses from Mannerheimintie, which runs through Töölö, connect to Espoo and Vantaa. Long-distance buses are also available for travel elsewhere in Finland. Due to its central location, the area is easily accessible via cycling paths and pedestrian routes. It's convenient to access main roads by car. ### Diverse Sports and Cultural Opportunities Töölö as a residential area suits various lifestyles. It offers a wide range of cultural activities and sports opportunities. Some of the most diverse sports facilities in Helsinki are located in Töölö, such as the historic Boathouse Stadium. There are several charming parks and green areas bordering the water, like Töölönlahti and the Hietaniemi outdoor trails, which provide excellent settings for outdoor activities, relaxation, and picnics. Don't forget the lovely Winter Garden. For culture enthusiasts, there are venues such as the Music House and the Finlandia Hall. ### Schools Nearby Töölö is home to several universities, including the Helsinki School of Economics, the University of Helsinki, Hanken School of Economics, and the University of the Arts, as well as Perho Business College. Additionally, there are schools and kindergartens for younger families in the area. ### We Care About Rentals in Töölö – Set Up a Search Alert Vuokraturva is Finland's leading rental apartment intermediary. We rent accommodations for private individuals as well as large landlords. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Töölö? Check out our services for landlords. # Rental Apartments in Viikki ## A Brief Overview of Viikki Viikki as a residential area combines the tranquility of nature with the best aspects of urban living. Here, you can enjoy a rural environment and lush outdoor paths, while the comprehensive services of Helsinki city center are just eight kilometers away. The area's proximity to nature and ecological values are reflected in both eco-friendly construction and services, such as various recreational opportunities and a nature-oriented daycare. Viikki is perfectly suited for an active lifestyle: there is an abundance of outdoor and sports venues, cycling paths, and sports halls. In the Viikki Arboretum, a park of tree species, you can explore both native and exotic plant species, and in the summer, you can see grazing animals in the university's research areas. Who would believe that such an idyllic environment could be so close to the capital's core! ### Diverse Transportation Connections Transportation in Viikki is smooth, both by public transport and by car. Several bus lines and the Raide-Jokeri rapid tram line make public transportation effortless. For drivers, the Lahdenväylä and Viikintie provide good connections to other parts of the city. Many services are within walking or cycling distance, which supports sustainable mobility. ### Services and Nature Nearby The Viikki Prisma Center offers a range of daily services, including a grocery store, pharmacy, restaurant, and pet supply store. Additionally, there are several local shops and a library that hosts events in addition to basic services. Viikki offers diverse recreational opportunities for all ages. Children can participate in activities ranging from scouting to football and horseback riding, while a senior club provides activities for the elderly. The Latokartano Sports Hall and the Viikki Multipurpose Building offer facilities for everything from gyms to ball games and gymnastics. Nature is present throughout Viikki. Hiking opportunities can be found in the Viikki hills, Hallainvuori forest paths, and extensive fields and arboretum. Particularly valuable is the Vanhankaupunginlahti nature reserve, known for its rich birdlife. The area features several birdwatching towers and is an important migration and breeding area for birds. ### Daycares, Schools, and Educational Opportunities Viikki is particularly popular among families with children and students. The area has several daycares, including a nature-oriented option, and schools ranging from elementary to high school. Viikki also hosts the Viikki Normal School, a training school of the University of Helsinki, where principles of sustainable development are part of everyday life. ### We Care About Rental Properties in Viikki – Create a Search Alert Vuokraturva is Finland's leading rental property broker. We rent apartments on behalf of both individuals and large landlords. If you are looking for a rental apartment, create a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Viikki? Check out services for landlords. # Rental Apartments in Kauniainen ## Kauniainen in Brief Kauniainen is a respected and peaceful small town nestled next to Espoo. It is Finland's smallest municipality but offers its residents a wide range of services, a green environment, and smooth connections to the metropolitan area. Kauniainen, strongly bilingual, is known for its cozy and community-oriented atmosphere. ### Efficient Transport Links Kauniainen has a railway station that takes you to downtown Helsinki in about 20 minutes. Buses also conveniently connect to places like the Tapiola metro station. Proximity to major highways makes driving smooth as well. ### Diverse Service, Cultural, and Sports Offerings Located in downtown Kauniainen, the shopping center Grani brings together grocery stores, cafes, restaurants, a pharmacy, and a gym. For cultural experiences, there are a library, the movie theater Bio Grani, and a music institute. All of these are within a short walking distance. The Gallträsk recreation area, the hiking and skiing trails of Kasavuori, and the greenery of Thurman Park invite outdoor activities right near the center. For the active, facilities including a swimming pool, ice rink, tennis courts, and a small ski center are available. ### Schools and Daycare Centers Kauniainen has several daycare centers, as well as Finnish and Swedish language schools from elementary to high school. The area is also home to an adult education center, Työväen Akatemia, which offers opportunities for higher education. ### We Care About Renting Apartments in Kauniainen – Set Up a Search Alert Vuokraturva is Finland’s leading rental apartment provider. We rent apartments from both individuals and large landlords. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Renter for Your Apartment in Kauniainen? Check out the services for landlords. # Rental Apartments in Kerava ## Kerava in Brief Kerava is a green and cozy city where daily life runs smoothly. In this compact city, all necessary services – such as shops, health services, schools, and daycare centers – are easily accessible, often within walking or cycling distance. The proximity to the capital region makes Kerava a viable option for those who appreciate an affordable and peaceful living environment but want to remain close to the opportunities and costs of a big city. ### Transportation Connections Getting around in Kerava is smooth. By train, you can reach Helsinki in about 20 minutes, and from Kerava railway station, which is located along the main line, there are convenient connections to other parts of Finland, such as Lahti and Tampere. There are also good suburban train connections to the capital region from Savio station. By car, you can easily access various directions thanks to highways and ring roads. A functional bus network serves the city's inner areas and nearby municipalities, complementing the overall public transportation system. ### Services and Leisure Kerava offers a wide range of services and numerous opportunities for leisure activities. The center of the city is home to Finland's longest pedestrian street – an impressive 850 meters long, featuring shops, restaurants, and shopping centers like Karuselli and K-Citymarket. Kerava is actively developing its urban culture and reinforcing community spirit. The city has invested in developing its outdoor and green areas. You can relax in nature at Ollinlampi's campfire site or on the illuminated walking paths at Keinukallio, which also serve as ski tracks in winter. For culture enthusiasts, Kerava offers a wide variety of events, including Kerava Day and the Circus Market. The city provides diverse hobby opportunities. Notably, it is home to Finland's only cricket field that meets international standards, making Kerava the cricket capital of the country. ### Education Kerava has a comprehensive educational offering from early childhood education to upper secondary school. The city operates several primary schools and high schools. Vocational education is provided by Keuda, which serves students from a variety of fields. The Kerava Institute offers diverse adult and hobby education in the area. ### We Care About Apartments in Kerava – Set Up an Apartment Alert Vuokraturva is Finland's leading rental apartment agency. We rent apartments from both private individuals and large landlords. If you are looking for a rental apartment, set up an alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Kerava? Check out the services for landlords. # Rental Apartments in Kirkkonummi ## Kirkkonummi in Brief With its shorelines, beautiful lakes, and magnificent nature, Kirkkonummi is a charming and vibrant bilingual municipality that offers diverse living options, ranging from rural landscapes to coastal environments. Its central location near the capital region, excellent transport links, and comprehensive services make the area attractive for families and working professionals. Kirkkonummi also boasts wonderful opportunities for outdoor activities and hobbies. ### Transportation Links Kirkkonummi is served by the coastal railway, with train stations located at Masala, Jorvas, Tolsa, and Kirkkonummi. The local train provides regular service to Helsinki. For drivers, the Länsiväylä expressway connects Kirkkonummi to Helsinki and Hanko, while the Turunväylä leads towards Turku. Park and ride facilities facilitate the use of public transport. ### Nature and Services Kirkkonummi offers excellent opportunities for enjoying nature. The municipality’s long coastline and archipelago provide fantastic possibilities for boating, fishing, and swimming. The Meiko Nature Reserve and Porkkalanniemi attract hikers. The area also features several golf courses, a ski resort, and Joo.Areena, where various sports, fitness activities, and bowling can be enjoyed. In the town center, there are shopping options like Prisma, the Kirsikka shopping center, and cozy restaurants. The stunning library building, Fyyri, captivates with its architecture and offers experiences for all ages through its diverse activities. Kirkkonummi is also a historical area where you can explore, for example, the rock paintings at Lake Vitträsk. ### Educational Opportunities Daycare centers and schools in Kirkkonummi offer education in Finnish and Swedish. Special programs are available in music, sports, and mathematics-science. The Kirkkonummi senior high schools include Porkkalan Lukio and Kyrkslätts Gymnasium, with vocational education offered at Omnia and Luksia. ### We Care for Apartments in Kirkkonummi – Set Up a Search Alert Vuokraturva is Finland's leading rental apartment intermediary. We rent apartments from both private individuals and large landlords. If you are looking for a rental apartment, set up a search alert here >> ### Landlord! Do You Need a Tenant for Your Apartment in Kirkkonummi? Check out services for landlords >> # Rental Apartments in Lohja ## Brief Overview of Lohja Over 700 years old, Lohja has declared itself the lake capital of Finland. It combines lush nature, diverse cultural offerings, and smooth daily life. The city is known for its apple orchards, Lohjanjärvi lake, and vibrant event scene. The city center boasts comprehensive basic services, including large grocery stores, a library, a swimming hall, and health services. Shopping centers Lohjantähti and Lohi complement the offerings with a variety of shops and restaurants. ### Good Connections and Central Location Lohja’s location at the intersection of highways 1, 2, and 25 provides smooth connections to various parts of Southern Finland. A drive to Helsinki takes about 45 minutes. Efficient bus services connect within the region and to routes heading towards the capital area. ### Nature, Culture, and Sports Lohja offers excellent conditions for outdoor activities and movement – both on land and by the lake. Liessaari with its lean-tos, along with other shores of Lohjanjärvi, Harju recreation area, St. Laurence Golf, and Karkalinniemi Nature Park invite relaxation and exercise. For culture lovers, there are theaters, summer theaters, museums, and events like the Apple Carnival. The city is also home to unique attractions such as the Tytyri Mine Experience, Torhola Cave, and two local coffee roasteries. ### Services Lohja's city center is vibrant and filled with diverse services. The commercial heart of the center is a large Prisma, which is typically found only far from city centers. ### Lifelong Learning Lohja offers quality education from early childhood to higher education. Instruction is available in both Finnish and Swedish, as well as vocational and liberal adult education. Institutions include Luksia, Laurea University of Applied Sciences, Hiiden Opisto, Kanneljärvi Opisto, and Kisakallio Sports Institute. ### We Care About Apartments in Lohja – Set Up a Search Alert Vuokraturva is Finland's leading rental apartment intermediary. We rent apartments from both private individuals and large landlords. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Lohja? See the services for landlords. # Rental Apartments in Naantali ## Brief Overview of Naantali Naantali's idyllic environment is unparalleled! It is one of the oldest cities in Finland. The warm atmosphere, stunning seascapes, and diverse services provide a cozy living space that is easy to enjoy. The soul of the city hums in the crevices of old wooden houses and alleys, bubbles in the joys of the harbor, and whispers on the rocky shores of the archipelago. The cobblestone streets of Naantali echo with the sound of sandals, ropes creak at the harbor, and the clinking of coffee cups mixes with laughter that carries from the waterfront terraces. ### Easy to Arrive, Wonderful to Stay Naantali is located just a short drive from Turku, which also has excellent transport connections; highway links and efficient public transport make mobility seamless. Due to the compact size of the city, a bicycle is a convenient means of getting around the downtown area. The marina also offers the possibility of arriving in Naantali by your own boat. ### A Heart Full of Culture, Activities, and Services Naantali is a city full of life, joy, and fun activities for both everyday and festive occasions. The proximity to the sea provides excellent opportunities for boating, swimming, and hiking in the archipelago. Naantali is known for its charming Moomin World, which attracts families looking to follow the stories of the Moomins. The Naantali spa invites relaxation, and the Gardens of Kultaranta delight visitors time and again. The city's events fill the streets with life, as music plays in the melodies of the renowned Music Festival, the buzz of conversation fills the Crowning of the Dreamer’s Day, the scent of freshly baked bread wafts from the restaurants, and the taste of summer melts on the tongue at the ice cream stand. ### Space for Dreams and Curiosity Naantali offers learning opportunities for all ages, as the city has several daycares, primary schools, and a high school. Did you know that Naantali also has a music school? Nearby higher education institutions, such as the University of Turku and Åbo Akademi, are easily accessible. Additionally, the city offers a variety of recreational and course opportunities for adults, supporting lifelong learning and an active lifestyle. ### We Care About Apartments in Naantali – Create a Search Agent Vuokraturva is Finland's leading rental apartment intermediary. We rent apartments for both individuals and large landlords. If you are looking for a rental apartment, create a search agent here. ## Landlord! Do You Need a Tenant for Your Apartment in Naantali? Check out our services for landlords. ## Images of Naantali (Note: Images are not included in this translation.) # Rental Apartments in Nokia ## Briefly about Nokia Nature-friendly, warm, and developing, Nokia combines the tranquility of a smaller city with the services of a larger one. Everyday life in Nokia runs smoothly. Beautiful waterways, historic redbrick buildings, and the unique environment being developed along the Nokianvirta river make the city one-of-a-kind. Located next to Tampere, Nokia attracts residents for living, hobbies, and leisure. ### Excellent Location Getting around from Nokia is easy. You can reach Tampere in just 15 minutes by car or train. Tampere-Pirkkala Airport is also about a 15-minute drive away. Highways running along the outskirts of the city and efficient public transport ensure good connections for both work commutes and leisure activities. ### Services and Leisure The city offers comprehensive basic services, a diverse range of restaurants and cafes, and nature-friendly outdoor areas. For active individuals, options include a frisbee golf course, swimming hall, ice hall, sports centers, River Golf, Vihola Riding School, and a Dog Exercise Forest. Nokia also has plenty of culture and experiences: spend a spa day in Eden, take a cruise on Lake Pyhäjärvi, or enjoy a play at the Nokia Workers' Theatre or in a summer theatre. For history enthusiasts, there’s the Hinttala local heritage museum area. ### Education and Growth Environment Nokia provides high-quality early childhood education, modern primary schools, and an active high school that is part of the European School Network. Tredu offers vocational education in various fields, and universities in Tampere are easily accessible. Nokia combines a safe growth environment with opportunities for lifelong learning. ### We Care About Apartments in Nokia – Create a Rental Alert Vuokraturva is Finland's leading rental apartment broker. We rent apartments for both private individuals and large landlords. If you are looking for a rental apartment, create a rental alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Nokia? View services for landlords. ## Pictures from Nokia (Note: Images are not available.) # Rental Apartments in Klaukkala ## Brief Overview of Klaukkala Klaukkala is the largest and fastest-growing locality in Nurmijärvi. It is a vibrant and friendly village where the tranquility of the countryside meets smooth services and good connections. Klaukkala combines a safe daily life, diverse services, and opportunities to enjoy nature. The area especially attracts families, as it offers quality schools, early childhood education, and a variety of recreational options. ### Local and Helsinki Transport Connections Klaukkala has fast connections to Helsinki by both bus and car, with the journey taking about half an hour. Local public transport operates well and provides flexible commuting options within Nurmijärvi. ### Functional Local Services and Smooth Daily Life In Klaukkala's town center, you'll find everything necessary for daily life: grocery stores, the Viiri shopping center, a health station, a pharmacy, and a library. The cultural center Monikko hosts concerts, theater, and events. There are also various restaurants and cafés to suit different tastes. ### Excellent Outdoor and Sports Facilities Klaukkala offers fantastic facilities for outdoor activities: the Isosuon boardwalks, Tornimäki fitness stairs, and various running trails invite year-round movement. The sports park and ice rink cater to enthusiasts of different sports, and the Bike Park is available for downhill biking fans. There are also good opportunities for horseback riding in Klaukkala. For instance, Stall Solbacka is a riding school approved by the Finnish Equestrian Federation, and Laatutalli hosts various equestrian competitions. ### Good Educational Opportunities The area has several primary schools and daycare centers, along with Nurmijärvi Community School, where students can study with an emphasis on arts or sports. The Nurmijärvi Music School and Nurmijärvi Dance School provide basic art education. Vocational training is offered by Keuda institutions, which provide diverse educational paths in various fields. ### We Care About Apartments in Klaukkala – Create a Search Alert Vuokraturva is Finland's leading rental apartment intermediary. We rent apartments for both private individuals and large landlords. If you are looking for a rental apartment, create a search alert here >> ## Landlord! Do You Need a Tenant for Your Apartment in Klaukkala? Check out the services for landlords >> ## Images of Klaukkala (Note: No images available.) # Rental Apartments in Nurmijärvi ## Brief Overview of Nurmijärvi Nurmijärvi beautifully combines the tranquility of the countryside with modern services. Rolling fields, lush forests, and crystal-clear lakes create a harmonious backdrop for living. The home municipality of Aleksis Kivi offers spaciousness, comfort, and a village-like community just a half-hour drive from Helsinki. Traditional wooden houses and farms blend seamlessly alongside modern residential areas, while the municipalities of Klaukkala, Rajamäki, and the church village add their own unique flavor to the overall picture of Nurmijärvi. ### Good Connections and Accessibility The location along Kehä III and Hämeenlinnanväylä ensures quick connections to Helsinki and other parts of the metropolitan area. Daily commutes are easy with bus services or by car, and internal public transport operates comprehensively. Helsinki-Vantaa Airport is just a 20-minute drive away. ### Comprehensive Services, Nature, and Leisure Opportunities Life in Nurmijärvi is smooth—services are extensive and easily accessible. The centers of Klaukkala and Rajamäki, as well as the services in the church village, meet various needs. Health centers serve different areas of the municipality. For leisure, there are diverse opportunities: The cultural heritage of Aleksis Kivi thrives in the summer theater and museum at Taaborinvuori. The Monkola Cultural Center offers events and experiences year-round. For active individuals, there are hiking trails, such as the Seven Brothers Trail, Sääksjärvi beach, ice rinks, swimming pool, and modern sports centers. Libraries, adult education centers, and active community organizations further enrich leisure time. ### Growth and Learning at Different Stages Nurmijärvi invests in quality education. The municipality has several daycares, primary schools, and high schools. Village schools bring education close, while larger schools offer diverse learning paths. The Keuda campus in Rajamäki provides vocational training in various fields, and higher education institutions in the metropolitan area are easily reachable. A safe and community-oriented environment makes Nurmijärvi an ideal place for learning and living. ### We Care for Properties in Nurmijärvi – Set Up a Search Alert Vuokraturva is Finland's leading rental property management agency. We rent out apartments from both private individuals and large landlords. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Nurmijärvi? See services for landlords. # Rental Apartments in Porvoo ## Porvoo in Brief Porvoo is known for its charming old town, which enchants visitors year-round. But Porvoo is much more than that. It is a lively and welcoming small town where both residents and visitors feel at home. The proximity to the sea and nature adds a calming touch to the city's atmosphere. The range of services is extensive, and particularly, restaurants and cafés offer a variety of culinary experiences. ### Smooth Transport Connections In a small town, distances are short, which makes moving around easy. The city area boasts well-developed pedestrian and cycling paths, making it easy to get around on foot or by bike. Porvoo's local public transport connects suburban areas with the city center reliably, even during evenings and weekends. It takes about an hour to reach Helsinki, which is just over fifty kilometers away, by car or bus. ### Comprehensive Services and Recreational Opportunities The town offers all basic services from healthcare to grocery shopping. Old Porvoo attracts visitors with its atmospheric boutiques and quality restaurant and café offerings. For culture enthusiasts, there are attractions such as Taidetehdas, Jacob's home museum, and a cinema. For those interested in sports, there is a wide selection of recreational activities, especially in water sports. In Porvoo's unique river valley national urban park, you can enjoy outdoor activities year-round. Furthermore, the scenic ridges and seacoast of Porvoo provide beautiful hiking trails and nature paths that invite you to explore, jog, or simply enjoy the peace of nature. The proximity to the archipelago and the sea offers additional opportunities for kayaking, rowing, and even ice skating in winter. ### Schools in Finnish and Swedish for Different Life Stages In addition to daycares and primary schools, Porvoo hosts the Finnish-language Linnankoski high school and the Swedish-language Borgå Gymnasium. The city also has the vocational school Careeria. Haaga-Helia and Laurea universities of applied sciences have branches in Porvoo, located near the center in the Näs area. ### We Care for Apartments in Porvoo – Set Up a Search Alert Vuokraturva is Finland's leading rental apartment broker. We rent out apartments for both private individuals and large landlords. If you are looking for a rental apartment, set up a search alert here >> ## Landlord! Do You Need a Tenant for Your Apartment in Porvoo? Check out services for landlords >> ## Pictures of Porvoo # Rental Apartments in Riihimäki ## A Brief Overview of Riihimäki The park-like Riihimäki is a city of pleasant scale. The low-built city center has everything you need: shops, restaurants, and a railway station, all within walking distance of each other. The slogan "big small town" is indeed fitting for this city. Green parks, leafy street edges, and the forested nature surrounding the city make everyday life enjoyable and invite you to spend time outdoors throughout the year. ### Smooth Transportation Connections From Riihimäki, you can reach the largest cities, Helsinki or Tampere, by train in about an hour. By car, it's also easy to travel in various directions, as the Helsinki-Tampere motorway runs very close to the city. Bus services are efficient both within the city and for longer trips. ### Diverse Services and Leisure Opportunities In Riihimäki, there are two major shopping centers: Kauppakeskus Atomi, located next to the railway station, and Merkos, which serves customers near the Helsinki-Tampere motorway. Close to the city center is also a swimming pool where you can enjoy outdoor pools in the summer and grab an ice cream at the Vesilinna tower. The indoor facilities of the swimming hall are being renovated and are expected to open for users in 2025. The sports park has traditional sports fields as well as fitness stairs and padel courts. For outdoor enthusiasts, Riihimäki offers stunning natural attractions: the Riutta skiing and hiking trails, the park areas of the old Hyttikorttel district, and the hiking trail around the nearby Iso-Melkutin lake are popular spots among locals. The vibrant cultural activities delight culture lovers: Riihimäki, affectionately known as Riksu, is famous for its Glass Museum and active local theater. Additionally, the city hosts free summer concerts at Granitinaukio and events such as the Finnish Glass Biennale, which gathers glass art enthusiasts. ### Schools for Various Stages of Life and Learning In addition to basic education, Riihimäki offers a high school and vocational training from both vocational schools and universities of applied sciences. ### We Care for Apartments in Riihimäki – Set Up a Search Alert Vuokraturva is Finland’s leading rental apartment intermediary. We rent both private individuals' and large landlords' apartments. