Find out where to find accommodation to rent in Luxembourg, plus details on your rental contract, deposit, cost of renting in Luxembourg and rights and responsibilities as a tenant.
Most foreigners moving to Luxembourg initially opt to rent accommodation, and the majority of housing supply in Luxembourg is apartment accommodation. There are also many serviced aparthotels and hotels in Luxembourg for short-term stays. However, with Luxembourg sharing borders with Belgium, France and Germany, many foreigners choose to become cross-border commuters, where they live outside but work in Luxembourg.
Should you rent or buy property in Luxembourg?
With increasing numbers of European workers in Luxembourg, it can be difficult to find affordable property to rent. While more than two-thirds of Luxembourg’s residents own their own homes, around half of all foreigners working in the country rent accommodation. Properties can be hard to find and it’s rare to see ‘for sale’ or ‘to let’ signs outside houses.
Alongside a skilled international labour force and growing population (around 576.000 in 2016), house prices have increased in recent years, especially in the capital city, although prices tend to be lower in the surrounding towns and in the northern and southern parts of the country. Average monthly rents in Luxembourg City range from around EUR 1.350 for a one-bedroom apartment to EUR 2.450 for a two or three-bedroom apartment in the city centre, and slightly less outside the city centre.
Find a property to rent in Luxembourg
A significant proportion of Luxembourg’s population are foreign workers from around the EU area living alone or in shared accommodation, thus the housing supply tends to include more apartments than family houses.
Most properties in Luxembourg are let unfurnished, although there are specialised companies that offer furnished properties. If you move in to a furnished property, your landlord should arrange an inventory report (etat des lieux) to list the condition of the fixtures and fittings. Typically, furnished properties shouldn’t be more than double the cost of the equivalent unfurnished ones.
Documents for signing your Luxembourg rental contract
Once you have found a rental property, you’ll need to sign a lease or rental contract (contrat de bail à loyer/Mietvertrag). Take along a translator if you want to confirm details and aren’t yet fluent in a local language (French, German and Luxembourgish).
Normally, you will sign a rental contract for a fixed term, which is agreed between you and your landlord. You may be required to contribute to common charges such as concierge wages, maintenance and shared utilities.
Before agreeing to let a property, the landlord will usually require proof of your identification and right to work in the country, your employment status, income level, and in some cases references from a previous landlord.
Understanding your Luxembourg tenancy agreement
Your lease should cover several key points, including the term of the agreement, the rent costs and when they must be paid, any shared costs such as utilities, details about how the lease can be terminated, and the responsibilities of the landlord and the tenant.
Costs of renting a home in Luxembourg
The cost of renting in Luxembourg averages around EUR 950 per month for a room, 1.150 EUR for a flat flat and EUR 1,600 per month for a two-bedroom apartment and EUR 3,500 per month for a four-bedroom house.
Renters in Luxembourg also need to pay a deposit upfront, usually around two months’ rent (but sometimes up to a maximum of three months), when signing their agreement and pay annual liability insurance of around EUR 250.
When paying a rental deposit, it’s common to transfer your deposit (or rent guarantee) into a special bank account for the duration of the lease. This escrow account held by the bank typically means the money cannot be touched until both parties agree. This landlord can request to keep some or all of your deposit if you break your contract or damage the property.
Moving in and out: the inventory and giving notice
Signing the inventory
The inventory (etat des lieux) process takes place before the tenant officially takes possession of the property. It involves the landlord, the brokerage agency and tenant establishing the condition of the property and is dated and signed by both parties.
It can either be part of the tenancy agreement or a separate document. If no inventory has been undertaken the tenant is presumed to have received the home in good condition, although the landlord will not be able to reclaim the tenant’s deposit for damages if no inventory was undertaken.
To terminate your lease, you’ll generally need to do this with three months notice, unless otherwise stated in your contract. The landlord, meanwhile, must also respect the notice period, provided you have not broken your tenancy agreement.
If you need to move out before the end of the contract term, it’s often possible to negotiate this with the landlord by finding a new tenant for the property yourself.
You’re entitled to reclaim your deposit once you have completed the inventory process and returned the keys, and you should also be given an annual statement of expenses for fees such as shared utilities or other costs. If there is an issue with your deposit return, you can speed the process up by sending a formal letter demanding the return of the deposit within a set time, or by taking legal action if absolutely necessary.
Tenant rights in Luxembourg
The renting system in Luxembourg is strongly pro-tenant. Landlords can increase the rent every other year based on an index published in the Official Gazette.
They can also review the rent if the value of the property changes (for example, due to renovation work). If the home is formally classed as a luxury property (propriete de luxe) then rent increases don’t need to follow the rules stated in the index, and are instead agreed between the landlord and tenant.
Tenants are expected to return the property in the same condition in which it was received, though damage considered to be caused by general wear and tear or normal use shouldn’t affect your deposit.
Housing benefits and assistance
People on low incomes can also apply to rent a property for up to three-years through a Social Estate Agency (ISA). To apply for housing through ISA you must go through social services, with a social worker completing the application for you.
To view a part of our properties aviable to rent please go to our webpage http://www.yous.lu/en/
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