Kerrostalon ylin kerros taivasta vasten.

Financing of housing company renovations

Shares in limited liability housing companies constitute the largest asset type owned by private persons in Finland. For shareholders, it is extremely important that any renovations in the housing company are properly timed and carried out in a professional manner. In addition to enhancing residential satisfaction, it contributes to the positive development of the share value.

“A timely renovation is a worthwhile investment as it has a direct impact on the value of the flats."

Housing companies should be proactive and prepare for basic renovations

It is worthwhile for a housing company to carry out basic renovations proactively. The renovations will affect the value of the flats while also indicating that the housing company is well managed. The housing company should plan renovations well in advance.

In Finland, blocks of flats built in the 1960-70s are currently facing the greatest need for basic renovations. Major renovation projects typically involve external surfaces or piping systems.  

Once completed, the piping renovation boosts the sale of flats.  A piping renovation is an investment that simply has to be done. It helps avoid smaller repairs and maintenance costs and also protects against unexpected water leakages.

Renovation solution for housing companies

The Renovation solution for housing companies is a flexible, cost-efficient and proactive solution that provides housing companies with comprehensive financing for renovation projects.

The Renovation solution allows the housing company to select an optimal financing option, gives protection against interest level fluctuation affecting the fees payable by shareholders, and also facilitates saving in advance, through shareholder fees, for future renovations.  

The Renovation solution for housing companies is comprised of a renovation limit to cover actual payments during the renovation project, and a renovation loan to be utilised after the renovation is completed. These instruments ensure that the housing company has, at all times, access to an appropriately sized loan.

Alternatively, the housing company can utilise the renovation loan as soon as the renovation starts. The Renovation solution for housing companies provides protection against interest level increases and facilitates advance savings, an option that is increasingly being taken advantage of by housing companies.

Housing company insurances

Risks related to the housing company’s condition and safety can be managed. The real estate manager can do a lot to control the risks, but we offer assistance for the prevention of losses as well. The most common risks related to real estate properties include the risks of fire, leakage, moisture and burglary.

During an extensive renovation project undertaken by the housing company, the risks are increased and the insurance company must be informed accordingly. The currently valid insurance coverage should be reviewed for its scope and extended if necessary.

Correct insurance solutions for housing and real estate companies

An accurately dimensioned insurance will compensate for loss or damage. In case of an incident, our assessors will assist the housing or real estate company to ensure prompt and fair payment of compensation.

Movable property owned by residents

The housing company is not liable to compensate for damage to the movable property owned by the residents. Therefore, it is essential that the residents take a private insurance that covers the movable property in their home.
  • Advance savings, which allow the housing company to set funds aside for a future renovation and thus reduce the fees payable by shareholders after the renovation.
    • Financing for the renovation, by means of either  
    • a renovation
  • a renovation limit and a renovation loan, in which case the housing company only pays for the amount of loan that is needed at any given time, or
  • loan alone.
  • Interest ceiling, which gives the housing company protection against rises in shareholder fees as a result of increasing interest levels.
  • Optional integration of the housing company's insurance policies and e-invoicing service.

The Renovation solution for housing companies is flexible: the housing company is free to select only those components of the solution that correspond to the company's demands.  



Protecting against rising interest rates is an important part of a housing company’s long-term and responsible financial management.