Renting accommodation, the lease agreement
Are you arriving in Luxembourg and looking to rent accommodation?
Finding a place to rent, the insurance you need to rent a property, the administrative procedures and steps to take as a new tenant, your legal obligations as a tenant or landlord... we tell you everything you need to know to successfully rent a property in Luxembourg.
A tight rental market for future tenants
In Luxembourg, the real estate market is dominated by landlords. They are the ones who create the market. There are limited rental properties available and demand is very high. As you will see, "for rent" signs are rare on houses and apartments. This is because rentals that are reasonably priced and in good condition are snapped up very quickly. It is not uncommon for an apartment to be rented after the first few viewings.
Have you considered sharing a place to live in order to reduce your housing costs?
The regulatory framework for renting is fairly light. The government wants to regulate the rental market. Various proposals aim to regulate this market. Even today , landlords can request that the lease be drawn up more or less according to their wishes, within the regulatory framework, of course. In the future, leases will have to be in writing. They will also have to include certain mandatory information, such as compliance with the legal cap on the annual rent. In addition, the concept of luxury housing, which makes this legal cap inapplicable, will now be eliminated.
To make renting easier for you, real estate agencies have rental lease templates that meet various requirements. Rental professionals are the best people to assist those looking to rent property.
For those looking to move to Luxembourg to pursue their studies, it may be useful to find out about the different types of student accommodation available in Luxembourg, as this will make your search easier.
Signing a lease in Luxembourg? What do you need to know?
Rent caps for residential properties
Under Luxembourg law, the annual rent may not exceed 5% of the capital invested by the owner.
However, a new proposal may be put forward at a later date. As things stand, rent cannot be increased by more than 10% every two years.
You may be eligible for rent subsidies. For more information, see this page.
Property leases generally last for 3 years
At the request of landlords, leases for unfurnished accommodation are generally signed for 3 years. They are normally renewable at the end of this initial term, with 3 months' notice. For studios, it is possible to find one-year leases, renewable annually.
Be sure to discuss the length of the lease with the landlord in advance. The length of the lease is agreed upon between the landlord and the tenant. The diplomatic clause (the possibility of leaving the property at any time with three months' notice for professional reasons) does not exist in Luxembourg.
The legal notice period for leaving the property is three months before the end of the current rental period. If you leave the property before the endof the term, you must pay the three months' rent due. With the landlord's agreement, you may be able to find a tenant to replace you as soon as you leave. They will then take over the rent payments until the end of the lease.
Pets are rarely allowed in rental properties
The lease agreement may contain a clause prohibitingpets in the property.
Be sure to check in advance if you have a pet. You must obtain the landlord's express consent if you want to move in with a pet.
Documents to present when signing a lease agreement in Luxembourg
When signing a lease agreement directly with a landlord or real estate agency, you must present the following documents:
- an identity card or passport,
- proof of income: your lastthree pay slips or your employment contract if you are new to Luxembourg,
- rental guarantee: a guarantor and/or a rental guarantee to cover any damage or non-payment
Your future landlord may ask you to pay this rental guarantee directly to them . This must not exceed two months' rent, excluding charges. This sum will be refunded to you at the end of the contract if the landlord considers that you have left the property in good condition.
We recommend that you set up the deposit in the form of a bank guarantee and do not pay the funds into the landlord's private account. - Rental insurance: You should also consider taking out rental risk insurance. When you rent a property in Luxembourg, you are also subject to the obligations that this entails. For example, all tenants are required to take out fire and miscellaneous risk insurance, as well as contents insurance if the property is furnished by the landlord.
Make sure you have these documents with you when you visit apartments or houses. If you are interested in the property, you can then quickly put an option on it. This will save you valuable time compared to other applicants and give you the best chance of securing the property you want.
Inventory of fixtures when moving into your new home
Remember to carry out a thorough inventory of the property when you move in and out. This will save you any disappointment later on when your tenancy ends. If you rent your property through a real estate agency, they will usually take care of these inventories. This service is included in the agency fees. Each party must keep a copy of the inventory document, signed by both parties.
Energy performance certificate mandatory in Luxembourg
The owner of the property must provide you with a copy of the " energy passport " for the rented property. The energy passport is mandatory in Luxembourg for rentals or sales. It is valid for 10 years.
Smoke detectors mandatory in homes in Luxembourg
Since January 1, 2023, homes must be equipped with at least one smoke detector in escape routes such as hallways or stairwells, and in bedrooms.
