<p>CBS - and more specifically CBS' international student housing - came under the public eye in february, when Copenhagen’s Rental Overview Committee reduced an international student's rent reduced by two thirds. CBS is appealing the ruling, and CBS Students are withholding judgment until the ruling on the appeal has fallen. This month's CBS OBSERVER has taken a closer look at the case and its possible consequences.</p>
International full degree CBS-student, Julia Engelhardt from Nürnberg in Germany, had the rent for her CBS student residence slashed by two thirds after a complaint to Københavns huslejenævn (the Copenhagen Rental Overview Committee – a municipal body assessing housing and rent issues). The ruling, which CBS has appealed, now threatens CBS’ housing guarantee for exchange students.
Both of these issues are of importance to CBS Students. On the one hand, CBS’ student organization considers reasonable rent for student housing crucial. On the other hand, so is CBS’ ability to maintain the international graduate profile that the school’s exchange program offers its students.
CBS Students await the facts and figures
At present CBS Students is holding back from going actively into the raised issues, but that isn’t due to any conflict of interests:
- In CBS Students we see it as a major problem that the ruling on the rent issue was made only on the basis of the student’s information. As we understand the situation, CBS’ side of things was never presented due to a number of administrative mishaps. So we’re waiting until CBS’ presents the full cost breakdown behind the rent charged in Hammerensgade, before we take an active stance, says Christian Kryger, CBS Students’ spokesman on the issue, and continues:
- If the full disclosure of all facts regarding the charged rent shows the same picture under the appeal as they did in Københavns huslejenævn’s initial handling of the case, CBS Students finds the rent unreasonably high in comparison to what a student should be able to pay for housing, be it nationally or internationally. If that is the case, we will actively work towards establishing reasonable conditions in CBS’ ruling bodies.
CBS has tried to solve a government problem
Christian Kryger is of the opinion that if Københavns huslejenævn truly believes it possible to purchase and run apartment houses in Copenhagen and rent out student accommodation at the price ruled by the committee, then it should be realistically possible to purchase them at a price where the income from the rent makes it viable to purchase and run them. If not the committee has a problem.
As things stand, CBS has a problem. The issue is threatening CBS’ international student exchange program and the schools efforts to be and remain a competitive international business school.
- This shouldn’t be CBS’ problem. CBS has ventured into the student housing market in order to solve something that is the Danish government’s problem. The internationalization of Denmark’s university educations is paramount in the government’s globalization strategy, and the ability to provide student housing is essential for that, Christian Kryger points out.
CBS Students is of the firm opinion that maintaining CBS as a strongly internationally oriented profiled university with a broad and attractive student exchange program is essential for CBS’ students – but not at any price:
- That does not mean that CBS should move out of its core competencies, research and education, and become an actor on the housing market – and we will definitely not allow resources that should go to CBS’ research and study programs to be channeled off in order to subsidize student housing, says Christian Kryger.
The possible consequences are considerable
Setteled or not, the rent issue has already begun to have a deep impact on CBS’ ability to help international students with housing on a non-profit basis in the future. CBS has already relinquished the school’s lease on the student housing on Svanevej on Nørrebro in order to reduce costs, University Director Peter Pietras tells CBS OBSERVER.
- We have to take into account that we risk fewer of our students wanting to live in our student housing facilities after this matter. But we were never put into this world to rent out rooms, and nobody demands it of us. So we have to cut down our engagement in the less popular locations, states Peter Pietras, who would, however, be vexed if CBS was forced to completely stop offering student housing.
- It will harm our internationalization efforts. Among other things we will be unable to uphold the present number of exchange agreements if we can’t guarantee housing, explains the University Director, who willingly acknowledges that it is not inexpensive to rent rooms from CBS.
- It’s expensive, and maybe even a bit too expensive. So I have initiated an analysis to see if we can do it any cheaper. But I want to stress that CBS’ rents out its student accommodation totally nonprofit, and we find it very unpleasant to be portrayed as profiteers fleecing our students, when all we’re doing is trying to help, Peter Pietras says.
Looking at rent subsidies
One of the possibilities being looked at now is whether or not CBS – within the legal framework – can directly subsidize its rents so they can be lowered. That will, however, necessitate a considerable reduction in the available number of dorm rooms, if the cost of this is to be within CBS’ financial reach and the rent reductions for the students are to be of any note.
- So far we have refrained from subsidizing our student accommodation because we as a matter of principle will not channel research and education funds into doing so. And we will not under any circumstances be able to lower rents to the level ruled by Københavns huslejenævn, stresses Peter Pietras.
The student housing issue has had another unfortunate consequence, as CBS’ Corporate Partners, whose contributions to the school have gone towards financing the housing fund for international students and guest researchers at CBS, have begun reacting to the negative media.
- We have already had two of our Corporate Partners informing us that they will not support something that subsequently is portrayed as if we’re exploiting students economically, Peter Pietras explains.
The final decisions about how things will turn out await the results of CBS’ appeal of Københavns huslejenævns ruling. If necessary, CBS is ready to go on from the municipal appeal committee to the Housing Court and further.
The final decisions about how CBS’ Programme Administration is to ensure the best possible Student Services in the future are just about ready to be presented. Two things were already settled...
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