17 Financial Liabilities from Tenant Financing

The financial liabilities from tenant financing include € 114.2 million (December 31, 2017: € 7.7 million) in tenant financing contributions. The financing contributions relate to the contributions collected from tenants in Austria for subsidized apartments. These are reimbursed upon the termination of the rental contract following the deduction of a depreciation amount. The amount refunded can be collected again from the new tenants. As these are generally rental contracts that can be terminated at any time; these liabilities are reported as current liabilities.

In the previous year, the corresponding amounts for financial liabilities from tenant financing were reported as advance payments received within other liabilities due to their low amount.

In addition, the financial liabilities from tenant financing include € 40.7 million (December 31, 2017: € 0.0 million) in and improvement contributions deposited by tenants (EVB). These contributions are paid by tenants in Austria to finance the costs associated with . The payment depends on the age of the building and must be used up for modernization measures within 20 years of their receipt. Otherwise, they have to be refunded to the tenant.

Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e. g., facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.