The first task is already ahead: two large apartment blocks on Heinrich-Mauersberger-Ring in Limbach-Oberfrohna will be demolished in 2023. “Until then we have to master a huge relocation management”, says Norbert Gruss, the new managing director of the building company of the city. Around 60 apartments have to be renovated for this. The 54-year-old and his team are pursuing an ambitious goal: the majority of the residents of the two blocks are to be kept as tenants. Because many apartments that belong to the municipal subsidiary are already uninhabited. We are looking for strategies to reduce the vacancy rate.
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The building company owns a total of 1,452 apartments. According to Norbert Gruss, 246 of them are empty, which corresponds to almost 17 percent. It looks better for the commercial space that the building company rents out. At the end of December last year, only two of 30 units were empty. According to the new managing director, it is noticeable that the vacancy rate mainly affects small apartments. “The demographic development actually goes hand in hand with the fact that household sizes are decreasing and the need for single apartments is increasing”, says Gruss. The building company owns 907 one and two-room apartments, 448 apartments with three rooms and 97 with four or more rooms. “Although there is a need, we have too many small apartments,” says Norbert Gruss. Therefore, one of his most pressing tasks is to develop strategies against vacancy. Demolition and structural changes to the houses are inevitable. “There are some buildings that have five floors, but no elevator. We have to discuss whether the top floor can be removed,” said Limbach-Oberfrohna’s Mayor Jesko Vogel, who represents the city as a partner in the company.
The company has followed a tough restructuring course over the past few years and repaid loans. “This will allow us to act more freely and invest more in the future,” said Vogel. Nevertheless, measures must be taken. “Although the situation has improved, it is not that our pockets are full and we have to look for what to do with the money. Every investment has to be a success,” adds Norbert Gruss.
Nevertheless, the building company will remain true to its principle: As a landlord, you keep an eye on the social component. “Good living at affordable prices” is how Lord Mayor Vogel describes the motto. A slight increase in rent in the next few years cannot be ruled out. The square meter currently costs an average of EUR 4.90 basic rent. In this context, the new head of the company intends to focus more on the subject of living in old age and create offers for senior citizens. “The area is an opportunity for the company,” said Norbert Gruss.
In addition to the building company, the housing association in Limbach-Oberfrohna also rents apartments. 628 belong to the inventory according to the cooperative board member Andreas Gast. The rent is between 4.35 and 6.60 euros per square meter. Major investments or demolitions are not planned for the housing cooperative this year either. Instead, they want to modernize the residential buildings.
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