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Tenant for an Apartment in Riihimäki? Check out the services for landlords. # Rental Apartments in Sipoo ## Sipoo in Brief Sipoo is like a beautifully painted canvas where lush nature blends with the charm of old villages and the comforts of modern life. The municipality is known for its stunning natural surroundings, featuring vast forest areas, lakes, and proximity to the sea. Sipoo offers a variety of housing options: modern single-family homes, traditional farmhouses, and new residential areas such as the centers of Nikkilä and Söderkulla. The municipality particularly focuses on sustainable development and ecological solutions, visible in the planning of new residential areas and public services. ### Good Transport Connections Simplify Daily Life Sipoo is located just 30 kilometers from Helsinki, and thanks to the motorway, reaching the capital's vibrant atmosphere is easy by car. HSL's public transport quickly takes you to your daily tasks. For cyclists and pedestrians, Sipoo offers safe routes that turn everyday journeys into scenic adventures. ### Life Filled with Sports and Culture Sipoo pulsates with life, evident in its strong community spirit and rich cultural offerings. Local events color the rhythm of the year: in autumn, the Sipoo Autumn Market fills the square with delicacies and handicrafts, in winter, the warm-hearted Lucia procession brightens the dark days, and charming Christmas markets bring the community together, while summer solstice celebrations and outdoor concerts fill the village lanes with life. Sipoo Theatre and art exhibitions attract culture enthusiasts, and the library serves as the living room for the entire village. Nature is the heart of Sipoo. Sipoonkorpi National Park provides a breath of fresh air from everyday life: hike in the forest’s embrace, listen to the silence, and breathe in the fresh air. In summer, Sipoonlahti invites kayaking trips and boat excursions to the archipelago. In winter, well-maintained ski tracks and skating rinks are found throughout the municipality. For sports enthusiasts, Sipoo offers comprehensive facilities: the greens of Nevas Golf welcome golfers, Söderkulla Sports Hall provides diverse services, and local gyms and sports clubs keep the joy of movement close. Services are comprehensive and easily accessible. In Nikkilä center, you can find grocery stores, cozy cafés, and restaurants, along with a variety of health services. At Söderkulla’s waterfront, you can enjoy a cup of coffee with a sea view or shop in local boutiques. Everything essential is nearby, and the hustle and bustle of the capital is just a stone’s throw away for those who crave it. ### Growth Path Close to Home Sipoo has high-quality daycare centers and primary schools for both Finnish and Swedish-speaking students. Nikkilä's modern high school offers excellent conditions for studying, and the proximity to higher education institutions in the capital region makes further studies easily accessible. Hobby clubs, music schools, and art colleges give children and young people the opportunity to discover their passions. ### We Care About Apartments in Sipoo – Create a Search Alert Vuokraturva is Finland's leading rental apartment broker. We rent apartments for both private individuals and large landlords. If you are looking for a rental apartment, create a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Sipoo? Check out our services for landlords. ## Rental Apartments in Pispala ### Pispala in Brief Pispala is the heart of Tampere. It is a unique, warm, and colorful neighborhood that captivates from the very first moment. Its winding narrow streets, beautifully restored wooden houses, and lush gardens create a unique postcard-like environment. Pispala is known for its unique history, stunning landscapes, and vibrant community. From the highest point of Pispalanharju, breathtaking views unfold over both Lake Näsijärvi and Lake Pyhäjärvi, making the area especially charming. Here, the stories of past times live in the wooden beams and stone paths of the houses, as various signs of the region's working-class history are visible throughout the area. The iconic, over 100-year-old shooting tower standing on the northern slope is one of Pispala's most famous landmarks. ### Easily Accessible with Good Transport Connections Though Pispala feels like its own little world, it is incredibly well connected to the rest of the city. The distance to downtown Tampere is about 2.5 kilometers, and several bus connections quickly transport you to the city center. Right nearby in Santalahti, there is a tram line that makes getting around easy and effortless. There are stairs that connect Pispala and Santalahti, allowing you to enjoy stunning views over Lake Näsijärvi as you walk. ### Life Around Every Corner Pispala is a lively village within the city, known for its rich cultural life. The neighborhood offers a charming blend of traditions and modern culture. The Rajaportti sauna, which is the oldest public sauna in Finland still in operation, invites you to experience its warmth and the whisper of history. The area also hosts the Hirvitalo contemporary art center, small galleries, and boutiques. Café Pispala offers a wonderful brunch with pancakes on weekends, and people travel from afar for the delicious dishes at the famous Pispalan Pulteri. On the stairs of Pispala, you can pause with a cup of coffee to admire the sunset or sit in the Pispala library, where books take you away. For outdoor enthusiasts, Pispala is like nature's own paradise. The trails of the ridge invite you for runs, bike rides, or peaceful walks. In winter, the nearby lakes offer opportunities for ice skating, skiing, and winter swimming. ### Grow, Learn, Flourish Children in Pispala grow up in a safe environment, surrounded by nature, and the area's own school provides an inspiring learning environment. Looking to the future, Tampere's diverse educational opportunities are close at hand—particularly Tampere University and Tampere University of Applied Sciences, which are easily accessible by public transportation or cycling. From Pispala, students find the perfect balance between a calming environment and a vibrant student life. ### We Care for Apartments in Pispala – Set up a Search Alert Vuokratutva is Finland's leading rental apartment broker. We rent apartments for both individuals and large landlords. If you are looking for a rental apartment, set up a search alert here. ## Landlord! Do You Need a Tenant for a Property in Pispala? Check out the services for landlords. ## Photos of Pispala (Note: Image content removed for this document.) # Rental Apartments in Pyynikki ## Pyynikki in Brief Fresh forest air and the song of birds welcome you to this charming district, one of Tampere's most popular residential areas. Pyynikki encompasses a variety of living environments, from urban city living to natural tranquility. The area's main attraction is undoubtedly Pyynikinharju, known for being the highest gravel ridge in the world, from whose slopes stunning views over the blue Pyhäjärvi lake can be enjoyed. This protected forest area, spanning over 90 hectares, offers its residents a peaceful oasis in the heart of the city, where you can escape the rush of everyday life amidst the serenity of the woods. Pyynikki is distinguished not only by the ridge but also by its unique architecture and its cobblestone streets edged with lush, old trees. Beautiful wooden houses from the early 1900s, historic stone buildings, and elegant functionalist apartment blocks weave together stories from past decades. In Pyynikki, nature and the city do not compete; they complement each other. ### Easily Accessible Pyynikki is ideally located just a few blocks from the center of Tampere. The area has excellent public transportation connections, with trams running from Lentävänniemi through Pyynikintori to the city center. Bus lines are diverse and operate regularly to various parts of the city. For cyclists and pedestrians, Pyynikki offers well-maintained routes that connect the area to other neighborhoods, making travel effortless and enjoyable. ### Experiences for Every Sense The area's iconic landmark, Pyynikin Observation Tower, provides an opportunity to marvel at the expansive scenery from high on the ridge. The tower houses the famous Pyynikin Munkkikahvila, known for its delicious pastries. Culture seekers can find unforgettable experiences at the Pyynikki Summer Theatre, with its rotating auditorium attracting audiences from far and wide. In summer, Rosendahl Beach invites you to enjoy the sun and a refreshing swim, while in winter, the illuminated ski trails in the area offer the chance to enjoy sports in the embrace of nature. Pyynikki also features the city's only outdoor minigolf course located in the beautiful Eteläpuisto. For those craving vibrant activity, the city center is just around the corner, offering a wide range of services from various restaurants to charming brick-and-mortar shops. ### Guaranteed Growth Environment for the Future In a safe and stimulating environment, it’s easy to grow and develop. The proximity of several daycare centers and schools ensures quality education for different age groups. The closeness to nature provides children with endless opportunities for play and adventure. Tampere's universities and various educational institutions are within walking or cycling distance. ### We Care About Apartments in Pyynikki – Create a Search Alert VuokraTurva is Finland's leading rental apartment intermediary. We rent apartments owned by both private individuals and large landlords. If you are looking for a rental apartment, create a search alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Pyynikki? Check out the services for landlords. # Rental Apartments in Valkeakoski ## Valkeakoski in Brief Imagine a city where the morning dawns over the lake shimmering like diamonds on the water’s surface… Valkeakoski is known for its stunning lake landscapes, rich cultural heritage, and a sense of community. The history of Valkeakoski dates back to the late 1800s with the development of the industry. The city grew around the paper industry, which is still reflected in the architecture and culture today. Traditional brick factory buildings tell the story of labor history, while modern buildings and lush park areas bring a fresh and contemporary look to the urban landscape. Canals, bridges, and the presence of water create a unique environment in Valkeakoski that invites and offers something for everyone. Here, green landscapes intertwine with the comforts of urban life. ### Smooth Transport Links Valkeakoski is ideally located just a 30-minute drive from Tampere and a little over an hour from Helsinki. The city has excellent road connections, and regular bus services ensure smooth travel to surrounding cities. Valkeakoski offers great opportunities for those who want to combine a peaceful home with easy access to the job and service offerings of larger cities. ### A Treasure Trove of Leisure Valkeakoski offers diverse services and activities for both everyday life and special moments for its residents. From the city center, you can find a wide range of shops, cozy cafes, and high-quality restaurants. Comprehensive health services, modern sports facilities, and wonderful outdoor paths support the convenience of everyday life. For culture lovers, Valkeakoski offers theater, concerts, and art exhibitions throughout the year. Especially in the summer, the city comes alive with various festivals that gather locals and visitors alike. Have you heard of the Valkeakoski Music Theater or the Workers' Music Festival? Art galleries, libraries, and diverse events keep the culturally hungry satisfied. Nature is the heart of Valkeakoski. The city is surrounded by lakes and forest paths, offering excellent conditions for outdoor activities, boating, and fishing. The suspension bridge loop and the Apianlahti area are local favorites. For the active, the city has a modern swimming hall, multiple sports fields, and comprehensive indoor sports facilities. ### Learning Journey from Toddler to Adulthood Valkeakoski invests in quality education. The city has several daycare centers, elementary schools, and a high school that offers a wide range of educational programs. Valkeakoski's vocational and adult education provides opportunities for development for both young and adult students. The city is also home to the Emil School of Visual Arts, which is a municipal institution for visual arts education. Valkeakoski is a center for technology and industrial training, creating excellent internship and job opportunities for students. ### We Care for Apartments in Valkeakoski – Set Up an Alert Vuokra Turva is Finland's leading rental apartment broker. We rent both apartments from private individuals and large landlords. If you are looking for a rental apartment, set up an alert here. ## Landlord! Do You Need a Tenant for Your Apartment in Valkeakoski? Check out services for landlords. ## Images from Valkeakoski # Rental Apartments in Myyrmäki ## Myyrmäki Myyrmäki is the largest and most vibrant district in Vantaa, combining extensive services, excellent transport connections, and a rich cultural and recreational offer. In addition, the urban atmosphere and proximity to nature make the area attractive. ### Smooth Transport Connections Myyrmäki is a transport hub with easy access to commuter trains in the direction of both Helsinki and the airport. These connections are complemented by several bus routes to different parts of Vantaa, Espoo, and Helsinki. The area also offers good road connections to main highways, such as Hämeenlinnanväylä, Vihdintie, and Kehä III. Myyrmäki has an extensive network for light traffic that connects parks, schools, and services, providing cycling and walking routes even to neighboring districts. ### Abundant Services for Daily Life, Culture, and Sports In bustling Myyrmäki, there are numerous services, cultural offerings, and leisure activities. The area hosts several shopping centers, such as Myyrmanni and Isomyyri, which offer a wide variety of stores and services. Paalutori, located in the heart of Myyrmäki, is a lively and community-oriented market that serves as both a landmark and an important gathering place. Throughout summer, various events and music performances are organized at the market. The cultural life flourishes at Myyrmäkitalo, which houses the Vantaa Art Museum Artsi, Myyrmäki Library, and Kino Myyri. Myyrmäki also features the cultural house Myyräncolo, which supports the local art scene. For sports enthusiasts, Myyrmäki offers many opportunities, such as ice rinks, a football stadium, and the Vantaan Energia Arena. Activities available include basketball, handball, floorball, and football. Additionally, Myyrmäki has several gyms, a swimming pool, jogging paths, and winter skiing trails, providing active outdoor opportunities year-round. ### Educational Opportunities and Schools for All Ages Myyrmäki offers diverse educational opportunities for learners of all ages. For elementary school children, Uomarinteen School and Kilteri School are conveniently situated in the area. Vaskivuori High School offers comprehensive options for general, music, and dance studies. The high school is also known for its musicals and the Lamerfest event, which brings together young people interested in multimedia and gaming. Myyrmäki is home to a campus of Vantaa Vocational College Varia. One of the area's significant educational institutions is the Metropolia University of Applied Sciences Myyrmäki campus, where students study fields such as technology and business. The campus is set to expand in the future to a total of 4,000 students, providing more international opportunities and enhancing collaboration with the business world. Myyrmäki also houses the Vantaa Adult Education Center and Vantaa School of Visual Arts and Vantaa Music School, which offer basic education in the arts. ### We Care for Apartments in Myyrmäki – Create a Search Alert Vuokraturva is Finland's leading rental apartment broker. We rent apartments for both private individuals and large landlords. If you are looking for a rental apartment, create a search alert here >> ## Landlord! Do You Need a Tenant for Your Apartment in Myyrmäki? Check out the services for landlords >> # Rental Apartments in Tikkurila ## Brief Overview of Tikkurila Tikkurila is more than just excellent transport connections and diverse services. It is Vantaa's most developing center, offering a pleasant quality of life near beautiful outdoor areas. As a residential area, Tikkurila mainly consists of spacious and park-like buildings from the 70s, combined with the modern central area built in the 2000s. ## Briefly about Vihti Vihti offers a unique blend of natural beauty and diverse services. Nuuksio National Park, the outdoor trails of Nummelanharju, and one of the largest water areas in Southern Finland invite outdoor activities year-round, whether hiking, skiing, or enjoying water activities. There is plenty of space to breathe and opportunities for an active lifestyle in every direction. ### Excellent Location and Transport Connections Vihti's location along the Turku motorway ensures quick access to Helsinki, Espoo, and other areas in Southern Finland. It takes only 15 minutes by car to reach Kehä III, and Helsinki-Vantaa Airport is accessible in under an hour. Despite being close to nature, everything is nearby, including job opportunities and services in the capital region. ### Services, Culture, and Events Daily life in Vihti runs smoothly thanks to comprehensive services. Nummela and the church village provide a variety of shops and health services, cozy cafes, and cultural spots like Galleria Pictor and the Vihti Theater. Annual events such as Vihti Days, Wuosisata Market, and Pertunpäivän pidot bring together locals and visitors. Vihti Race and Vihti Expo, on the other hand, entice residents and outdoor enthusiasts to get active. ### Sports and Outdoor Activities Vihti is a paradise for athletes: the Vihti Ski Center, several golf courses, fantastic jogging trails, and nature paths along the shores of lakes invite an active lifestyle. During the summer, lakes attract swimmers and canoeists, while in winter, ski tracks are set up along the trails. ### Education and Early Childhood Education Families with children are served by a wide network of daycare and schools. Additionally, there is a Swedish-language early childhood education unit, Daghemmet Aleksandra. Besides primary schools, the municipality features a modern Vihti high school and vocational training provided by Luksia. ### We Care for Properties in Vihti – Create a Search Alert Vuokraturva is Finland's leading rental apartment intermediary. We rent properties from both individuals and large landlords. If you are looking for a rental apartment, create a search alert here >> ## Landlord! Do You Need a Tenant for Your Apartment in Vihti? Check out our services for landlords >> ## Announcements ## Organizing rental apartments for the international staff of the University of Helsinki The University of Helsinki and Vuokraturva are launching a collaboration in which Vuokraturva will arrange rental apartments for professors and other international staff working in research and teaching roles arriving from abroad. Apartments will be rented from both private landlords and institutions. Vuokraturva welcomes offers of suitable apartments for the international staff of the University of Helsinki from both private and institutional landlords, reviews them, and assists the university's international staff in finding the best option for their new home in Finland. Vuokraturva also helps employees adapt to Finnish housing culture and get acquainted with the services in their new living area. "We consider it an honor to address the housing needs of international staff. This spring, we will meet with all key major landlords and collaborate with the Association of Finnish Landlords," says Petri Meckelborg, the sales manager responsible for the University of Helsinki at Vuokraturva. For more information Petri Meckelborg, sales manager, tel. 041 5280 328 ### About Vuokraturva Oy Vuokraturva is the market leader in apartment rental brokerage and investment property procurement services in the Greater Helsinki area. Vuokraturva rents properties from private individuals and institutions and works closely with the Association of Finnish Landlords and the Central Federation of Finnish Renters. Vuokraturva also arranges apartments for employees of the Chemical Agency. www.vuokraturva.fi ## Blog ## The Rental Housing Market is No Longer Like a Soviet-Style Trade Rent control was abolished in Finland in 1995, and rents in growth centers have been rising continuously since then. However, now that the rental housing shortage is being addressed, landlords and real estate investors must adjust to a new situation. The Finnish rental housing market is no longer like a Soviet-style trade, where goods were scarce on the shelves and there was a long line of people aiming for them. In Soviet trade, everything was taken that was offered, and anyone complaining about quality or price was pushed aside by the next person in line. Now, the Finnish rental housing market resembles a modern supermarket. Products cost market prices, but there is a variety to choose from, and comparison is worthwhile. Service can no longer be anything close to the performance of Soviet trade, and good customer service has become a competitive factor, just like in any business operating on a healthy basis. Some of the older generation landlords are struggling to adapt to this change. Nostalgia for the past is not only useless but also detrimental to the nostalgic individuals themselves. It is essential to adjust to the changes of the times, as is the case in all other industries. The change should be seen as a healthy development in the Finnish housing market that benefits those who genuinely want to serve their customers and understand their needs. ### The Dramatic Growth of Rental Apartments is the Climate Change of the Housing Market In the 2000s, the number of rental apartments has increased by about 25 percent, from approximately 800,000 to one million apartments. This surge has been driven by the rental housing shortage and a boom in real estate investments fueled by low-interest rates, which have led to enthusiastic investments by individuals, institutions, and housing funds. The real estate investment boom has increased the supply of rental apartments to such an extent that the increase in supply has not only compensated for the simultaneous decrease in the number of state-supported Ara apartments but has also raised the total number of rental apartments by an astonishing 200,000. Temporary changes in demand and supply in the rental market due to the COVID-19 pandemic could be compared to the movements of weather fronts that explain the day's weather. In contrast, the long-term growth of rental apartments represents the climate change of the housing market. It is crucial to understand this difference. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## The Rental Housing Market's Peak Season Has Started The busiest time of the year in the rental housing market occurs between June and October. In the summer, both families with children and students become active in moving, particularly as the school year ends. There is a especially high demand for housing among new students, who begin looking for rentals as their study placements are confirmed. The later the admission decisions are made by educational institutions, the more challenging it becomes to secure housing. This year, the clear uptick in the rental market activity began already in May, slightly earlier than usual. One of the reasons for this may be homebuyers, concerned about economic uncertainty, shifting their focus to the rental market. The simultaneous increase in the number of financially capable tenants and the demand for rental apartments is likely to lead to rising rents as we move into fall. The peak season for rental housing has commenced. Just half a decade ago, July was typically a quiet month in the rental market, falling in the middle of the summer holiday. However, the shortage of rental properties in recent years has led to a situation where rental homes are now sought and secured as early as the beginning of summer, even if the rental agreements will not begin until the end of summer. This urgency is particularly evident among families with children. This has created a continuous peak period of approximately five months during which the majority of the year’s rental agreements are made. Students will gradually enter the market throughout the summer. The timing of their study placement confirmation affects when they can begin their search for rental housing. By the end of summer, securing a rental apartment becomes particularly difficult, and many requests for rents often come with clear seasonal increases. Students whose placements are confirmed only at the end of July find themselves in the most challenging position. It is advisable to start familiarizing oneself with rental offers even before the study placement is confirmed. One can explore rental offers and attend viewings in advance, which provides a basis for understanding the offerings and price levels. This preparatory work allows for quick and sensible decisions when information about the study placement is received, thereby reducing some of the stress and urgency associated with the housing search. However, the reality is that the early bird catches the worm. Thus, the varying confirmation times of study placements inevitably put students at different disadvantages in the rental market. Those who search for housing at the last minute may yet again find themselves initially accommodated on mattresses in gymnasiums, as has been the case in previous years. Vuokraturva has suggested that to alleviate the housing shortage for students, more educational institutions should allow the start of studies in the spring semester as well as in the fall. Unfortunately, it appears that such alleviation will not be forthcoming for this fall. In those institutions where studies can begin in January, new students are significantly better positioned from a housing perspective than those starting in the fall, since there is often more supply than demand for rental housing at the turn of the year. The turn of the year is the quietest time of the year in the rental market. The proposal by Vuokraturva to stagger the start of studies and to alleviate the annual fall housing shortage has been supported by Education Minister Henna Virkkunen, Housing Minister Jan Vapaavuori, and Prime Minister Matti Vanhanen. To avoid recurring issues each year, Vuokraturva hopes that the courage to implement reforms can be found. # Announcements ## The Rental Housing Market's Peak Season Has Begun The busiest time of the year for rental housing markets occurs during the summer. During the three summer months, as many rental agreements are made as in the entire rest of the year combined. In the summer, both students and families with children become active in moving as the school year comes to an end. Students typically start searching for housing as soon as their study spots are confirmed. Families with children, on the other hand, try to time their moves during the summer so that their children do not have to change schools in the middle of the academic year. Both groups face the challenge that suitable rental housing is not just available for everyone during the summer season due to a shortage of rental properties. The rental housing shortage particularly affects new students who are looking specifically for small rental units, for which the demand is the highest. The difficulty in securing an apartment increases the later the acceptance decisions for their educational institution are made. Additionally, rental requests tend to peak as the summer season escalates. Most study spot decisions are made in July, making it significantly harder to secure a small rental apartment at that time. If the matriculation exams or entrance exams seem to have gone well enough that securing a study spot feels certain, it is advisable to secure a rental apartment as early as June, before the rush of applicants following the announcement of study spot decisions. Even if there is not full confidence in securing a study spot, it is worthwhile to familiarize oneself with residential areas and attend open house viewings in advance. This way, the reality of the housing market will not hit like a wet cloth to the face when an apartment is suddenly needed. The early bird catches the worm in the rental housing market. In addition to tactical advice, there are, however, concrete ways to address the rental housing shortage if there is a willingness to tackle it. *** The peak season for rental housing markets has begun. Just half a decade ago, the period after Midsummer and July was a quiet lull in the rental market. However, the housing shortage in recent years has led to a situation where rental apartments are now sought after and secured as early as the beginning of summer, even when the start date of the rental agreement is set for later in the summer. This urge is particularly emphasized among families with children. Among students, those whose study spots are confirmed only at the end of July find themselves at the most disadvantage. It is advisable to start exploring the rental market before the study spot is confirmed. By familiarizing oneself with rental offerings and attending viewings in advance, individuals will have a ready understanding of the supply and price levels. This groundwork enables quick and sensible decisions once the study spot confirmation arrives and reduces the stress and urgency often associated with the search for an apartment. The different timing of confirmation for study spots inevitably puts students in unequal positions in the rental market. Many who feel assured about their future study spot resolve the issue by renting an apartment in advance, even without official confirmation. Those seeking apartments at the last minute are likely going to be temporarily accommodated on mattresses in gymnasiums as in previous years. *** So, what are the solutions to the situation? Firstly, there should be more small rental apartments constructed, which are currently consciously limited. This further exacerbates the situation and increases rents for small apartments. Secondly, efforts should be made to stagger the timing of new students' start dates for housing searches, so that not all begin their searches simultaneously in the summer. Two years ago, Vuokraturva proposed that more educational institutions allow studies to begin not just in the fall but also at the start of the spring semester. In those institutions where studies can begin in January, new students have a significantly better position in the rental market compared to those starting in the fall, as there is generally more rental supply than demand around the turn of the year. The transition period is typically the quietest time in the rental market. Furthermore, the needs related to starting studies have significantly changed compared to previous decades. Most individuals starting military service in the summer now return home by the turn of the year. Last fall, 37,000 students took part in the matriculation exams in pursuit of their diplomas or grade improvements. Should this reform be implemented, even those who do not succeed in the spring entrance exams would not have to wait a whole year for another opportunity, as they could try again within six months. Therefore, the ability to commence studies in January would serve a surprisingly large number of students. Education Minister Henna Virkkunen has moved forward with a study assessing Vuokraturva's proposal to stagger the start of studies between fall and spring, which was publicly supported by Housing Minister Jan Vapaavuori and then Prime Minister Matti Vanhanen. To avoid the annual chaos of rental housing during the summer, Vuokraturva hopes that this reform can be included in the new government program. ADDITIONAL INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva, p. (09) 6877 550 ## ABOUT VUOKRATURVA OY Vuokraturva is the market leader in rental property brokerage and real estate investment services. Vuokraturva manages rental portfolios for individuals, institutions, and real estate investment funds. www.vuokraturva.fi ## Blog ## The Summer Season of Rental Housing Market Now Begins Attachment: Forecast on the Development of Rents for Market-Rented Apartments in 2013 The resolution of student admissions in educational institutions has triggered the busiest time of the rental market. Every year, the demand for small rental apartments heats up as thousands of new students simultaneously look for rental housing in study locations and their neighboring municipalities. The differences in the timing of securing study places put students in unequal positions. The earlier a student secures their study place, the easier it is to find rental housing. The number of applicants increases, and the availability of housing becomes more challenging as fall approaches. Those who find their rental apartment before mid-July are in the best position. In August, competition is at its peak, choices are limited, and rental requests are also at their highest. Landlords are aware of how to respond to the surge in demand by adding about a 10 percent seasonal increase to rental requests. Many do not consider that if the apartment is rented during the peak of the season, that higher rent will be paid throughout the year. IMPACTS OF THE CURRENT SITUATION IN THE HOUSING MARKET The strength of the rental housing market’s season is also influenced by the sentiment in the housing market. Currently, the situation in the housing market exacerbates the shortage of rental housing, as there are few small apartments for sale, asking prices are high, and banks' conditions for housing loans have tightened. Despite very low reference rates, the housing demand from new students is almost exclusively directed at the rental market. Therefore, the surge in demand for rental apartments may once again exceed previous records in August. The housing market is currently fluctuating. Regional differences are significant. Only the sales of small apartments in the city centers of growth centers are performing well. In practically all other sectors, commerce faces varying degrees of challenges related to the uncertainty of general economic outlooks. Economic uncertainty is also reflected in the demand for the most expensive rental apartments. The rents for high-end rental apartments have plummeted, and for instance, renting a large prestigious detached house or attic apartment in the metropolitan area is now more favorable for tenants than it has been in the last ten years. Tenants seeking long-term rentals of high-end apartments particularly benefit from this situation. Renting is currently a financially competitive option compared to purchasing such an apartment. GENERAL OBSERVATIONS FROM THE HOUSING MARKET In the housing market, asking prices and potential buyers' offers have drifted apart. Buyers do not seem willing to pay the same prices for larger apartments as they were in the spring, but on the other hand, sellers are not yet ready to accept that the price level in the market has declined. This reduces the number of impending transactions. A new related phenomenon is the challenge that not all real estate agents inform the seller of offers they receive on properties, knowing they are below what the seller expects. Consequently, sellers are left with an inadequate sense of potential buyers' thoughts on the price of the apartment. This does not promote a shared perception of price and ultimately the formation of property transactions. Additionally, such practices may involve legal issues, as the law requires all received offers to be communicated to the property seller by the agent. This is how it should operate, and the seller should not take offense at the agent acting in accordance with legal requirements. The behavior of agents may partly be explained by the fact that contracts have been secured by promising to propose a certain optimistically assessed price for the property. This high price estimate may also have been used to justify the size of the sales commission. Such behavior is shortsighted and hardly serves the actual interests of either party. Economic uncertainty has also increased pressure on the size of the brokerage commission. According to a report published on Monday, the shift of marketing homes for sale to the internet and increasing price pressures have led to fixed brokerage fees for property sales becoming trendier in Finland and more broadly in Western countries. They are now more the rule than the exception. Economic uncertainty has somewhat affected the demand for small rental apartments. Commuting has increased. Many prefer to rent a more affordable apartment farther from the city center but still within reach of good transport connections, rather than pay significantly more for a comparable apartment closer to the center. The annual rent increases of old rents now more often lead to tenants terminating their leases and moving to another apartment farther from the city center. Sometimes, this is even the landlord’s goal, as rents for old leasehold relationships can only be increased limitedly at a time, but when a tenant changes, the rent can be raised as much as someone is willing to pay. