FAQ Rental lease

No, renting out a property via a platform such as AirBnB is not prohibited, but has been regulated since September 1^st, 2023.

• Rental becomes a commercial activity if the property is rented for more than 90 days per year.
• Landlords who rent for less than 90 days are not subject to these new rules.
• Obligations for rentals exceeding 90 days: Owners must follow certain rules set out in the new legislation on the right of establishment, such as taking part in training courses for accommodation providers, having guests complete an accommodation form and drawing up a breakdown of overnight stays for each accommodation unit.

Yes, the rental of tourist accommodation is limited to 89 days per year in residential zone 1 or in residences where such activities are prohibited.

Accommodation must comply with health, hygiene, safety and habitability standards (e.g. emergency exits), regardless of whether the rental period is below or more than 90 days per year.

All income generated from these rentals must be declared in the tax return as real estate income.

It is recommended to contact the municipal administration where the accommodation is located to identify specific local regulations for rentals via platforms such as AirBnB.

If the contract prohibits animals: Yes, it is legal. Ignoring this rule may result in termination of the lease, particularly in the case of serious misconduct.

If the contract says nothing: Generally, tenants can have pets, unless they cause disturbances.

The tenant can request apply one or more postponements from the Magistrate's Court. A request for postponement is made by simple application to the clerk's office without the need for a lawyer.

Please note: any request for postponement (or for an extension of postponement) is inadmissible 12 months after the date on which the legal proceedings were brought before the Magistrate's Court.

If a tenant is facing eviction, it is important not to wait for the Magistrate's Court decision before taking action.

It is recommended to immediately contact relevant authorities in order to find affordable housing or temporary accommodation and inform the public authorities about the ongoing eviction procedure.

Relevant contacts:

• the municipal administration of the place of residence (Housing Department and Social Office)
• the Ministry for Family Affairs, Solidarity, Living Together and Reception of Refugees,especially if children are involved
• the Housing Fund
• the SNHBM
• the Agence Immobilière Sociale(AIS) or other social rental management(GLS) organisations
• associations and organisations working in the housing sector

The tenant must provide all necessary information to the contacted authorities. It is also advised to seek help from friends and family to find temporary shelter after the eviction.

The Ministry of Housing and Spatial Planning does not provide any accommodation and cannot intervene in housing applications or in the management of the entities mentioned in the previous question.

The law provides for measures to protect belongings of evicted tenants. If the tenant does not designate a storage location for their items, the bailiff must transport them to a location provided by the municipality, at the tenant's expense.

The landlord must ensure that the tenant can live comfortably in the property for the duration of the lease.

Turning off the electricity, heating or water can make the landlord liable.

The tenant must inform the landlord without delay to avoid liability (e.g. in the event of inaction or negligence by the tenant leads to a worsening of the situation). Repairs will likely have to be carried out by the landlord.

It is recommended to consult the specific legislation (in french):

• loi du 20 décembre 2019 relative aux critères de salubrité, d'hygiène, de sécurité et d’habitabilité des logements et chambres donnés en location ou mis à disposition à des fins d’habitation
• règlement grand-ducal du 20 décembre 2019 déterminant les critères minimaux de salubrité, d'hygiène, de sécurité et d’habitabilité auxquels doivent répondre les logements et chambres donnés en location ou mis à disposition à des fins d’habitation.

It is also advisable to contact the municipal administration where the rented accommodation is located to determine if specific rules regarding the health and hygiene of rented accommodation or rooms apply.

There is no legal obligation, but it is strongly recommended to take out insurance to cover rental risks (RC locative - third party liability insurance). In practice, most tenants choose this insurance, and it is common for the landlord to request proof of insurance.

For the entire duration of the lease, the tenant is liable for any fire or water damage, whether they are present in the property or not.

However, they may avoid this liability by proving that the damage was not their fault. Furthermore, they are not liable in the event of force majeure or natural phenomena, such as a storm

Yes, but only if the landlord requires a rental deposit. This inventory of fixtures must have been carried out before the tenant moves in (not when the lease is signed), otherwise the rental deposit cannot be used to cover potential damages.

It is highly recommended to perform an entry inventory (at the start of the lease) and an exit inventory (at the end). Taking photographs on entry and key moments (such as appearance of mold) can help avoid disputes over the state of the property.

If a co-tenant leaves before the end of the lease, an intermediate inventory must be drawn up to document the state of the dwelling.

