Social rental management: a solidarity practice that has the wind in its sails!
In a context of real estate crisis and market tension, renting a house or apartment in Luxembourg can quickly turn into a real obstacle course, especially for households with small budgets. The concept of social rental management, which aims to promote sustainable access to housing for low-income households while reducing the number of unoccupied properties, then makes perfect sense. Explanations.
An idea born of a simple observation
On the flip side, a housing shortage in the Grand Duchy and the impossibility for a population with low incomes or in precarious situations to access an increasingly expensive real estate market, particularly in the capital and its periphery, and prices experienced in Q3 2017 a new outbreak.
On the other side, many properties remained vacant and uninhabited for an extended period of time, following, for example, the entry into a retirement home of a relative or the transmission of a family inheritance. The current data thus indicate 10,000 to 20,000 unoccupied dwellings in the territory, ie, so many "ghost" goods that never reach the market.
In order to solve these cross-cutting issues, the State set up a dedicated instrument in 2009: social rental management.
A proven concept
Intended to fight against poverty and exclusion while stimulating social mix, the device is intended for foundations or non-profit associations whose purpose is the promotion of housing, municipalities, trade unions or social offices .
These organizations can sign a collaboration agreement with the Ministry of Housing to rent property owned by private owners who make it available to people looking for housing. The complete management is ensured by the partner structure.
Promising, the device demonstrates day after day its effectiveness. The proof by the numbers: between the end of 2016 and last February, the number of properties leased by owners to industry players increased by more than 40%.
Benefits for both parties
As a win-win solution, social rental management offers many economic, tax and social benefits, both for rental applicants and for homeowners who can benefit from attractive counterparties.
For tenants:
> Access to a home adapted to the composition of the household and at an affordable price: rents are lower on the contracted market than on the private market, between 30 and 40% below the usual prices;
> The possibility of benefiting from social support within a global inclusion project.
For owners and landlords:
> The guarantee of the payment of a regular rent, including in case of non-occupancy;
> The control and maintenance of the dwelling by technical support, including minor renovations before the first occupancy and the completion of the current rental repairs;
> Important tax benefits: a 50% exemption on the net rental income generated (since fiscal year 2017);
> The assurance of giving meaning to one's heritage by contributing to a strong act of solidarity.
In addition, the property remains available at any time in case of personal need, the organization having the possibility to relocate the occupants within a short period of a few months.
Posted on October 16, 2018.