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## A Tremendous Shift Happened in the Rental Housing Market Over the Year Landlords are currently adjusting to a new normal as renting apartments has clearly become more challenging than before. On the other hand, tenants have more options and a better negotiating position than they have had in decades. The change has occurred rapidly and surprised the general public. After what seemed like an eternal housing shortage, it has been difficult for many to believe the change is real. A few years ago, it was sufficient for an investment property to be located in a desirable area. Landlords could easily choose the best candidates since there were always plenty of suitable applicants. Now, there is fierce competition for good tenants. The rentability of an apartment is no longer directly tied to the apartment's features but rather to how well the apartment is presented in marketing and how easy it is made for potential tenants to view it. Apartments no longer automatically rent themselves. The listing must stand out, especially in larger cities where similar apartments may be available in hundreds. Good photos and a carefully written description are essential. Tenant candidates now blatantly filter out a significant portion of rental listings, paying closer attention only to those that, based on first impressions, appear particularly appealing. Prospective tenants also wish to view apartments quickly and flexibly; otherwise, they may choose another option. Many traditional landlords find this new situation quite challenging to adapt to. The speed of the change is illustrated by the fact that when Vuokraturva announced exactly a year ago that the rental housing shortage had subsided throughout Finland, the statement received a mixed reception at the time. In hindsight, however, the view was largely correct: Vuokralaisten national organization, Vuokralaiset VKL ry, responded then to Vuokraturva's assessment by stating, “in reality, this has not happened for low- to middle-income individuals” and that “people are forced to租 a smaller apartment than their actual household needs and apply for housing support for that.” The assessment from Vuokralaiset VKL ry also appears to have been largely accurate, as the tenant market has led to a situation where demand, according to Vuokraturva's data, has shifted towards larger apartments in the past year. The easing of the rental housing shortage and more moderate rent requests have allowed better consideration of the needs of families with children and remote work. At the same time, the relative demand and rental prices for the smallest apartments have decreased. The fading of chronic over-demand for small apartments has eased the situation for tenants who specifically seek small and as affordable dwellings as possible. This is beneficial in easing the current labor shortage in the largest cities. Interestingly, the trade of the smallest apartments has remained active, and their prices have continued to rise. One factor contributing to this is the large number of first-time home buyers in the market, but investors are still seeking small studio apartments as well. A key reason for the popularity of mini-studios among investors is that maintenance and repair fees are determined by the square meter. The rapid rise in these fees thus supports the popularity of small studio apartments. In the past, the over-demand for rental apartments was so substantial that demand in growth centers was practically constant across all apartments. Now, the good and the bad are more distinctly separated in the rental markets as well. Similarly, various strategies for marketing apartments are more clearly differentiating themselves than before. It seems that visually high-quality and informative marketing, personal service, and functional electronic channels are rapidly gaining importance. The same development is observable in the services offered to consumers and in broader retail industry evolution. The rental housing market has swiftly transitioned from a long-standing housing shortage to a situation where good customer service is just as crucial and decisive as in other consumer businesses. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Rental Housing Shortage is Temporarily Easing Across Finland The balance in the rental housing markets has improved, making the position of tenants easier. At the same time, market saturation is reducing the short-term attractiveness of real estate investment. In the capital region, Turku, and Tampere, the easing of the rental housing shortage may be temporary, despite active construction, as net migration is expected to remain strong in the future. Additionally, there is still a shortage of small studio apartments, as significantly more two-bedroom apartments are being built and demand is lower. In other parts of Finland, a genuine rental housing shortage is unlikely to be seen again, as supply has increased sharply due to a real estate investment boom, while demand growth has stagnated alongside population growth. Despite the stabilizing market situation, rents for privately funded apartments have still increased, as annual rent increases are still applied to older rental contracts. Additionally, an unusually large portion of newly signed leases pertain to newly constructed apartments, which have higher rent levels than older housing stock. Meanwhile, rents for ARA (State-supported) apartments are tied to cost factors, and these are driven up by rising maintenance costs. Conversely, there are thousands of ARA rental apartments vacant in areas experiencing net migration loss, and the situation does not appear to be improving in the future. Some ARA rental properties that were previously habitable have also been torn down due to permanently lost demand. In the capital region, Tampere, Turku, and Oulu, the rental housing markets are reasonably active for the time of year. This is likely partly because those looking to move know that winter is a better time for tenants to search for a new apartment than the busy rental market seasons of summer and autumn. There are now more options available, with fewer applicants and less competition. Requests for rent are also more moderate in winter compared to peak season. On the other hand, some large cities are struggling with a surplus of rental apartments. The most problematic situation for landlords is in Lahti, with a population of 120,000, where the supply of rental apartments has grown so large due to active construction that even modest population growth has not been sufficient to keep demand in line with supply. As a result, even moderately priced apartments struggle to find tenants. The situation is particularly challenging for modest suburban apartments. In the three largest growth centers, the popularity of renting has increased due to rising housing prices, making it more difficult for first-time buyers and those migrating from a declining Finland to access ownership. In a declining Finland, purchasing a home would be inexpensive, but the popularity of rental living is boosted by uncertainty regarding future resale value and the prospects of selling in general. The costs of rental apartments in smaller municipalities are affordable and known in advance, meaning there are no surprises. Additionally, a rental apartment guarantees that one can get out if desired. The demand for family apartments has increased almost across the country, partly because there is a lot of supply and rental levels are moderate. It is now more common for families with children moving to a new area to initially rent. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## The Rental Housing Shortage has Disappeared Throughout Finland The popularity of real estate investing has significantly increased the supply of rental apartments, to the point that even the largest growth centers no longer suffer from a rental housing shortage. The problem that has plagued the 2000s can now be considered completely overcome. Recent figures and market observations are quite clear. The supply of rental apartments has been rapidly boosted by enthusiastic individual investors, pension companies, domestic investment firms and funds, and especially in recent years, international real estate funds as well. About half of the newly completed apartments go directly to rentals. Moreover, of the remaining half, approximately half end up as rental apartments when an investor buys a cash property and rents it out. Thus, about 75% of the newly completed apartments are rented out. In other words, three-quarters of the first residents of new apartments are tenants. The change has been very significant. The number of rented apartments in Finland has increased by 25 percent and by 182,000 apartments since 2000. (source: Statistics Finland) The balance of the rental housing market has simultaneously improved, and the position of tenants has become easier. On the other hand, the rising oversupply of rental apartments diminishes the short-term attractiveness of real estate investing. However, the increasing popularity of real estate investment seems to endure, as long-term population growth forecasts for the largest cities are a beneficial factor. ### Oversupply Threatens In the Helsinki metropolitan area, Turku, and Tampere, the alleviation of the rental housing shortage is primarily due to brisk construction activity. Despite the large number of new apartments, prices have continued to rise because borrowing costs are low and migration gains are expected to remain strong in the future. New construction is crucial; otherwise, a rental housing shortage could re-emerge as the population grows. However, the diversity of supply must be secured, or local oversupply of a certain type of housing could pose a risk in these regions as well. In medium-sized cities and small towns, a genuine rental housing shortage is unlikely to be seen again. Population growth is directed towards the largest cities, leaving medium-sized cities at risk of becoming sidelined. Even in medium-sized cities, the supply of housing has sharply increased due to the real estate investment boom, while demand growth has stagnated, similar to population growth. The risk of persistent oversupply of housing is real. Even some of the largest cities are grappling with significant oversupply of rental apartments. The most problematic situation for landlords is in Lahti, with a population of 120,000, where the supply of rental apartments has increased so much due to active construction that the modest population growth has not been sufficient to maintain demand at the same level as supply. As a result, even reasonably priced apartments struggle to find tenants. The most challenging situation is with modest suburban apartments, but there is currently also an oversupply of downtown studios in Lahti. Oulu, with a population of over 200,000, faces similar issues. ### Rents for Old Lease Agreements Continue to Rise Despite the removal of the rental housing shortage, rents for privately financed apartments have continued to rise because annual increases are still being applied to previously established lease agreements. Additionally, an unusually large portion of new lease agreements currently entered into concern newly completed apartments, which have higher rent levels than older housing stock. Rents for state-subsidized ARA apartments are tied to costs, and their rise is driven by the increase in maintenance costs. On the other hand, there are thousands of ARA rental apartments vacant in areas experiencing population decline, and the situation does not appear to improve in the future. Some viable ARA rental buildings have even been demolished due to permanently lost demand. ### The Gap Widens In the three largest growth centers (Helsinki Metropolitan Area, Turku, Tampere), the popularity of rental housing is increased by the rapid rise in property prices, making it difficult for both first-time homebuyers and those relocating from elsewhere in Finland to secure an owned apartment in these growth centers. In a declining Finland, buying an apartment would be cheap, but uncertainty regarding the future resale value of properties and the potential for sales complicates the attractiveness of owning a home. Rental costs for apartments in small towns are affordable and known in advance, preventing any surprises. Moreover, renters can be certain that they can get rid of their rental property if they wish. In contrast, the issue of selling owner-occupied homes has become a problem and an obstacle to moving for work. Timo Metsola Chairman of the Board Vuokraturva Vuokraturva is the most reliable, well-known, and reputable rental broker. - Taloustutkimus Oy 2020 ## Blog ## Upcoming Rental Housing Funds The situation in the rental housing market is favorable for landlords. In many areas, the demand for apartments exceeds the supply. In a market economy, this leads to an increase in rent levels until a point is reached where supply and demand balance out. At the same time, however, a majority of landlords in Finland are struggling with a lack of tenants. Especially municipalities' companies in migration-loss areas are facing difficulties, as they need to charge so-called cost-covering rents for their apartments, even if it exceeds the market rent. Before migratory birds leave for warmer regions, stories about students' struggles to find affordable and quality student housing close to their educational institutions signal the approaching autumn. According to experts in student housing, even these moving groups will find their nests before the onset of the freezing season. The average interest rate on household mortgages had already reached 5.17% by the end of June, and the increase continues. About three years ago, in the fall of 2005, the average mortgage interest rate was 3.18%. In three years, interest rates have risen by over 60%. Meanwhile, the much-lauded increase in gasoline prices has only been 15%. This modest price rise has caused drivers to reduce their driving. In the housing market, the delay in a slowdown has been longer. Ordinary households are the main group of landlords; without them, the rental housing situation would be catastrophic. Private rental apartments have remained stable in the face of changing market conditions. However, many landlords are now considering whether it is time to cash in on their property appreciation and invest the profits elsewhere. Since stock prices are on a downward trend, short-term interest investments could be a competitive alternative in the short term. In growing urban centers, there will be sufficient demand for apartments—including rental apartments that meet consumer needs. Despite this, there is a severe shortage of rental property investors. For example, various insurance companies have swapped their rental apartments for shares in rental housing companies. To increase rental housing production and investment in Finland, legislation is being prepared that offers tax exemptions for real estate investment trusts (REITs)—publicly traded companies engaged in renting out apartments. A company owning rental apartments would be exempt from income tax but would need to distribute most of its annual profits as dividends to its shareholders. These dividends would be subject to capital gains tax for the recipients. Publicly traded rental housing funds, obligated to distribute active dividends, would make rental housing investment accessible to small investors without the burden of managing rental operations. Tax-efficient, liquid rental housing investment funds would also likely attract pension and other insurance companies. The number of building permits for owner-occupied apartments has been declining for some time. Contracting capacity and plots are gradually becoming available for rental apartment construction. Repair contracts are also starting to be of interest again as other work diminishes. HARRI HILTUNEN CEO of the Finnish Real Estate Federation www.kiinteistoliitto.fi harri.hiltunen@kiinteistoliitto.fi ## Rental Housing Situation No Longer Aggravates Labor Shortage For decades, there has been talk in the housing market about the unresolved conflict between the housing and labor markets. Jobs exist where there are no houses, and houses exist where there are no jobs. For instance, the severe labor shortage that peaked between 2000 and 2007 was closely linked to the chronic housing shortage in growth centers, which employers lamented was hindering mobility for jobs. The labor shortage in growth centers is once again becoming prominent, but fortunately, the mismatch with the housing market situation seems to have eased. A notable change is that there is now a good supply of apartments, particularly rental apartments, in all growth centers. If the incentives offered by employers are strong enough, moving for work is no longer an obstacle in obtaining housing, even in the Helsinki metropolitan area. This is significant for Finland's international competitiveness, as, for example, Stockholm still struggles with challenges related to moving for work. Among landlords, the current situation in Finland's growth centers is even viewed as a surplus; however, we might be close to an optimal equilibrium in terms of net migration and labor availability. The risk of falling into excess supply does exist, particularly if, despite ample construction, net migration does not materialize. Of the large cities, only Lahti, with its population of 120,000, appears to be at risk, as its average annual population growth has been a mere three per mille since 2010. According to Statistics Finland, the Tampere metropolitan area, with a population of 400,000, is growing at a robust rate of just over one percent per year, and a sense of prosperity surrounds its future. The supply of housing does not seem to pose a bottleneck for Tampere's growth, so optimism about the future appears well-founded in Pirkanmaa. The city's significant infrastructure projects in recent years have been exceptionally successful in terms of timelines, cost management, and outcomes, which also benefits Tampere's brand. Turku's status appears stable, clearly benefiting from discussions of a "Turku economic miracle" in Southwest Finland. Turku has an intergenerational wealth due to historical reasons that other growth centers, except for the Helsinki metropolitan area, can only dream of. Oulu has surpassed the 200,000 population mark and has repeatedly managed to bounce back. The 2000s for Oulu, known as a technology city, have been tumultuous, facing both favorable and adverse winds. Oulu's advantage has consistently been relatively affordable living costs compared to other cities of similar size, which has likely helped retain skilled labor in the technology sector despite upheavals. Oulu is a strong regional center, with no challengers found north of the Vaasa-Kuopio line. Ten years ago, it seemed that the 100,000 inhabitant threshold was a suitable marker to differentiate Finland's large cities from smaller ones. Now, developments prompt the question of whether the 200,000 inhabitant line is more appropriate moving forward. Six cities reach or exceed this threshold, appearing to operate in their own league: in order of size, Helsinki, Espoo, Tampere, Vantaa, and Oulu, with Turku slightly below the mark at 194,000 inhabitants. Cities like Jyväskylä with 143,000 inhabitants and Kuopio and Lahti with 120,000 inhabitants now seem to share more in common with medium-sized cities than with the leading six. This consideration is crucial for the demand for housing and real estate investment, as the long-term prospects for medium-sized cities and their housing markets are concerning. For its part, Vuokraturva Oy has drawn its conclusions and will cease its brokerage operations in Lahti in the coming months, focusing instead on functioning in Uusimaa, Tampere, Turku, and Oulu. In the six largest cities, the supply of housing no longer poses an obstacle to alleviating the labor shortage, and their outlook for the current decade is positive. However, the rising cost of living appears to only show signs of stabilization in the rental apartment sector for now. Loose monetary policy continues to drive up housing prices, and the rapid increase in building maintenance costs does not seem to be abating. Thus, the equation for real estate investment has become more difficult compared to previous years. Competition for the best tenants is fierce. In addition to actual apartments, applicants are now also interested in the convenience of the process and the level of service. In nearly any other industry, the importance of quality customer service has been a given for ages, but this is a new setup in the rental markets of growth centers. Some so-called old-school landlords have had to adjust to this new situation. Moreover, the geographical divide between winners and losers is harsh. The entire country no longer has the conditions for profitable real estate investment as it did in previous years, a grim reality that actors in the field and banks find increasingly difficult to ignore. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Seeking rental and owner-occupied housing concurrently The moving season for families with children coincides with the summer school holiday. The uncertain economic situation has brought forth a new phenomenon in the housing market. An increasing number of families planning to move are simultaneously attending viewings for both owner-occupied and rental apartments. Finding a suitable and affordable option will determine which choice they ultimately make. The previous clear division in attitude between living in a rental versus an owner-occupied apartment is becoming blurred. The decline in housing prices has led families who have sold their previous owner-occupied homes to consider temporarily moving into rentals for strategic reasons. On the other hand, the falling prices have prompted those who previously rented to contemplate whether now is the right time to purchase their own home. The annual autumn season generated by students in the small apartment market has not yet begun. Families become active in the housing market immediately after school terms end, while students must wait until mid-summer when their study placements are confirmed. For more information Timo Metsola, Chairman of the Board, Vuokraturva Oy, tel. (09) 6877 550 Vuokraturva Oy in brief Vuokraturva is the market leader in apartment rental brokerage and investment apartment acquisition services. Vuokraturva rents out housing stock owned by individuals and institutions and organizes housing for employees of the Chemical Safety Agency. Vuokraturva collaborates closely with the Finnish Landlords' Association and the Central Association of Tenants. www.vuokraturva.fi ## Blog ## Tenant Celebrates May Day – It's the Best Time to Move April is a blessing for tenants looking to change their residence. While usually facing a housing shortage, in April there are temporarily more rental apartments available than demand, allowing tenants to choose. The demand for rental apartments peaks in the summer and autumn, creating a significant housing shortage. Right now, it is considerably easier to find a rental apartment than later in the spring, summer, or autumn. The explanation is simple. The end of notice periods and the start of new rental contracts coincide with the turn of the month, and most people prefer not to schedule their move for May Day. Therefore, rental apartments that are vacated on the first of May do not experience the usual excessive demand. Rental requests are also generally more reasonable. If a tenant wants to take advantage of this, they must terminate their current rental apartment by Monday at the latest. For someone planning to change rental apartments, the best timing for handling this is right now, within this month. April ends with the eve of May Day, and May begins on May Day itself. A tenant who terminates their current rental apartment now at the end of March and is ready to move to a new apartment at the end of the one-month notice period, i.e., on May Day, can choose their new rental apartment almost freely. Getting moving help may be more challenging on May Day than usual, but a desirable and typically cheaper apartment can compensate nicely for that. In May, the situation changes, and rental housing demand typically sees a spike. This is partly due to people postponing their moves because of May Day, and partly because the busiest time in the rental market, the summer season, is approaching. During the peak summer season, landlords generally request about 10 percent higher rent than usual, meaning there is a seasonal surcharge on rents. For tenants, this has significant financial implications, as the seasonal rent specified in the rental contract is paid throughout the year each month. Thus, summer is the worst time for tenants to change rental apartments. And yet, that is when most people make the change. The excess demand for rental apartments is highest in the summer. In June, July, and August, as many rental contracts are made in those three months as in the rest of the year combined. Key factors explaining the summer demand spike include the influx of students moving to a new town before autumn, busy professionals wanting to time their move with the summer vacation, and families with children wanting to relocate in a manner that doesn’t require school changes during the academic year. Timo Metsola Chairman of the Board Vuokraturva ## From Tenant to Master of the Rental Market Power in the rental housing market has shifted from landlords to tenants. Significant landlords will face major challenges as rental living transforms into a service-oriented business for tenants. A new term, RaaS (Residency as a Service), will establish itself in the housing market, revolutionizing living conditions in Finland as well. In the future, living will increasingly be experienced as an experience. Nowadays, residents often have to choose between owning a home and living in rental accommodation. Home ownership ties up capital and creates a long-term debt relationship with the bank. Renting, on the other hand, typically involves living in rental properties that have been efficiently optimized from the landlord's perspective. The common term for rental property complexes is "rental barracks." These buildings are designed to maximize rental yield, often with minimal amenities. In the future, tenants' expectations will significantly increase. Homes will be used flexibly according to individual needs, and both the home and its furnishings will change as life situations evolve. New market players will emerge, offering different styles of housing for various purposes in different areas. Homes will be equipped and furnished individually and customized. An individual rental apartment in a home ownership building is already more attractive than that in a privately funded rental property, which is in turn more attractive than a rental apartment in a municipal housing complex. In the near future, rental properties will compete aggressively for tenants through price competition. We will soon see a "lowering" of rental apartment prices. Low rent will be a central competitive advantage in the rental housing market. However, this realization requires that the current pace of housing construction continues. Complete rental properties are typically owned by large landlords. The changing rules of the game will pose significant challenges for them, and it is likely that the returns for large landlords will be smaller in the future. Some large actors may even face financial difficulties. Individual rental apartments are mainly owned by private individuals. Their challenge will be to keep up with changes and be ready to invest in the altered competitive landscape for tenants. One competitive advantage of large landlords is the ability to offer long-term rental relationships, which many tenants value. Conversely, private landlords generally have better-quality rental apartments as individual units compared to large operators with entire rental buildings. However, private landlords are not typically seen as particularly stable landlords. Institutional and private landlords, as well as both rental buildings and individual rental apartments, will be necessary in the future functioning rental housing markets. The best rental housing operator in the future will be one that has purposefully selected individual rental apartments. Currently, such operators are relatively few, although their numbers are likely to increase. From the perspective of urban structure and social peace, it would be best if cities in the future would zone as many hybrid buildings as possible. By hybrid buildings, we mean residential buildings that contain privately funded ownership apartments, privately funded rental apartments, apartments like Hitas, right-of-occupancy apartments, and supported rental apartments all in the same property. There are good experiences of this from around the world. By constructing hybrid buildings, the resident structure would diversify and risks of segregation would decrease. Although there are already different types of buildings in various areas, the polarization between buildings within the same area remains significant. Hybrid buildings are a solution for social cohesion. They represent a future trend, and the sooner their construction begins, the better. Hybrid buildings will also facilitate effective offerings of RaaS (Residency as a Service) corresponding to demand. In the future, there will be a growing supply of differently furnished apartments in the rental market. Some apartments will come furnished, others fully equipped with dishes and linens. Some may even include various services, such as cleaning, ironing, and cooking services as part of the rental agreement. We also believe that over time, apartments will increasingly be sold furnished. It makes sense for furniture to be designed specifically for the apartment since it highlights the apartment's characteristics. It is just as absurd to move furniture from one apartment to another as it would be to move old seats and a steering wheel to a new car. We have simply become accustomed to this furniture shuffle without considering why an apartment should be customized for old furniture rather than new furniture designed for the apartment. The world is changing, and living conditions will also change in the future. Helsinki, March 14, 2018 Jaakko Sinnemaa CEO, Asuntosalkku Oy and Asuntosalkku Suomi Oy, 041 5280329, jaakko.sinnemaa@asuntosalkut.fi Through our apartment funds, we own nearly two thousand apartments in the capital region, surrounding municipalities, Tampere, Turku, Lahti, and Tallinn. Our apartments are located in nearly 800 different housing companies and properties. Asuntosalkku Eesti Oy invests in apartments in Tallinn, and we are the largest market-oriented landlord in Estonia. # Blog ## Tenants Tactically Exhausting Old Generous Housing Allowances – Double Cuts for Helsinki Residents Timo Metsola Market Comments from Vuokraturva, August 22, 2024 In early this year, a decision made by Parliament significantly reduced the general housing allowance and also tightened the conditions for receiving this allowance. The background is the decades-long increase in housing support costs, which is believed to have had an upward effect on rents. The changes made affect all households receiving general housing support, of which there were over 400,000 according to Kela at the end of last year, but the impact is particularly strong on the recipients in Helsinki. This is because Helsinki recipients faced cuts similar to those experienced by others, but in addition, the eligibility for higher housing allowances than those living in other municipalities in the capital region was removed for Helsinki residents. Consequently, the cuts to the general housing allowance affect Helsinki residents in two distinct ways and thus particularly strongly. Previously, Helsinki formed its own municipal group 1, where it was possible to receive higher general housing support compared to Espoo, Vantaa, and Kauniainen, which belonged to municipal group 2. In the changes made, municipal groups 1 and 2 were merged, and henceforth the maximum housing costs for Helsinki residents will be considered according to the previous municipal group 2 criteria. In practice, municipal group 1 has been