The way to your first ‘home sweet home' (Ministry of Housing)

Before you decide what kind of property you would like to rent, you shall first determine your budget.

What is the price to pay for renting a property?

In the Grand Duchy of Luxembourg, rents vary greatly depending on where the premises are located. In principle, the rent is lower in rural areas than in small towns or cities. But this often leads to higher travel costs. Moreover, large differences in rent may also exist within the territory of the same city.

A law passed in 2006 on residential lease agreements defines the rules for calculating the monthly rent, the terms of the lease agreement and the rights and obligations of tenants and landlords. If you are interested in that topic, you can find more information on the website of the Ministry of Housing.

What are the additional charges and how much do you have to pay?

Additional costs, e.g. for heating, water and wastewater, garbage, cleaning of common areas, lighting, gardening etc. are to be calculated next to the ‘ordinary’ monthly rent. The amount of these monthly additional costs must be stated in the lease. The load count is done annually, in principle at the end of each year. Most of the time costs for electricity, internet, antenna and possibly also those related to gas are not included in the monthly charges. You must yourself contact the respective supplier.

What is a deposit?

The deposit is a guarantee for the landlord if ever you do not pay the rent or you do not repair any damages for which you are made responsible. The amount of the deposit is limited to a maximum of three monthly rents. The deposit can be established as a bank guarantee: that means that the amount of the deposit is blocked on a bank account. If you pay the deposit in cash to the landlord, it is important that you ask for a receipt that is duly dated and signed.
If you put an end to the lease, the deposit will be returned to you after the return of the keys and only if the property is vacated in its original condition.

What is an agent’s sales provision?

The landlord can ask a real estate agent to find a suitable tenant for his property. This means that the agent in return receives a sales provision for his work, and the amount depends on the monthly rent and must be paid by the new tenant.

What kind of insurance is needed?

Generally, in order to rent an apartment, you have to sign a home insurance policy covering rental risks and especially the fire-related damages. The landlord receives a copy of that insurance contract when finalising the residential lease agreement.