The City of Helsinki's apartment rental company Heka is planning to raise rents by an average of 5.2 percent next year, it announced on Wednesday.
Depending on the property, rent increases will range from 0.5 percent up to 9.5 percent, compared to this year's prices, Heka said in a press release.
It noted that most of the rent hikes will range between two and six percent.
The company said it plans to notify its tenants about the rent increase by mail by the end of this month.
The biggest rent increases will be seen by residents of Heka's newest properties, including ones in the Kalasatama and Jätkäsaari districts.
Heka blamed the rent hikes on high interest rates and other costs. Another factor was an increase in the firm's vacant apartments, according to the company.
Evictions to double compared to last year
Heka's CEO, Jaana Närö said the increased costs included this year's value-added tax hike as well as growing interest expenses.
The firm's increased vacancies also caused financial pressure, according to Närö, who noted that Heka's operations are based on costs being covered by rent income.
"We had no choice but to raise the rents. Savings plans have already been made and repair costs have been cut," she said.
The financial situation of Heka's tenants can be seen in the number of evictions the company handles.
Last year, the firm carried out a total of just over one hundred evictions due to unpaid rent. By the end of September of this year, the company had already overseen 150 evictions.
"Our preliminary estimate is that the number of evictions will double compared to last year — there will be more than 200," Närö said.
Heka holds a total of around 54,000 residential rental properties.
Rents also rising elsewhere
The CEO also said she hopes that tenants who are having trouble paying rent will contact the company soon so that the issue can be resolved through alternate payment plans and other measures.
Despite the rent hikes, Närö noted that the rent Heka charges is around 35 percent lower than properties on the open market.
"I would hope that when Heka's rents are discussed in the media, it will also be remembered that rents are rising elsewhere, as well," Närö said.
She added that the proportion of evictions of Heka tenants is also lower than the private rental market's eviction average.
Heka raised rents last year as well, citing rising costs, including interest rates.
In March, Heka announced plans to cut up to 15 jobs in an effort to save around three million euros in personnel costs.
Users with an Yle ID can leave comments on our news stories. You can create your Yle ID via this link. Our guidelines on commenting and moderation are explained here.