abolished. This change solely affected the housing support of Helsinki residents. Additionally, Helsinki residents are also affected by the general cuts common to all recipients of the general housing allowance, resulting in a decrease in the portion of the household's housing costs covered by the allowance. The personal deductible portion of the general housing allowance increased from 42% to 50%. This means that the personal deductible is now 50% of the income that exceeds the lower limit of income thresholds for general housing support. The reimbursement percentage for general housing support decreased from the previous 80% to 70% of the difference between accepted housing expenses and the personal deductible. Furthermore, the 300-euro earned income reduction was eliminated, reducing the general housing support for all households receiving earned income, business income, or agricultural income. ## Tenants Prove to Be Skilled Tacticians For individual recipients of housing support, the cuts to the general housing allowance will gradually become apparent between last April and March next year, as Kela reviews the housing support once a year, assuming other conditions remain unchanged. The timing of the adjustment of support depends on when the review falls in the month. This provides many with a tactical opportunity to exhaust the old generous allowances before changing their residence. Even professionals in the housing market have been surprised by how widely tenants have utilized the opportunity for tactical maneuvering with the old generous housing support. The number of moves among recipients of general housing support decreased dramatically from the beginning of April, as at that point over 90% of them would have lost significant amounts of housing support or entirely lost their support had they changed rental apartments. The new housing allowance would have been regulated under the new system. It has been tactically wiser to live off the old generous allowances first and only move once the housing support in the old apartment would, in any case, be updated under the new system. A small portion of the recipients had their support updated already last April, but for the majority, this will occur later in the year, and for nearly a quarter of the recipients, only at the beginning of next year. This tactical maneuvering with the old generous housing support has significantly slowed down the turnover and demand for rental apartments among recipients over the past five months. In September, a turning point will be reached when the backlog begins to be more rapidly unbundled month by month, and the effects of tactical maneuvering will emerge as a factor increasing apartment turnover. In September, a milestone will be passed whereby over half of the recipients of general housing support will have their support updated in the old apartment to the stricter new guidelines, and the previously dampening effect on moves will switch to a dynamic that increases moves and demand for rental apartments. The simple reason is that the pent-up demand for changing apartments is already over for the majority. Each month, a new cohort of support recipients will transition into a situation where staying in their current apartment will no longer yield a higher housing support through manipulation. The result of the pent-up need for changing apartments will be a temporary boost that arises when the pent-up demand is released. Generally, the rental market is busy in the summer and quiet in the winter. This natural law is unlikely to change now, but the surprisingly extensive tactical maneuvering with old support allowances and the slowdown in moves will inevitably reflect in the rental markets towards the end of the year and early next year. My personal suspicion is that one explanation for noticing this and the wide-scale maneuvering may be found in Kela's user-friendly calculator, which has made it easy to calculate potential new rental allowances for a new apartment and at the same time concretized how dramatic the consequences of moving would have been for those strategizing their support: https://laskurit.kela.fi/yleisen-asumistuen-laskuri ## Further Changes to Housing Allowances on the Horizon Several additional cuts to housing allowances are still coming, which will take effect for all recipients of the support simultaneously. At the end of this year, the housing allowance paid for living in owner-occupied housing will be abolished. The conditions tied to the consumer price index for the elderly housing allowance will be frozen for the years 2024-2027. The government also plans to reinstate asset limits for general housing support. Furthermore, the government intends to shift students out of the general housing support framework into a smaller housing supplement under the student allowance starting on August 1, 2025. It is planned that the student housing supplement would only be paid for study months, generally not for summer months. The amount of the support would be 80% of the monthly rent, although in the capital region, any portion of the monthly rent exceeding 370 euros would not be considered, in other larger cities, any portion exceeding 310 euros, and elsewhere in Finland, any portion exceeding 270 euros. Thus, the maximum amount of the student housing supplement would depend on the residence location: 296 euros, 248 euros, or 216 euros. Overall, it is expected that changes to housing support will increase the demand for cheaper market-based rental apartments in growth centers. The lower rents may be due to factors such as the smaller size, simpler condition and amenities, or slightly more remote locations of the apartments. When demand for more modest apartments increases from previous levels while the supply does not, the growing demand will inevitably be reflected in the increase in rents for these cheaper apartments. The reason for the lower rents is precisely that demand for such apartments has previously been relatively modest. As tenants are required to cover a greater portion of their rent themselves, the demand for apartments rented at lower rents will grow. Market rents for private properties will continue to be determined in the usual manner, based on the relationship between supply and demand and tenants' ability to pay. The flip side of the growing demand for and the increase in rents for cheaper apartments is that in somewhat more expensive rental apartments from which movers are departing, the rents in many cases may decrease as people move out due to the decreased housing support. ## The New Student Housing Season is Already Coming to an End Every year, new students contribute to the vibrancy of the rental market during the summer, and this summer has been no exception. At this point in the summer, most new students have already found their apartments, and the vast majority of suitable apartments available during the summer have already been rented out. If a new student's housing matters are still unresolved, now is the time to activate, as by the end of August the apartments that are the most suitable and desirable for students have largely been rented out. It is not advisable to delay, as doing so may result in settling for what is left. ## If Interest Rates Continue to Fall, the Sale of Used Apartments Will Revitalize in Growth Centers Although there are other influencing factors, ultimately the sale of old apartments in growth centers is largely an inverse function of interest rates. As interest rates rise, sales stagnate and prices fall, and vice versa: when interest rates drop, sales volumes and prices rise. Other factors also play a role, but the history of Finnish housing sales in the 2000s has shown that the impact of interest rates largely outweighs other factors. This was particularly evident in 2009 when Finland's GDP collapsed, and unemployment increased, yet housing sales surged as interest rates dropped rapidly. More than the current interest rate at any given moment, the direction of interest rate trends has a greater influence on housing sales. When the 12-month Euribor was at 2.25% and rising in September 2022, that rate felt high, significantly dampening housing sales. If by some point next year the 12-month Euribor were to return to the same level of 2.25% but on a downward trend, it would likely have a fairly clear effect of accelerating housing sales and increasing prices in growth centers. However, it is uncertain whether interest rates will drop as forecasted before next year. These forecasts are largely based on visible current factors and their assessable impacts. Some unfortunate surprise, such as the outbreak of a large-scale war in the Middle East, could drive up oil prices and inflation, which could lead to current interest rates increasing again. Many other surprises could alter the interest rate outlook, and therefore the prospects for the sale of used apartments in growth centers cannot be reliably predicted. Perhaps that is why the multi-layered uncertainty in the housing market seems to persist. In non-growth areas of Finland, fluctuations in interest rates may seem unfairly disruptive as the rise in interest rates crippled housing sales almost entirely in quiet areas, yet a potential significant drop in interest rates may not necessarily restore sales or prices to previous levels. It is possible that rural housing markets may only have one direction to proceed in, whether faster or slower, but the downward trend does not stop at any point. Therefore, the properties in those areas primarily hold utility value, rather than collateral value or actual monetary worth. Timo Metsola Chairman of the Board Vuokraturva Oy ## Blog ## The Rental Market Awakens from Winter Sleep – What Does It Mean for Tenants and Landlords? The rental housing market is characterized by a seasonal cycle that features a quiet winter period and a heated summer. The queue of new students winding through apartment viewings is a recurring news topic each summer. Families with children also become active in seeking new housing in the lead-up to summer, as it allows them to avoid changing schools mid-year. During the winter season, the rental market is in a dormant state. There is some activity during this time, but the volume of rental agreements, available apartments, and applicants seeking housing is modest compared to the summer season. Now it is again the time when the busy summer season kicks off, and the demand for rental apartments grows significantly. This year, the timing of Easter in April has meant that the surge in demand for rental apartments coincided with the beginning of May. Additionally, the cool spring may have somewhat delayed the awakening of nesting instincts. On the other hand, as we approach mid-May, the rental market appears to be becoming more active, perhaps even more sharply than usual. What practical effects does this have? An apartment seeker should remember that the early bird catches the worm. Unlike in previous decades, the rental market no longer falls silent even during the heat of July, as the busy period now continues consistently from May to September. By not leaving the apartment search to the last minute, there is a higher likelihood of finding just the right apartment. For landlords hoping for good tenants, this timing is also advantageous. The best and most planned apartment seekers are often on the move early, making this seasonal kickoff point favorable for landlords as well. Of course, the entire busy summer season is a good time for landlords. However, during the peak weeks of late summer, many tenants find themselves in a pressured situation due to fierce competition, often settling for any apartment available, which may not lead to satisfaction or long-term tenancy as landlords generally hope. Therefore, the beginning phase of this summer season is particularly favorable for both parties. The onset of the active rental market can also assist those whose apartments are struggling to sell at the desired price. For example, if someone has unsuccessfully tried to sell a somewhat larger apartment and is considering renting it out as an alternative to selling, now may be just the right time to take action. Such issues do not significantly affect small apartments. The sales of studios and one-bedroom apartments continue to thrive, with notably short sales times. As today’s buyer is often an investor, small apartments are increasingly being sold as rented, allowing the same tenant to continue living there even under new ownership. A good long-term tenant can even increase the property’s value in the eyes of an investor. Timo Metsola Chairman of the Board Vuokraturva # Blog ## The History of the 75 Square Meter Rule Uncovered I discussed the origin of the 75 square meter rule and the role of Osmo Soininvaara in my blog last Saturday. Now, Tuomas Kivelä, who worked in the land department of the City of Helsinki's Real Estate Board at the beginning of the millennium, sheds light on how Soininvaara's well-intentioned idea became diluted and the remedy turned into poison. According to him, the 75 square meter rule, intended to apply to the entire city, turned into a separate construction unit for each plot as follows: "The minimum target size of 75 square meters was originally in the housing program. The target applied to the entire program period and all production. It was not plot-specific at all. The target was nearly reached when the average size in new construction was 74 square meters. This number also included small houses. The change to a plot-specific reservation condition did not happen in civil servant preparation but was changed by the city council's (khn) presenter, deputy mayor (Pekka) Korpinen (sd), turning the proposal from the Real Estate Board's housing program into a plot-specific one. And the city council swallowed the proposal. This led to difficulties in rental housing production." source: www.soininvaara.fi (comment 5.9. at 7:08) It's sad reading. The shortage of studios can only be solved by building studios. In his retirement, Pekka Korpinen began to see certain things differently, and according to this article, my own view was presumably not very far from his perspective in his later years. He simply started from the premise that instead of merging, the metropolitan area would be divided into equally-sized smaller pieces, which would then be considered as a whole in housing construction and otherwise. Observing the consequences of the 75 square meter rule on students' housing applications again this summer, I quote the French saint Bernard of Clairvaux (1090-1153): "The road to hell is paved with good intentions." Timo Metsola Chairman of the Board Vuokraturva ## Blog ## The Summer Season of Rental Markets Has Begun The rental housing market follows a yearly cycle, meaning that the situation in the market varies according to the season. The busiest times are clearly in summer and early autumn. The most intense short period is referred to as the summer season, lasting about six weeks from mid-July to the end of August, during which there is a significantly higher number of applicants searching for rental apartments compared to normal conditions. In the summer, both new students and families with children, who prefer not to move during the school year, are looking for rental apartments. The intense activity that begins in mid-July is mainly explained by the rush of students seeking housing after confirming their study placements. Students moving to a new city are now urgently searching for apartments, resulting in congestion for viewings of smaller rental units. Differences in the timing of confirming study placements put students in unequal positions. The earlier a student's placement is confirmed, the easier it is to secure a rental apartment. As the summer progresses, the number of applicants increases, making it more difficult to find a rental. At the same time, many families with children are trying to find a new home before the school year starts. This is reflected in the demand for larger rental apartments, particularly at the end of July and the beginning of August. If a family home for sale does not sell and the owner is considering renting it out, now is the time to try renting. Here are a few tips that can be beneficial for those searching for an apartment in the summer: 1. **Be proactive.** Finding an apartment becomes more difficult as the summer goes on. 2. **Take notes on each apartment you visit.** You may end up attending far more viewings than you initially imagined, and retaining details about each apartment can be surprisingly challenging later on. When you find that you might have the opportunity to take a specific apartment, you will usually need to respond immediately about whether you want it or not. Many others are waiting for a decision on the same apartment. This is where your notes can be crucial. 3. **Complete your rental application carefully before the viewing.** Rental apartment viewings are often brief, and this way, you can focus entirely on viewing the apartment rather than spending time filling out the application. You can fill out and print the rental application in advance, for example, at www.asuntohakemus.fi. 4. **Dress appropriately for the occasion, but neatly.** Behave politely and exchange a few words with the agent or landlord showing the apartment to leave a positive impression. If the apartment seems perfect for you, express that directly. 5. **When there are many strong applicants, it can be hard to stand out.** One way for young people is for their parents to provide a written guarantee for the rent payments of the student starting university. When several applicants are quite similar, this can determine who secures the apartment. 6. **Remember that the most desirable and sought-after apartments are often rented out during pre-viewings held by some agents before public showings.** Participating in pre-viewings is free but requires registration. For the most attractive rental apartments, a smaller group-focused pre-viewing is essential, especially in areas like the capital, where public viewings might attract hundreds of applicants. 7. **Don't give up even if finding an apartment seems hopeless at times.** Attend as many viewings as possible and consider expanding the area from which you are searching for an apartment. Competition for apartments is not as intense in all neighborhoods. Timo Metsola Chairman of the Board Vuokraturva ## Blog ## Three Major Mistakes in the Rental Market In the 1990s, a decision was made that led to a crucial positive turning point in the rental housing market. However, three major mistakes were made in the 2000s that reversed much of this positive development from the 90s. To understand the current problems in the rental market, one must be aware of four key turning points from the past 25 years. Here they are in a nutshell. ### Introduction: From 1991 to 1995, regulations on privately financed rental housing were dismantled. During that time, Finland's rental markets were in a deadlock similar to the situation in Sweden, which maintained its rental regulations. It took years to secure a rental apartment; the available units were of poor quality, and it was practically only through black market dealings at exorbitant prices that tenants could find housing. The removal of rental regulations had a massive positive impact on the supply of rental apartments, even though this is sometimes disputed by naysayers. The total number of rental apartments in Finland grew by 66% from 1990 to 2014. Before the deregulation in 1990, there were 546,000 rental apartments in Finland. By 2014, that number had risen to 905,000. This is an undeniable fact that for some reason has not been noted publicly. Perhaps it is easily overlooked in statistics or not calculated at all. We know that the rental market fluctuates based on the law of supply and demand, both positively and negatively. The decision from the 1990s that led to such significant growth in rental housing supply, alongside the commendable work of Finland's first Minister of Housing, Pirjo Rusanen, deserves particular recognition. One can ponder how much worse the current problems in Finland’s rental market would be without such a strong growth curve in the number of rental apartments. ### Three Major Mistakes in the 2000s: 1. **Major Mistake: Creating a Chronic Shortage of Small Apartments by Limiting Their Construction** In 2000, during the years of the tech bubble, new jobs were being created rapidly in the capital region, leading many young people to move in search of rental studios that quickly disappeared from the builders’ hands. Reportedly, members of the Helsinki Coalition were concerned about this development, fearing it would garner too many votes for the left-leaning parties. The Coalition deemed it better to primarily construct family homes for higher-income earners, whose votes were expected to favor the Coalition in municipal elections. This led to the implementation of the so-called 75-square-meter rule, dictating that the average size of apartments in new buildings in Helsinki must be at least 75 square meters, even though there was already a glaring shortage of small apartments at the time. Other major cities followed Helsinki's example, although they imposed slightly milder restrictions on the construction of small apartments. However, a shared fate was the dramatic belief that building larger apartments would yield better taxpayers. This was the Coalition's official justification for their policies in Helsinki as well. As a result, the shortage of small apartments became chronic and reached catastrophic levels in the worst-affected areas. Eventually, Helsinki recognized its mistake and loosened the restriction at the end of 2012 to the so-called 80-square-meter rule. It stipulated that every other apartment in a new building could be small, a studio or a one-bedroom unit. The others need not exceed 80 square meters, provided there are two bedrooms. This change halted the worsening of the small apartment shortage that had continued for over a decade, but it was not radical enough to begin alleviating the situation. Construction companies would happily build many more small apartments because they sell quickly. Therefore, the obstacle to alleviating the shortage of small apartments lies primarily in zoning regulations. Typically, cities around the world face a shortage of small apartments, and the construction of large apartments is restricted in city centers to make room for multiple relatively small apartments rather than one large single-family home. For some reason, this logic does not apply in Finland. Instead, the opposite approach is taken, restricting the construction of small apartments in the city center while favoring large apartments. A key influencer in maintaining the restrictions on small apartment construction is Mari Vaattovaara, a geography professor and vice-dean at the University of Helsinki, who argues that there is no shortage of small apartments in Helsinki. 2. **Major Mistake: Stopping the Rapid Production of State-Supported Rental Housing in 2004** In addition to small apartments, the market also needs reasonably priced larger rental apartments. State-supported rental housing was an effective solution to this need until 2004. Their rents are based on cost price, as profit-seeking is heavily restricted. Previously, the restriction period was 20 years, which made the production of such state-supported affordable rental apartments reasonable for private sector capital. However, in 2004, this restriction period was extended to 40 years, causing the private sector to effectively cease production of affordable rental apartments. With the economic incentive entirely removed, so too was the motivation. The production of new affordable rental apartments crashed as it became the sole responsibility of the public sector. Simultaneously, for the same reason, the public sector also reduced the initiation of affordable rental apartment projects, leading to completely insufficient production levels. This initiated a worsening cycle of the shortage of affordable rental housing that has now persisted for more than 12 years. Over the years, numerous high-profile appeals have been made to reinstate the 20-year ARA model, along with its interest subsidies and state guarantees, to bring back the production of affordable rental apartments to levels preceding 2004. As of January 2017, the rules of the 40-year ARA model are set to be reformed. Unfortunately, they are moving in a direction that tightens already suffocating restrictions even further. The change feels like the final nail in the coffin of long-term affordable rental housing production. At the same time, a 10-year interim interest subsidy was suggested as an economic stimulus measure, which is indeed an effective and welcome remedial measure. However, it is crucial to understand that it does not replace the long-term weakening of affordable rental housing production. Changes in the housing stock are slow, and therefore the housing market must be approached with a long-term perspective regarding timing and associated motivations. 3. **Major Mistake: Greed Led Major Landlords to Implement Rent Increases Clearly Above Inflation** The third major mistake is not political, unlike the previous two, but driven by market forces themselves. However, the previous two mistakes were necessary for this third one to be possible. Until the end of the last decade, the rent for privately financed rental apartments was typically tied to the consumer price index or to the discontinued cost-of-living index as a separate entity. Therefore, the rents for old rental agreements used to rise approximately in line with inflation. This was generally perceived as fair by tenants. During the current decade, inflation has been very low, and especially the largest landlords have begun to systematically set rent increase conditions in rental agreements such that the rents are no longer adjusted according to the index change, but rather, the increase is indexed + something. It is now common for a rent increase to be stipulated as the consumer price index + 2%, which can still be considered reasonable. However, at its highest, the terms have surprisingly escalated to consumer price index + 5%, which has alarmingly become common among the largest landlords. It is important to understand that the rapid rise in rents for old rental agreements in recent years has been the result of this innovation, a method created to include an index-independent increase in rental agreements due to the low inflation. Thus, rents can be raised regardless of what happens in the surrounding world. As a result of such rent increase conditions, the rents for old privately financed rental agreements have risen so sharply, even with low inflation, that in many cases, the rent level for these agreements has exceeded the current market rent for the apartment. That is, the rent level that could potentially be achieved were a new tenant sought. Such actions are also very shortsighted from the perspective of landlords, especially as this approach has gradually been brought to public scrutiny. Companies raising rents for old agreements above market levels (which is indeed permitted under terms such as consumer price index + 5%) could lead to tenants moving out altogether, ultimately forcing landlords to rent these apartments to new tenants at current, lower rental rates. Despite the rigid increase conditions written into the rental agreements, restraint in rent increases would then be beneficial from the landlords' perspective as well. It is crucial for tenants to always check the rent increase condition before signing a rental agreement and not to agree to what seems like an unreasonable term. The rent increase condition is one of those contract terms that both parties should negotiate. I am hopeful that the recording of excessively high increases in rental agreement terms will, after being exposed, turn out to be a temporary issue in the rental markets, similar to the auctioning of rental apartments that occurred a few years ago. However, the reputation of landlords will be tainted by both, even if only some landlords have succumbed to them. Fortunately, this is a mistake that market actors can collectively correct. Timo Metsola Chairman of the Board Vuokraturva ## Press Release ### Release of Rental Statistics Press Conference Vuokraturva Oy, the Association of Finnish Landlords, and the Tenants’ Association (formerly the Central Association of Tenants) will hold a joint press conference on the development of rental prices and the increasingly tight situation in the rental market on Friday, November 5, 2010, from 11 AM to 12 PM at Hotel Seurahuone. The conference will present a summary and trends from the rental statistics for the third quarter of 2010, published the same day, by Ilkka Lehtinen, the Development Manager at Statistics Finland. The presented rental statistics from Statistics Finland will cover July, August, and September, which are the busiest months in the rental market. In addition to nationwide statistical observations, there will be a regional comparison from the Helsinki metropolitan area, Turku, Tampere, Lahti, and Oulu. Timo Metsola, the Chairman of the Board of Vuokraturva, will discuss the outlook for the rental market in the coming winter. Metsola will also illustrate the impact that the rising interest rates will have on the rental housing market, which will also reflect in the tenants' financials. Antti Arjanne, Chairman of the Association of Finnish Landlords, will highlight how two current issues, the housing shortage in the capital region and the unprecedentedly high number of vacant office buildings, might solve each other. Anne Viita, Executive Director of the Tenants’ Association, will explain how tenants can assert their rights in the rental market. Despite the housing shortage and the diverse behavior of landlords, tenants can succeed if they know their rights and are willing to ask for them. **TIME AND PLACE** The national press conference will take place on Friday, November 5, 2010, from 11:00 AM to 12:00 PM in Helsinki at Hotel Seurahuone, addressed at Kaivokatu 12, Helsinki (across from the railway station). After the press conference, there will be an opportunity to take illustrative pictures in rental apartments in downtown Helsinki. The event is open to the media. **REGIONAL EVENTS** Regional events focusing on local situations will be held on Friday, November 5, 2010, from 11:00 AM to 12:00 PM simultaneously with the national press conference in Turku, Tampere, and Lahti. **TURKU:** Hotel Scandic Plaza, Yliopistonkatu 29 **TAMPERE:** Hotel Ilves, Hatanpään valtatie 1 **LAHTI:** Hotel Lahden Seurahuone, Aleksanterinkatu 14 **ADDITIONAL INFORMATION** Timo Metsola, Chairman, Vuokraturva Oy, phone: (09) 6877 550 **ABOUT VUOKRATURVA OY** Vuokraturva is the market leader in the rental brokerage of apartments and services for acquiring investment properties. Vuokraturva mediates the apartment inventory of private individuals, institutions, and funds that invest in apartments. www.vuokraturva.fi # Press Releases ## Announcement of Rent Statistics Press Conference Vuokraturva is organizing a press conference on the development of apartment rents and the outlook of the rental market on Friday, May 7, 2010, from 11 AM to 12 PM. The rent statistics for the first quarter of 2010 published by Statistics Finland will be released on the same day. The event will feature comments on the rental housing market from the Finnish Landlords' Association and the Tenants' Association. Market comments will also be presented by Olli Salakka, CEO of VVO, at the national main event in Helsinki. During the event, the rent statistics will be commented on, and the prospects for the rental housing market for the upcoming summer and autumn student season will be assessed. “Especially the prices of small owner-occupied apartments have risen steeply in recent months, making buyers thoughtful, and this has been reflected in an unexpectedly rapid improvement in the rental market this spring. Instead of buying, more and more people are opting to rent for the time being to observe the situation. This has turned the rents, which were falling in the autumn, into a new upward trend after the turn of the year according to our observations,” says Timo Metsola, Chairman of the Board of Vuokraturva. “In addition to the growing demand for rental apartments, there is also an upward pressure on rents from another direction. Those delaying the purchase of owner-occupied apartments are often financially capable individuals. This is evident in that they can afford even high rent requests if