Budapest Enters the Rental Market, Offering Apartments at 30 Percent Below Market Rates
Budapest's city government has developed a new concept aiming to make rentals more affordable in the capital, as reported by 24.hu.
According to Vera Kovács, the head of the newly established Metropolitan Housing Agency, the agency launched in mid-March with a property management package. Their goal is to lease as many vacant properties from owners for utilization purposes.
The agency will take over all responsibilities and guarantees the maintenance of the properties in exchange for the owner receiving a rental income lower than the market rate. Initially, those who have already submitted their applications to the city, such as civil servants applying for service housing, employees of municipal companies, or those requesting housing on compassionate grounds, will benefit from these cheaper rentals.
Applicants will be screened for need and financial capability. According to Kovács, the rental prices of the housing agency’s apartments will be about 30 percent cheaper than the market rates.
The reduction in revenue for owners is not as significant as it might seem they will receive 15 percent less in hand (the remaining 15 percent is covered by the housing agency). For renters, this means they could rent an apartment valued at 200 thousand forints for 60 thousand forints less. The rental prices are determined by appraisers.
The city is currently awaiting applications from property owners. According to previous calculations by the Hungarian Central Statistical Office (KSH), there could be around 160,000 vacant properties in Budapest.
The agency will take over all responsibilities and guarantees the maintenance of the properties in exchange for the owner receiving a rental income lower than the market rate. Initially, those who have already submitted their applications to the city, such as civil servants applying for service housing, employees of municipal companies, or those requesting housing on compassionate grounds, will benefit from these cheaper rentals.
Applicants will be screened for need and financial capability. According to Kovács, the rental prices of the housing agency’s apartments will be about 30 percent cheaper than the market rates.
The reduction in revenue for owners is not as significant as it might seem they will receive 15 percent less in hand (the remaining 15 percent is covered by the housing agency). For renters, this means they could rent an apartment valued at 200 thousand forints for 60 thousand forints less. The rental prices are determined by appraisers.
The city is currently awaiting applications from property owners. According to previous calculations by the Hungarian Central Statistical Office (KSH), there could be around 160,000 vacant properties in Budapest.
Translation:
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