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 Measure Type: Cost Efficiency Analysis (CEA)

Definition

A means of determining cost rent, which is the amount of rent that should ensure a positive return on the investment.

Use

According to German tenancy law, a cost efficiency analysis is required in order to adjust conditions on publicly subsidized apartments. This cost efficiency analysis is only possible if one of the following prerequisites has been met:

  • Change of cost rent

  • Change in operating costs

  • Physical alteration of the building or apartment (for instance, modernization measures)

In these cases, the cost efficiency analysis is intended to determine the total expense per year or month and per unit of area. Based on the total expense, the system calculates the amount by which the conditions (rent) can be adjusted for each rental object.

The system determines the possible adjustments for all rental objects that you assigned to the cost efficiency analysis. If you want the system to include a rental object in the calculation of the total expense, but you do not want the system to consider the rental object during apportionment of the amounts determined, then assign a differing measurement of zero to the rental object.

Structure

A cost efficiency analysis is a special type of adjustment measure. The following measure types are available for cost efficiency analysis:

  • Partial cost efficiency analysis (partial CEA)

    A partial cost efficiency analysis defines the total costs and the financing plan for all objects involved.

  • Additional cost efficiency analysis (additional CEA)

    An additional cost efficiency analysis contains changes made to the basic data at a later date. These changes could be due to modernization or renovation of the apartment. The additional cost efficiency analysis is assigned to a partial cost efficiency analysis.

  • Main cost efficiency analysis (main CEA)

    A main cost efficiency analysis groups together several partial and additional cost efficiency analyses. The main cost efficiency analysis is optional and it does not contain any data that is relevant for the adjustment. Therefore, it is not possible to perform an adjustment on the basis of a main cost efficiency analysis.