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Dear tenant,
Before the summer, we informed you about the inflation adjustment (also known as indexation) for this year. Every year the rent is adjusted to the inflation level. This is done in order to continue paying for the costs of the properties - after all, those prices are also rising. In recent years, inflation has been very low, often between 1 and 2 percent.
This year is an exceptional one. Last month's inflation rate was 12.0 percent; in July it was over 10 percent. For us, the policy of the municipality of Rotterdam is normative, since a large part of the costs we incur go to the municipality. We called on the municipality back in April to make an exception and apply a lower inflation correction in this year, when everything is already getting tougher and everyone is still picking up after corona. Unfortunately, the municipality also fails to do so. It insists on a correction of 9.7 percent, effective July 1, 2022, so retroactively.
SKAR will thus not escape implementing an inflation adjustment in rents. But we have decided not to apply it in full. We will therefore deviate once from the annual inflation correction by implementing a social discount of 3.5%. This means that we will index rents at 6.2% as of October 1, 2022 and not retroactively.
This is a choice with the result that we have less to spend. After all, all other costs continue to rise. This means that we will ask you more often to pick up some reports that can be solved by you yourself. In addition, we will be less able to make certain investments.
With this choice, however, we hope to accommodate you in these financially difficult times.
Kind regards,
Olof van de Wal
Photo: Hildegardis Street 15, Frank Hanswijk
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