VR-Group Ltd has an extensive property portfolio which contains different premises: e.g., machine workshops/depots, logistics and station premises as well as office and social premises.
Renting of the premises has been arranged to a specific activity and is the responsibility of a separate real estate unit.
VR uses a market-based approach in renting vacant spaces to those who need them.
The renting activity must be profitable and based on market conditions. The rents are determined in a market-oriented way in accordance with the price level of the place and the type of premises. Aiding VR in defining the market price, VR uses, e.g., extensive and accurate market data by the KTI property information from various areas and opinion of the experts on the property unit about its correct price level and, if needed, external consultants or local real estate agents.
The price formation of the premise is affected, among other things, by the market situation in the area, location, purpose of use, as well as its age and condition. The final price of the rent is formed in the contractual negotiations between the parties.
When renting outside, primarily the same rents as the VR-Group's internal rents are applied.
A rent agreement will be made with the user of each premise.
Maintenance and alteration work to the rented premises that is functional and improves their standard is made at the request and expense of the tenant. An agreement will be drawn up for the work to be done: the costs are agreed to be paid as a lump sum or added as a separate investment rent.
If the tenancy is terminated before the ending of the repayment term, the part unpaid will be charged as a single payment from the tenant. This will be mentioned in the rent agreement.
VR has no statutory investment obligation; thus, decisions about alteration work are always done on a case-by-case basis in an objectively justifiable manner.
The rent can be charged as a so-called total rent, in which case it includes the rent to cover capital costs, service charges and the compensation for energy and water used by the tenant.
Depending on the rented property, the service charges can be charged as a separate batch in accordance with the costs realised and on the basis of measured energy and water consumption.
When separately agreed, a so-called triple net rent can be charged, the tenant then being responsible for the maintenance and service of the property and for its operating costs, including the property tax and insurances. The tenant is also responsible for statutory periodic inspections.
Renovations are the responsibility of the landlord. Triple net rent agreement requires that the tenant will be able to take the responsibility for the maintenance of the property rented. The need for annual repairs and their implementation as well as the level of the services are to be inspected and agreed on in annual reviews with the tenant.
Security deposit is a security corresponding to three months' rent. The rent is agreed to be increased by a fixed yearly increase percentage and/or the rent is tied to, e.g., consumer price index.
The term of the rent agreement can be either fixed or indefinite.
Other more detailed conditions are to be agreed upon in the rent agreement to be made between the parties. The rent agreement will be based on VR-Group Ltd's standard agreement template.