Luxembourg Tenant Guide

LUXEMBOURG TENANT GUIDE

The information provided in this guide intends to set expectations on tenancy in Luxembourg. Dwellworks does not advise on Luxembourgish law and cannot intervene in legal matters. Our guidance is based on our experience delivering service in the market. As you search for a house or apartment to rent, please make note the following points: + The general condition of the property: Is the property renovated, newly painted, are any future repairs foreseen? + What appliances are included in the property? Apartments and houses in Luxembourg are typically equipped with the following kitchen appliances: refrigerator, oven, stove, and dishwasher. It is less typical to have a washing machine and a dryer. + How big is the water heater and is it shared with other apartments? The more apartment units that share the same water heater, the less water is delivered to each unit, which can impact overall heating. + Is there parking? If the property is rented with a garage or a parking place, it can either be included in the monthly rent or paid separately. If these facilities are not included, the resident is entitled to the residential vignette, which allows parking within the borders of the commune of residence. The first residential vignette is free of charge and issued by the local commune. + Are telecommunications included; telephone line/TV access/satellite dish? It is possible that the property still has technical connections for one of the local providers’ networks (Post, Numericable, etc.) and the tenant does not have to pay for initial registration/connection and leavedeposit. + How are the maintenance responsibilities divided between the tenant / landlord / managing company? The managing company is typically responsible for maintaining common areas and the costs are divided among all residents. When this is not the case, specific responsibilities and expenses of maintaining the garden and keeping the sidewalks groomed should be outlined in the lease. + What is the pet or smoking policy? Rental availability tends to be more limited for renters with pets and smokers in the household. + Are there any community rules adopted by all the residents? For example, in some housing communities Sunday is considered “silence day”, while others lock the entrance door after 8 pm and prohibit certain household activities after a certain hour (usually from 10:00 pm). SIGNING THE LEASE Before signing the lease, please consider the following points: Lease Duration: + Parties are free to establish the duration of the lease. They can choose between indefinite and fixed duration. When the period of the contract ends, it is automatically renewed for one more year unless the landlord and the tenant agree differently. It is usually required to give three months’ written notice to break or terminate a lease. Many landlords prefer a lease duration of at least two years, especially if the property has recently been constructed. + It has become common practice to include a so-called ‘diplomatic clause’ in the standard lease form. This permits lease termination with sufficient notice if the tenant has to transfer for work before the lease expiration date. If the diplomatic clause is not included, and the tenant terminates the lease prior to fixed term, the tenant is responsible for all payment through the term of the lease or until another tenant is secured by the landlord. Monthly Rent: + The lease indicates the monthly rent amount, the payment due date and method of payment. It may be required to set up a standing payment order with the bank. The landlord has the right to increase the amount of monthly rent amount every two years. + In addition to your rent, you’ll typically be required to pay an estimated monthly contribution towards common charges, even if you’re renting a detached house. Common charges typically add 10-20% to the base rent.

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+ The landlord must provide the annual statement of all payments and make reconciliation. Common charges include heating, water/sewage, common area maintenance as well as regular common areas cleaning. What is covered under these additional charges may vary by property. Security Deposit: + Most landlords require a deposit of two to three months’ rent. The lease will state the amount and conditions of the security deposit. Note that at the end of the lease term, the tenant must return the property to the landlord in the same condition as when they moved-in or risk losing part of the security deposit. The Deposit Covers: + Outstanding rent payments + Most commonly in Luxembourg, a bank guarantee covering the deposit, in which case the bank will also require payslips or a deposit of the same amount or a guarantee from the employer. + A refundable deposit (caution or dépôt de garantie) is generally paid into an interest-bearing account in the tenant's name, which is remunerated at the minimum legal interest rate, published on a regular basis in the Official Gazette. This account requires authorisation from the landlord and the tenant before the money can be released. Please note that at the end of the lease and after the establishment of last account, the owner will return the rental guarantee to the tenant if he/she has no claims to make. If rents or charges have been outstanding, he can deduct the amount provided as collateral. HOUSEHOLD INSURANCE AND CERTIFICATES: The tenant is contractually required to have household and fire insurance covering the unit. Insurance for household contents is only required if the contents belong to the landlord. A copy of the certificate and any amendment may be required by the landlord at the signing of the rental agreement and may be requested at the rental renewal date. Property Move-in Inspection: One of the most important tasks when moving into a new apartment or house is to complete a detailed property condition inspection. The procedure varies, but in general, all problems and damages are listed on a form which is signed by both the tenant and the landlord. Most leases require the tenant to restore the property to ‘move-in’ condition, and it’s the inventory report which establishes that condition. Once the tenant moved in, s/he is responsible for all interior maintenance and decoration. When renting property, inspect the vacant house or apartment for damage or repairs that need to be made before moving in. You are also encouraged to take photographs of any potential areas of concern during the inspection. The list must be sent to the landlord for written confirmation, indicating when repairs or other work will be done. A lease may include a comprehensive cleaning clause, which contains the obligation of deep cleaning the entire home at the end of the lease or paying the monetary equivalent. TENANT AND LANDLORD OBLIGATIONS The Tenant: The tenant's obligations are as follows: + To pay the rent in full by the agreed date + To pay service charges: water, electricity, communal maintenance in an apartment + To use the property "appropriately" + Any damage caused to the property (beyond wear and tear) + Failure to pay service charges (in the apartment building) The deposit could take one of three possible forms: + A payment in cash with receipt.