You can consult the most recent version of the law on rental leases, as well as other legislation relating to housing rentals, by visiting our "legislation" page (in French).

There is no specific rule on this matter. According to judicial decisions, wear and tear, fading or alteration of paintwork are not the responsibility of the tenant. This also applies to wallpaper that may show normal wear and tear.

Thus, if the walls are showing signs of normal wear and tear, the tenant does not have to repaint them before leaving the property.

No, the tenant cannot refuse the landlord this right (e.g. to see if any repairs need to be carried out or to check the condition of the property).

If the rented property is to be sold, the landlord may also arrange visits for potential buyers. However, they must provide the tenant sufficient prior notice. It is advisable to agree with the landlord on convenient dates and times for these visits.

If the tenant refuses a visit without a valid reason, the landlord can claim damages.

For all new rental agreements concluded from August 1^st, 2024, the agency fees must be shared equally, i.e., 50/50, between the landlord and the tenant. This applies regardless of who hired the real estate agency, the landlord or the tenant.

Any clause in the rental agreement that states otherwise is considered null and void.

The rent for a property is generally set by mutual agreement at the signing of the rental agreement. It may be adjusted every 2 years, with a minimum of 24 months between increases. The landlord may choose to wait 3, 4 or more years before increasing the rent.

Rent increases may not exceed 2 legal limits:

1) Legal rent ceiling

• Unfurnished accommodation:
  The legal rent is determined by the actual capital invested in the property, not market price trends.
  Annual rent cannot exceed 5% of the capital invested in the property.
  
  Maximum monthly rent = capital invested (in the property by the landlord) x 0.05 / 12
  
  For shared tenancy or multiple lease agreements (renting units within the same building where each tenant has a separate lease with the landlord), the sum of annual rental payments must not exceed 5% of the invested capital.

• Furnished accommodation:
  In addition to the base rent (subject to the above limit), the landlord may charge a supplement for the use of furniture, which cannot exceed 1.5% per month of the total invoice value of the furniture.
  
  Only furniture with invoices dated less than 10 years before the lease signing may be considered for this supplement.
  
  Generally, the supplement remains fixed for the duration of the lease. However, if furniture deteriorates and becomes unusable (e.g. a broken bed), and needs to be replaced, the supplement may be adjusted every 2 years via a lease amendment.
  
  
  • Special case: Fitted kitchens
    The cost of a fitted kitchen (or some of its elements) is included in the capital invested in the property, not in the rent supplement. A kitchen is considered a part of the building if its components cannot be removed without damaging the property.

2) Each time the rent is adjusted, it may not increase by more than 10%.

As of August 1^st, 2024, the concept of "luxury accommodation" has been abolished (in certain rental agreements the terms "accommodation with modern, non-standard comforts" are used). This puts an end to an abusive practice where some properties were labelled as luxury to bypass the rules for rent determination. These properties, often small and poorly furnished, did not meet genuine luxury standards.

For agreements signed before this date, the legal rules on rent determination still apply, even if the agreement refers to luxury accommodation. It is necessary to know the capital invested in the property (revalued and discounted) to verify if legal limits are exceeded.

The invested capital is generally calculated by the landlord using supporting documents, such as:

• the notarial deed of property acquisition (including land costs),
• invoices for construction costs, such as architect and notary fees, or the loan costs,
• invoices for improvement work, such as alterations, expansions, installation of a new kitchen, etc.

The invested capital is revalued every 2 years by multiplying it by a revaluation coefficient. For properties older than 15 years, a discount of 2% is applied every additional 2 years, unless maintenance costs have been incurred.

If the invested capital cannot be determined through documentation, a certified building expertmay estimate its value, especially for older properties.

In case of disagreement, the tenant may appeal to the rent committee, which will try to resolve the dispute or determine the invested capital based on the documents provided.

Proof of the invested capital lies with the landlord.

Since August 1^st2024, the biennial limit of 10% has replaced rule of “annual thirds rule”. This means that with each adjustment, the rent cannot increase by more than 10%.

If a landlord decides to increase rent by more than 10%, and the tenant disagrees, the tenant must send a complaint by registered letter to the landlord. In this case, the increase above 10% does not apply from the first term following the complaint and does not have to be paid to the landlord. Overpaid amounts must be reimbursed.

No, the law does not require signing a new agreement or addendum for rent increases.

Some landlords or real estate agencies ask for a new rental at each rent increase or annual lease renewal. However, this is considered a dishonest practice aimed at extracting more money from the tenant.

