Own or Lease? How Your Housing Association Chooses the Right Model for a New Access System

When a housing association needs a new intercom or access system, the price is naturally a central topic. But before comparing offers, there's a more fundamental question: should the association own the system, or should it be run as a continuous service agreement?

This isn't a new question. Associations already lease elevators, washing machines, and heating control systems. But when it comes to intercoms, many still think in terms of one-time investment, because that's how it's always been. Let's look at both models.

Model 1: Ownership (CAPEX)

The association pays a one-time price for hardware and installation. The system belongs to the association. Ongoing expenses are limited to potential maintenance and support, unless a security package is purchased.

Advantages: No ongoing expenses after investment. The association owns the equipment. Suitable for associations with capital who want control.

Disadvantages: Large one-time investment typically requiring a general meeting decision. Hardware becomes obsolete over time. Warranty expires. When a new generation arrives, you start over.

A typical Ownership system for a stairwell with 20 apartments costs approx. DKK 20,000 in hardware plus installation. Over 6 years, with an expected lifespan for that period, the real annual cost is approx. DKK 3,300 plus any maintenance.

Model 2: Service Agreement (OPEX)

The association pays a fixed monthly fee covering hardware, installation, warranty, updates, and support. No upfront cost. The system is continuously upgraded, including hardware replacement when the next generation is ready.

Advantages: No one-time investment. Can be decided by the board without a general meeting (it's an operating expense, not a capital expenditure). Full warranty throughout the period. Automatic updates.

Disadvantages: Ongoing expense that commits over a period (typically 3-6 years depending on the supplier). The association does not own the equipment. Over many years, the total payment may exceed the ownership price.

A typical service agreement for the same stairwell costs approx. DKK 699/month, or approx. DKK 8,400 annually. Over 6 years, this is approx. DKK 50,000 total. More expensive than ownership in isolation, but includes warranty, replacement, updates, and support which would cost extra with ownership.

What suits your association?

The right choice depends on three things:

• Does the association have capital available, or would you rather spread the expense?
• Who on the board has the time and inclination to manage maintenance and support?
• How important is it for the system to always be updated and covered by warranty?

Suppliers like WelcomeBob offer both models, Ownership and Complete, precisely because there isn't one right answer. The important thing is that you make an informed choice based on your association's finances and needs, not on what has always been done.

Tip: Ask your supplier for a TCO (Total Cost of Ownership) calculation for both models over 6 years. Include maintenance, warranty expiration, and any replacement. This will give you a real basis for comparison.