BrfTempen: A New Tool for Enhancing the Efficiency of Housing Cooperatives in Sweden
Riksbyggen, a leader in housing management with 85 years of experience and over 4,000 clients, has unveiled BrfTempen, a new tool designed to assess the financial health of Sweden's housing cooperatives (BRFs). This innovative tool provides critical insights, helping boards identify their financial standing and potential areas for improvement.
According to Frank Fagerlund from Riksbyggen, one of the most significant issues boards often encounter is a lack of direction. This often leads to attempts to tackle numerous issues at once, resulting in wasted effort. BrfTempen aims to assist boards by pinpointing the areas with the most pronounced costs, enabling them to concentrate their efforts effectively.
For instance, the tool can reveal if an association is spending excessively on energy or maintaining a higher debt level than is typical for similar housing cooperatives. This targeted approach allows boards to direct their energies toward the most pressing financial concerns, thus enhancing the overall efficiency of their operations.
To use BrfTempen, housing cooperatives need only provide a handful of essential details, after which Riksbyggen’s experts will prepare a complimentary report. This report includes vital graphical representations and statistics on six key financial indicators: annual fee, energy costs, interest costs, debt levels, savings, and operating costs. By comparing associations based on size, age, and other relevant factors, the tool offers precise benchmarking that is crucial for accurate analysis. For instance, newly constructed associations cannot be directly compared to those built in the 1930s.
One enlightening feature of the report is the 'Savings per square meter' metric, which reveals how well the association is saving for future maintenance. Frank Fagerlund emphasizes the need for this figure to align with the savings detailed in the housing cooperative's maintenance plan. Should a BRF discover that its savings rate is insufficient, the board can consider various measures to rectify this shortfall: they might look for cost-cutting opportunities or explore possibilities for increasing revenue streams. Another solution might include adjusting the annual fee to meet the required savings levels, allowing for sustainable long-term financial health.
While short-term financial challenges may be addressed quickly, Fagerlund warns of the necessity for ongoing management to prevent sudden increases in fees that could burden residents.
BrfTempen also provides insights into how much time the board spends on their tasks compared to peers. A survey conducted at the end of 2024 discovered that the majority of board members—52 percent—dedicate between 1 to 4 hours weekly to their responsibilities, with nearly a quarter devoting between 5 and 12 hours weekly. BrfTempen is designed to streamline this process, as it identifies areas of success and those requiring improvement, allowing boards to plan their work more effectively and ultimately save time.
The six key financial indicators highlighted by BrfTempen are as follows: 1. Energy Cost (SEK/sqm): Measures the housing cooperative’s energy expenses. Investments in reducing energy consumption can yield significant financial and sustainability benefits. 2. Operating Costs (excl. maintenance, SEK/sqm): High values may indicate opportunities for cost savings. 3. Interest (SEK/sqm) and Debt (SEK/sqm): Vital financial indicators that signal where the cooperative needs to improve interest negotiations and amortization strategies. 4. Savings (SEK/sqm): Reflects how much the association is setting aside for future maintenance, which should ideally meet or exceed the levels required by the maintenance plan. 5. Annual Fee (SEK/sqm): Shows the competitive positioning of the annual fee relative to other housing cooperatives.
Riksbyggen stands out as one of Sweden’s largest housing developers and property managers, with a mission to create attractive and sustainable living environments. They currently manage over 100,000 rental apartments and 200,000 condominium units across more than 4,400 housing cooperatives, along with a substantial portfolio of commercial and public properties. The introduction of BrfTempen is a significant step towards enhancing the operational efficiency and financial health of housing cooperatives throughout Sweden, ensuring they are well-positioned for the future.
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