TAG Tenant Survey 2016: Half of tenants feel hard pressed by housing costs

Hamburg (26 April 2016.) - The bigger the city, the more Germany's tenants struggle with their housing costs. While in big cities more than half of tenants feel under strong financial pressure due to the cost of rent, the proportion is significantly lower for smaller towns (40 percent). Also, a quarter of tenants in big cities regard their own housing costs as high compared to those of similar properties. Families and the elderly in particular complain that the costs are too high. These are the findings of a population-representative survey by TAG Immobilien AG in conjunction with the Technical University of Darmstadt. It surveyed 2,000 tenants in Germany.

One third of the survey participants also felt their utilities to be more expensive than average. This is one place where landlords can take action to reduce the burden on their tenants. Landlords are not committed enough to lowering what people also call second rent, say the majority of respondents. "The survey clearly shows that tenants not only want landlords to do more to reduce utility costs, but also to find sustainable solutions," reports property expert Professor Dirk Schiereck of TU Darmstadt. Regular negotiations with energy suppliers and waste disposal companies are one way of achieving lasting relief for tenants, he said.

"Landlords have many opportunities to reduce the 'second rent'," says Claudia Hoyer, the TAG Executive Board member responsible for real estate management. "Here, our experience shows that optimising utility costs contributes to greater tenant satisfaction and loyalty. Whether energy, water or waste disposal costs - in our experience there are many options for reducing costs in all these areas."

For example, in waste disposal, TAG has sought competent partners who support the company and its tenants with waste management. They set up waste locks or provide comprehensive consultation and monitoring. In Gera, Kassel, Salzgitter, Erfurt, and Moers, TAG Immobilien works successfully with Musterknaben eG, which even operates a small consulting and learning office in Gera on the topic of waste. Hoyer: "At this location we have seen clearly measurable success: 420 residual waste evacuations were saved in 2015, which now pays off for the tenants in lower operating costs."

TAG is also working to reduce energy costs. For instance, especially when planning renovations, insulation for façades, roofs, and basements are included, as well as windows with thermal glazing, and overhauls of the heating systems.

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 nearly 80,000 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.

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