Renting an apartment, the lease contract

Renting a home in Luxembourg

Are you moving to Luxembourg and looking for accommodation?

Looking for a property to rent, the insurance you need 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 you need to know about renting a property in Luxembourg.

A tight rental market for future tenants

In Luxembourg, the real estate market is dominated by homeowners. They create the market. The supply of rental accommodation is limited, and demand is very high. As you'll see, rental signs on houses and apartments are rare. In fact, rentals at the right price and in good condition go very quickly. And it's not uncommon for an apartment to be rented out within the first few visits.

The regulatory framework for rentals is fairly light. The government wants to regulate the rental market. Various proposals have been put forward to regulate this market. Even today, landlords can request that leases be drawn up more or less according to their wishes, within the regulatory framework of course. In future, leases will have to be in writing. They will also have to include certain mandatory terms, such as compliance with the legal ceiling on the annual rent. In addition, the notion of luxury accommodation, which renders this legal ceiling inapplicable, will no longer apply.

To make things easier for you, real estate agencies have models of rental leases to suit different requirements. Rental professionals are the best people to help prospective tenants.

Find out more about the real estate market in Luxembourg

What do I need to know to sign a lease in Luxembourg?

Ceiling on the amount of rent for housing

Under Luxembourg law, the annual rent must not exceed 5% of the capital invested by the owner.

The Bettel government's proposed reform of the rent ceiling is unlikely to be renewed in its current form by the new Frieden government.

However, a new proposal may emerge at a later date. As it stands, however, the rent cannot be increased by more than 10 years every 2 years.

Generally 3-year property rental period

At the request of landlords, the lease for unfurnished accommodation is generally signed for 3 years. It is normally renewable at the end of this first term, with 3 months' notice. In the case of studio apartments, leases may be signed for one year, renewable every year.

Remember to discuss the rental period with the landlord beforehand. The rental period is agreed between the landlord and the tenant. The diplomatic clause (possibility of leaving the property at any time with 3 months' notice for professional reasons) does not exist in Luxembourg.

The legal notice period for leaving a property is 3 months before the end of the current rental period. If you leave the property early, you must pay the 3 months' rent due. With the landlord's agreement, you may be able to find a tenant to replace you as soon as you leave. The landlord will then pay the remaining rental costs until the lease expires.

Pets not allowed in rental accommodations

The lease contract may contain a clause prohibiting the entry ofpets into the property .

If you have a pet, be sure to find out beforehand. If you want to move in with a pet, you'll need the owner's express agreement.

Documents required to sign a rental contract in Luxembourg

When signing a rental contract directly with a landlord or estate agent, you must present the following documents:

  • identity card or passport ,
  • proof of income: your last 3 payslips or your employment contract if you're moving to Luxembourg,
  • rental guarantee: designation of a guarantor and/or a rental guarantee to cover possible damage or non-payment
    Your future landlord may ask you to pay this rental guarantee directly. This must not exceed 2 months' rent, excluding utilities. This sum will be reimbursed 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 that you do not transfer the funds to the landlord's private account.
  • Rental insurance: You should also take out rental risk insurance . When you rent a home in Luxembourg, you are also subject to the obligations that this entails. For example, every tenant is required to take out a fire and miscellaneous risks insurance policy, as well as a contents insurance policy if the property is rented furnished by the owner.

Make sure you have these documents with you when you visit an apartment or house. If you're interested in the property, you'll be able to make an offer very quickly. You'll save precious time compared to other applicants, and put all the chances on your side to get the home you want.

Inventory of fixtures on entering your new home

Don't forget to carry out a thorough inventory of fixtures and fittings on entering and leaving the property. This will help you avoid disappointments later on, when your tenancy comes to an end. If you're renting through an estate agent, they'll usually take care of this for you. This is included in the agency fee. Each party must keep a copy of the inventory of fixtures document, signed by both parties.

Energy passport mandatory in Luxembourg

The owner of the property must provide you with a copy of the "passeport énergétique". The passeport énergétique is mandatory in Luxembourg, for both rentals and sales. It is valid for 10 years.