Find a rental property with the help of real estate specialists
Real estate agencies, relocation agencies, and real estate portals are currently the best way to find accommodation in Luxembourg.
Homes for rent on Luxembourg real estate portals
To find a rental property, check out the various real estate portals in Luxembourg. They offer a wide range of properties for rent throughout Luxembourg and even beyond, in the Greater Region.
You can set up property alerts so you don't miss out on your dream home. You set your criteria (location, number of bedrooms, maximum rent, etc.) and submit your request.
However, it is important to note that, given the state of the market, properties are often rented off-market, particularly through word of mouth. So, give yourself the best chance of success by consulting real estate agencies or even relocation agencies.
Wide selection of rental properties available through real estate agencies
To access available rentals in Luxembourg, contact real estate agencies. They have a wide selection of properties for rent in Luxembourg. They will help you find accommodation that meets your criteria and offer you several viewings.
The real estate agency will support you in all the steps involved in renting your future home. They know the market and will also take care of drawing up the rental agreement with the owner or lease. They will also organize the move-in and move-out inspections, which we strongly recommend you do.
Are you a property owner looking to rent out a studio, apartment, or house? We also recommend using a real estate agency. They will organize viewings and take care of all the administrative procedures, such as the inventory and lease agreement. What's more, this service is free for property owners. It is usually the tenant who pays the rental fees to the real estate agency.
Costs for renting a property in Luxembourg
Real estate agency fees are now shared between the landlord and the tenant. The fees are generally equivalent to one month's rent ( or more, depending on the agency), plus VAT at the applicable rate. The inventory is normally included in the agency fees.
The landlordwill also ask the tenantfor a security deposit when the lease is signed. This deposit guarantees that the property will be kept in good condition and that rent will be paid throughout the rental period. The amount requested for the security deposit is now equivalent to two months' rent.
In addition, it must be returned by the landlord at the end of the lease if the rent has been paid by the tenant and no damage to the property has been found. Landlords are now liable to penalties if the security deposit is not returned.
Relocation agencies: experts in helping expatriates settle in
You can also use a relocation agency to find a property to rent. These expatriate relocation professionals will be able to meet your needs perfectly. Consult several relocation agencies and compare their offers.
They will liaise with real estate agencies and arrange viewings of selected properties according to your availability.
Above all, relocation agencies will provide you with comprehensive support in your search and your move to Luxembourg.
In addition, they will welcome you upon your arrival in Luxembourg and, if necessary, organize a few days of visits to the various pre-selected properties and different areas.
They can also take care of the various administrative procedures involved in settling in. They can register you with your new local authority or enroll your children in school.
What steps should you take once you have found accommodation?
Reporting your change of address
In Luxembourg, any change of address must be reported in person to the local authorities in your municipality of residence. Similarly , when you leave your accommodation and Luxembourg, you must notify the municipality you are leaving before your departure.
This is not necessary if you are moving to another municipality in Luxembourg. You simply need to register in your new municipality upon arrival in order to be in good standing with the local authorities.
To register in your new municipality, you will need to provide a passport or identity card. If you have children, you will also need to provide your family record book.
If you are arriving in Luxembourg as a foreign resident, you may also be asked to provide other documents, such as proof of income or an employment contract. Depending on the municipality, other documents may be required. Check with your municipality for more information.
Insuring your home
Home insurance is not compulsory in Luxembourg, but in the event of damage, you will have to pay for the repairs yourself. Landlords may require you to take out insurance for your home.
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 to connect your new home. Many suppliers offer an electricity contract transfer service to make your move easier.
Water supply depends on the municipality. Check with the municipality or directly with your landlord.
You should also contact a telephone operator to have your new telephone line connected. Remember to submit your request in advance to reduce the waiting time, especially if you want a fiber optic connection.
Notify all your service providers and employer of your change of address
When you change your address, be sure to notify your employer and all your 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 municipality.
Good to know: renting accommodation in Luxembourg
- Check out the housing assistance and rights available in Luxembourg. In particular, you may be eligible for assistance in paying the rental guarantee required by your future landlord.
- Check out our pages on administrative procedures when you arrive in Luxembourg
- Your boiler must be serviced every 4 or 2 years, depending on whether your heating system is gas or oil-fired. Don't forget!
- Need more information about renting property in Luxembourg? Just Arrived recommends visiting the guichet.lu website for more information about leases, rental contracts, rental charges, and rent prices.
- When searching for accommodation, it is essential to familiarize yourself with the different aspects of housing in the Grand Duchy to ensure a successful move.
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