The rent committee can only intervene in disputes related to rent determination, particularly in the case of rent increases and advances on rental charges (it therefore has no authority to verify, for example, a breakdown of charges statement). As a conciliation body, it seeks to reach an amicable agreement between the parties.

At the joint request of the parties, it may also be entrusted with an arbitration mission.

Before filing a request, an attempt to reach an amicable agreement is mandatory. The claimant (usually the tenant) must inform the other party in writing of their disagreement (e.g. about a rent increase). It is advisable to do so by registered letter. If no agreement is reached within 1 month of this notification, the claimant may then submit their request to the municipal council, who will forward it to the rent commission.

If the property is located in a municipality with fewer than 6,000 inhabitants, the request will be sent (by the municipal council) to the Ministry of Housing and Spatial Planning.

It is important to note that any request for a rent modification submitted to the rent committee is inadmissible during the first 6 months of the lease.

The law prohibits value clauses. However, these clauses remain valid as long as the tenant does not object to them. To have the clause declared inapplicable, the tenant must file a complaint by registered letter. The clause will then no longer apply.

No, the tenant cannot request reimbursement for payments made under this clause. Its invalidity applies only to future payments

No, in principle, such an increase is not permitted by law, unless both parties agree otherwise.

If the rent has not been adjusted for at least 2 years, the landlord can increase it within the following legal limits:

• the maximum annual rent cannot exceed 5% of the capital invested in the property
• at each adjustment, the rent cannot be increased by more than 10%.

If the landlord does not provide an explanation in the letter requesting the rent increase, the tenant is advised to request the reasons for the increase in writing. This can serve as evidence later. However, the increase remains valid if it respects the legal limits.

As of August 1^st ,2024, all rental agreements must be in writing, otherwise they are considered void.

All leases concluded before August 1^st ,2024 (written or verbal) remain valid and do not require modification.

The written contract must include at least:

1. the full identity of all the contracting parties (landlord and tenant(s))
2. the start date of the lease
3. a description of all the rooms and parts of the building covered by the lease, along with the address and cadastral reference
4. the rent (excluding charges)
5. the amount of advance payments on rental charges or the amount of fixed fee for charges
6. the rent supplement for furniture (if furnished)
7. the amount of the rental deposit (if requested by the landlord)
8. an indication that the parties may refer to the rent committee in the event of a disagreement over the rent

If the landlord offers additional services (cleaning, change of sheets, etc.) they must detail the cost of each service in the agreement, clearly separating the rent (excluding charges) from the other fees.

In general, the landlord can only ask the tenant for expenses that he has actually paid on the tenant's behalf, and the tenant must provide invoices or receipts as proof.

The advance payments for rental charges can be adjusted during the lease.

Rental charges may include:

• Energy consumption: electricity, heating and water;
• Routine maintenance:
  • cleaning of common areas and pavements
  • garden/yard maintenance
  • elevator maintenance (except for tenants living on the ground floor)
  • mailbox maintenance (e.g., painting)
  • chimney sweeping
• Minor repairs (maintenance or replacement) that are not due to normal wear and tear or force majeure.
  Examples: replacement of light bulbs or smoke detector batteries in communal areas.
• Taxes: municipal taxes (waste collection, sewage)
• Damages: caused by the tenant

• Management costs: expenses for energy meters, energy passport
• Management fees: technical management fees may be charged to the tenant if they concern their obligations. In this case, the landlord must prove whether and to what extent the manager has acted in the tenant's interest.
• Tax: Property tax
• Repairs:
  • renewal of wallpaper and replacement of floor coverings damaged by normal use, age, or any other cause not attributable to the tenant
  • major repairs (roof, heating, sanitary installations, pipes, etc.)
  • repairs due to obsolescence or force majeure
  • reimbursement for urgent, necessary, and low-cost repairs carried out for the tenant.
• Insurance: fire and liability insurance for the building

Annual statement of charges: typically settled at the end of a financial year.

For apartments in co-ownership:

• If expenses come from a statement approved by the general meeting of co-owners, they are considered justified. This means that the tenant must pay them unless he can prove otherwise.
• On request, the landlord must provide the tenant with extracts of co-ownership regulations showing the share of each category of charges.

For an apartment/studio/room in a multi-unit building belonging to the same owner:

The law does not lay down precise rules for the charge distribution. In general, the landlord establishes a calculation method with his tenants during lease signing, which can be modified later if all parties agree.