they really want that particular apartment,” Metsola remarks. “Just before the turn of the year, it seemed that rents could remain low for a long time due to low interest rates and the attractiveness of owner-occupied housing, but the owner-occupied housing market appears to have priced itself out. The low interest rates that have recently boosted the housing market have caused a certain type of over-indulgence, which is now turning against itself,” comments Metsola. “Landlords should actively monitor the events of the housing market now. The world is changing faster than ever,” reminds Antti Arjanne, Chairman of the Finnish Landlords' Association. “For tenants, the endless rise in housing costs is an unreasonable problem. The recession did not lower housing prices as we had hoped,” laments Kari Uotila, Deputy Chairman of the Tenants' Association (formerly the Central Association of Tenants) and a Member of Parliament. TIME AND PLACE The national press conference will be held on Friday, May 7, 2010, from 11:00 AM to 12:00 PM at the Viewing Cabinet of Hotel Torn in Helsinki, located at Yrjönkatu 26, 12th floor. After the event, there will be an opportunity to take illustrative photos in rental apartments in downtown Helsinki. The event is open to the media. REGIONAL EVENTS Local events focusing more closely on the situation will be held simultaneously with the national press conference in Turku, Tampere, and Lahti. TURKU: Hotel Scandic Plaza, Yliopistonkatu 29 TAMPERE: Hotel Ilves, Hatanpään valtatie 1 LAHTI: Alex Park Hotel, Rauhankatu 14 ADDITIONAL INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 VUOKRATURVA OY IN SHORT Vuokraturva is the market leader in apartment rental brokerage and investment property acquisition services. Vuokraturva manages residential properties for private individuals, institutions, and investment funds. www.vuokraturva.fi ## Press Releases ## Joint Press Conference on Rental Statistics Release Day Vuokraturva, Statistics Finland, the Finnish Association of Landlords, and the Tenants' Association are organizing a joint press conference on the development of housing rents and the record busy student rental market on Friday, August 6, 2010, from 11 AM to 12 PM. Statistics Finland will present the latest rental statistics for the second quarter of 2010, which will be published on the same day. Each organization will reflect on the market situation from their own perspective. The approaches to solving problems related to the rental housing shortage vary. According to the Finnish Association of Landlords, more rental apartments could indeed be provided if the return for landlords were better than it currently is. On the other hand, the Tenants' Association argues that even the current rent levels are already unsustainable. Vuokraturva emphasizes that part of the rental housing stock is of the wrong kind, leading to a mismatch between supply and demand. The late summer rental housing shortage is further complicated by the fact that nearly all new students are looking for accommodation simultaneously. Additionally, the focus of the housing market has generally shifted towards rental markets after spring. This summer, demand for rental apartments seems to be the highest it has been in ten years. Vuokraturva suggested last summer to stagger the start of studies more widely between the autumn and spring semesters. Key ministers have supported this proposal, and the press conference will also discuss the progress of this reform. TIME AND PLACE The national press conference will be held on Friday, August 6, 2010, from 11:00 AM to 12:00 PM at the Loiste Restaurant's Vaakuna Cabinet, located at Kaivokatu 3, 10th floor, Helsinki. After the event, there will be an opportunity for illustrative photographs to be taken in rental apartments in downtown Helsinki. The event is open to the press. REGIONAL EVENTS Local events focusing more specifically on the situation in various areas will be held simultaneously with the national press conference in Turku, Tampere, and Lahti. TURKU: Hotel Scandic Plaza, Yliopistonkatu 29 TAMPERE: Hotel Ilves, Hatanpään valtatie 1 LAHTI: Alex Park Hotel, Rauhankatu 14 FOR MORE INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva Oy, p. (09) 6877 550 BACKGROUND MATERIAL News on rental housing News on real estate investment Vuokraturva's blog Previous publications from Statistics Finland VUOKRATURVA OY IN BRIEF Vuokraturva is the market leader in apartment rental brokerage and investment property acquisition services. Vuokraturva mediates properties from private individuals, institutions, and investment funds focused on real estate. www.vuokraturva.fi ## Announcements ## Joint Press Conference on Rental Statistics Publication Day Statistics Finland, Vuokraturva Oy, the Finnish Landlords’ Association, and the Tenants' Union of Finland are organizing a joint press conference on the development of apartment rents and the increasingly tightened situation in the rental market on Friday, September 9, 2011, from 11 AM to 12 PM at Restaurant Loiste in the Vaakuna cabinet, located at Kaivokatu 3, 10th floor, Helsinki. Ilkka Lehtinen, Head of Development at Statistics Finland, will present the new statistics on apartment rents to be published on the same day. Timo Metsola from Vuokraturva will discuss the outlook for the housing and rental markets in the context of an uncertain economic situation. The national representative organizations for landlords and tenants will comment on the tightening situation in the rental market from their respective perspectives. “Apartment prices have turned downward in several areas over the summer, and signals indicating that this decline is accelerating have been observed more frequently towards the end of summer. The slowdown in housing sales and the collapse of consumer confidence in the economy in August are concerning signs for housing prices. At the same time, the demand for rental apartments has been very strong, which suggests that some potential homebuyers have changed their plans and decided to rent, waiting for the situation to develop,” states Timo Metsola, Chairman of the Board at Vuokraturva. “Simultaneously, consumer confidence in the economy has decreased not only in Finland but also throughout the EU and the United States at the end of summer. It seems that uncertainty is growing to such an extent that despite low-interest rates, the Finnish housing market is now struggling, and those who believe in a drop in housing prices are strategizing and opting for rentals. A significant explanatory factor for this cautious development is undoubtedly the recent rise in unemployment fears. However, the supply of rental apartments has not increased in line with the growing demand,” Metsola elaborates on the circumstances that underline the themes of the press conference. ### TIME AND LOCATION The national press conference will be held on Friday, September 9, 2011, from 11 AM to 12 PM at Restaurant Loiste in the Vaakuna cabinet, located at Kaivokatu 3, 10th floor, Helsinki. After the press conference, there will be an opportunity to take illustrative photographs in Helsinki's rental apartments. The event is open to the media. ### REGIONAL EVENTS Regional events focusing more closely on local situations will be organized simultaneously with the national press conference on Friday, September 9, 2011, from 11 AM to 12 PM in Turku, Tampere, and Lahti. - **TURKU:** Scandic Plaza Hotel, Yliopistonkatu 29 - **TAMPERE:** Hotel Ilves, Hatanpään valtatie 1 - **LAHTI:** Lahti Seurahuone Hotel, Aleksanterinkatu 14 ### FOR MORE INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 ### ABOUT VUOKRATURVA OY Vuokraturva is the market leader in apartment rental brokerage and investment property acquisition services. Vuokraturva manages the rental portfolios of private individuals, institutions, and investment funds. www.vuokraturva.fi ## Announcements ## Press Conference on the Publication Day of Rental Statistics Vuokraturva Oy, the Association of Finnish Landlords, and the Tenants' Union of Finland (formerly known as the Central Union of Tenants) are jointly organizing a press conference in collaboration with Statistics Finland on Friday, August 2, from 11 AM to 12 PM regarding the rental statistics for housing to be published on the same day and the summer season of the rental market. The actuary from Statistics Finland, Martti Korhonen, will present a summary and trends from the rental statistics for the second quarter of 2013. Timo Metsola, Chairman of Vuokraturva Oy's Board, will discuss the current state of the rental market and the sentiments of new students seeking rental apartments this year. As in previous years, practical tips for making the housing search easier will also be provided. Mia Koro-Kanerva, Executive Director of the Association of Finnish Landlords, will remind how landlords can fail in renting out their properties, even when the market is hot. Sirkka-Liisa Kähärä, Chair of the Tenants' Union of Finland, will explain how tenants suffer from poor construction quality. Building in haste + living in quality = an impossible equation. The discussion will be moderated by Juha Salmi, CEO of the Finnish Housing Information Center. At the end of the presentations and the event, the audience will have the opportunity to ask questions. TIME AND PLACE The nationwide press conference will take place on Friday, August 2, 2013, from 11:00 AM to 12:00 PM at Hotel Seurahuone, Kaivokatu 12, Helsinki (opposite the train station). The event is open to the media. There will be an opportunity for illustrative photos to be taken in rental apartments after the press conference. ADDITIONAL INFORMATION Timo Metsola, Chairman, Vuokraturva Oy, phone: 010 2327 300. ## ABOUT VUOKRATURVA OY Vuokraturva is the market leader in rental brokerage and property investment services. Vuokraturva rents out properties owned by private individuals, institutions, and investment funds. Myyntiturva, which is part of Vuokraturva, sells properties at fixed brokerage fees. www.vuokraturva.fi ## Press Release ## Vuokraturva Starts Selling Investment Properties Vuokraturva sees that the situation in the housing market has developed to a point where opportunities to cash in on the appreciation of investment properties are becoming favorable. For the past eight years, Vuokraturva has only purchased and rented out investment properties. Now, the sale of investment properties will also be initiated again. Purchasing will continue in developing neighborhoods, while the sales will focus on those areas where the appreciation has been particularly rapid in recent years. Vuokraturva charges a fixed commission fee of €2,440 for the sale of investment properties, regardless of the size of the property or the sales price. “We do not encourage investors to completely divest from their investment properties. We just want to highlight that now may be a good time to lighten one’s real estate investment portfolio by around 20-25% and realize some profits at the same time,” says Timo Metsola, Chairman of the Board of Vuokraturva. “The pent-up demand from first-time home buyers, a limited supply of small apartments, low interest rates, and the high interest from novice property investors make this a favorable time to realize the accumulated appreciation,” Metsola states. For more information: Timo Metsola, Chairman of the Board, Vuokraturva Oy, tel. (09) 6877 550 ### Vuokraturva Oy in Brief Vuokraturva is a market leader in housing rental brokerage and investment property acquisition services. Vuokraturva intermediates property portfolios for private individuals, institutions, and investment funds. Vuokraturva operates in the metropolitan area, Uusimaa, Lahti, Tampere, Turku, and Oulu economic regions. www.vuokraturva.fi ## Announcements ## Vuokraturva Begins Rental Housing Mediation in Lahti Finland's largest rental mediation agency, Vuokraturva, is expanding its operations to Lahti. The new office will start its operations in March and will be responsible for renting out apartments located in the Lahti economic area for Vuokraturva's clients. Vuokraturva plans to open offices in Turku, Tampere, Jyväskylä, Kuopio, and Oulu from 2008 to 2010. The expansion of rental services is based on Vuokraturva's position as a market leader in property acquisition services for investment properties. In the past year, investment properties have been acquired from areas beyond the capital region. "Our operations in the capital region have steadily developed over the last ten years. Each year has broken our previous revenue records. The growth limits in the capital region are approaching, and on the other hand, our largest clients have expressed a wish that we could offer consistent rental services in other major urban centers as well," explains Timo Metsola, Chairman of the Board of Vuokraturva. One of the goals of expanding Vuokraturva's operating area is to increase property investments in these locations. Vuokraturva has developed its own service concept for renting apartments. Its clients include housing investment funds, institutions, and private individuals. "The perhaps central thread of our operation is that we guarantee the first year's rent payment from the tenant we mediate," summarizes Metsola. **Further Information** Ilkka Hikipää, CEO, Vuokraturva Oy, p. 041 5161 431 **About Vuokraturva Oy** Vuokraturva is the largest rental apartment mediator in the capital region, working closely with the Finnish Landlords' Association and the Tenants' Central Association. Vuokraturva arranges housing for employees of the chemical agency and the international staff of the University of Helsinki. Vuokraturva won a tender for the housing mediation service for the chemical agency's personnel organized by the City of Helsinki, scoring maximum points in every area. Vuokraturva is also a market leader in property acquisition services for investment properties. Vuokraturva and its sister companies, Asuntoturva Oy and Varallisuusvalmennus Oy, together provide their clients with profitable and liquid property investments. Varallisuusvalmennus specializes in direct investments, while Asuntoturva focuses on fund-based investments. www.vuokraturva.fi www.asuntoturva.fi www.varallisuusvalmennus.fi ## Announcements ## Vuokraturva Opens Rental Price Clinic in Turku Up-to-date information about market rental prices for apartments is poorly available. Both tenants and landlords encounter this problem. Vuokraturva seeks to alleviate the issue by opening a rental price clinic, where anyone can inquire about current market rental levels for free and also obtain a written statement regarding the prevailing rental price. The service starts tomorrow as a pilot project in Turku, and it is intended to expand to other growth centers later. Both tenants and landlords find it challenging to obtain information on what the actual market rental level is at any given time. Listings on websites vary greatly, and official statistical data is only available with a delay afterwards. Additionally, the data from Statistics Finland does not indicate the condition of the apartment and the building, or the significance of features such as a private balcony or sauna. Therefore, it is hard for landlords to know exactly what a reasonable rental request would be afterward, and conversely, it is difficult for tenants to understand what constitutes a cheap or expensive rental. The situation is further complicated by the cyclical seasonal variations in the rental housing market. For example, during the fall influx of students, rents carry a seasonal premium. Currently, attempts are often made to investigate rental levels online. Affordable rental apartments disappear from listing sites almost immediately or never make it onto them, while expensive apartments can linger for weeks or even months. Therefore, even the rental requests on large online property sites do not directly reflect the actual rental level, as the excessively high requests are overrepresented for the reasons mentioned. Vuokraturva aims to address the issue with an open rental price clinic accessible to everyone. Anyone can inquire about the current market rent for a specific apartment. The service is free of charge and can be utilized by tenants, landlords, and property investors. If sufficient information is available about the apartment, a written statement regarding the rental price will also be provided. The evaluations are based on Vuokraturva's extensive market knowledge. The pilot project will officially launch tomorrow, Tuesday, from 10 AM to 5 PM at Turku’s Puutori. If the experiences are positive, the service will next expand to the metropolitan area, Tampere, Lahti, and Oulu. Turku was chosen as the pilot city because the development of rental levels there has diverged from other growth centers, making it particularly challenging to grasp the market rental levels. SUMMER IS PEAK SEASON IN THE RENTAL MARKET Traditionally, Vuokraturva has tried to time the launches of new innovations during the summer when demand for services is highest. Last summer, a bus that transported rental apartment seekers for free from one apartment to another received a lot of positive attention. MORE INFORMATION Timo Metsola, Chairman of the Board, Tel. (09) 6877 550 Arttu Mettälä, Head of the Turku Office, Tel. 0400 789 222 VUOKRATURVA OY BRIEFLY Vuokraturva is the market leader in rental brokerage of apartments and services for acquiring investment properties. Vuokraturva manages rental portfolios for private individuals, institutions, and funds investing in properties. www.vuokraturva.fi ## News Releases ## Vuokraturva Grows and Creates Jobs The strong demand for rental apartments and the personnel adjustments of large companies are expanding Vuokraturva in 2009. Approximately 30 new staff members will be hired and trained during the spring. Vuokraturva anticipates that 2009 will become the best year in the company's history. As apartment prices decline, renting becomes a more cost-effective living arrangement compared to owning a home. During the recession in the 1990s, apartment prices fell for three consecutive years. Despite interest rate relaunch efforts, there are no signs of a quick turnaround this time either. It is highly likely that the demand for rental apartments will not decrease in 2009 compared to the current level. While real estate agents suffer from a sharp decline in the number of property transactions, Vuokraturva, specialized in rental apartments, is experiencing a golden age. The volume of rental apartment brokerage is growing rapidly as unsold apartments are converted to rentals. The need for relocation services is increased by relocation agreements with companies like UPM-Kymmene and other listed companies. Investment services and funds focused on real estate are further supported by the growing difference between rental yield percentage and the interest rate on foreign capital. The expanding operations of Vuokraturva contribute to the flexibility of labor markets by enhancing the agility of the housing market, which is largely dependent on the rental market due to the stiffness in the home sales situation. Vuokraturva will hold a press conference on the general outlook of the rental apartment market in 2009 and the sharp rise in the need for relocation services as companies face restructuring pressures. The event is open to the media and the public and will take place at Hotel Kämp on Friday, January 9, 2009, from 11 AM to 12 PM. For more information: Timo Metsola, Chairman of the Board, Vuokraturva Oy, tel. (09) 6877 550. Press Conference Friday, January 9, 2009, from 11:00 AM to 12:00 PM, Hotel Kämp, Pohjoisesplanadi 29, Helsinki. Job Openings Vuokraturva is initially hiring rental apartment brokers, relocation consultants, office staff, analysts, as well as a financial manager and accountant. Applications can be sent to hakemus@vuokraturva.fi About Vuokraturva Oy Vuokraturva is the market leader in rental property brokerage and investment apartment acquisition services. Vuokraturva rents out residential properties for individuals and institutions and provides relocation services, including apartments for employees of the chemical agency. Vuokraturva also creates funds that invest in real estate and collaborates closely with the Finnish Landlords' Association and the Central Association of Tenants. ## Announcements ## Vuokraturva Selected as the Organization for Renting Apartments for Employees of the European Chemicals Agency The City of Helsinki has chosen Vuokraturva as the organization responsible for arranging rental apartments for the personnel of the European Chemicals Agency. As part of its service package, the city offers accommodation arrangement assistance in Finland for officials and other employees moving to the agency from abroad. The city selected Vuokraturva as an external service provider due to its strong knowledge of the Greater Helsinki housing market as a market leader in rental brokerage. It is estimated that by the end of 2008, the agency will recruit 220 officials and other employees. Vuokraturva and the City of Helsinki welcome offers from both private and institutional landlords for suitable apartments. Vuokraturva will familiarize itself with the apartments and assist the personnel of the agency in finding the best option for their new home in Finland. Vuokraturva also helps officials and other employees adjust to Finnish housing culture and get to know the services available in their new residential area. The housing needs vary from small studios to large representative single-family homes. Both unfurnished and furnished apartments are required. In addition to Helsinki, apartments may also be located in Espoo, Vantaa, or other municipalities in the Greater Helsinki area. “We consider solving the housing needs of such an important EU agency for all of Finland to be an honorable task. This spring, we will meet with all key major landlord parties and collaborate with the Finnish Landlords Association. We also hope that private landlords will bravely offer their apartments to the employees of the Chemicals Agency,” says Vuokraturva CEO Ilkka Hikipää. Vuokraturva won the tender organized by the City of Helsinki for this task with maximum points. Press Conference: Thursday, April 19, 2007, from 1:00 PM to 1:30 PM, Merikabinetti 2 at the Palace Hotel, Eteläranta 10, 10th floor. For further information: CEO Ilkka Hikipää, Vuokraturva Oy, p. 041 5161 431 ### Vuokraturva Oy in brief Vuokraturva is the largest rental apartment broker in the capital region. Its clients include both institutions and individuals. Vuokraturva collaborates closely with the Finnish Landlords Association and the Central Organization of Finnish Renters. Vuokraturva is also a market leader in the purchase services for investment properties. Vuokraturva and its sister companies Varallisuusvalmennus Oy and Asuntoturva Oy jointly offer a wide range of real estate investment services to their clients. Varallisuusvalmennus specializes in direct investments, and Asuntoturva focuses on fund-based real estate investments. www.vuokraturva.fi ## Announcements ## Vuokraturva and Aktia Savings Bank Launch New Services to Promote Real Estate Investment in Finland Investment properties are an investment in Finland. Industry associations are concerned about the significant decline in the number of rental apartments and a potential shortage of rental housing ahead. Vuokraturva Oy and Aktia Savings Bank Oyj have developed their services to promote real estate investment and increase the number of privately owned rental properties in Finland. Strong investment properties no longer need to be found by customers themselves. The number of privately owned rental apartments in the capital region has alarmingly decreased between 2001 and 2005. Up to 20,000 private rental apartments have been removed from the market due to property sales, leading to a potential severe shortage of rental housing. In April 2005, at the request of industry participants, Vuokraturva Oy introduced a completely new service to the investment market, allowing individuals to invest in real estate easily. The purpose of the service is to find a safe investment property for the customer on a "turnkey" basis, taking into account the relation of purchase price to rent, renovation needs, the condition and maintenance of the property and the housing company, major repairs, as well as the rental level and potential development in the area. Customers can therefore provide a purchase assignment for acquiring a good investment property. The service has received a very positive response in the market. Real estate investors also invest in Finnish welfare. By purchasing an investment property and renting it out, the investor is doing a service for the entire Finnish society. Tenants receive a home, and landlords gain a competitive return on their capital compared to other investment forms. Companies and municipalities also benefit from the availability of rental apartments for employees. Aktia Savings Bank Oyj offers financing services for those interested in real estate investment to purchase investment properties. Real estate investment is a good option for investors who do not want to take significant risks. A properly selected property bought by a professional in the capital region yields over a six percent rental return on the invested capital. Furthermore, properties have retained their value well over the long term. It is also possible to obtain flexible mortgage loans for purchasing investment properties. As collateral for the loan, in addition to the property being purchased, other real estate or even a summer cottage can be used, and the investor does not necessarily need to invest cash themselves. The market leader's experience in managing thousands of rental assignments in the capital region has created a strong understanding of the rental market for Vuokraturva Oy, ensuring high-quality service in purchasing properties as well. This expertise enables selection of the right property from the right building, in the right area, and at the right price. The theme "Investment Property is an Investment in Finland" was highlighted in an advertisement on the front page of Helsingin Sanomat on Sunday, November 27, 2005. For more information: Ilkka Hikipää CEO Vuokraturva Oy LKV Margita Tuormaa-Ek Customer Manager Aktia Tapiola ## Press Release ## Vuokraturva Transitions Rental Property Showings to Virtual Format Due to Coronavirus In traditional rental property showings, dozens of people often gather at the same time to view the property and fill out paper applications. During the pandemic caused by the coronavirus, a new approach to property showing is required. One option is to hold private showings, which is a better model for preventing the spread of the virus, but it still poses risks of transmission. Vuokraturva will begin renting properties virtually next week, utilizing everyday current technology accessible to everyone. Links to virtual property showings will be included with traditional property listings. Application for housing will occur electronically with identification through bank credentials. The agent, prospective tenant, and property owner will negotiate the terms of the tenancy over the phone. The rental agreement will be signed electronically using bank credentials. When handing over the keys, they will be disinfected, and contact that carries a risk of transmission will be avoided. Upon receiving the keys, the tenant will check the property and has the opportunity to report any deficiencies. Vuokraturva aims to ensure that rental properties remain available, even in the event that emergency laws are enacted. The coronavirus epidemic and the resulting global economic crisis may significantly slow down housing transactions for a moment. Since purchasing a property is clearly a greater decision than renting, finding fully virtual models to address the issues of showing situations is more challenging. Therefore, it may be that a temporarily larger portion of necessary relocations made by Finns will take place in rental properties. Timo Metsola Chairman of the Board Vuokraturva ## Rental Market Comments by Vuokraturva Timo Metsola, Chairman of the Board, Vuokraturva Caution in the housing market has clearly affected the rental market in recent months. The need for households to change their apartments has not disappeared, and as many do not want to buy a property right now, an unusually large portion of the apartment change needs has been channeled to the rental side. This stimulating effect on the rental market has been welcome, as the supply of rental apartments has still been high in recent months, with supply exceeding demand in some areas. In the past month, it has become increasingly evident that property investors are slowing down their investments, and the supply of rental apartments is no longer increasing every month as dramatically as in recent years. In recent years, an average of about a thousand new rental apartments were completed in the Greater Helsinki area each month, and this change is significant regarding the demand and supply situation in the rental market. Private investors are not significantly increasing the number of their investment properties either, so the tenant market that has resulted from the abundant supply of apartments may not continue beyond the upcoming summer. However, regional differences are significant, and the gap between desired and less desired areas is fundamental. Despite high rental inflation, the moderate development seen last winter is primarily explained by the aforementioned high supply of rental apartments. Even the demand from potential home buyers transitioning to rental properties has not significantly raised rents, although potential apartment buyers tend to be slightly more financially capable tenants when they switch to renting. The rental market still favors tenants, while the housing market is favorable for buyers. Therefore, it can be stated that we are still experiencing historically exceptional tenant market conditions in Finland. In recent months, it has been a truly opportune time to change apartments and successfully acquire one that meets one's preferences at a reasonable price. There have been numerous options available, and negotiations have been possible for both sale and rental properties. In a normal situation characterized by recent decades, housing sales dictate the rhythm of the housing market, resembling a seesaw. When housing sales are brisk, there is intense competition for available homes, while there is less demand for rental apartments and the rental side favors tenants. Conversely, when housing sales stumble, the owner-occupied housing side favors buyers, but demand on the rental side can grow rapidly, making it a landlord's market. In my 25-year career, I have never witnessed this situation, which I refer to as a tenant market, where we can simultaneously talk about both buyer markets and tenant markets. Traditionally, the annual cycle of the rental market has been characterized by quiet winters and busy summer seasons. Now that the growth in the number of rental apartments has quickly leveled off and demand is likely to increase as in other summers, we may see slightly higher rent increases in the next six months than during the winter. However, regional differences are significant, and any potential faster rent increases will not apply to all of Finland or even all areas of the largest cities. The timeless wisdom of real estate investment states that the three most important factors are location, location, and location. This saying has become particularly relevant again. Not all areas are expected to experience any rent increases at all. Additionally, the condition of the apartment has clearly become more important as good applicants currently have plenty of options to choose from. Timo Metsola Chairman of the Board Vuokraturva ## Press Releases ## Market Comments from Vuokraturva on August 6, 2020 ## Students Have a Good Situation in the Rental Housing Market Due to remote lectures, students are not fully relocating to their study cities yet at the turn of August and September this year. Since not everyone is moving at the same time, finding a suitable apartment becomes easier. The improved situation is also influenced by the significant popularity of real estate investment in recent years, which has substantially increased the availability of rental apartments. On the other hand, new students are mainly not starting their studies on a remote lecture basis. Despite the improved situation, it is advisable for them not to rely on finding a suitable apartment at the last minute in August. ## The Pandemic Has