How Does Vonovia Manage to Keep Rents Affordable in the Long Term?
Our business model forms the basis in this respect. Vonovia manages its housing stocks throughout Germany using standardized systems and processes. Our customers benefit from our size: It allows us to achieve economies of scale on the property management side, reducing the costs per residential unit.
Also when procuring services, we are able to achieve cost advantages that benefit our customers, too, for example, in the form of lower ancillary costs. 203-2
We reinvest a large share of our (rental) income in the portfolio itself – in the form of ongoing maintenance and modernization. For example, we are increasing the energy efficiency of apartments, the long-term effect of which includes independence from rising energy prices (see Climate and Environmental Protection in Our Properties). As a leading residential real estate company, we have considerable opportunities open to us when it comes to using standardized procedures and materials to achieve economies of scale in our investment activities. Wherever it is appropriate and technically feasible, we try to use standard products for our maintenance and modernization measures. The volumes we can generate as a result enable us to agree on special conditions with our suppliers, allowing us to either receive higher-quality goods for the same price, or to purchase the material to be used at a lower price. 203-2