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TAG Immobilien AG - Survey: Two thirds of tenants suspect they could be saving a lot on utilities

DGAP-News: TAG Immobilien AG / Key word(s): Real Estate
TAG Immobilien AG - Survey: Two thirds of tenants suspect they could
be saving a lot on utilities

23.07.2014 / 08:15

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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