A boligforening is an association which, according to the Danish dictionary, “owns housing and rents its apartments out to its members”. So while you’d probably translate the word to “housing association” in English, what a boligforening does and its role in the Danish housing landscape takes a bit more explanation.
It is important to note the difference between the two main types of rental housing in Denmark: private rentals and almene boliger (literally, ‘general housing’), a form of subsidised housing.
For almene boliger, local municipalities put up 10 percent of building costs and in return have the right to decide who is allocated one in four available apartments, enabling them to provide housing to municipal residents who need it. The housing therefore plays a role in the social housing provision.
This type of housing is normally managed by a boligforening or housing association. Rent goes towards costs of running the housing and to pay off the housing association’s loans, which means property owners aren’t profiting from rents and prices are controlled.
Aside from housing assigned by the municipality, almene boliger are open for anyone. However, to get one, you must get to the top of a waiting list, which you join by signing up with associations (hence the stipulation of “members” in the dictionary definition) which operate housing in the city where you live (or want to live).
In Copenhagen or Aarhus, it can take years to get to the top of these lists, while in smaller cities you might get an offer in weeks or even days.
As such, newcomers to Denmark must often turn to the private rental market if they are living in one of the main cities.
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People who live in almene boliger can apply to the local municipality for a special loan to pay their deposit when moving in. The deposit is likely to be a significant cost because deposits can be as much as three months’ rent.
Additionally, rental contracts can stipulate up to three months of rent upfront, meaning you can be faced with paying eye-watering costs equivalent to six months of rent before even getting the keys to your flat.
The interest on the loan is very low and it is usually only paid back when you are returned your deposit (or what’s left of it) after moving out.
READ ALSO:
- Five key things to know about renting in Denmark
- Five essential words you need when renting a home in Denmark
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