What are the pros and cons of TBS flats?

People who cannot currently afford to buy their own flat often consider renting a TBS property. This option allows long-term rental of a property of an attractive standard at an affordable price. What other pros and cons does such a rental have? Find out in this article.

TBS properties (social rental housing) are intended for people who cannot afford to buy a home of their own, but at the same time earn too much to apply for a municipal flat. This type of property is rented for a maximum of 10 years. You also have to pay a refundable deposit of at least 6 months' rent.

Opting for TBS housing has both drawbacks and advantages. Below we present the most important ones.

Low cost

Compared with buying a property of your own, the investment in a TBS flat is much lower. It differs from a traditional rental only in that the future tenant will be required to pay a refundable deposit equal to 6 months' rent. This is definitely less than the down payment required for a mortgage.

Few formalities

Taking care of all the necessary formalities to rent a TBS flat is not too burdensome either. The building's administration helps with the whole procedure. There are certainly fewer formalities than when we decide to buy a property of our own.

High living comfort

TBS buildings offer very comfortable, modern, well-equipped turnkey flats. They are finished to an attractive standard, which is not always a given when renting a flat from a private landlord or buying a property on the secondary market. To move into this kind of flat, all we will need is our own furniture.

Long-term rental

A TBS flat is also an attractive solution for people looking for stability. Rental agreements are signed for a period of 10 years, which guarantees that during that time we will not have to move anywhere.

No possibility of buying the flat

The main drawback of TBS housing is that you cannot buy the flat. When the agreement expires, you have to move out. The only option then is to switch to a different flat.

Poor location of flats

Although this has been changing recently, until not long ago TBS flats were built in rather unattractive locations, e.g. on the outskirts of the city, as well as in districts with no access to green areas or where the buildings stand next to busy streets.

High rent

Rents in TBS properties are generally higher than the service charge on a flat bought outright or the rent on a flat rented from a private landlord. This is because the amount also covers the repayment of the loan taken out to build the property.

It is also worth noting that the rent may change to the tenant's disadvantage over time.

Now that you know the pros and cons of TBS flats, it will certainly be easier for you to decide whether to live in this type of property.