Smoke detectors mandatory in Luxembourg homes

From January 1, 2023, homes must be fitted with at least one smoke detector in escape routes such as corridors or staircases, and in bedrooms.

Calling on real estate specialists

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

Homes for rent on Luxembourg real estate portals

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

You can set up real estate alerts to make sure you don't miss out on the property of your dreams. Set your criteria (location, number of rooms, maximum rent, etc.) and register your request.

However, you should be aware that, given the state of the market, properties are often rented off-market, mainly by word-of-mouth. So make the most of your chances by consulting real estate agencies, or even relocation agencies.

Wide selection of rental properties from real estate agencies

To find out about available rentals in Luxembourg, contact one of our real estate agencies. They have a wide selection of properties for rent in Luxembourg. They'll help you find a property that matches your criteria, and offer you several viewings.

The real estate agency will help you with all the formalities involved in renting your future home. They know the market and will also take care of drawing up the rental contract or lease with the landlord . They'll also organize the move-in and move-out inventory of fixtures, which we strongly recommend you do.

Are you a homeowner looking to rent a studio, apartment or house? We also recommend that you go through a real estate agency. They'll organize visits and take care of all the administrative formalities, such as inventory of fixtures, lease contracts, etc. What's more, this service is free for property owners. In fact, it's usually the tenant who pays the rental fees to the real estate agency.

Fees for renting a property in Luxembourg

Real estate agency fees are currently paid by the tenant. A proposed law aims to share these costs between landlords and tenants. Fees are generally the equivalent of one month's rent (or even more, depending on the agency), plus applicable VAT. The inventory of fixtures is normally included in the agency fee.

The landlord will also ask the tenant to pay a security deposit when the lease is signed. This deposit guarantees that the property is in good condition and that payments will be made throughout the rental period. The amount required for the security deposit is now equivalent to 2 months' rent.

What's more, the deposit must be returned by the landlord at the end of the rental period, provided the tenant has paid the rent and there has been no damage to the property. Landlords are now liable to penalties if the security deposit is not returned.

Relocation agencies, experts in helping expatriates settle in

When looking for a property to rent, you can also use a relocation agency. These professionals in expatriate relocation will meet your requirements perfectly. Consult several relocation agencies and compare their offers.

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

Above all, relocation agencies will help you find and settle in Luxembourg.

What's more, they'll welcome you on your arrival in Luxembourg and, if required, organize a few days of visits to the various pre-selected homes and areas.

They can also take care of all the administrative formalities involved in settling in. They can register you with your new commune of residence, or enroll your children in school.

Use intermediaries to find a rental property.

What to do once you've found your new home?

Notify us of your change of address

In Luxembourg, any change of address must be notified in person to the local authorities in 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 are moving to another commune in Luxembourg. All you need to do is register with your new commune when you arrive, so that you are in order with the local authorities.

To register with your new municipality, you' ll need a passport or identity card . If you have children, you'll also need to provide a 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 commune, other documents may be required. Ask your commune for details.

Insuring your home

Home insurance is not compulsory in Luxembourg, but in the event of damage you'll have to pay for repairs yourself. Landlords may require you to take out home insurance.

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

Once you've found your new home, you'll also need to contact the gas and electricity supplier of your choice to arrange connection to your new home. Many suppliers offer an electricity contract transfer to make your move easier.

Water supply depends on the commune. Check with your commune or landlord directly.

You should also contact a telephone operator to have your new telephone line connected . Think about anticipating your request to shorten the waiting time, especially if you want a fiber optic connection.

Notify all your service providers and employers of your change of address

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

Useful tips for renting accommodation in Luxembourg

  • Find out about the housing benefits and entitlements available in Luxembourg. In particular, you may be eligible for assistance in paying the rental guarantee required by your future landlord.
  • See our pages on administrative formalities when arriving in Luxembourg
  • It's compulsory to have your boiler serviced every 4 or 2 years, depending on whether your heating system runs on gas or diesel. Don't forget!
  • Need more information about renting property in Luxembourg? Just Arrived suggests that you visit guichet. lu for more information about leases, rental contracts, rental charges or rent levels.

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