What are TBS flats
Text from 2022. Laws, rates and prices may have changed since then. Ask an agent
When searching for a flat to rent or buy, you can often come across listings promoting TBS properties. What are they and are they worth considering? We present more details on this subject in the article.
TBS flats, otherwise known as social rental properties, are built by Social Housing Associations (Towarzystwa Budownictwa Społecznego), hence the abbreviation TBS. These are usually private and state-owned companies and non-profit cooperatives. The money for carrying out these investments comes from the National Housing Fund (Krajowy Fundusz Mieszkaniowy). The building plots, in turn, belong to local authorities.
At the outset it should be noted that TBS flats are for rent only; they cannot be bought. The Social Housing Association itself is responsible for repairs, modernisation and administration of the buildings and for the process of letting the flats.
Who can live in TBS flats?
Living in a TBS flat sounds appealing, but not everyone qualifies for such a tenancy. The main condition deciding whether someone can rent this kind of property is an income threshold. Income must be high enough that the person cannot apply for a municipal flat, and at the same time low enough that buying a property of their own is also beyond their reach.
On the websites of the TBS associations available in specific voivodeships and cities, you can check the current maximum income level. It is calculated on the basis of the number of people in the household. The final amount also depends on whether the tenant has paid the participation fee or not.
The general calculation of the income level assumes that it may not exceed 1.3 times the average monthly wage in the given voivodeship, increased by a specific percentage that varies with the number of people in the household.
It is worth noting that material assistance benefits, scholarships, one-off allowances, housing allowances and welfare benefits are not counted as income.
Besides income, a person applying to rent a flat in a TBS must have a permanent place of residence within the municipality (gmina) where the property they are interested in is located. They must also not own another flat, and they must have permanent employment, with the place of work located within that municipality.
The cost of a TBS flat
The cost of a TBS flat consists of the participation assignment and the rent. The participation assignment can be compared to a deposit and amounts to 10 to 30% of the cost of building the flat. It is important to note that this sum is returned to the tenant when the agreement expires.
The rent, in turn, includes all administrative charges and the costs of maintaining and running the building. Moreover, this amount may not exceed 4% of the unit's replacement value per year.
That is how TBS flats work from a formal point of view. What are the advantages and disadvantages of this kind of flat? You will find out in the next article.
