Social lease management (gestion locative sociale - GLS) consists in a registered organisation renting a dwelling from private owners, at a rent which is below the going rate on the private market in order to make the place available to a specific client base (candidate tenant in a precarious situation, low-income households, etc.), for the purpose of combating social exclusion through housing.
There are several advantages for property owners who make available their property to social lease management organisations, such as:
- rental mediation between owners and candidate tenants;
- rent payment guarantees;
- the management of the dwelling.
Who is concerned
Foundations, non-profit associations and societal impact companies whose business purpose is the promotion of housing can sign a collaboration agreement with the Ministry of Housing.
Once the agreement is signed, the registered organisation can proceed with the renting of dwellings from private property owners in order to make the dwellings available to persons having difficulties in finding accommodation.
Each owner of property in Luxembourg who is looking for a tenant for their place can contact one of the registered organisations.
The occupant of the property must be recommended through a case file established by a social services agency.
How to proceed
Registered organisations qualifying for social lease management
The registered organisations for social lease management are:
- Cohabit'Age asbl;
- Croix-Rouge Luxembourgeoise;
- Comité nationale de défense sociale asbl (CNDS);
- Fondation Accès au Logement;
- Fondation Jugend- an Drogenhëllef;
- Fondation Maison de la porte ouverte (FMPO);
- Fondation Pro Familia;
- Habitat et Humanisme Luxembourg asbl;
- Life asbl;
- Office social Bettembourg, Frisange et Roeser;
- Office social canton Remich;
- Office social Dudelange;
- Office social Mersch;
- Office social Nordstad;
- Office social Wooltz;
- Stëmm vun der Strooss;
- Syndicat intercommunal "Réidener Kanton";
- dans un souci de lutte contre l'exclusion sociale par le logement.
- Ville de Diekirch;
- Ville d’Esch sur Alzette;
- Wunnzierkel asbl.
Operation of a lease agreement through social lease management
The owner of the property must contact one of the registered organisations indicated above.
In the event of agreement, the owner concludes the lease agreement with the registered partner directly, and not with the occupant. This guarantees that the rent is paid monthly on a regular basis, even if the unit is not occupied.
The amount of rent is below the prices on the private market and is determined 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 agreement, the registered organisation will make the inventory of the premises and hence guarantee to the owner that the property is returned in the state it was rented out.
Advantages of social lease management for property owners
The lease of property to a registered organisation has several advantages for the owners:
- guaranteed rental payments: the payment of rent is guaranteed each month, even if the place is not occupied;
- tax exemption: the owner is granted a 50 % tax exemption on the net rental income, which substantially compensates the fact of renting the property 30 to 40 % below private market prices;
- 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: the property remains available to the owner and their family. In the case of need for personal reasons, the dwelling can be quickly returned to the owner's personal use. The occupants of the dwelling will be re-housed by the registered organisation;
- maintenance of the property: the registered partners have technical teams that will inspect the dwelling and carry out smaller maintenance work on a regular basis. In certain cases, the dwelling may undergo housing rehabilitation prior to the first occupation.
Advantages of the social lease management for tenants
The advantages for tenants are the following:
- growth of the affordable rental stock: nearly 1,000 previously empty units have been mobilised for people looking for housing below the private market price;
- temporary emergency solution: as many families temporarily in financial difficulty can stabilise their situation thanks to affordable rent;
- social support: families are supported by a team of professionals in their personal project in order to access the primary housing market.