Opting for social rental management

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Summary:

Social rental management is provided by approved organisations. Its aim is to provide affordable housing for low-income households.  

Social rental management (gestion locative sociale - GLS) has 2 main objectives:

  • to offer low-income households housing at affordable prices; and
  • to make use of unoccupied housing in Luxembourg.

Social rental management has several advantages:

  • for the owners who can make their property available under secure conditions;
  • for families in difficulty, who are offered affordable housing;
  • for the communes, by putting empty housing to use;
  • for social actors looking for housing at decent prices for their clients.

Who is concerned

Any private owner of a property located in Luxembourg who is looking for an occupant for their property can contact an organisation approved by the Ministry for Housing and Spatial Planning for social rental management.

These organisations may be:

  • communes;
  • associations of communes;
  • social welfare offices;
  • foundations;
  • non-profit associations;
  • societal impact companies whose corporate purpose is to promote housing;
  • public property developers.

These bodies sign a cooperation agreement with the Ministry of Housing and Spatial Planning. They can then rent out properties belonging to private owners to people having difficulties finding appropriate housing (often low-income households).

These GLS organisations also provide support for people in difficulty in order to increase their chances of being able to return to non-subsidised housing if necessary. This social support for tenants is implemented thanks to financial support from the Ministry of Family Affairs, Solidarity, Living Together and Reception of Refugees.

How to proceed

Approved partner organisations under contract for social rental management

The 35 partners currently under contract for social rental management are:

  • Administration Communale d’Esch-sur-Alzette
  • Administration Communale de Diekirch
  • Administration Communale de Mondorf
  • Arcus Kanner Jugend a Famill ASBL
  • Cohabitage ASBL
  • Comité national de défense sociale ASBL (CNDS)
  • Coopérations SIS
  • Luxembourg Red Cross
  • Femmes en détresse ASBL
  • Fondation Caritas Luxembourg Accueil et Solidarité ASBL
  • Fondation Jugend- an Drogenhëllef
  • Fondation Maison de la porte ouverte (FMPO)
  • Fondation pour l’accès au logement (FAL)
  • Fondation Pro Familia
  • Gutt wunnen ASBL
  • Habitat et Humanisme Luxembourg ASBL
  • Inter-Actions
  • Liewen Dobaussen ASBL
  • Life ASBL
  • Luxitania ASBL
  • Office social commun de Bettembourg, Frisange et Roeser
  • Office social du Centre-Est
  • Office social Dudelange
  • Office social Mamer
  • Office social NORDSTAD
  • Office social Resonord
  • Office social Schifflange
  • Office social Wiltz
  • Solina Solidarité Jeunes ASBL
  • Stëmm vun der Strooss ASBL
  • Syndicat intercommunal 'De Réidener Kanton'
  • Syndicat intercommunal Kordall (SIKOR)
  • Télos éducation ASBL
  • Wunnéngshëllef ASBL
  • Wunnzierkel ASBL

Operation of a rental agreement through social rental management  

As the owner of a property you wish to rent out, you can contact one of the organisations listed above. In return for a rent well below market rates, you benefit from a number of advantages.

You sign a rental contract directly with the partner organisation under contract, rather than with the tenant. The organisation then selects a tenant according to the criteria of its social objective.

This procedure guarantees the regular monthly payment of the rent, even in the event of non-occupation.

The contracted organisation is responsible for monitoring the tenant and carrying out minor maintenance work on the rented property.

The rent is lower than that charged on the private market, and is set on a case-by-case basis.

The occupant of the property must be recommended through a case file established by a social services agency. The occupant will be assisted by a team of welfare professionals, who will accompany them throughout the duration of the lease agreement and who will assist whenever required.

At the end of the lease, the approved partner organisation will draw up an inventory of fixtures and fittings, guaranteeing that your property will be returned to you in the same condition it was in when you rented it out.

Advantages of social rental management for property owners

There are several advantages to letting your unoccupied property through an approved organisation:

  • guaranteed rent: the payment of the rent is guaranteed without fail, every month, even if the property is not occupied;
  • tax exemption: you benefit from a 75% tax exemption on net rental income;
  • assistance to the occupant: the tenant of the premises is assisted by a team of professionals from social services who will assist each time they are needed;
  • availability of the dwelling: in the event of personal need (for yourself or your family), the property can be recovered quickly. The occupants of the dwelling will be re-housed by the approved organisation;
  • maintenance of the property: the approved partners have technical teams that will inspect the dwelling and carry out smaller maintenance work on a regular basis. In some cases, the property may need to be refurbished before it is occupied for the first time.

Advantages of social rental management for tenants

The social rental management system allows families on low incomes to:

  • benefit from support from professional teams in their personal project;
  • stabilise their situation thanks to an affordable rent.

Advantages of social rental management for approved partner organisations

The partner organisations receive a financial contribution from the Ministry of Housing and Spatial Planning of EUR 120 per month per dwelling to cover the management and maintenance costs directly related to the dwellings.

Communes receive an additional financial benefit: a budgetary allocation of EUR 2,500 is provided for each dwelling managed under the social rental management scheme (GLS) on the territory of the commune.

Who to contact

2 of 3 bodies shown

Related procedures and links

Procedures

Links

Further information

Legal references

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