Renting in Luxembourg, the lease contract

Whatever your situation, you will find in this section all you need to know to rent serenely and in the best conditions in Luxembourg.

Searching for a rental property, rental advice, insurance required to rent a property, administrative procedures and steps to take as a new tenant, legal obligations as a tenant or landlord, … we tell you everything about renting a property in Luxembourg.

Tight rental market for prospective tenants

In Luxembourg, the real estate market is dominated by owners. They are the ones who create the market.

The offers are limited and the demands are very important. As you can see, there are few signs on houses and apartments indicating that they are for rent. Indeed, the rentals at the right price and in good condition leave very quickly. And it is not uncommon to see an apartment being rented from the first visits.

The regulatory framework for rentals is fairly light and the government wants to regulate the rental market. New rental legislation is being discussed but has yet to come to fruition. Even today, landlords can request that the lease agreement be made more or less according to their wishes, within the regulatory framework of course.

The real estate agencies have models of rental leases that meet the various requirements. Rental professionals will be the best companions for real estate rental candidates.

Learn more about the real estate market in Luxembourg

Using intermediaries to rent a home without worrying

Real estate agencies, relocation agencies and real estate portals are the best way to find a home in Luxembourg today.

All homes for rent on Luxembourg real estate portals

To find a rental property, consult the various real estate portals in Luxembourg. They offer a wide choice of properties for rent throughout Luxembourg and even beyond, in the Greater Region.

You can register real estate alerts so you don’t miss out on the home of your dreams. You determine your criteria (location, number of rooms, maximum rent, …) and register your request.

However, it is important to know that due to the state of the market, housing is often rented off-market, notably by word-of-mouth. So put all the chances on your side by consulting real estate agencies or even relocation agencies.

A wide selection of properties for rent from real estate agencies

To have access to the available rentals in Luxembourg, make yourself known to the real estate agencies.

Real estate agencies have a wide selection of properties for rent in Luxembourg. They will help you find a home that matches your criteria and will offer you several visits.

The real estate agency will support you in all the steps to successfully rent the selected property. Indeed, they also take care of the drafting of the rental contract with the owner or lease. They will also organize the inventory of fixtures on arrival and departure, which we advise you to do absolutely.

Are you a landlord looking to rent a studio, apartment or house? We also advise you to go through a real estate agency. This one will organize the visits and will carry out all the administrative steps of type inventory of fixtures, contract of lease,. Moreover, this service remains free for the owners. Indeed, it is generally the tenant who pays the expenses of the rent to the real estate agency.

Rental fees

The real estate agency fees are the responsibility of the tenant. These usually amount to the equivalent of one month’s rent (or more depending on the agency), plus the applicable VAT. The inventory of fixtures is normally included in the agency fees.

A security deposit will also be requested by the owner when signing the lease contract. This deposit guarantees the good condition of the property and the payment of the instalments during the whole rental period. The amount requested for the security deposit is generally equivalent to 3 months of rent. This amount can be negotiated with the homeowner.

The relocation agencies, the professionals of the renting and the installation in Luxembourg

For your search for a property to rent, you can also go through a relocation agency. These relocation professionals will respond perfectly to your request. Consult several relocation agencies and compare their offers.

In contact with the real estate agencies, they will organize the visits of the selected properties according to your availability .

But above all, the relocation agencies will accompany you more globally in your search and your installation in Luxembourg.

Moreover, they will welcome you on your arrival in Luxembourg and will organize if necessary a few days of visit of the different pre-selected accommodations and the different sectors.

They will also be able to take care of the various administrative procedures for installation. They can register you with your new municipality of residence or enroll your children in school.

Use intermediaries to find a rental property.

What do I need to know to sign a lease agreement?

Capping the amount of rent

The amount of the annual rent must not exceed 5% of the capital invested by the owner.

To date, a draft reform of the legislation carried by the Minister of Housing plans to lower this ceiling. It would be reduced to 3.5% in homes whose energy performance is rated from A to E. This ceiling would even be lowered to 3% in low energy performance housing (from F to I). This measure would address higher heating costs. The amount of capital invested by the landlord should also be clearly stated in the lease agreement.
Down payments for utilities must also be clearly indicated, as well as service charges and the rent surcharge for furnished accommodation.

Duration of the lease of 3 years in general

At the request of landlords, the lease contract for unfurnished accommodation is usually signed for 3 years. It is normally renewable at the end of this first term, with a 3 months notice. For a studio, we can find rental periods of one year, renewable every year.

