ArticlesNewsPicture of the new bill proposed introducing rental guidelines in Luxembourg

Meeting the needs of middle to lower-income households, the government has proposed a new Bill introducing some changes in the private rental sector. Here is a look at a few of the proposed guidelines: 

  • Sharing of agency fees among landlords and tenants (50/50). In addition, the proposed rental deposit will decrease to two months’ rent as opposed to the three months now required.  
  • Introduction of a peculiarity to clarify any doubts regarding the maximum rental fee that a landlord can apply (5% of the invested capital). As a result, the landlord must now specify in the contract that the rental amount complies with the cap. If the building is more than 15 years old, a 2% discount will be applied to the invested capital every two years.
  • To scrap the concept of “luxury accommodation”, which, currently allows landlords to avoid the rental cap. 
  • The possibility as a tenant to extend their lease indefinitely once it has surpassed the initial rental contract.  
  • A proposed framework for co-leasing that currently does not exist. E.G. Tenants co-habiting together share legal responsibility of the rental property. 
  • If the roommates co-habit in a municipality where the rental commission cannot be adhered to, they can refer directly to the Justice of the Peace in case of a possible dispute. 

The purpose of these rules aims at ensuring higher rights for tenants. Most importantly, they are a support for all those families forced to pay more than their disposable income.

 Stay tuned for more updates on the proposed Bill in the upcoming months.