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Luxembourg – Lease Agreements

Typical Lease Term in Luxembourg

The typical lease term for renting property in Luxembourg is a standard three-year contract. However, shorter or longer lease terms can be negotiated between landlords and tenants based on their mutual agreement.

It’s important to note that in Luxembourg, both furnished and unfurnished rentals can have different lease terms. Short-term furnished rentals, often preferred by expats and business travelers, may offer lease terms ranging from a few weeks to a few months.

Difference Between Furnished and Unfurnished Rental Properties

Understanding the difference between furnished and unfurnished rental properties in Luxembourg is crucial for tenants:

  • Unfurnished Rental Properties: Unfurnished properties in Luxembourg typically come without furniture, appliances, or major household items. Tenants are responsible for furnishing the property themselves. Unfurnished rentals are suitable for those seeking a long-term, personalized living space.
  • Furnished Rental Properties: Furnished properties, on the other hand, are equipped with furniture, appliances, and sometimes even kitchenware. These rentals offer convenience, especially for expats or newcomers, as they provide a move-in-ready option. However, furnished properties often come with higher monthly rent due to the included furnishings.

When choosing between furnished and unfurnished properties, consider your specific needs, budget, and the duration of your stay in Luxembourg. Discuss the level of furnishing with the landlord to avoid any misunderstandings.

Standard Clauses in Lease Agreements

Lease agreements in Luxembourg typically include standard clauses outlining the rights and responsibilities of both landlords and tenants. While specific terms may vary, common clauses found in Luxembourgish lease agreements include:

  • Lease Duration: Specifies the initial lease term, often three years, and any provisions for renewal or termination.
  • Rent Payment: Details the monthly rent amount, due date, and the method of payment (e.g., bank transfer).
  • Security Deposit: Specifies the amount of the security deposit, its handling, and the conditions under which deductions may be made (e.g., for damages or unpaid rent).
  • Maintenance and Repairs: Outlines the responsibilities of both parties regarding property maintenance, repairs, and who bears the costs.
  • Termination Notice: Specifies the notice period required by either party for lease termination or non-renewal.

These standard clauses are designed to ensure transparency and protect the interests of both landlords and tenants. Tenants should thoroughly review the lease agreement before signing and seek legal advice if necessary.


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Additional Clauses in Lease Agreements

Additional clauses in lease agreements in Luxembourg can be included to address specific concerns or preferences of both parties. These additional clauses may cover various aspects, including:

  • Utilities: Clarifies which utilities (e.g., water, electricity, gas) are included in the rent and which are the tenant’s responsibility.
  • Pets: Addresses whether pets are allowed in the rental property and any associated rules or fees.
  • Renovation and Alterations: Specifies whether tenants are allowed to make changes or improvements to the property and the approval process.

Additional clauses should comply with Luxembourgish rental laws and regulations and must be mutually agreed upon by both parties. It is essential to discuss and document any additional clauses during the negotiation process.

Considerations When Signing a Lease Contract

Expats and newcomers signing a lease contract in Luxembourg should be aware of several key considerations:

  • Tenant Rights and Responsibilities: Familiarize yourself with Luxembourg’s tenancy laws and regulations to understand your rights and responsibilities as a tenant.
  • Language: Ensure that the lease agreement is in a language you understand. Luxembourgish, French, German, and English are commonly used languages in rental agreements.
  • Security Deposit: Verify that the handling of the security deposit complies with Luxembourgish law, and request a detailed receipt.

It is advisable to seek legal counsel or consult with a reputable letting agent to ensure that your lease contract is fair, legally sound, and that you fully comprehend its terms, especially if you are not familiar with Luxembourgish rental laws.

Condition Reports in Luxembourg

Condition reports, also known as “états des lieux,” are a standard practice in Luxembourg before signing a lease agreement. These reports document the condition of the property at the beginning of the tenancy and can help prevent disputes between landlords and tenants concerning damages or wear and tear.

It is recommended for both parties to create and sign a condition report that includes details and photographs of the property’s condition. Any existing damages should be clearly documented to avoid disputes when the lease ends. Both the landlord and tenant should retain copies of the signed report for reference.

Letting Agent Qualifications and Licensing

In Luxembourg, letting agents, also known as real estate agents or “agences immobilières,” are regulated by the Ministry of the Economy. To work as a letting agent in Luxembourg, individuals and agencies must obtain the required professional authorization.

Letting agents should possess the following qualifications and licenses:

  • Professional Authorization: Letting agents must obtain professional authorization from the Ministry of the Economy to operate legally.
  • Professional Liability Insurance: Agents are required to have professional liability insurance to cover potential errors or omissions in their services.
  • Real Estate Expertise: Agents should have a good understanding of the Luxembourgish real estate market, property laws, and rental regulations.

Working with a licensed letting agent can provide tenants with added assurance that the agent operates in compliance with legal requirements and industry standards.

Association of Luxembourg Real Estate Professionals (Chambre Immobilière du Grand-Duché de Luxembourg)

The Chambre Immobilière du Grand-Duché de Luxembourg (CIGDL) is a reputable association of real estate professionals in Luxembourg. While letting agents are not required to be members, the CIGDL provides valuable resources and information related to the real estate industry in Luxembourg.

Tenants and individuals seeking rental properties can benefit from exploring the CIGDL website for insights into the Luxembourgish real estate market.

When renting property in Luxembourg, expats and newcomers should approach the process with careful consideration, seek professional guidance when needed, and ensure that their lease agreements align with their preferences and legal rights.


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