Remember to discuss the rental period with the owner beforehand. The duration of the lease is agreed upon between the owner and the tenant. Remember to mention the duration of your lease at the first contact. The diplomatic clause (possibility to leave the accommodation at any time with 3 months notice for professional reasons) does not exist in Luxembourg.

The legal notice period for leaving the apartment is 3 months before the end of the current rental period. If you leave the apartment early, you must pay the 3 months rent due. With the landlord’s agreement, you can eventually find a tenant to replace you as soon as you leave. He will then take charge of the remaining rental costs until the end of the lease.

Pets are often not accepted

A lease agreement may contain a clause prohibitingpets in the dwelling .

Remember to ask beforehand if you have a pet such as a dog or cat. You must have the express consent of the landlord if you want to move in with a pet.

Documents to be presented to sign a rental agreement

When signing a rental agreement directly with a landlord or real estate agency, you must present the following documents:

• an identity card or passport ,
• proof of your income: the last 3 pay slips or the employment contract if you are coming to Luxembourg,
• rental guarantee:a guarantor designation and/or a rental guarantee to cover possible damages or non-payment
  Your future landlord may ask you to pay this rental guarantee directly. This must not exceed 2 months’ rent, excluding charges. This amount will be reimbursed to you at the end of the contract if the owner considers that you have left the accommodation in good condition.
  

  We recommend that you set up the deposit as a bank guarantee and that you do not transfer the respective funds to the private account of the lessor.

• Rental insurance: You should also consider taking out rental risk insurance . By renting a house in Luxembourg, you are also subject to the obligations that this entails. For example, each tenant is required to have a fire and miscellaneous risks insurance contract, as well as a contents insurance contract in the case of a furnished rental by the owner.

Make sure you have these documents when you visit your apartment or house. If you are interested in the accommodation, you can then make an option very quickly. You will save precious time compared to other applicants and put all the chances on your side to get the accommodation you like.

State of the art

Think about making a serious inventory of fixtures at the entrance and exit of the accommodation. This will help you avoid disappointment later.If you rent through a real estate agency, they usually take care of these inventories, this is included in the agency fees. Each party must keep a copy of the inventory of fixtures document, signed by all parties.

Mandatory energy passport

The owner of the property must provide you with a copy of the “passeport énergétique ” of the rented property. The energy passport is compulsory in Luxembourg, when renting or selling. It is valid for 10 years.

Mandatory smoke detectors

Since January 1, 2023, homes must be equipped with at least one smoke detector in escape routes such as hallways or stairways and in bedrooms.

What steps should I take once I have found my new home?

Reporting your change of address

In Luxembourg, any change of address must be reported in person to the local authorities of the commune of residence.Similarly, when you leave your home and Luxembourg, you must notify the commune you are leaving before you leave.

This is not necessary if you move to another commune in Luxembourg. All you have to do is register in your new municipality when you arrive, in order to be in order with the local authorities.

For your registration in your new municipality, a passport or an identity card will be required . If you have children, you will also need to provide the family record book.

If you arrive in Luxembourg as a foreign resident, you may also be asked for other documents, such as proof of income or a work contract. Depending on the municipality, other documents may be required. Ask your local municipality for more information.

Connecting your new home to water, electricity, gas, etc.

Once you have found your home, you must also contact the gas and electricity supplier of your choice in order to proceed with the connection of your new home. Many suppliers provide a transfer of electricity contract to make your move easier.

Also contact a telephone operator to have your new telephone line connected. Think of anticipating your request to shorten the waiting time, especially if you want the connection of the optical fiber.

Notify all your service providers and employers

When you change your address, be sure to notify your employer and all service providers of your change of address:

• bank
• insurance
• your children’s school
• CNS if you are a cross-border worker. For Luxembourg residents, this is done when you register as a resident in your new commune.

Good to know in addition to renting an accommodation

• Consult the housing subsidies and rights available in Luxembourg. In particular, you can receive assistance to pay for the rental guarantee requested by your future landlord.
• Consult our pages dealing with administrative procedures when you arrive in Luxembourg
• The revision of your boiler is mandatory every 4 or 2 years depending on whether your heating system is gas or diesel. Think about it!
• Need more information about renting property in Luxembourg? Just Arrived suggests that you visit guichet. lu for more information about leases, rental agreements, rental charges or rent amounts.