“This would require, amongst other things, that renovations only be undertaken with the prior and informed consent of tenants and with their active participation in discussions about whether, when and how any renovations are going to take place.” Meanwhile no tenants should be forced to leave their home, directly or indirectly, due to renovations.įarha added: “It’s perfectly possible for companies like Akelius to engage in human rights compliant renovations. Care should be taken to ensure disruption caused by upgrades is minimised, while tenants should be kept in the loop. She stated that renovation costs shouldn’t be passed onto tenants without their consent, though if they are passed on it should be done fairly. With regards to companies carrying out renovations, she stipulated how they can be done without endangering human rights. “So we will continue to encourage states to protect against human rights abuses by private actors.” “Also, while I focused on the businesses practices of Akelius, they are not the only asset management firm using this business model. “The Shift will continue to monitor the company to ensure that it does not engage in any practices which inhibit the enjoyment of rights. However, it has not done so, to our knowledge, based on a commitment to the human rights of the tenants. She responded to the news that Akelius is focusing on managing buildings, rather than carrying out extensive renovations.įarha said: “We are pleased the company is changing its practices. Leilani Farha, who took a leading role in the UN investigation, is now global director of The Shift housing initiative, which advocates for housing as a human right. “The other is the capitalistic model of win-win – Akelius has to adapt.” One is the Cuban model of owning together,įree from profit, smiling, dictating what is good for the people “Akelius will gain more by refraining from producing a better living – I prefer giving the tenants what they want. He said: “I have no other choice than to follow the politicians. He went on to say that during this year’s hot summer in Berlin tenants asked for air conditioning in their apartments, but the company felt unable to install AC units due to the controversy around renovations. While the UN report said Akelius Residential was driven by a desire to maximise profits, Akelius the person claimed the company earns less when upgrading compared to simply renting out buildings. Some people like to buy an iPhone to get extra features – the production of iPhone is not against any human rights.”Īkelius has shifted its strategy from renovating buildings to managing them after the UN communication, which was sent to the governments of Canada, Germany and the UK. “The upgrading made a better living for our friends, the tenants. You can claim to stop the renovation of roads because it disturbs but it is never against any human rights to repair. “The problem is that any renovation disturbs. All apartment upgrades were done only in an empty apartment before a new tenant arrives. “Akelius has never threatened or forced any tenant to leave a house. “That means more clients want to pay the extra fee for a better living – the basic rule for any business is to produce what the clients prefer. “The reason that Akelius renovated the apartments was that for a renovated apartment the demand was on average five times higher than for not renovated apartments. “One lady at the UN is in favour of the Cuba politics of no renovation. He added: “Akelius is an honourable, honest company. There was no follow-up between Akelius and the UN after the allegations were made. “That is not anything at all against human rights.”Īkelius Residential is based in Sweden but operates in countries including the UK, Canada and Germany, managing 44,000 rental apartments worth over £10bn. They are saying that we were against human rights because we are making a profit and we are upgrading. Roger Akelius said: “The claims were ridiculous. The firm was said to have used renovations as a means to drastically increase rents, in addition to threatening tenants with evictions to enable further renovations to take place. The UN publicly alleged that Akelius created a hostile environment for its tenants. He called claims by the UN that the firm breached international human rights “ridiculous”, while he accused human right lawyer Leilani Farha, who was the UN’s special rapporteur on adequate housing, of favouring “Cuba politics”. Roger Akelius, the founder of corporate landlord Akelius Residential, has responded to the accusations made against his company from the United Nations.
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