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The Rental Program for Subleasing starts with 320 available rental agreements.

The Rental Program for Subleasing starts with 320 available rental agreements.

The Rental Program for Subleasing starts with 320 available rental agreements.

The government presented today the "Rent for Gifted Rent" program, which puts various properties from state and private organizations on the market for affordable housing, including through partnerships with realtors.

The program, sponsored by the Institute of Housing and Urban Development (IHRU) in partnership with the state company ESTAMO, is designed for renting a set of properties and subsequently subletting them to families at affordable prices. Priority for the allocation of these housing units is given to single-parent families, young people under 35, or anyone who has experienced a reduction in income of more than 20%.

Today, the first protocols were signed, which will allow for the conclusion and execution of 320 rental agreements for affordable housing currently available on the market for subleasing at affordable prices.

The "Rental for Gifted Rental" program is one of the measures included in the "More Housing" package aimed at increasing the number of residential buildings in the rental housing market with government guarantees, as IHRU pays the monthly rent to the landlord and also maintains housing conditions. There are tax benefits (full exemption from personal or corporate income tax) associated with these contracts, provided that the rent does not exceed the overall price limits depending on the type and municipality where the property is located.

The rules for the rental regime for subletting are part of the "More Housing" package and are as follows:

How does this work?

The government offers voluntary rental of real estate to private individuals - vacant and ready-to-live-in houses. These houses are then subleased to families with a maximum financial burden of 35%.

Who rents houses?

Houses are rented out by the Institute of Housing and Urban Development (IHRU), which guarantees timely payment of rent and, when the contract ends, the return of the houses in the same condition they were received.

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ESTAMO, a state property management company, will partner with IHRU to identify properties on the market that meet the requirements, continuously collaborating with realtors, government agencies, municipalities, and district administrations, and will be responsible for conducting technical inspections to determine living conditions.

How is the rent that IHRU has to pay determined?

IHRU and the landlord freely determine the rental price, up to a limit of 30% above the overall rental limits for the type and municipality of the property location, as specified in Regulation No. 176/2019 of June 6.

How long does this contract between the government and the landlord last?

Typically, these contracts have a duration of five years and cannot have a term of less than three years.

The government pays rent to the landlord. But how much do the tenants pay?

Residents pay an amount set by IHRU, which should correspond to a maximum financial burden of 35% of the average monthly income of the housing unit.

How are these houses distributed?

Through a draw conducted by IHRU.

Who has priority?

The priority categories defined by IHRU include young people under 35, single-parent families, and families with a decrease in income of more than 20% compared to their income from the previous three months or the same period a year earlier.

Who can apply?

  • Households with one person whose maximum annual gross income does not exceed the 6th income tax rate.
  • Households of two people whose maximum annual gross income does not exceed the 6th income tax rate increased by 10,000.00 euros;
  • Households of more than two people whose maximum annual gross income does not exceed the sixth income tax rate increased by 10,000.00 euros, and by 5,000.00 euros for each additional person.

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