Accelerated the Decline in the Popularity of Shared Housing The popularity of communal living, which was favored among students in past decades, has been declining for a long time. Interest dropped even further when the housing allowance system was changed three years ago, affecting roommates' incomes in certain situations. Due to the lack of interest, shared apartments have even been dismantled. During the pandemic, the risks posed by other residents' guests and the tensions created by different lifestyles have come to the forefront—resulting in a further decline in the popularity of shared living. ## Severe Shortage of Family Apartments in the Rental Market - For Example, in Lahti, Everything is Being Snatched Up In spring, the coronavirus crisis clearly increased the demand for modestly priced and cheaper suburban apartments. This summer has been characterized by an exceptionally high demand for family apartments in the rental market. Despite the recovery in the housing market, the demand for rental family apartments is currently greater than the supply due to the relocation pressures created by the stagnant situation in spring. Using the realtors' well-worn phrase, family apartments are being snatched up right now. This expression is quite descriptive—especially in the Lahti rental market, which has suffered from long-standing low demand, there is currently almost a battle for good family apartments. ## The Popularity of Real Estate Investment Has Surprisingly Diminished Little, Despite Signs of Caution Reasonable warnings about excesses surrounding the rapidly growing popularity of real estate investment have been heard repeatedly for years. In March and April, there appeared to be signs of a downturn in the real estate investment boom. However, it now seems that although demand plummeted in areas such as Kallio in Helsinki and several other clearly overheating regions, the rebound in demand has also been exceedingly rapid in those locations. Moreover, it appears that the acquisition of new investment apartments did not overall decline nearly as much as one might have inferred by looking only at the traditionally most sought-after areas. For July, it seems that real estate investors have been more active than in the previous year. ## Surprisingly Strong Consumer Confidence Now Supports the Housing Market Consumers' confidence in their own finances has quickly recovered following the spring downturn. However, this positive change may prove to be overly optimistic given the global economic and health situation. At present, this surprisingly strong confidence undeniably supports the housing market—decisions are being made again. On the rental market side, this change may be reflected in a slight calming effect, as a larger-than-usual proportion of moves are no longer aimed at rental apartments as they were in the spring. ## The Outlook for the Housing Market Is Murky The current situation in the housing market is good, but the outlook is murky. This year, shifts have occurred in demand, favoring suburban living over urban living. The number of new construction starts is in significant decline, which indicates construction firms' views about the demand for new apartments priced higher than older ones in the near future. On the other hand, the trade in old apartments is currently going well in growth centers—partly because buyers believe that the low-interest rates will remain for a long time. The market sentiment has turned favorable in the summer, but it is difficult to ascertain the stability of the situation. The impression is that the rapid and significant fluctuations seen this year in housing transaction volumes may continue. However, this only concerns growth centers, as the housing market in areas experiencing population loss in Finland appears to have nearly dried up in some regions. Timo Metsola Chairman of the Board Vuokraturva # Press Releases ## Market Comments by Vuokraturva 7.3.2019 Differences in rent increases have leveled out In 2018, rents in privately financed rental housing and ARA properties rose almost equally. Regional differences in rent increases were also smaller in 2018 compared to previous years. The distinction between the capital region and other growth centers was no longer pronounced. However, what is surprising is how small the difference was in rent increase percentages between the capital region and municipalities with fewer than 20,000 residents in existing rental agreements. A likely explanatory factor is that increases are not based on the local market situation but on the rent increase clause recorded in the lease agreement at the time of its drafting. It is common practice to specify in lease agreements that, regardless of the index's development, the rent will still be increased by at least, for example, 2% or 2.5%. Considering the actual difference between the rental market situation in the capital region and a typical municipality with fewer than 20,000 residents, the minimum percentage clause in lease agreements, in Vuokraturva's view, leads to disproportionately high rent increases in small municipalities. TIP: Early spring is the best time for tenants to change apartments The rental market has its own recurring annual cycle. In winter, there are fewer apartment seekers. In summer, however, the rental market heats up, and competition for apartments is fierce. If a tenant wants to take this into account, they should aim to change their rental apartment during the winter months. The most favorable time is early spring when there are the fewest competing applicants, rents are slightly lower than usual, and there is a wider selection of available apartments. In summer, a large number of people search for rental apartments simultaneously as new students move in. Families with children also often try to time their moves outside the school year so that they do not have to change schools mid-term. Consequently, summer property viewings are as congested as taxi stands during the holiday season. Demand is temporarily so high that supply cannot keep up. Situation and outlook for the capital region at the end of the year The supply of rental apartments in the capital region has clearly increased in recent years, and rents are no longer rising significantly faster than in other growth centers. Although the popularity of rental housing has also increased and net migration is substantial, the market is still better balanced than a few years ago. Overall, the rental apartment shortage in the capital region is easing. Active construction and an investment boom have increased and diversified the supply of rental apartments. Additionally, the sluggish sale of family apartments has led some sellers to put their family apartments up for rent after unsuccessful attempts to sell. In other categories besides small studio apartments, there is no longer a significant imbalance between supply and demand even in the capital region. Rents for small studio apartments continue to rise due to demand, while there is an oversupply of two-bedroom apartments due to rapid and extensive building. With a large number of rental apartments now available in Helsinki, Espoo, and Vantaa, individuals preferring these cities are no longer forced to seek out rental markets in suburban municipalities. This surprising development has come as a shock to some suburban municipalities that have set ambitious growth targets. The same phenomenon is also visible in the housing market. Rental Markets in Healthy Condition in Tampere, Turku, Oulu, Jyväskylä, and Kuopio In these five large cities, the demand and supply in rental markets currently match each other the best. There is sufficient availability of both rental apartments and tenants for the needs of the urban population. On the other hand, neither party is able to exploit the market setting to dictate the terms of the rental relationship. Genuine negotiations take place regarding the terms of the rental agreements, and compromises are made, resulting in a relatively equal position for both tenants and landlords. The macro-segmentation of the housing market has created two extremes in Finland: a rapidly growing capital region and, on the other hand, a vast majority of municipalities that cannot grow or even maintain their populations. Each has its own problems. Tampere, Turku, Oulu, Jyväskylä, and Kuopio are happily positioned between these extremes, and there are currently no major challenges or issues in their rental markets. Finding Tenants Has Become Difficult in Medium-Sized Cities – Despairing Situation in Small Population-Decreasing Municipalities Medium-sized cities are suffering from an oversupply of apartments. Renting has become more difficult, new lease rents have decreased, and vacancies have increased. In medium-sized cities, there are neighborhoods that simply no longer attract tenants. This problem affects almost all municipalities with fewer than 50,000 residents. Exceptions mainly include neighbors of large growth centers, such as Sipoo, Kaarina, and Pirkkala. In sparsely populated areas with declining populations, it has practically already been acknowledged that rents and prices of apartments will never rise again. A significant challenge for the housing market is preventing numerous medium-sized towns like Savonlinna, Varkaus, Kouvola, Hamina, Forssa, Kokkola, and Kemi from falling into a spiral of ever-declining property prices. Property prices have typically already been declining in these cities throughout this decade—both during recessions and periods of growth. However, this situation has mostly been reported from the perspective of individual cities rather than comprehensively for medium-sized municipalities as a whole. Signs of Oversupply in Some Large Cities In Kotka, Pori, Hämeenlinna, and Kouvola, the number of rental apartments remaining empty for extended periods has increased. It is particularly concerning that in Lahti, with 120,000 residents, finding tenants for all apartments is challenging—even with moderate rents. It appears that in these municipalities, active new construction urgently needs to be supported by net migration to maintain balance in the housing market. When net migration is lacking, current new construction seems to create an oversupply of apartments. When a location has more apartments than households, some apartments will inevitably remain empty. If new construction continues at a high volume, the local property market and rental market can suffer significantly. This risk is not necessarily taken seriously enough. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Market Comments from Vuokraturva on the Rent Statistics Publication Day, February 7, 2019 Finding tenants has become more challenging in medium-sized cities Medium-sized cities are suffering from an oversupply of housing. Renting apartments has become difficult, rental prices for new leases have decreased, and vacancy rates have increased. There are suburbs in medium-sized cities where there simply are not enough tenants anymore. This issue affects almost all locations with fewer than 50,000 residents. Exceptions are primarily the neighbors of large growth centers, such as Sipoo, Kaarina, and Pirkkala. To alleviate the particularly problematic situation in Savonlinna, a law came into effect in early February, which assists in the demolition of ARA-funded rental housing to help ease chronic overcapacity. The state forgives either 70 or, under certain conditions, 90 percent of the loans of the ARA rental houses slated for demolition. The seriousness of the situation has received relatively little media coverage. Signs of oversupply are also evident in some large cities In Kotka, Pori, Hämeenlinna, and Kouvola, the number of rental apartments remaining vacant for long periods has increased. It is particularly concerning that even in Lahti, with a population of 120,000, finding tenants for all apartments is difficult, even at moderate rents. It seems that active new construction in these municipalities urgently requires a migratory surplus to maintain a balance in the housing market. When there is no migratory surplus, new construction currently appears to be producing excess housing. When a municipality has more housing than households, some apartments inevitably remain vacant. If new construction continues at a high volume despite this, it could potentially lead to the bursting of a price bubble. It is often mistakenly believed that the emergence and bursting of a price bubble requires a sharp increase in prices first. A price bubble can burst even when excessive housing production undermines the sustainability of the previous price level in the municipality, leading to a sudden significant downward correction. In addition to overproduction, a triggering factor could be a negative economic news item, as was the case in Salo some time ago. The bursting of the bubble results from a loss of general confidence in the sustainability of the price level in the housing market. In such a situation, property prices can temporarily drop significantly below construction costs. If a municipality suffers from migratory loss, property prices can permanently remain below construction costs. This is not just a theory; it is the current reality in many small municipalities experiencing population decline. Medium-sized cities suffering from migratory loss are now under the same threat. Therefore, this issue deserves attention. Tampere, Turku, Oulu, Jyväskylä, and Kuopio are in a healthy situation in the rental market In these five large cities, the demand and supply in the rental market currently meet each other best. There are available rental apartments and tenants to meet the needs of the urban population. However, neither party is able to benefit from the market position to dictate the terms of the rental relationship. Negotiations are genuinely taking place regarding the terms of rental agreements, and compromises are being made where both tenants and landlords are on fairly equal footing as contractual parties. The major division in the housing market has created two extremes in Finland: the rapidly growing capital region and, on the other hand, the large majority of municipalities that cannot grow or even maintain their population. Each has its own issues. Tampere, Turku, Oulu, Jyväskylä, and Kuopio are encouragingly situated between these extremes, and their rental markets currently do not face significant challenges or irregularities. The rent for the cheapest rental option in the capital region continues to rise – otherwise, the supply of rental apartments has improved Helsinki and the entire capital region suffer from the fact that even the cheapest housing option is quite expensive. There is a severe shortage of small studio apartments, which has driven their rents very high. In Helsinki, you cannot get a normal rental apartment from the open market for less than 600 euros per month. This observation has been reported by, among others, Helsingin Sanomat. The high cost and poor availability of the cheapest possible housing option—namely, a small modest studio—are a problem not only for those seeking such housing but also for society at large. The high cost of even the most affordable housing option complicates relocating to the capital for work or study. However, this view is not universally accepted. Mari Vaattovaara, a professor of urban geography at the University of Helsinki, strongly questioned this view previously presented by Vuokraturva, stating that she is not aware of any studies indicating that small apartments promote moving for work. She believes it is simply an assumption. There is undoubtedly considerable evidence from multiple studies showing that the high cost of the cheapest housing option complicates relocation to cities like Stockholm, London, and New York. In our opinion, the idea that the cost of even the cheapest housing option would not complicate relocation to Helsinki is surprising. This matter should undoubtedly be examined from a scientific perspective in Finland. Many students have recent personal experience related to this issue and its importance. An analogy could be drawn with ladders attached to walls, which are used to climb to the roofs of buildings. In the 1970s, ladders started low to the ground, making it easy for anyone to climb and ascend, including children, leading to safety hazards. Current regulations dictate that ladders must be attached at a height that prevents children from reaching the lowest rung. In the housing market, the most affordable mini-studios represent those lowest rungs of the housing market ladder that young people or newcomers to the area should at least be able to reach in order to succeed in relocating and start climbing upward. The scarcity of these options is a problem. The overall picture, however, is more positive. Overall, the supply of rental apartments in the capital region has clearly increased in recent years. Although the popularity of rental living has also risen, the market is better balanced than it was a few years ago. Overall, the rental housing shortage in the capital region is easing. Active construction and a boom in housing investments have increased and diversified the supply of rental apartments. Additionally, the slightly sluggish sales of family apartments have led some sellers to choose to rent out their family homes after unsuccessful attempts to sell. It can be stated that in all other size categories except small studios, there is no longer the significant imbalance in demand and supply previously seen, even in the capital region. Timo Metsola Chairman of the Board Vuokraturva ## Press Releases ## Market Comments from Vuokraturva on Rental Statistics Published on May 7, 2020 ## The Corona Crisis Has Increased the Popularity of Affordable Suburban Apartments The crisis has heightened interest in modestly maintained and affordably priced suburban apartments. Conversely, demand for the highest-quality and most expensive downtown apartments has decreased during the crisis, leading to downward adjustments in rent. The general trend is that tenants are now opting for cheaper rental options instead of more expensive ones. The importance of a good location is emphasized in real estate investment, and there are solid grounds for that long-term. However, the rapidly increased caution in the housing market has unexpectedly had a negative impact on A-class locations while positively influencing affordable suburban apartments in B-class locations. This has been particularly evident in the capital region and has surprised Vuokraturva. For instance, during the financial crisis, such a sudden and clear shift was not observed. The growth in the attractiveness of affordable housing options has also benefited areas like Kerava and Järvenpää, Söderkulla in Sipoo, and Heinola in the Lahti employment area. Overall, the growth centers' surrounding areas, which previously experienced slight oversupply of apartments and thus moderate rents, now seem to be gaining popularity. In high-quality downtown apartments, good tenants now have a variety of choices, which is reflected in the softening of the highest rental demands. ## In Real Estate Transactions, Sellers and Buyers Have Divergent Price Views The number of transactions in the housing market did not experience a dramatic decline even in March, and a reasonable number of property sales occurred in April as well. However, these were largely sales for which offers had been made and accepted in February or March. In April, the number of offers made and accepted decreased significantly compared to normal. This indicates that the number of transactions in the housing market is clearly declining. It is a familiar phenomenon for car dealers and real estate agents that in uncertain situations, people tend to postpone significant financial decisions further into the future. When a large number of people act this way simultaneously, it impacts the entire market. In housing transactions, the divergence in price perceptions between sellers and buyers is compounded by the presence of many sellers who want to test whether they can get a price for their property close to the pre-crisis level. Meanwhile, many of the buyers currently active in the market are thinking about whether it might be possible to purchase affordably and make good deals. Currently, it appears that the differing price perceptions of sellers and buyers are reducing the number of transactions. Time will tell whether prices will drop, whether buyers will raise their offers, or if they will converge. Buyers' caution in making offers leads to a temporarily larger than usual share of current moves being directed toward rental apartments. Some who have just sold their old homes are also acting this way. This change is unlikely to be permanent. The Corona crisis has ensured that mortgage rates will remain low for a long time to come. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Vuokraturva's Market Comments on the Release Day of Rental Statistics 1. Aggressive Rent Increase Letters as a Problem Rent increases continue. Although rents for new free-market leases being signed now are not rising, extremely high rent increases are still being applied to agreements made in previous years, relative to inflation. A key reason for this is the growing trend of including a percentage increase in addition to an index in lease agreements. An additional increase of two percent on top of the index might still be considered somewhat reasonable, but an increase of five percent is not uncommon. Thus, rent increase letters are very aggressive considering that inflation is very low and the rents for new agreements even declining. Since the rental statistics data comprises a clear majority of earlier agreements, the increases in these rents dominate the statistics. The most active rent increasers have been the largest landlord companies. Private landlords send rent increase notifications much more moderately, with some even abstaining from them entirely. The situation is interesting. 2. Helsinki Swallows Vantaa Helsinki finds itself in a difficult situation. The zoning of the areas from Sipoon's annexation has not progressed as desired due to protection factors. A recent news story reveals that the Helsinki Administrative Court has also significantly trimmed the latest master plan, originally intended as Plan B. The city boulevard strategy, created with high hopes, lost four out of seven planned boulevard complexes because the regional zoning plan overruled the city's master plan in the assessment. The plans for Vartiosaari and reductions in the Central Park were also lost along with the bathwater. Although the residential construction at Malmi Airport and three city boulevards remain, it is clear that they will not meet Helsinki's building needs halfway. If the Supreme Administrative Court eventually aligns with this view, Helsinki will urgently need Plan C. Infill and additional construction within the existing residential areas of Helsinki are essential and helpful, but they are not sufficient. This situation places Vantaa's independence in considerable jeopardy. The former municipality of Helsinki could solve Helsinki's zoning challenges well into the future. Just capturing the eastern parts of Vantaa would enable Helsinki's strong expansion northeast to the border of Sipoo. Does this claim sound outrageous? If one happens to know the twelve previous successful annexation projects of Helsinki, it may not feel that way. Memory of events over the last ten years is enough. The border between Vantaa and Sipoo has not been sacred to Vapaavuori in the past either. Although many may not remember, ten years ago, Vantaa was still a coastal city. Before the annexation of the Västerkulla wedge, Helsinki and Sipoo were not even neighboring municipalities. The recent decision by the Administrative Court throws an interesting twist into the metropolitan area discussion. It is clear that Helsinki intends to grow regardless. It will find a way and direction and will use as much force as necessary, just as it always has. After careful consideration, it may not be such a bad alternative for neighboring municipalities that are affected by the eventual change to the regional zoning plan that crushed Helsinki's dreams. # Announcements ## Market Comments from Vuokraturva, August 2, 2018 THE SITUATION IN HOUSING SALES THREATENS FINLAND'S ECONOMIC GROWTH The risk of overproduction of new apartments is real, and construction companies are slowing down project starts. However, the cooling of housing construction may not necessarily drop below the normal level at this stage. But because the significantly heated construction situation has made construction very central to current economic growth, merely returning to normal conditions could pose a threat to economic growth and even the continuation of the upswing. This is especially true when considering the effects of declining start numbers, which affect not only builders but also subcontractors, logistics, and the supply chain of building materials. Although construction is concentrated in growth centers, the booming employment impact has indirectly affected large areas across Finland. A potential slowdown in housing production due to jarring of the economic growth could further curb housing sales and construction, leading to a self-reinforcing cycle. Moreover, the value development of personal housing wealth impacts Finns' overall consumption behavior, which could amplify the economic growth slowdown. The situation in Sweden in the autumn of 2017 showed that housing prices could significantly decline despite economic growth, a good or even excellent employment situation, extremely low-interest rates, a moderately loose lending scenario, and a clear shortage of housing. None of these factors – or even all of them together – automatically guarantee protection against a correction in housing prices. There have been so many and for such a long time factors raising housing prices in both Finland and Sweden that house prices in growth centers have reached levels few would have predicted or even imagined ten years ago. However, it is important not to make the erroneous conclusion that endless growth or exceeding any level without a downturn would be possible in the future. Sweden provided a warning about this in the autumn, which was closely observed and reported in Finland. This year’s certain caution and the moderating development in Finland's housing market have largely been a consequence of this. Awareness of risks is often initially slow but suddenly quick. For example, Nordea did not yet see the accumulation of large company loans for new properties as a problem for housing investors by mid-November (KL.fi, November 15, 2017). I was somewhat alone with my growing concern. A little over half a year later, this issue had been recognized not only by Nordea but also by the Bank of Finland, the Financial Supervisory Authority, and the credit rating agency Moody’s. Nothing indicates that risks would be more promptly acknowledged with regard to other risks – especially since the identification of the risk used as an example can be seen as part of the special expertise of these actors. Issues are often recognized only when they can no longer be denied. Changes in regulations or attitudes relating to large company loans can significantly slow the trade of new apartments much faster than previously seen. News related to housing markets has more immediate effects than most economic news, as housing market news is often easily understandable and of broad interest. This can in part increase the suddenness of risk awareness. The interdependencies of the factors creating risks in housing markets weave a dangerous network in which problems can spread just as quickly as a wildfire in a dry area. The current state of the housing market could be compared to dry terrain where embers are smoldering. CHANGES TO STUDENTS' HOUSING SUPPORT AND KELA'S UNFAIR ACTIONS AGGRAVATE THE SHORTAGE OF STUDIO APARTMENTS – ATTITUDES TOWARD SEXUAL MINORITIES ARE ALSO QUESTIONABLE In August, students moved under the general housing support system, which has significantly complicated shared living situations. This is unfortunate, as shared living has been an effective way to slightly alleviate the chronic shortage of studio apartments and curb the rising rents of such apartments. Roommates' incomes now affect the housing support a student can receive unless each has their separate lease. Landlords are not enthusiastic about separate leases because they lead to situations where, if one moves out, part of the apartment is rented while another part is not. The issue has been circumvented by a setup where one student rents the entire apartment and others come as subtenants under separate leases. This model, despite certain shortcomings, has proven to be quite functional. As if the situation were not challenging enough, Kela has further aggravated the decline in the popularity of shared apartments by pressuring residents with their actions. Regardless of separate leases, Kela has often not accepted that residents are not part of the same household, requiring photos of separate beds from those of different genders. Since no one can prove whether the beds have been moved or where the photo was taken, such a demand does nothing to prevent cheating if there is an inclination to do so. Moreover, Kela does not conduct any field inspections. Thus, nothing is achieved by this procedure. However, this kind of nonsense and bullying does upset the majority who choose to report things honestly rather than cheat. In many cases, it is also offensive. Kela's position, for example, assumes that all students are heterosexual. According to the estimate found on Statistics Finland's website, 5-15 percent of the population belongs to a sexual minority. Perhaps they don't study according to Kela? Even this abysmally ignorant basic assumption shows that in some ways, we still live in a world denying the plurality of gender this far into 2018. A girl and a boy living together as roommates may not like each other, as the girl could be interested in girls, and the boy in boys. Their sexual orientations do not necessarily make living together incompatible. Society cannot assume that everyone is heterosexual. Furthermore, determining one’s sexual life to Kela to receive housing support may now require sharing matters that a young adult has not yet discussed even with their parents. This may not be the best way to come out of the closet. The situation could also be handled by requiring only the joint declaration of whether they are cohabitating or roommates, and gender would not matter. And that would be that. Additionally, it is common for close-knit long-term friend groups previously in shared apartments to include individuals who have once dated each other. This, however, does not mean that they are a couple now. Their past romantic relationships are nobody's business. Such an argument should not even need to be made. Kela's Mirja Peltonen responded to my criticism regarding the request for bed photos, stating that “We do not require photos. I cannot say that it has never been done” (STT July 30, 2018). With this, Kela is indicating that such cases have been isolated. And effective only in spreading through social media. However, Kela should indeed be able to state that this never occurs and act accordingly. Such occurrences are wrong, even if they are isolated. Currently, the procedure criticized by students for being absolutely useless in preventing the misuse of supports unnecessarily tarnishes the image of shared living and pushes housing demand further into exacerbating the shortage of studio apartments. I have suggested to Kela that a main guideline should be to trust the students' own declarations. This would not actually result in any loss. Those who want to cheat can do so easily already now. But with the hindrance of affordable shared living and the cessation of negative attention, Kela would also benefit from smaller housing support expenses. Nevertheless, Kela believes that the Parliamentary Ombudsman has stated that discretion cannot be based solely on the declaration (STT July 30, 2018). My sense of justice does not align with that. Is the baseline in society really that a citizen lies unless indicated otherwise? I believe a healthy baseline is that a citizen tells the truth unless indicated otherwise. THE SUPREME COURT HAS EASED THE POSITION OF THOSE EXCLUDED FROM RENTAL MARKETS – AND ALSO ORDINARY STUDENTS Vuokraturva has unsuccessfully battled with real estate law experts and authorities for ten years over whether the three-month maximum amount of the rental guarantee in the law also includes a