Bostäder i Borås makes no claim in this year's rent negotiations

The public housing company Bostäder i Borås applies the three-party agreement on rent negotiations drawn up by the Swedish Union of Tenants, the Swedish Property Federation and Sveriges Allmännytta in May 2022. This means it departs from the traditional approach of putting forward a percentage claim for the increase. The reason is that it wants to avoid causing tenants unnecessary worry.

- Our aim is to create a safe and stable living environment for our tenants, says Madelen Svensson, head of finance at Bostäder i Borås. By refraining from the classic claim ahead of the negotiations, we reduce the risk of unnecessary worry. Instead we are aiming for a balanced discussion with the Swedish Union of Tenants based on the three-party agreement, where both the tenant's and the landlord's perspectives are taken into account. The hope is that this leads to a rent increase that is acceptable both to our tenants and to us as a landlord.

The housing company applies the three-party agreement established in 2022 between the Swedish Union of Tenants, the Swedish Property Federation and Sveriges Allmännytta. The agreement means that negotiations on a rent increase start from set economic factors, such as charges for electricity, water, heating and waste, as well as interest rates, inflation and GDP. The overall aim is to maintain reasonable rent levels while taking account of the actual cost increases and the needs of both tenants and property owners.

- In total we have a cost increase of more than 12%, says Madelen Svensson. But we do not see that as a reasonable rent increase, because the whole cost cannot fall on the tenant. For us it is important to take civic responsibility and not worry our tenants unnecessarily. That is why we want to be open about everything and reach a reasonable solution together.

FACTS

* The three-party agreement
The three-party agreement was concluded in 2022 between the Swedish Union of Tenants, Sveriges Allmännytta and the Swedish Property Federation. It runs until 2026 and means, among other things, that the local parties are to start from jointly agreed economic factors in the annual negotiations. From the 2023 negotiating year, five different factors are to be used as the basis for the negotiations. Two reflect local conditions: tariff-based charges (such as charges for electricity, heating, waste, water and sewerage) and management and maintenance costs. Three factors are national - interest rates, GDP and inflation excluding rents. The model also says that account should be taken of economic developments in the particular locality.

* The negotiation process
This year's rent negotiation is under way. Bostäder called for negotiations on 15 November and the first meeting with the Swedish Union of Tenants took place on 29 November. The parties have since also met on 4 and 6 December. The next meeting takes place on Monday 11 December.

15 November - notice of negotiations
29 November - review of the three-party agreement and general cost developments
4 December - review of local factors
6 December - review of tenants' circumstances and presentation of Bostäder i Borås's cost increases.