Press release

Survey: Two thirds of tenants suspect they could be saving a lot on utilities

Hamburg (23 July 2014) - Most tenants in Germany feel they are paying too much for utilities in their apartments. Nearly two-thirds believe that there is significant potential for saving on electricity, gas, water, refuse collection and janitorial services. 36 percent indicate that their landlords are not meeting their duty to keep the 'second rent' as low as possible. These are the results of a survey, representative of the population, carried out by TAG Immobilien AG together with the Technical University of Darmstadt. 1,000 tenants in Germany were surveyed.

"The tenants anticipate their annual utility bill settlement with some anxiety, because prices have almost always increased compared to the previous year, "says real estate expert Prof. Dirk Schiereck of the TU Darmstadt." Real estate companies have paid too little heed to the 'second rent' - they do not sufficiently exploit the potential to lower costs. Practical experience has shown, however, that the cost of utilities can be reduced by up to 20 percent per apartment per year."

The 'second rent' represents a significant financial burden each month for six out of ten tenants. Furthermore, the vast majority is concerned that these expenses will continue to rise uncontrollably. The upshot: 89 percent of respondents wish their landlord would do more to keep utility costs low.

"As a landlord, we see it as our duty to regularly review each item on the utilities bill for possible savings," says Claudia Hoyer, TAG Executive Board member responsible for property management. For example, the listed company is very meticulous about the issue of waste disposal. "First we take a look at how many garbage cans are even out in front of a rental, how quickly they are filled, and whether it would be enough to empty them every fortnight instead of once a week." The Group also recently started installing electronically locked waste bins. "This has the advantage that only the residents have access to the bins, with a chip. This precludes any 'garbage tourism'. This also allows us to bill each tenant for garbage according to their consumption," says Hoyer. This new waste management system alone has reduced the cost of garbage at one of TAG's locations by about 30 percent since 2010.

It is important to involve the residents and to work with them on reducing costs. Based on their everyday observations of their surroundings, tenants can contribute valuable suggestions for savings on utilities. It can also be useful to talk to the buildings' caretakers or janitors, whose services TAG has increasingly integrated into the company since 2012. This has not only led to cost savings for the tenants. "We've further expanded our range of services and are now more often on site, to give even more attention to taking care of our residents' concerns," Hoyer points out.

Last not least, real estate expert Schiereck asserts that utilities billing must be transparent and understandable: "Each item should be verifiable and explainable." This way, tenants can be specific when they contact the owner or manager about not being able to understand the amount of their utilities bill.

About TAG Immobilien AG

TAG Immobilien AG an MDAX-listed company with a more than 125-year history. Its primary locations are in the Greater Hamburg and Berlin areas, the Salzgitter region, as well as Thuringia / Saxony and North Rhine-Westphalia. TAG currently manages about 74,000 dwellings and the associated commercial areas, garages and parking spaces. The company's goal is to improve the quality of housing for its tenants. In line with this, TAG adapts its holdings to modern living needs to, gets involved in the communities of its residential quarters, and promotes a good neighbourhood spirit. The Group continually reduces vacancy and increasing the value of its total portfolio through prudent management of its properties and a future-oriented/forward-looking development of its overall portfolio.

Press enquiries:
TAG Immobilien AG
Head of Investor & Public Relations
Dominique Mann
Phone +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 390
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