Opting for social lease management

Last update 11.12.2018

Social lease management 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.).

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:

  • Agence Immobilière Sociale (AIS);
  • Fondation Caritas;
  • Caritas - Accueil et Solidarité asbl;
  • Caritas - Jeunes et Familles asbl;
  • Croix-Rouge Luxembourgeoise;
  • Comité nationale de défense sociale asbl (CNDS);
  • Fondation Jugend- an Drogenhëllef;
  • Fondation Maison de la porte ouvert (FMPO);
  • Fondation Pro Familia;
  • Habitat et Humanisme Luxembourg Asbl;
  • Life asbl;
  • Office social commun de Bettembourg, Frisange et Roeser;
  • Office social Dudelange;
  • Office social Mersch;
  • Office social Nordstad;
  • Stëmm vun der Strooss asbl;
  • Syndicat intercommunal "De Réidener Kanton";
  • Syndicat intercommunal Kordall (SIKOR);
  • Ville de Diekirch;
  • Ville d’Esch sur Alzette;
  • Wunnéngshëllef 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 place 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 rental income, which substantially compensates the fact of renting 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.

Who to contact

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