Opting for social rental management

Last update 27.04.2022

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, through the use of empty housing;
  • for social actors looking for housing at decent prices for their clients.

Who is concerned

Any private owner of a dwelling located in Luxembourg who is looking for an occupant for their property can contact an organisation that has signed a contract with the Ministry of Housing for social rental management.

These organisations may be:

  • communes;
  • associations of communes;
  • social welfare offices;
  • foundations;
  • non-profit organisations;
  • societal impact companies whose corporate purpose is the promotion of housing;
  • promoters.

Once such an organisation has signed an agreement for social rental management with the Ministry of Housing, it can rent out housing from 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 through financial support from the Ministry of Family Affairs, Integration and the Greater Region to the contracted organisations.

How to proceed

Organisations under contract for social rental management

The 37 partners currently under contract for social rental management are:

  • Fondation pour l’accès au logement (FAL)
  • Fondation Caritas / Caritas Jeunes et Familles / Caritas Accueil et Solidarité
  • Luxembourg Red Cross
  • Fondation Jugend- an Drogenhëllef
  • Stëmm vun der Strooss ASBL
  • Wunnéngshëllef ASBL
  • Fondation Maison de la porte ouverte (FMPO)
  • Télos Éducation ASBL
  • Comité national de défense sociale ASBL (CNDS)
  • LIFE ASBL
  • Fondation Pro Familia
  • Habitat et Humanisme Luxembourg ASBL
  • Wunnzierkel ASBL
  • Inter-Actions
  • Société nationale des habitations à bon marché (SNHBM)
  • Arcus ASBL
  • Fonds du logement
  • Femmes en détresse
  • Solina Solidarité Jeunes
  • Luxitania ASBL
  • Coopérations SIS
  • Liewen Dobaussen ASBL
  • Social Housing Optimisation Services ASBL (SHOS)
  • Syndicat intercommunal Kordall (SIKOR)
  • Ville de Diekirch
  • Office social Nordstad
  • Office social commun de Bettembourg, Frisange et Roeser
  • Syndicat intercommunal "De Réidener Kanton"
  • Office social de Dudelange
  • Office social de Mersch
  • Office social de Wiltz
  • Ville d’Esch-sur-Alzette
  • Cohabit’Age ASBL
  • Office social Resonord
  • Office social de Remich
  • Office social Centrest
  • Administration communale de Steinsel

Operation of a rental agreement through social rental management

The owner of the property must contact one of the contracted organisations indicated above. The owner offers to rent below market prices while offering a series of interesting advantages in return.

If an agreement is reached, the owner signs a rental contract directly with the organisation under contract, not with the future occupant. It is the organisation that selects an occupant 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 regularly following up on the occupant and will also make sure minor maintenance work is carried out.

The rent is lower than private market prices 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 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 rental management for property owners

Renting out one's unoccupied property through a contracted organisation brings several advantages to the owner:

  • guaranteed rent: the payment of the rent is guaranteed without fail, every month, even if the property is not occupied;
  • tax exemption: the owner benefits from a tax exemption of 50 % 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: 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 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 contracted partners

 

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

The 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).

Who to contact

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