New rules for the rental market in Luxembourg
Major changes have recently been announced for the Luxembourg rental market, affecting various aspects of property rental. The aim of these reforms is to provide a better framework for relations between tenants and landlords.
End of Rent Fixed Limits
Fixed limits are lifted, making way for monitored adjustments. Now, rent revisions will be more flexible, with a ceiling of a 10% increase every 2 years.
Legal Roomate Arrangements
Colocation is now recognized, regulated by law for clarity. Roommates will be able to establish a specific contract and benefit from clear rules to terminate their commitment.
Reduced Rental Guarantees
Two months’ rent is now sufficient to facilitate access to housing. This reduction aims to make the rental market more accessible for tenants.
Shared Agency Fees
Financial relief for tenants, with fair sharing of costs. It is envisaged that landlords and tenants will now share the commission fees.
Mandatory Written Lease
For reinforced legal security, written agreements become essential. Henceforth, any residential lease agreement must be written and include certain mandatory provisions to ensure the protection of the parties involved.
End of “Luxury Accomodations”
A major change for rent ceiling application. The concept of “luxury accommodations” is abolished, allowing for a more uniform application of rent ceilings in the real estate market.
These reforms bring significant changes to the Luxembourg rental market, aiming to ensure better protection for tenants while providing a more transparent and balanced environment for all parties involved.
