The right-of-occupancy contract refers to a written contract that the prospective resident(s) and the owner of the property, VASO, make. The type of home, amount of right-of-occupancy fee and maintenance fee and other terms are defined in the contract.
Before moving into a VASO home, the prospective resident(s) pays a one-time right-of-occupancy fee and security deposit. The right-of-occupancy fee grants the resident(s) the lifelong right to occupy a certain home. While living in the home, the resident(s) pay a monthly maintenance fee which is lower than the general level of rents.
The content of the right-of-occupancy contract is based on that which is set forth in the Right-of-occupancy Housing Act. The contract can be signed once the prospective resident has delivered an asset statement to VASO, and the municipality where the home is located has confirmed the right-of-occupancy applicant based on the right-of-occupancy number. The prospective resident(s) must also notify us before signing the contract whether the right-of-occupancy contract will be used as collateral for a mortgage.
The right-of-occupancy contract is signed at the VASO office. At this time, the prospective resident will also receive information about how to pay the right-of-occupancy fee and security deposit. The deadline for paying the fees is two weeks before the scheduled moving day.
The right-of-occupancy contract should be kept in a safe place, because it has to be returned to the VASO office when a resident moves out.
The security deposit works like a rent deposit. It amounts to two months of the maintenance fee, and the prospective resident(s) must pay it before moving into the VASO home. The deposit is returned to the resident(s) when (s)he moves out, provided all of the monthly maintenance fees have been paid and the home is in satisfactory condition.
The right-of-occupancy fee is paid after the right-of-occupancy contract has been signed, before moving into the home, however. The amount of the right-of-occupancy fee is 10–15 per cent of the home’s original price. When a resident(s) moves away, the right-of-occupancy fee is revised according to the building cost index and returned. Here at VASO, the resident always gets the amount of money invested back, at least.
Residents pay a monthly maintenance fee for their right-of-occupancy home. The fee is lower than the general level of rent. The maintenance fee is divided into two parts:
- Maintenance fee 1 includes the costs for an individual property, the amount of which the resident(s) can control. These include, among other things, heating, water, electricity and property maintenance.
- Maintenance fee 2 includes all of costs accrued at VASO. These include the instalments and interest fees on loans taken to build the properties, marketing and administration costs, provision for repairs during periodic maintenance measures and for tendered services on the level of the entire company, such as superintendent services, property insurance and broadband connections.
At VASO, the maintenance fee includes a 50 Mbps broadband connection, and several properties also have parking spaces for residents. The water fee/water fee deposit is €20/pers/mon. The fees for parking spaces, using the sauna and other utility fees vary depending on the property. Together, with the superintendent, residents may determine the amount of the utility fees.