guarantee provided by a parent for their child, for example. Vuokraturva believes it does not, as it is tied to a mortgage, while an unsecured guarantee is not. All others, including the regional administrative authority as the supervision authority, saw it differently, so Vuokraturva had to operate according to the prevailing understanding until the end of last year. In December, however, the Supreme Court unexpectedly sided with Vuokraturva (KKO:2017:91). After a ten-year break, unlimited personal guarantees were again made available. The challenge of the three-month maximum amount is that three months of rent arrears can accumulate much faster than the late-paying tenant can be evicted from the apartment. Moreover, three months' rent may not be enough to cover damages caused to the apartment, especially if there are also unpaid rent arrears involved. For these reasons, landlords have been hesitant to rent to applicants with poor credit history. About 20 percent of Finnish youth have a payment default entry, making this a significant problem. The Supreme Court’s ruling has made it possible for parents to provide an unlimited personal guarantee for their child's rental obligations. Thus, a young person is entitled to all the support they should receive, which means the financial situation is entirely normal. However, from a landlord's perspective, parents acting as guarantors ensure that obligations will be met. This change has enabled thousands of young people, who were previously practically excluded from the free rental market, to obtain rental housing. This change also applies to many others; thus, it is a significant measure in preventing exclusion from housing markets. A guarantor can also be a grandparent, godparent, friend, own child, charity organization, church, or anyone willing to assist. Naturally, the guarantor must be financially viable for the arrangement to be helpful. A guarantee covering all rental obligations greatly expands the number of individuals who can be accepted as tenants. So, this is in their interests, but also in the interest of landlords and Vuokraturva, which guarantees clients’ first-year rents. However, it does not make the model poor that all parties benefit from it. Moreover, students often request their parents as guarantors for the most desirable apartments, even if they have good payment capabilities and a clean credit history. This way, a student can level the playing field against other applicants who have moved fully into working life. In the most desirable apartments, there can be dozens of applicants, which is why a guarantee is also used as an advantage in competition among other students seeking the same apartment. When there are many applicants meeting all criteria, it's necessary to choose whom the apartment will be awarded to based on clear business rationale, such as having a guarantor. STUDIO APARTMENT SHORTAGE – WHO WINS AND WHO LOSES The regulation of new studio apartment construction causes labor shortages in growth centers and cuts economic growth. Additionally, the oversight of studio apartment availability and the resulting chronic shortage distorts the fundamentals of the entire housing market. The shortage of studios coupled with an excess of two-room apartments has shrunk the price and rent differences between studios and two-rooms to an exceptionally low level. Furthermore, new productions are not broadly diverse but overly focused on the smallest apartments, for which it is practically possible to produce large quantities, primarily two-room apartments. Investors and others already owning studio apartments benefit from the studio shortage. Renters, first-time homebuyers, and businesses struggling with labor shortages suffer from the studio shortage. In addition, the rising costs of housing and living allowances, the difficulty of moving for work, and the hindrance of urban area development mean that the studio shortage also takes a toll on every taxpayer’s wallet. STRONG DEMAND FOR FAMILY HOUSING CONTINUES IN RENTAL MARKETS The good employment situation and the emergence of new jobs have brought new families, particularly to the rental markets in the Helsinki metropolitan area, Turku, and Tampere. These families prefer renting because ownership is not often the first solution for new employees starting in growth centers on a probationary basis, especially when their previous home may still be unsold. After several quieter years, the last year has seen a vibrant rental market for family housing. Partially, this popularity can be attributed to the fact that unlike smaller apartments, family apartment rents have not risen much this decade; numerous quiet years of recession have kept their rental levels moderate. DEVELOPING AND DECLINING FINLAND FACE DIFFERENT CHALLENGES In areas with net in-migration, the risk is that the heated construction situation and one-sided new housing production can result in an oversupply of high-priced apartments, especially two-room ones. The consequence may be a significant correction. In areas facing net out-migration, there is a threat of property collateral values collapsing, leading to banks tightening credit flows and the permanent reduction of housing transaction volumes to very low levels. I have suggested a solution involving demolition premiums for apartments that, despite implementation challenges, could improve the chances of achieving a balance between supply and demand by reducing oversupply, thus allowing for a finding of a functioning market price – even a low one. A SURGE IN NEW STUDENTS IN THE RENTAL MARKETS IS AT ITS PEAK – BUT THERE ARE CITY-SPECIFIC DIFFERENCES Almost all study places have now been confirmed, and the search for housing by new students is in full swing. Currently, there are still reasonably enough apartments available, and if housing matters remain unaddressed, now is the right time to sort it out. Those procrastinators leaving their apartment search until mid or late August could find themselves in a situation where they have to settle for whatever apartment they can get. By that time, almost all suitable apartments will have already been rented. In the Helsinki metropolitan area, studios are tight regardless of the area, although the largest number of applicants are concentrated in the central city. It is worth applying for several apartments simultaneously and using services like the Route Planner to explore which other residential areas could be viable options that haven't been considered. If it seems impossible to obtain an apartment in the desired area, it's wise to start looking at other alternatives early on. In Turku and Tampere, it may be challenging to find a studio in the desired central areas, but it is reasonably easy to find one outside of them. The rental levels are also more affordable if the housing search is aimed slightly outside the most sought-after areas. In Oulu, Kuopio, Jyväskylä, Lappeenranta, Vaasa, Rovaniemi, and Lahti, the housing situation is good for new students. Here, the studio shortage mostly means that a suitable studio may not be found within walking distance of the educational institution. The situation is very different compared to the Helsinki metropolitan area. Elsewhere in Finland, there is no rental housing shortage, as landlords compete for good tenants. The only exceptions are in certain small localities quickly hiring workforces and some very large apartments under construction. ## News ## The love song by the founder of Vuokraturva has become a hit on YouTube and Spotify – over a million listens #### Update 29.12.2018: #### The number of streaming listens for the song "If Love Were a Raindrop" surpassed one million in December 2018. #### The highest ranking on Spotify's Viral 50 list was fourth place on 30.11.2018. *** “If Love Were a Raindrop” accumulated 500,000 listens in November and climbed into the top ten of Spotify's TOP 50 viral list. The song, composed and written by Timo Metsola, the founder of Vuokraturva, has surprised everyone with its popularity. A music video was swiftly created for it, and the song is moving toward radio play. The song is performed by Katja Felin, the winner of the UKC Singing Competition. The producer was Kim Kuusi, the chairman of the Teosto board. “It is rare for music from outside the big record labels to succeed like this,” Metsola says. The song has been praised for its simple and touching chorus. The arrangement by Pertti Jalonen has also been considered particularly successful. However, the most feedback has come regarding Katja Felin's performance, which has surprised many with its emotional charge and skillfulness. The lyrics of the well-received chorus are simply as follows: But you don’t know If love were a raindrop I would give you an ocean. For more information: Katja Felin p. 040 737 7219 Kim Kuusi p. 040 548 3458 Timo Metsola p. 010 2327 300 Listening link: https://youtu.be/yoR7x8zP2tY Lyrics: https://lyrics.fi/lintuja-tuulessa-katja-felin/jos-rakkaus-ois-vesipisara ## The Story of Vuokraturva Vuokraturva's operations began in the 1990s as a one-man company run by Timo Metsola, the current Chairman of the Board of Vuokraturva and its affiliated companies, who was then a 23-year-old engineering graduate. The company was established in 1998 under the name Uudenmaan Takuuvälittäjät. The following year, the name was changed to Suomen Vuokraturva, which was shortened to Vuokraturva in 2006. The first years were difficult with many competitors. However, Vuokraturva was set apart from others from the beginning by one key factor: taking responsibility for ensuring that rents were paid. In exchange for a commission, landlords received a guarantee covering the entire first year of rent. In 2001, a law affecting rental brokerage disrupted the traditional business models of larger competitors. Vuokraturva's agility and the guarantees provided to landlords gradually transformed the entire market. After many twists and turns, Vuokraturva became the market leader in rental brokerage by 2003. At the same time, Timo Metsola, known for his straightforward communication, established himself as the face of the entire industry. In the following years, Vuokraturva expanded into property investment services, helping clients find and purchase good investment properties as a complete service. The attitude towards property investment changed. In November 2005, a joint advertisement from Vuokraturva, the Central Federation of Tenants, and the Finnish Landlords' Association appeared in the Sunday edition of Helsingin Sanomat, stating that investment properties are an investment in Finland. This represented a new way of thinking. Landlords were no longer seen as exploiters but as important pillars of society. Growth continued. In 2007, the company experienced significant success with the housing funds of Asuntoturva Oy, winning the European Chemicals Agency housing tender, and expanding into relocation services aimed at foreign experts. The financial crisis of 2008 significantly increased the demand for rental apartments, and the extreme interest rate easing in the following years led to a genuine property investment boom. The business activities of the company group expanded dramatically. In 2012, Vuokraturva became frustrated with the high commissions charged by real estate agents and launched Myyntiturva, which offers the same brokerage service at an affordable fixed commission rate. This service has been a great success and has changed the commission practices in the entire real estate brokerage industry for the better. Although the business activities of the company group have grown and the range of operations has expanded, many clients have remained loyal customers since the 1990s. These clients have shared a long journey with us, and in many ways, they are the spice of our work. Timo Metsola, who started as the sole employee of the one-man company, is still involved in daily operations, focusing on the development of the company group and new services. In the 2020s, thanks to the best electronic services in the industry and an almost paperless office, Vuokraturva is now faster, more environmentally friendly, more responsible, and safer than ever before. ### The Story of Vuokraturva's Founder, Timo Metsola Please accept marketing cookies to view the content. ## Announcements ## Vuokraturva's Subsidiary Starts Rental Apartment Brokerage in Tallinn Over a thousand apartments owned by Finns are located in Tallinn, many of which remain vacant. A key reason for this is the lack of a real estate agency specializing in rental brokerage. Vuokraturva is now addressing this situation. Many Finns have invested in properties in Tallinn over the years, and even more have considered doing so, but the differences in the Estonian market raise concerns. Finding tenants isn't always easy. Additionally, a broker specializing in rental brokerage services has been absent in Tallinn. Vuokraturva has responded to its clients' requests and corrected this situation. Vuokraturva’s subsidiary Koduingel offers easy and efficient rental brokerage services to Finnish real estate investors in the Tallinn area. Koduingel provides services in Finnish, Estonian, English, and Russian. Contract agreements are made with Finnish clients in Finnish. Vuokraturva believes that Finnish real estate investors will quickly find their service. "This type of service has been requested from us for years. Although we otherwise focus on the Finnish housing market, Tallinn is a logical exception due to its location and the large number of apartments owned by Finns," says Timo Metsola, Chairman of Vuokraturva's Board. "The aim is to serve specifically Finnish landlords who know us and trust our methods." The legislation governing rental agreements in Estonia differs from that in Finland. In Estonia, the terms to be documented in rental agreements must be more detailed, and the number of matters to be agreed upon is greater. Rights and obligations associated with rental agreements generally do not arise directly from law, as they do in Finland. This underscores the need for a broker specialized in rental brokerage who can provide services in Finnish. FOR MORE INFORMATION Timo Metsola, Chairman of the Board, tel. 010 2327 300 www.koduingel.ee ## ABOUT VUOKRATURVA OY Vuokraturva is a market leader in rental brokerage and investment property acquisition services. Vuokraturva brokers properties from private individuals, institutions, and investment funds focused on real estate. Myyntiturva, part of Vuokraturva, aims to revolutionize the commission fees in real estate brokerage by returning their connection to the actual workload. www.vuokraturva.fi www.myyntiturva.fi ## Press Release ## Vuokraturva Aims to Become the Market Leader in Single-Room Apartment Sales in the Capital Region Vuokraturva will decrease the commission fee for selling single-room apartments to €1500 + VAT. The price is the same regardless of the apartment's size, location, or sale price. Traditional real estate agents charge commission fees of over €10,000 for selling single-room apartments. Vuokraturva's goal is to provide professional brokerage services at a price that forces competitors to adjust their pricing. Vuokraturva will use a new trading name, Myyntiturva, for its sales operations. The market leader in rental apartment brokerage and property investment services, Vuokraturva, is now launching full-scale sales brokerage after a two-year small-scale pilot trial, during which affordable fixed commission fees were applied to small apartments. The fixed commission fee for single-room apartments is €1500 + VAT (€1845), for two-room apartments it is €3000 + VAT (€3690), and for three-room apartments it is €4000 + VAT (€4920). “Thanks to the dramatically low commission rates, our real estate brokers won't have to spend much time on unnecessary property evaluations, which have traditionally been a major challenge in the real estate brokerage industry. Our sales agents can dedicate their time to selling properties instead. That’s what the customer is paying for,” states Timo Metsola, Chairman of the Board of Vuokraturva. “The greatest monetary benefit for customers is obtained in the sale of three-room apartments. The commission for a three-room apartment can be as high as €30,000 with competitors,” Metsola continues. Vuokraturva has hired industry veterans as sales agents. “Despite the low fees, we must conduct our sales brokerage at the same high quality level as all other operations. Anything less would be detrimental to our reputation,” Metsola assures. Vuokraturva has strong experience in property transactions. “We have represented buyers in thousands of small apartment sales in recent years,” Metsola explains. Vuokraturva is already familiar with the profitability of real estate brokerage at this low commission level. This is supported by a two-year pilot period during which Vuokraturva found that it is indeed possible to make a profit even with this level of sales brokerage fees. The margin was about 25 percent of the sales operation’s turnover. “We already know what we are doing as we embark on this,” Metsola states. FOR MORE INFORMATION Timo Metsola, Chairman of the Board, Vuokraturva Oy, p. (09) 6877 550 VUOKRATURVA OY IN BRIEF Vuokraturva is the market leader in rental apartment brokerage and property investment acquisition services. Vuokraturva brokers properties for private individuals, institutions, and investment funds. www.vuokraturva.fi ## Blog ## Rental Security Made Real Estate Investment Accessible to All Real estate investment became profitable for private individuals in Finland when rent control, which had been in effect from 1974 to 1995, was abolished. Rental Security was established after the abolition of regulations to assist landlords in the safe rental of apartments. Rent payment difficulties were common, and the core promise of Rental Security from the very beginning has been the guarantee of rent payment. At the turn of the millennium, Rental Security began to assist its clients in purchasing good investment properties. In the early 2000s, real estate investment was still regarded in financial magazines as primarily a hobby for investors who did not understand better. When the tech bubble burst in the stock market and property prices and rents continued to rise, the clientele of Rental Security grew rapidly. A group of aware investors emerged, realizing that the real estate market was just beginning to awaken to the opportunities created by the removal of regulations. However, many investors faced the challenge that their own bank did not understand the logic of real estate investment. When an ordinary person wanted to take out a loan and buy an investment property, it was still seen as unusual by banks at that time. For example, rents were not considered income at all, and even a moderate loan might not be granted. Rental Security solved the problem by organizing joint customer events simultaneously with several banking groups. These customer events marked the beginning of hundreds of ultimately very successful real estate investors. When the bank was involved from the start and Rental Security sought out the most profitable properties, the popularity of real estate investment took off. The signing of the real estate investment boom is considered to be on Sunday, November 27, 2005, with a joint advertisement by Rental Security, Finnish Landlord Association, Central Union of Tenants, and Aktia on the cover of Helsingin Sanomat saying "Investment property is an investment in Finland." Media outlets also became aware of the growing popularity of real estate investment at that time, which has since been continuously reported on. Real estate investment also sparked increasing interest among professional investors. In 2006, Rental Security recognized the need of its wealthiest clients to invest larger sums of money than the price of a few apartments all at once. Product development continued. In the spring of 2007, Apartment Security, the same corporate group, launched Finland's first real estate fund for private investors. The very first funds were successful, marking the beginning of an era of real estate funds in Finland. The financial crisis ravaged the global economy in 2008. Surprisingly, Finnish real estate investors largely benefited from the crisis and the strong interest rate stimulus that followed, which continues to this day. Back then, the proportion of investment property loans among all housing loans was so small that Finland did not experience a similar collapse in property prices as many Western countries. The liquidity of small apartments improved when Rental Security began selling them with low fixed brokerage fees. This service was named Selling Security. Real estate investment began to be spoken of as a safe haven. In the current decade, the steady growth in the popularity of real estate investment has continued, with an increasing number of ordinary Finns becoming real estate investors. Over the years, real estate investment has been discussed as almost a risk-free investment form. Even some of the currently popular real estate funds hint in that direction. However, the idea of the risk-free nature of real estate investment is dangerously incorrect. All investments carry risks. Today, the share of investment loans among all housing loans is at a completely different level than it was ten years ago. Modern Finland has not seen bubbles caused by real estate investors because rent control prevented it until 1995. After the removal of regulations, the popularity of real estate investment has grown gradually. Therefore, for the first time in modern economic history, a real estate bubble caused by investors has only recently become possible in Finland. The real estate market has always been and will always be cyclical. Success as a real estate investor does not depend on refusing to see risks, but rather on being aware of and considering both opportunities and risks. The success of Rental Security's clients has primarily been based on this balance for over decades. Timo Metsola Chairman of the Board Rental Security ## Announcements ## Vuokraturva supports judokas Luukas Saha and Martti Puumalainen's preparation for the Paris Olympics The support will be used to bring high-level international practice opponents for training camps organized by Urhea. Luukas Saha won a bronze medal at the World Championships in May 2024, equaling the best result in Finnish judo history in the men’s under 66 kg category, and will compete on the Olympic tatami on Sunday, July 28. Martti Puumalainen won the European Championship in November 2023 in the men's heavyweight category, bringing Finland its first senior-level championship medal in judo in 30 years. Martti will compete on the Olympic tatami on Friday, August 2. Head coach of the Finnish Judo Federation Rok Draksic (left), Martti Puumalainen, Luukas Saha, and Timo Metsola from Vuokraturva. Photo: Matti Lattu ## Announcements ## Vuokraturva supports Luukas Saha and head coach Rok Draksic in achieving a new championship medal Vuokraturva was instrumental in providing financial incentives for Luukas Saha and head coach Rok Draksic to achieve a European Championship bronze in Montenegro, following last year's World Championship bronze. The incentives were launched as part of Vuokraturva's marketing cooperation with the Finnish Judo Federation. Martti Puumalainen, who won two matches in the heavyweight division, finished seventh at the European Championships, coming very close to the medal incentives associated with the marketing cooperation. “It is a great honor to support the recent successes of Finnish top judokas under Rok Draksic's coaching,” rejoiced Vuokraturva's Chairman Timo Metsola. Finnish Judo Federation's head coach Rok Draksic (left), Martti Puumalainen, Luukas Saha, and Vuokraturva's Timo Metsola. Photo: Matti Lattu ## Announcements ## Vuokraturva Companies Expands into the Music Business – Birds in the Wind Listen to all the tracks here. Hear Timo Metsola talking about the creation of the records in an interview with Radio Dei. Vuokraturva and Myyntiturva are well-known players in the housing market. Now, Vuokraturva Companies Oy is expanding into the music business. The first released album is titled "Lintuja tuulessa" (Birds in the Wind), and it has already sold a remarkable 15,000 copies at this stage by current standards. The Gold record threshold for commercial distribution is 10,000 copies. Additionally, the album is available on Spotify. Out of the fourteen tracks on the album, twelve are composed by Timo Metsola, the chairman of the Vuokraturva board. The other two tracks are compositions by his grandfather (Iltapäivä Tähtitorninkadulla, composed by Kalevi Merisalo) and great-grandfather (Isoisän valssi, composed by Jaakko Merisalo). The album features artists Sani, Tapio Liinoja, Pertti Jalonen, and Timo Metsola himself. The combination of styles and moods is bold. The album has been described in initial expert reviews as musically very successful, versatile, and refreshingly different from the norm. The album was produced by Kim Kuusi, chairman of the board of Teosto. The next album is expected to be released next year. YOU CAN ORDER THE ALBUM FROM THIS LINK >> YOU CAN LISTEN TO THE ALBUM ON YOUTUBE >> LISTENING RECOMMENDATIONS FROM SPOTIFY Sani's new touching Christmas song "Lapsuuden joulu" (Childhood Christmas). Tapio Liinoja comforts the listener in the song "Mut elämä jatkuu" (But Life Goes On). Pertti Jalonen's powerful voice interprets the track "Kulkuri" (Wanderer). Timo Metsola of Vuokraturva sings "Pakoon itseltään" (Fleeing from Oneself), "Maailma tänään" (The World Today), and "Vanhat valokuvat" (Old Photographs). NEWS ARTICLES ABOUT THE ALBUM AND ITS CREATION Kaupungin Uutiset, 14.12.2016 Markkinointi & Mainonta, 2.12.2016 Helsingin Sanomat, 30.11.2016 Kauppalehti, 30.11.2016 Talouselämä, 2.12.2016 Kauppalehti, 2.12.2016 FOR MORE INFORMATION Timo Metsola, phone: 010 2327 300 or timo.metsola@vuokraturva-yhtiot.fi ## Press Release ## Vuokraturva companies created music about the great challenges of life www.lintujatuulessa.fi Spotify: bot.fi/27pj The composer of the tracks, Timo Metsola, talks about the album in an interview with Radio Dei. --- Weddings and funerals, the last moments of your terminally ill child, love that surpasses all understanding. Realizing how decades have passed, and it's not possible to start over and treat your spouse better. The will to step alongside another after everything that has happened, take each other's hands and forgive. The unknown destination of one's life path and the call of distant stars. --- The second album "Kuiskaus" by the Vuokraturva companies' ensemble Lintuja tuulessa addresses the great, difficult themes of life unembellished. Mirkka Paajanen, Aikakone's Sani, tango queen Arja Koriseva, tango king Jouni Keronen, tango prince Hannu Lehtonen, and Tapio Liinoja evoke great emotions in the listener, from joy to overwhelming sorrow. The 15 tracks on the album are composed by Timo Metsola from Vuokraturva. The cheerful closing track "Ei minnekään oo kiire" is also performed by Metsola. The producer is Kim Kuusi, chairman of the board of Teosto, and the arranger is Pertti Jalonen. In addition to Metsola, the lyrics were written by Eija Hinkkala and Sana Mustonen. This is a celebratory album produced with a large orchestra. It commemorates both Vuokraturva, which turns 20 this coming year, and a key individual behind the crucial IT systems that facilitated Vuokraturva's breakthrough, who is now turning 70. The album's noteworthy emotional pieces include the beautifully shocking title track "Kuiskaus" as well as the songs "Tahdon," "Rakkaus," "Lähden taas," "Uni," "Samaan ansaan," and "Lapsuuden joulu," which tells the story of a little sister's birth. Since time continues its infinite flow, four tracks for children are also included. "Marionettien tanssi," "Tuhatjalkainen iltakävelyllä," "Huvipuiston peilisali," and "Pianotunnilla" shift the perspective to how the world might look through a child's eyes. The way a child views the world should not be completely unfamiliar to us adults either – maintaining the joy of life, despite everything, is the key to happiness. --- FOR MORE INFORMATION: Timo Metsola, chairman of the board, Vuokraturva, p. 010 2327 300 and www.vuokraturva.fi/yritys/tiedotteet/kappaleet-sanat-ja-tekijat-lintuja-tuulessa-kokoonpanon-levyyn-kuiskaus LISTEN LINK: www.lintujatuulessa.fi or on Spotify: https://open.spotify.com/album/4xtAogcbonpL8pGs2wNqux?si=9ce2YyvXQPWqPzI0xOYV3w --- Lintuja Tuulessa: KUISKAUS 1. Kuiskaus – sung by Mirkka Paajanen, composed and written by Timo Metsola https://www.youtube.com/watch?v=0o-GuF8CNR8 2. Tahdon – sung by Mirkka Paajanen, composed by Timo Metsola, lyrics by Eija Hinkkala https://www.youtube.com/watch?v=O6okYAT1vYQ 3. Rakkaus – sung by Jouni Keronen, composed by Timo Metsola, lyrics by Eija Hinkkala & Timo Metsola https://www.youtube.com/watch?v=SrnqaRdR4wg 4. Lähden taas – sung by Sani, composed by Timo Metsola, lyrics by Eija Hinkkala & Timo Metsola https://www.youtube.com/watch?v=TE5jeUwYYfA 5. Uni – sung by Sani, composed by Timo Metsola, lyrics by Sana Mustonen https://www.youtube.com/watch?v=bFWMsUYXn3g 6. Samaan ansaan – sung by Tapio Liinoja, composed and written by Timo Metsola https://www.youtube.com/watch?v=8nI2p_wvMNA 7. Tahdon (duetto) – sung by Arja Koriseva & Hannu Lehtonen, composed by Timo Metsola, lyrics by Eija Hinkkala https://www.youtube.com/watch?v=dvyblx8PFcY 8. Lapsuuden joulu – sung by Hannu Lehtonen, composed by Timo Metsola, lyrics by Timo Metsola & Sana Mustonen https://www.youtube.com/watch?v=xqabdfGvBZc 9. Pariisin varjot – composed by Timo Metsola https://www.youtube.com/watch?v=NTCFNuTrzls 10. Vuorijärven ilta – composed by Timo Metsola https://www.youtube.com/watch?v=-e_HadVOfbA 11. Pianotunnilla – composed by Timo Metsola https://www.youtube.com/watch?v=7qZHzHehkjU 12. Marionettien tanssi – composed by Timo Metsola https://www.youtube.com/watch?v=GMqCmIQgrRU 13. Huvipuiston peilisali – composed by Timo Metsola https://www.youtube.com/watch?v=46QD3WLX5R4 14. Tuhatjalkainen iltakävelyllä – composed by Timo Metsola https://www.youtube.com/watch?v=Oo3cXtVL_ls 15. Ei minnekään oo kiire – sung by Timo Metsola, composed and written by Timo Metsola https://www.youtube.com/watch?v=zgCh7y9E6tQ ## Announcements ## Vuokraturva companies surprised with beautiful dance music The new album "Birds in the Wind" is now also available on YouTube. The fact that the Vuokraturva companies released an album was a surprise in itself. Perhaps the biggest surprise, however, is that the album features many new but traditionally beautiful and lyrically touching waltzes. And tangos! The music was composed by Vuokraturva's Timo Metsola, who made a living in his youth performing as an accordionist. The pieces clearly indicate that many weddings have been played. The songs are easy to dance to and are of suitable length. If you're interested in dance music, where should you start listening? The album's title track "Birds in the Wind" is a safe choice. "We Got Lost in Each Other" and "Island" are also beautiful. There are more waltzes on the album, but these three mentioned above can easily be recognized by fans of dance music. The tango "Sea" has also been popular among dancers. Metsola also performs on the album himself. What prompted such a move for an established housing influencer? - Referencing the poem by Aaro Hellaakoski, this is my Pike's Song, Metsola replies. The album's songs can be listened to for free at bot.fi/1rbd It can be purchased at CDON.COM. # Tenants Quickly and Easily We seek good tenants for your apartment. We make things easy for you. Vuokraturva is the market leader and has rented out over 150,000 apartments. Contact us, and we will handle the rest. ## We Find Good Tenants for Your Apartment Vuokraturva is the market leader in rental brokerage for a reason. We rent your apartment safely, with over 25 years of experience and a strong understanding of the current state of the housing market. Our brokerage fee is 100% deductible in tax on rental income, and the amount is one month's rent + VAT (which means 1.255 times the monthly rent). Vuokraturva operates in the Helsinki metropolitan area and Uusimaa, as well as Tampere and Turku and their surrounding areas. ## We Make Your Life Easy Vuokraturva takes care of all rental-related procedures from start to finish on behalf of the landlord. Our services include, among others, property inspections, rent level assessments, photography and videography of the apartment, marketing, showings, background checks of applicants, contract negotiations, drafting rental agreements, monitoring the