2024's Rental Roundup in Thuringia: A Snapshot of Tenant Arrears and Ancillary Cost Breakdown
In Thuringia, most tenants avoided rental arrears troubles. - Unpaid rental bills not considered a common concern for most Thuringians
Wanna know what's up with the rental scene in Thuringia? We got the lowdown for ya! Here's the skinny on rental arrears, ancillary costs, and more, all dished out in an easy-to-digest format.
Let's kick things off with the juicy bit. Despite a significant jump in ancillary costs, a majority of Thuringians are keeping up with their rent payments. Now, here's the deal: among the municipal and cooperative housing companies, where roughly half of the tenants reside, the total rental arrears for last year came up to a cool €27.8 million. That's a measly 3.1% of all rents, according to the Association of Housing Companies.
Remember the Corona pandemic in 2021? Well, rental arrears during that time were slightly less, clocking in at €26.5 million. Still, don't start feeling too smug just yet – the height of rental arrears has hardly fluctuated in recent years. In 2015, it was a slither more at €28.7 million among the 185 housing companies in the association.
Association Director Frank Emrich gave German Press Agency the lowdown on the rental situation. He dished, "Housing is valuable to most people." The companies have a sort of early-warning system that flags tenants who fall behind. Emrich revealed, "Those who don't pay their rent stick out like a sore thumb. It's not about sending a gentle reminder, but usually there's a call from a social manager."
So, what happens when tenants can't cough up their rent? The actual rental defaults that, in the assessment of the companies, can no longer be collected, stood at a paltry €5 million last year – just shy of one percent of rents. Obvious reasons for defaults include consumer insolvencies, among others.
One reason for the relatively stable rental arrears, according to Emrich, is improved state support services. "The number of eligible persons has also expanded." But guess what? Meeting those monthly payments can still be a struggle, especially for folks with small pensions or low incomes. And get this – ancillary costs have skyrocketed in recent years!
Curious about what these so-called ancillary costs entail? According to Emrich, the average cold rent for municipal and cooperative housing associations in the association is currently €5.63 per square meter and month. The average ancillary costs per square meter? A hefty €3.16 – but keep in mind these energy prices can vary greatly depending on the energy providers in the region.
Finally, evictions due to rental payments that have been outstanding for a while are a rare occurrence for municipal and cooperative companies. It's the "last, desperate measure" when all else fails, according to the association director. In 2024, this happen about 1,000 times, significantly fewer than in 2021 (930) or 2015 (approximately 1,600).
Now, you probably want to learn more about these ancillary costs, huh? The search results are light on detailed data, but here's what we inferred from the hospitality sector and general trends. Typical ancillary costs involve local taxes and service fees, parking charges, and maintenance costs. No specific data was found about ancillary costs for long-term rentals in Erfurt, but historical data on changes might be tough to come by. For up-to-date figures, consulting local property management companies or municipal housing offices would be your best bet.
That's a wrap on the rental situation in Thuringia! Remember, we've given you the scoop, but always double-check the facts with your trusted sources. 😉
In light of the stable rental arrears, a conversation about potential solutions might be beneficial. Financial assistance and vocational training could help tenants facing difficulty meeting their rent payments. For instance, business initiatives focusing on general-news and finance could discuss ways to provide better support for low-income individuals, additionally offering vocational training opportunities to build employable skills. As ancillary costs continue to rise, community policy reforms could also address the affordability of these expenses to ensure the financial well-being of residents living in municipal and cooperative housing.