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LUXEMBOURG TENANT GUIDE + To be responsible for any damage unless it is caused by the landlord, someone on the property uninvited or force majeure (circumstances outside of their control) Unless agreed in the rental contract, a tenant may not: + Use the property for commercial purposes + Sublet without written agreement from the landlord + Make any major changes to the property or structures without the landlord's consent The Landlord: The rental property must conform to a minimum standard. The property should have suitable water and heating systems in working order. Any fixed elements of the property not in working order and not resulting from damage caused by the tenant should be repaired or replaced by the landlord. Conflict Resolution Conflicts between landlords and tenants must be submitted to the Justice of the Peace (Juge de Paix) at the Luxembourg Civil Tribunal. Rent conflicts are resolved by a Rent Committee (commission des loyers). These exist in all towns of more than 6,000 inhabitants, or at a regional level for smaller towns. This committee can be consulted by both the landlord and the tenant with regards to any matters related to the amount of the rent or rental charges. There is no need for a lawyer to be involved. An expert may be required to visit the property and assess whether the rent is reasonable. A decision by the committee will be supplied within three months of any action and has to be signed by all parties involved. Further information is provided below: The European Consumer Center Luxembourg Union of Consumers 2A, rue Kalchesbrueck Tel.: 49 60 22-1 L-1852 Luxembourg ulc@pt.lu Tel.: +352 26 84 64-1 www.ulc.lu info@cecluxembourg.lu MOVING OUT To terminate the lease, there is a standard notice period of three months during which the tenant must make all necessary payments and arrangements to bring the property to its “move-in condition”. The following steps will aid your move-out process: + Provide a formal written notice of departure to the landlord within the timeframe stated in the lease. + Conduct a move-out inspection with the landlord/agent and seek written confirmation on any repairs that may be required to ensure security deposit refund. Refer to the move-in inspection report or photographs to prevent deductions for any pre-existing damages and normal wear and tear. The landlord/agent has up to six months to reimburse the deposit, deducting any money needed for repairs to the property. If the departing tenant feels that an unnecessary amount has been deducted, they may request to see the invoices or estimates for work done. In the event of a dispute, the matter can be passed to a lawyer. + It is expected that all “damages” which have occurred during the occupation are repaired and all tenant maintenance obligations have been met: (electrical, plumbing appliances are in working order; nails, picture hooks, shelves or alterations removed). + The landlord may require access to the property for necessary maintenance and to for property viewings. The landlord may terminate the contract: + If the tenant fails to honour contractual obligations. + If the landlord or their family wish to occupy the property. + Under exceptional circumstances such as expropriation, demolition, etc. Both the tenant and landlord can mutually agree to terminate the contract at any point in time. In this case, it is important, but not required to formalise the details of such a termination in writing, signed by both parties.

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Who Repairs What?

Re

sponsibility of the lan

dlord 

Re

sponsibility of the ten

ant 

Cleaning the

 chimney 

Roof repairs

Wa

lls and ceili

ngs 

Replac sanitatio

ement of  n equipment  

Clogged  rains and  detached  gutters 

d

Unclogg sin

ing toilets,  ks etc.

Replace joints an

ment of  d valves 

Br re i th

oken glass  placement  n case of  e tenant’s  fault 

Replacement fuses, sockets

 of   etc. 

Balco

ny repairs 

Replacement heating sys

 of the  tem

Regular mainten of the heating sy

ance  stem

Garden maintenan

Repainting facade,  windows and doors

Cleaning sid

ewalks

ce 

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