200 million in cost increases - but not everything ends up in the rents

60,000 Malmö residents live in MKB's 26,000 apartments.

EIA has been a cash cow for the city with large profits and stock dividends.

But this year, the owner Malmö City does not intend to pay any dividends.

This is to reduce the need for sharp rent increases.

The large profits of recent years are expected to shrink considerably due to, among other things, soaring interest rates, energy costs and VA rates.

- We expect cost increases of 200 million for 2022 and 300 million for next year, says Margaretha Söderström.

Profit of 412 million

MKB's profit was 412 million for 2021. This means that on average SEK 1,300 of each tenant's monthly rent was pure profit for MKB.

Every percent that MKB raises the rent means approximately 25 million in increased revenue.

This means that MKB would have to raise the rent by eight percent to compensate for increased costs of 200 million.

- We do everything we can to mitigate the effect for our tenants, says Margaretha Söderström.

She does not want to say how large a rent increase MKB will demand in the negotiation with the Tenants' Association, but she says that MKB will not demand full compensation for the cost increases.