In many housing companies, the word renovation makes shareholders frown. It often means meetings, decisions and, of course, costs. Postponing renovations from year to year does not eliminate problems – on the contrary, they grow and become significantly more expensive later. We are talking about a growing repair debt.
What does a repair debt mean for a housing association? A repair debt is like a credit card bill: if it is not paid on time, interest accrues. In a housing association, this means that the maintenance and renewal of pipes, roofs or other structures is delayed, and small problems grow into large ones. A leaky roof does not wait for stability, but moisture can spread to the structures and cause extensive damage. If pipe repairs are postponed for too long, the result will be leakage damage, insurance disputes and housing inconveniences. When renovations are carried out in a controlled manner and on time, it brings security and certainty for decades to come.
Why is proactive repair profitable? By focusing on repairs upfront, money is saved in the long run – a small maintenance measure today can prevent a renovation costing hundreds of thousands of euros tomorrow. From the user's perspective, it is clear that living comfort will improve – functioning pipes, a tight roof and energy-efficient windows are visible in everyone's everyday life. The value of a well-maintained housing company is maintained – a well-maintained housing company is attractive to buyers and tenants.
How can a housing company stay up to date? It is important to make a plan for future renovation needs and schedules, and update it regularly. It is a good idea to base renovation decisions on facts, i.e. it is worth using condition surveys carried out by experts. As in all activities, good communication reduces resistance and suspicion: residents must always be kept informed of future renovation needs and ongoing repairs. The importance of cooperation between the housing company's board, the property manager and the contractor selected for the task in achieving a successful outcome cannot be overemphasized.
The country's government toolbox would also include excellent means to support renovation. However, the conditions for the household tax deduction were significantly tightened for 2025. The tax deduction for citizens is a good way to support the purchase of household services. This was stated, among other things, in the results of a large survey of citizens published in the spring by the Finnish Economists' Association.
According to statistics, the household deduction is widely used regardless of age groups, income categories or professional status. Tightening the terms of the household deduction will erode the housing wealth mentioned above, the repair debt will increase and will make it more difficult for both sellers and buyers to change homes. In many localities, changing homes has become significantly more difficult due to financing problems. However, the use value will remain and this will involve the same repair needs as in areas with high turnover. By expanding the level and basis of the household deduction equally to residents of housing companies, it will be possible to create positive development in these areas as well. At the same time, regional business activities will be encouraged, which is by far the most important in supporting local employment.
Renovation is not just an expense, but an investment in the future of the housing company. Timely maintenance and renovation save money, keep homes comfortable and ensure that the value of the property is maintained. The housing company's board and shareholders make decisions together that will extend the life of the building for decades to come.
See you in October HVAC daysä In Tampere and let's continue the discussion about renovation methods!
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