delivery of rental guarantees, key handovers, and an additional guarantee for the first year's rent payment. Additionally, Vuokraturva assists and advises you throughout the duration of the rental relationship. ## Here's How It Proceeds Contact us You can reach us by calling 010 2327 300. Or leave a contact request here! We would be happy to discuss your apartment and our services without you committing to anything yet. The purpose is to provide information based on which you can consider decisions related to renting. We can also arrange a meeting at the apartment without any commitment on your part. If your decision is already made or if you have used our services before, we can proceed very quickly. A mandate to lease the apartment can be established immediately based solely on the first contact. ### Professional Property Inspection Our agents will carefully inspect your apartment and determine the correct rent level in collaboration with you. The rental market situation is more challenging for landlords than in previous years, as the supply of rental apartments has increased. Determining the correct rent level now requires more expertise than before. Due to the large number of brokered rental apartments, Vuokraturva has a competitive edge in accurately pricing rents, based on thorough knowledge of the constantly changing market situation. Decisions about rental prices and other rental terms are always made carefully in consultation with you. ### Marketing and Showings Begin We market your apartment with photos, videos, and professionalism. We provide personalized service to apartment seekers and highlight the best features of your apartment. In addition to Oikotie and Vuokraovi, we also market apartments on YouTube and Vuokraturva's own portal, as well as through targeted marketing to those apartment seekers who have set up search alerts. Traditional newspaper advertisements are also still in use. Additionally, we effectively utilize property presentation videos. We are in contact with the property manager and clarify upcoming renovations and order the necessary documents on your behalf. We ensure that all needed and required information is properly presented in the marketing. ### A Tenant is Found We handle contract negotiations and documentation on your behalf. We carefully check the backgrounds of tenant candidates, interview applicants, and negotiate preliminary terms of the rental agreement. We verify income and credit information and provide a guarantee for the first-year rent payments. You make the final decision on tenant selection. We draft rental agreements with attachments and ensure the signing of contracts. Additionally, we hand over keys and ensure that the rental guarantee has been appropriately delivered. We will invoice you for the costs of the property manager's certificate package and the brokerage fee, which is one month's rent + VAT (i.e., 1.255 times the monthly rent). These costs are 100% tax-deductible as rental income expenses. ### Vuokraturva Agreement Guarantees Rent Payments, and the Cost is Included in the Brokerage Fee Vuokraturva takes responsibility for the quality of its work. The Vuokraturva agreement gives you an additional guarantee for the first year’s rent payments. You can rest assured and trust that the tenant has been carefully selected. If the tenant fails to pay rent, the Vuokraturva agreement covers it. The guarantee is included in Vuokraturva's normal 100% tax-deductible brokerage fee (one month's rent + VAT, i.e., 1.255 times the monthly rent), and there are no additional charges for it. ### Guaranteeing Service Helps Compete for Good Tenants The guarantee offers tenants an alternative to paying a cash deposit. The guarantee simplifies renting the apartment in a situation where there is stiff competition for security deposits. The guarantee will be used only if both the landlord and tenant wish for it. However, its use is rapidly becoming more common in the current market situation. In addition to cash deposit competition, the guarantee can help the tenant start the lease earlier than would otherwise be possible since the tenant doesn’t have to wait for the return of the deposit from the previous property owner. The tenant pays a one-time fee in advance for the Guarantee Service, which is 18% of the amount of the security deposit covered by the guarantee. There are no monthly payments or hidden costs for the tenant. For the landlord, there are no costs associated with the Guarantee at any stage. The landlord also doesn’t have to hold or return the deposit when the Guarantee is in use. ### Guarantee Service Ltd in Brief Guarantee Service Ltd is a fully owned subsidiary of Vuokraturva, from whom tenants can buy a personal guarantee for up to five years that corresponds to the amount of the rental contract security. After five years, tenants may purchase a new guarantee if the rental relationship continues. ### We Also Assist During the Rental Relationship We serve you throughout the entire rental period. You can always turn to us! The support and assistance provided by Vuokraturva do not end with the signing of the rental agreement and the handover of keys. The rental relationship often begins at that point and can continue for many years. In life, various situations can arise where it is nice to consult a professional for advice or clarify something with a low threshold. Vuokraturva does not charge separately for this; it is included in our service. ## Vuokraturva is the most reliable, well-known, and best-rated rental broker. ### Customer Feedback - "Very knowledgeable and fast service, once again. I think it was the fifth time we've used the service, and the transactions have always been easy and hassle-free!" - Juha Willberg - "Professional, quick, and high-quality service, considering all important legal matters as it should." - Kristel Henriksson - "Thank you for an excellent process, service team 7. The apartment rental process was handled expertly and effectively." - Ritva Salmela - "Thank you for the brokerage service. We are very satisfied, everything was effortless and the apartment was rented quickly to a reliable tenant." - Gunilla Taddeo ### Contact Request Leave a contact request, and our agent will get in touch with you to get matters moving. ## Blog ## Rent Increases Are Certain Unless Something Radical Is Done Immediately In the rental market of the capital region, significant rent increases are imminent for studios and one-bedroom apartments. The rise is certain unless something radical is done immediately. Justifications: - In the past ten years (from 1996 to 2006), property prices have increased by 109.2% and rents by 42.7%. The net yield for landlords in the capital region is currently about 3.2% before taxes. This is only sufficient for the laziest investors. - Investors have no choice but to either sell their rental properties or increase rents drastically. Both options will lead to increases — the first with a delay, the second immediately. - There is no reason to expect property prices to rise in the near future. The incentive to continue renting is thus over, as appreciation is not anticipated. - There will be no salvation from new construction, as apartments are too expensive due to requirements such as disability-accessible restrooms and the price level, extending as far as Kerava. The most profitable rental size is 39-42 m², which can accommodate two rent payers, e.g., a couple. - There will also be no salvation from converting ownership studios or one-bedroom apartments into rental properties, as three-quarters of these are already rented out. - Currently, interests rates are significantly higher than rental yields, approximately 35% higher. The solution must support Finland's international competitiveness. The increase in rent will hardly close department stores. The options are: - Supporting landlords through tax incentives - Rapid conversion of underutilized offices into apartments - Drastic reductions in new construction obligations - Implementing a premium for expensive locations in the capital region - Legislation that allows for the separation of independent small apartments from larger ones These options can also be combined, but if no action is taken, it will lead to a crisis. As a macroeconomic question, it must be remembered that this concerns Helsinki's competitiveness in an open world economy. If nothing is done, it will particularly benefit those whose euros from tenants flow into their pockets. They are called landlords. Welcome to the industry. The only fear is the unnecessary need for rent increases if actions are understood and taken soon enough. Antti Arjanne Chairman of the Board Finnish Landlords' Association ## Whistleblower protection and internal whistleblowing channel The Whistleblower Protection Act, which protects persons reporting misconduct related to breaches of European Union and national law, came into effect in Finland on January 1, 2023. The Act mandates the protection of individuals who report such misconduct and is based on the EU whistleblowing directive that was implemented in autumn 2019. This Act establishes a framework for reporting misconduct or illegal activity and outlines the protections afforded to whistleblowers. Companies with over 50 employees are required to set up an internal whistleblowing channel. Protected whistleblowers under this Act include, but are not limited to, current and former employees, agency contract workers, and interns. Vuokraturva’s internal whistleblowing channel is called First Whistle. It operates on Juuriharja Consulting Group’s server and is separate from Vuokraturva’s website. Go to Vuokraturva’s whistleblowing channel: https://firstwhistle.fi/vuokraturva Before submitting a whistleblowing report, please read Juuriharja Consulting Group’s instructions for whistleblowers here: https://www.juuriharja.fi/en/for-whistleblower-faq You can submit a report, revisit a report you have already submitted, and communicate with the individuals processing your report using the same whistleblowing webpage. Once the whistleblowing channel service receives your report, you will receive confirmation within seven days. The people involved in processing reports submitted via Vuokraturva Oy’s whistleblowing channel are Hanna Häkli (administrative manager), Katja Ekholm (service director), and Timo Metsola (managing director). Reports are assessed thoroughly, and subsequent actions are determined based on the findings. Feedback on your report will be provided through the First Whistle service within three months of confirming receipt of your report. Vuokraturva’s privacy policy contains information on how personal data is managed in relation to reports submitted through the whistleblowing channel. If you have any questions regarding data protection related to the whistleblowing channel, please contact Hanna Häkli at hanna.hakli@vuokraturva-yhtiot.fi. The Chancellor of Justice maintains a centralized whistleblowing channel for officials at: https://turvaviesti.gov.fi/ilmoituskanava-rapporteringskanal. However, if a company has an internal whistleblowing channel, reports should primarily be submitted to that channel. ## Announcements ## Joint Press Conference on the Publication Day of Rental Statistics for the First Quarter of 2009 Helsinki – Turku – Tampere – Lahti Vuokraturva, Statistics Finland, The Association of Finnish Landlords, and The Central Federation of Finnish Renters are organizing a joint press conference on the development of housing rents and the outlook of the rental market on Thursday, May 7, 2009, from 11:00 AM to 12:00 PM. A national main event will be held in Helsinki, while local events focusing on regional situations will take place simultaneously in Turku, Tampere, and Lahti. Statistics Finland will present the key findings of the published rental statistics on a regional basis as well. In addition to the early year's development of rent levels, Vuokraturva will address local development prospects of rent levels and the demand for various types of rental apartments in each event. The Association of Finnish Landlords will discuss how well the expertise and understanding of seasonal landlords, who have recently entered the rental market inspired by investment in real estate, are sufficient for operating as landlords. The Central Federation of Finnish Renters will use their speaking turns to discuss the acceptance of diversity in housing culture. Renters are a tolerant group – welcome to the neighborhood! ### Time The press conferences will be held on Thursday, May 7, 2009, from 11:00 AM to 12:00 PM. ### Locations Helsinki: Hotel Presidentti, Eteläinen Rautatienkatu 4 Turku: Hotel Scandic Julia, Eerikinkatu 4 Tampere: Hotel Ilves, Hatanpään valtatie 1 Lahti: Congress Center Fellmanni, Kirkkokatu 27 The events are open to the media. ### Additional Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, tel. (09) 6877 550 ### Vuokraturva in Brief Vuokraturva is the market leader in apartment rental brokerage and investment property acquisition services. Vuokraturva manages the housing inventories of both private individuals, institutions, and funds that invest in real estate. www.vuokraturva.fi ## Announcements ## Joint press conference on the situation in the rental housing market Vuokraturva, Statistics Finland, the Finnish Landlords Association, the Tenants' Central Union, the Finnish Real Estate Agents Association, and the Central Federation of Real Estate Agencies will hold a joint press conference to provide an overview of the new situation in the rapidly changing rental market. The press conference will also announce the Good Rental Brokerage Practice guidelines that aim to prevent conduct that opposes good practices in rental housing brokerage. Statistics Finland will present and comment on the housing rent statistics to be published on the same day for the third quarter of 2008. Vuokraturva, the Finnish Landlords Association, and the Tenants' Central Union will discuss the ripple effects of the financial crisis on the rental housing market and consider how the rental market can help alleviate the oversupply of unsold housing, the general slowdown in construction, and workforce mobility. The Finnish Real Estate Agents Association and the Central Federation of Real Estate Agencies will launch the new Good Rental Brokerage Practice to guide the work of rental housing brokers. Time and Place The press conference will be held on Friday, November 7, 2008, from 11:00 AM to 12:00 PM at Restaurant Lasipalatsi, Mannerheimintie 22–24, Helsinki. After the event, there will be an opportunity for illustrative photos to be taken in rental apartments in downtown Helsinki. The event is open to the media. Additional Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 About Vuokraturva Vuokraturva is the market leader in rental brokerage and investment property acquisition services in the metropolitan area. Vuokraturva mediates properties for private individuals, institutions, and investment funds. www.vuokraturva.fi ## Announcements ## Joint Press Conference on the Situation in the Rental Housing Market Vuokraturva, Statistics Finland, the Union of Tenants and the Finnish Landlords Association will hold a joint press conference on Friday, November 6, 2009, from 11:00 AM to 12:00 PM, providing an overview of the rapidly changing rental market situation. Statistics Finland will present and comment on the rental statistics for housing to be published on the same day. In addition, Risto Kyhälä, CEO of Huoneistokeskus, will share insights from the perspective of a large real estate market participant. Paula Paavilainen, Senior Actuary at Statistics Finland, and Ilkka Lehtinen, Development Manager, will introduce and comment on the rental statistics for the third quarter of 2009. The trends will be highlighted particularly from the metropolitan area as well as the cities of Turku, Tampere, Lahti, and Oulu. Timo Metsola, Chairman of the Board of Vuokraturva, will discuss how tenants can benefit from looking for housing outside the peak seasons. The situation in the rental housing market fluctuates significantly with the seasons. Antti Arjanne, Chairman of the Board of the Finnish Landlords Association, will address the rising expectations of tenants and how landlords should consider this when purchasing and renovating investment properties. Kari Uotila, board member of the Union of Tenants and a member of parliament, will provide background on the ongoing research funded by the Ministry of Environment, aimed at understanding the perceptions of tenants and landlords regarding the development of rental housing. Risto Kyhälä, recognized as the influencer of the year in 2009, will share his views on the housing market situation and outlook. Date and Location The national press conference will be held on Friday, November 6, 2009, from 11:00 AM to 12:00 PM at Ravintola Loiste's Vaakuna cabinet, located at Kaivokatu 3, 10th floor, Helsinki. After the event, there will be an opportunity to take illustrative pictures in rental apartments in downtown Helsinki. The event is open to the media. Regional Events Local events focusing more closely on the regional situation will take place simultaneously with the national press conference in Turku, Tampere, and Lahti. Turku: Hotel Scandic Julia, Eerikinkatu 4 Tampere: Hotel Ilves, Hatanpään valtatie 1 Lahti: Congress Center Fellmanni, Kirkkokatu 27 For More Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, phone: (09) 6877 550 Vuokraturva Oy in Brief Vuokraturva is the market leader in rental brokerage and investment property acquisition services. Vuokraturva manages rental properties for individuals, institutions, and funds investing in real estate. www.vuokraturva.fi ## Social Responsibility and Private Landlords Housing is one of the most important human rights. A key task of an organized society is to ensure that its members have access to adequate housing conditions. Finnish society is expected to take care of fulfilling its members' housing needs exemplary. The current housing stock in Finland is predominantly owner-occupied. One of the main reasons for this has been to support the formation of private capital by encouraging citizens to save and invest their savings specifically into housing. The construction of rental apartments has largely been the responsibility of municipalities, certain non-profit entities, and financial and insurance institutions. During the final phases of rent regulation, a typical phenomenon was thousands of privately owned apartments standing vacant. Today, the situation in Finland is quite different. The majority of rental apartments are now privately owned after non-profit owners sold off most of their rental properties and nearly eliminated new construction. At the same time, the demand for rental apartments has increased significantly as people move more frequently to different municipalities due to work, study, or changes in life circumstances. There has also been an increased need for so-called secondary residences. Today’s private landlords have a significant social responsibility. Their task is to attempt to fill the rental housing gaps that have arisen from numerous social changes. On one hand, the availability of suitable rental apartments and the development of their prices make it difficult to acquire suitable properties, and on the other hand, the rise in property costs is significantly outpacing the increase in rents, making rental operations very poorly profitable. A concerning phenomenon in the current situation is that the public authorities do not see the role of private landlords as important. Landlords feel they do not receive understanding, let alone support for their operations, which do have a significant impact on satisfying housing needs. Tax authorities treat landlords as capital investors, taxing them on both rental income and capital gains from property sales as capital income. Major repair costs that are considered significant can only be deducted upon the sale of the property. To better communicate their role as an important social player, private landlords have organized themselves and established the Finnish Landlords Association (SVA), which acts as a national member association of the Finnish Real Estate Federation. The association, which will turn 10 years old next year, provides its members with legal and tax advice and organizes training and advisory events across Finland. The association maintains close contacts with social influencers and advocates for landlords’ interests with lawmakers and tax authorities. PAAVO MARTTILA DI, HTKK 1969 Career: Viatek Oy 1968-74, UM 1974-79, Maa ja Vesi Oy 1979-1985, Finpro 1985-88, UM 1988-1997, KTM 1997-2000 Work experience abroad: Tanzania 1974-76, Zambia 1977-79, Japan 1988-94, United States 1994-97 Numerous positions of trust in technology, design, construction, and real estate organizations Awards: Commander of the Order of the Rising Sun of Japan, 1995 # Contact Information For apartment seekers: For property owners: For current tenants: ## Our Offices ##### Helsinki Office and Area ##### Tampere Office and Area ##### Turku Office and Area ## Website - Company - Knowledge Base - Feedback - Media - Responsibility - Privacy Statement - Cookie Settings Call charges are just the caller's operator's regular local or mobile network charge. ## Announcements ## Price and Rent Regulations for Studio Apartments in the Capital Region Anyone buying a studio apartment in the capital region pays around an extra €500 per square meter due to the production regulation of small apartments implemented by the municipalities in the capital region. Therefore, the price regulation on a thirty-square-meter studio apartment amounts to approximately €15,000. The monthly rent for a privately funded studio apartment includes a regulation surcharge of about €80/month, resulting in an annual additional cost of around €1,000 for the small apartment tenant. Municipalities managing zoning require a minimum specific building size for new apartments. This regulation effectively hinders the resolution of the shortage of small apartments. And much like any regulated commodity, strong demand and limited supply create a situation where the user, namely the resident, pays above market prices. The problem is particularly acute in Helsinki, where there is a severe shortage of small apartments, as the city has 150,000 single-person households, but only 65,000 studio apartments available for them. According to Vuokraturva's assessment, it is clear that Helsinki needs at least 100,000 studios, which is 35,000 more than currently available. The number of available building plots in sensible locations, especially near the city center, is limited. This reserve should not be used for constructing larger apartments, as once the plots are used up, alleviating the shortage of small apartments becomes even more challenging. "Throughout the 2000s, Helsinki has built the wrong kind of housing stock that poorly matches the structure and needs of the capital's households. If the plots that are now becoming available along the central waterfront are used in a similar manner, it will cause irreversible damage, the cost of which will be paid in the form of inflated prices and rents for small apartments for many years to come," warns Timo Metsola, Chairman of Vuokraturva's Board. Metsola also points out that only a small portion of the total area of a new residential building needs to be allocated to small apartments to significantly increase the supply of small housing units. "Several small apartments can fit into the same space that one large apartment would take. For instance, a 125-square-meter family apartment could be replaced by four studios. Not all new apartments need to be small; it would be sufficient if, for example, 40% of the building's residential area could be freely allocated for the construction of small apartments." Statistics - The share of families with children among Helsinki households has collapsed to less than half of what it was: 56% (1960) → 24% (2008) - The share of single-person households among Helsinki households has tripled: 17% (1960) → 50% (2008) - Although 50% of Helsinki's households are now single-person households, only 22% of the apartments in Helsinki are studios - About 75% of Helsinki's households consist of one or two persons - This is an international trend, as more and more single-person households are found in other European capitals as well Additional Information Timo Metsola, Chairman of the Board, Vuokraturva Oy, tel. (09) 6877 550 Vuokraturva Oy in Brief Vuokraturva is the market leader in apartment rental brokerage and investment property acquisition services. Vuokraturva mediates apartments for private individuals, institutions, and investment funds focusing on real estate. www.vuokraturva.fi ## Announcements ## The sale of studios is heating up – Myyntiturva launches a €1,000 super campaign The situation in the real estate market remains divided. There are challenges in selling larger and medium-sized apartments, but studios are selling like hotcakes. As a result, an increasing portion of the homes sold by agents are studios. Real estate agencies are fiercely competing to see who can list the most studios for sale. Deals on studios are made very quickly, and often either the seller or the buyer is an investor, if not both. Studios are not evenly distributed among different real estate chains but are concentrated in a few agencies that have managed to profile themselves in that segment. Practically, an agent who already sells a lot of studios will receive the most additional listings as well. Myyntiturva is among the chains that sell the most studios but is closely matched with a few others. The competition is tight. Since the sale of studios is currently doing very well, Myyntiturva dares to temporarily reduce its commission fees for studios even further. The super campaign lasts for six weeks, until March 31, 2014. By then, studios listed with Myyntiturva will be sold with a commission fee of €1,000 + VAT 24%. The fee includes full brokerage service. The sale of the apartment will be handled by Myyntiturva as a turnkey service from start to finish. Uniquely, the fee also includes marketing the apartment without additional charges on well-known platforms like Oikotie, Etuovi, and Jokakoti. The super campaign applies to all studios in the metropolitan area as well as in Turku, Tampere, Lahti, and Oulu. Even the most expensive city-center studios, including those in prime areas of Helsinki, are now sold with a commission fee of €1,000 + VAT 24%. “We believe we have the best conditions to take advantage of the favorable market situation and the high demand for studios. However, even Myyntiturva could hardly operate at this commission level permanently. We do, however, emphasize that the efficiency of our operations and the affordability of our fees should now be highlighted,” says Chairman Timo Metsola. “In such a market situation, it is particularly unnecessary to pay several thousand euros in commission for selling a studio.” FOR MORE INFORMATION Timo Metsola, Chairman of the Board, tel. 010 2327 300 MYYNTITURVA IN BRIEF Myyntiturva is a division of Vuokraturva Oy, specializing in apartment sales brokerage, which introduced affordable commission fees based on the number of rooms in 2012. Vuokraturva is the market leader in rental brokerage and property investment services, openly sharing its operations. In the Supplier Barometer, Vuokraturva achieved first place in both supplier satisfaction and the top management category (Aalund Nordic 2013). Vuokraturva is both the most recognized and the highest-rated rental broker (Taloustutkimus 2014). www.myyntiturva.fi www.vuokraturva.fi ## Blog ## The Rise in Studio Rents Comes to a Halt as Demand for Family Housing Grows Strong economic growth and a record high consumer confidence have clearly increased the demand for larger rental apartments and family housing. This interest is fueled by the fact that the rental price gap between a new small rental apartment and a significantly larger well-maintained older apartment has shrunk to almost nothing in some places. The cost of extra square meters is therefore very small. The variation in apartment-specific rents according to size no longer aligns evenly. The shortage of studios has driven studio rents very close to two-bedroom rents. At the same time, rents for three or four-room family apartments have also approached two-bedroom rents, though from the opposite direction, due to a surplus of supply over demand during years of sustained downturn. Practically, this phenomenon means that the rent difference between a studio and a three-room apartment has shrunk at times to an astonishingly low level. The situation is irrational in many respects, and this has manifested in a clear reduction or halt in the rise of studio rents. Labor shortages, economic growth, and strong confidence in one’s own finances have led to a migration wave that, unlike before, is primarily focused not on small and expensive rental apartments but rather on larger and relatively more affordable rental apartments. From a market perspective, this makes sense. The rental level of small apartments is very high historically, while the rental level of larger apartments is clearly more affordable for tenants due to the different relationship between supply and demand. Additionally, as confidence in personal finances is strong, people are more willing to rent slightly larger apartments and not decide to squeeze into a significantly smaller apartment for what ultimately becomes a modest saving. Increased demand has somewhat impacted the rents of larger rental apartments, which, after years of decline or stagnation, are now showing a slight increase. However, the change in their rental levels has so far been quite small. This year is shaping up to be one of the busiest on the family housing rental market. Timo Metsola Chairman of the Board Vuokraturva ## Announcements ## Real Estate Fund for Private Investors Has Invested Tens of Millions of Euros in Rental Apartments The real estate fund directed at private investors by Asuntoturva and Öhman Varainhoito began operations on April 25, 2007. During its first eight months of operation, the fund has invested tens of millions of euros in rental apartments. The investments are made through its partner, Vuokraturva. The apartments are mostly located in the capital region. The name of the fund is Quorum Asuntoturva I Ky. The fund is fully subscribed. A significant portion of the housing portfolio owned by the fund consists of individual residential apartments, mainly studios and one-bedroom apartments. Individual property owners have the option to sell their apartments to the fund without brokerage fees. The apartment brokerage services required by the fund are provided by Vuokraturva, which is the market leader in apartment rentals and investment property acquisitions in the capital region. Vuokraturva is also responsible for organizing rental apartments for employees of the Chemicals Agency. Asuntoturva and Vuokraturva announced together with Aktia on February 13, 2007, that they would also bring to market a special investment fund open to small investors that focuses on real estate, expected to be publicly available for sale in the spring of 2008. For more information: Jaakko Sinnemaa, CEO, Asuntoturva Oy, phone: +358 41 528 0329 ### Brief overview of Asuntoturva Oy Asuntoturva is a management company focusing on indirect real estate investments, which, together with its partners, implements indirect real estate investment instruments. ### Brief overview of Vuokraturva Oy Vuokraturva is the market leader in apartment rentals in the capital region. Vuokraturva rents out properties for individuals and institutions and works closely with the Association of Finnish Landlords and the Central Federation of Tenants in Finland. ## About Us Vuokraturva Oy was founded in 1998. The company employs around one hundred professionals in the real estate industry. The three pillars of our business are: - Rental services for apartments - Sales services for apartments (Myyntiturva) - Relocation services We serve you in the Uusimaa, Turku, and Tampere regions. We work closely with the Finnish Landlords Association and the Tenants VKL Association to develop the Finnish rental market. The chairman of Vuokraturva's board, Timo Metsola, is also the chairman of the rental brokerage committee of the Finnish Real Estate Agents Association. Previously, Metsola served on the board of the Finnish Landlords Association for 17 years, receiving the highest merit award from the association in recognition of his work on behalf of Finnish landlords.