Why companies should invest in social housing


In France, investing in social housing allows landlords to rent a property to precarious people with low incomes in exchange for a low rent. Social landlords have various types of aid and subsidies available for this.

The management of social property is the responsibility of state bodies and public authorities, known as social landlords. Private landlords can also rent unoccupied housing as social housing. Private investment in social housing interests the French State in order to meet the demand for social housing. For private investors, investing in social housing has several advantages such as profitability, tax exemption and support for low-income families in the country.

To find a property suitable for social housing, it is sometimes useful to consult rental search sites. In this sense, the Rentola site offers housing advertisements including all the details necessary to determine whether a dwelling is suitable for social tenancy. On this site, a landlord can study characteristics such as the surface area of ​​the accommodation or its location on an online map.

Social landlord: definition

According to the law of 1989 aimed at improving rental relations, social landlords are owners of real estate which rents them to modest categories of the population against a moderate rent. Social landlords are then responsible for the acquisition, construction, renovation and rental management of social housing. Their contribution is an aid to the general interest, to the State and to communities. Indeed, they provide a service to respond to social issues.

In exchange for these services, social landlords receive subsidies and tax assistance such as reduced VAT during construction and renovation work or loans at reduced rates. The main advantage for buyers and tenants is that the prices of these dwellings are below those of the market.

Finally, a social landlord cannot give notice to social tenants who have a right to remain in the premises.

Conditions of access to social housing

To access social housing, French tenants or tenants with a residence permit must meet certain conditions. On the one hand, they must indicate in their application all the people who will occupy the social housing. On the other hand, they must respect the maximum income ceiling established according to the composition of the members of the household as well as the location of the accommodation and the type of accommodation.

For the application for social housing, potential tenants will have to compile a file indicating their income corresponding to the tax income of year n-2.

The PLS or Social Rental Loan system

The Social Rental Loan system (PLS) is one of the advantages available to investors. The PLS thus allows the investor to proceed with the acquisition of a new dwelling with a view to renting it. Granted by the Caisse des dépôts et consignations (CDC), the PLS offers tax benefits for investors with plans to purchase, build or rehabilitate real estate for social use.

The two tax benefits for investors are a reduction in VAT to 5.5% instead of 20% and exemption from property tax on housing acquired over a period of 25 years.

The different types of social housing approved by the State

Social housing under agreement is real estate whose owner participates in an agreement with the State. In order to be able to benefit from tax advantages and aid, the lessor undertakes to rent his property by respecting certain conditions such as a 6 or 9-year lease, the capping of rents and the rental to low-income tenants. .

There are three types of social housing approved by the State:

  • Social housing at intermediate rent: this type of housing is intended for families belonging to the middle classes whose income does not allow them to obtain social housing.
  • Social housing approved for social rent: these are intended for people wishing to become the owner of social property rented out. These people therefore respect the social rent ceiling.
  • Social housing approved for very social rent: these are intended for people wishing to become the owner of social property that is rented out. These people therefore respect the very social rent ceiling.

Two types of agreements exist for social housing:

  • The APL approved housing system: also called CAF approved housing, this system allows the owner to sign an agreement with the prefect of the department. In this case, the State contributes partially to the rent by paying the Personalized Housing Assistance directly to the lessor. The tenant is responsible for the payment of the remaining balance.
  • Housing under agreement with the ANAH: in this case, via an agreement between the lessor and the National Agency for Housing (ANAH), the owner obtains a tax deduction for his property income. The percentage of the tax allowance depends on the type of agreement established with the ANAH.

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