houses

Within the week, the platform for the “Renovate – Rent” program is expected to open, which will motivate thousands of owners to open their closed houses.

Those who apply and join the program they will receive a subsidy of up to 4,000 euros to renovate a closed house of up to 100 m2, which they will then have to rent for a period of at least three years.

It is estimated that approximately 12,500 homes, which have been closed in the last three yearswill be renovated to be immediately available on the long-term rental market, which is being tested by the lack of available properties and high rents.

The program covers 40% of the total amount of the renovation with a maximum expenditure limit of 10,000 euros and a maximum subsidy limit of 4,000 euros. Those who join are obliged to complete the renovation within 6 monthsto submit electronically all the invoices for the renovation works as well as the electronic lease of the house.

Property owners who do not comply with the terms of the program will be asked to return to the state the subsidy money they received for the renovation of their residence.

Criteria and costs

As defined in the Joint Ministerial Decision:

Criteria

Owners or beneficiaries of real estate for a residence participate in the “Renovate to Rent” program if:

• Have the ownership or usufruct of the property by a percentage equal to or greater than 50%,
• The property is a residence, apartment or detached house with an area of ​​up to 100 sq.m. and is located in a residential area
• They have an annual family taxable income, real or presumed, that does not exceed 40,000 euros and have real estate, the total value of which does not exceed 300,000 euros.
• The property has not been declared as a first residence, has not been declared as rented and is declared as vacant on the E2 form accompanying the income tax return of the last three years
• Beneficiaries have not received a subsidy for an energy saving or renovation program in a property they own in the last five years (from January 1, 2019 onwards) and have not joined subsidized energy saving programs for any of their properties.

Expenses

Those who join the “Renovate and Rent” program are subsidized for repair and renovation costs on their property, amounting to up to 10,000 euros, which include the required materials and work.

Eligible expenses under the Program are defined as:

• Expenses for renovation and repair work of the eligible property (renovation of bathrooms, sanitary ware or kitchen areas, replacement of entrance door and internal doors, replacement or repair of wardrobes, replacement of floors, replacement or repair of electrical and plumbing installations, replacement or repair of structural elements, coatings , tiles, colors).
• Expenditures for the purchase of products and materials
• Expenses for any required insurance contributions for the renovation and repair building works
• Expenses of engineer services for any issuance of permits/approvals or preparation of studies (in the context of issuance of permits/approvals) or issuance of Energy Performance Certificates (EPCs). The maximum eligible expenditure is set up to 700 euros.

Subsidy

The subsidy amounts to 40% of the incurred expenses, i.e. up to 4,000 euros and is granted under the following conditions, which must be cumulative:

• the relevant invoices are paid electronically,
• after the renovation, they proceed to lease the property with a duration of at least three years.

Subsidy advance

Part of the subsidy can be paid in advance, reports ot.gr. This advance cannot exceed 50% of the total subsidy granted to each beneficiary, i.e. up to 2,000 euros.

Application

To submit the participation application, the interested party enters a special platform and selects the A.T.AK. of the property for which he is applying for inclusion in the Program, and completes the budgeted amount of the total renovation cost.

Receipt and control of expenses

Payments for the eligible costs must be completed within 6 months from the date of issuance of the approval decision, otherwise the approval decision is revoked, the advance amount is sought as unduly paid and no new approval decision can be issued for the same property and the same beneficiary. An extension of the 6-month period is not possible.

Property Lease

After making the payments of the eligible costs, the beneficiary is obliged to rent out the eligible property for a period of 3 years, by submitting the lease declaration on the AADE platform within 9 months from the issuance of the approval decision. The property cannot be leased to legal entities, while at the same time, it is not possible to sublease or grant the use of the property.

Subsidy payment

After verification, the amount of the subsidy is paid to the IVAN account declared by the beneficiary.