In the event of a dispute by the tenant, the landlord cannot simply provide an annual statement of charges. The landlord must also prove payment of all the disputed costs by providing receipts, bank statements, invoices or any other document

The landlord may require a rental deposit when the lease is signed, which may not exceed 2 months' rent (excluding charges)

The landlord may use the deposit in the following situations:

• non-payment of rent
• non-payment of rental charges
• damage caused by the tenant
• non-compliance with the tenant's obligations under the rental agreement
• failure to vacate the property after the lease ends.

The law sets out a procedure for recovering the deposit at the end of the lease, with deadlines for repayment and penalties for delays.

There are 2 scenarios:

1. The exit matches the entry inventory, and all the rent has been paid, half of the deposit must be returned within 1 month of key handover.
   The remaining balance must be returned within 1 month of the approval of annual charges by the co-owners' general assembly or receipt of statements.
   
   
2. The exit inventory does not match the entry inventory (e.g., damage):

• any deduction from the rental deposit must be justified by the landlord within 1 month of key handover
• normal wear and tear do not justify a refusal to return the deposit
• the landlord can only deduct from the deposit the part necessary to cover repairs chargeable to the tenant, or unpaid rents and charges.

If the landlord fails to return the deposit on time and without a valid reason, they must pay compensation to the tenant. This penalty is 10% of the monthly rent (excluding charges) for each month's delay.

Exceptions: The penalty does not apply if the delay is due to the tenant actions, such as:

• failure to provide a bank account
• failure to notify the tenant's new address
• moving abroad without leaving a valid address or bank account

The tenant must send a formal demand to the landlord by registered letter with acknowledgement of receipt to request the deposit's return

In the event of problems (e.g. appearance of an unknown defect) or damage, the tenant is obliged to notify the landlord promptly of the necessary repairs, particularly if they are urgent. Any inaction by the tenant that worsens the damage will makes them liable.

If the tenant fails to report these problems, they may be ordered to pay damages to the landlord.

In addition, the tenant must allow the landlord to carry out the work, even if this causes inconveniences. If repairs last longer than 40 days, the rent must be reduced proportionally to the part of the property the tenant is deprived of (under article 1724 of the Civil Code).

The tenant is presumed to be responsible for any damage to the property. They must prove that the damage was not caused by them or by those living with them.

Please refer to the "rental charges" section for more information.

When the landlord sells the property, the current rental agreement remains valid and continues under the same conditions with the new owner.

However, if the new owner wishes to occupy the property, they may follow a special procedure. In this case, they must send the tenant a registered termination letter within 3 months of the acquisition date of the property.

Yes, the law provides specific rules for shared tenancy.

When a landlord and multiple tenants decide to form a shared tenancy, they must follow the rules laid down by law, such as:

• Single rental agreement: tenants must sign a single written rental agreement with the landlord.
• Shared tenancy agreement: co-tenants must sign a shared tenancy agreement to formalize aspects of community living and practical arrangements.
• Joint liability: co-tenants are jointly responsible to the landlord for the obligations under the rental agreement, which means that the landlord can demand full rent payment from any tenant.

No.

In the case of multiple lease agreements (cohabitation, coliving) or subleases (e.g. furnished or unfurnished rooms), the landlord signs a separate rental agreement with each tenant. There is no joint liability among tenants, meaning each tenant is responsible for their own rent and charges, even if they share common spaces.

For each individual lease, the general rules for rental agreements apply, ensuring that every tenant is protected by the same rights and obligations.

Yes, rents and rental charges are subject to a 5-year statute of limitations.

This means that the landlord cannot claim payments for amounts due more than 5 years ago.

A tenant may terminate a fixed-term lease 3 months before the end of the period specified in the lease, without providing a reason. They must inform the landlord of their intent to terminate the contract, preferably in writing.

Unless agreed otherwise (or a diplomatic clause is included), the lease cannot be terminated before the end of the term set out in the rental agreement.

In the case of an open-ended lease, the tenant may terminate the lease at any time by giving 3 months' notice.

Please note: Since August 1^st, 2024, a major change has been introduced for residential leases. If a lease is not terminated before it expires, it will automatically be extended and become an open-ended lease. This allows both the tenant and the landlord to terminate the contract at any time, with a 3 months' notice for the tenant and either a 3- or 6-months’ notice for the landlord, depending on the reason for termination.

Additionally, the lease anniversary date no longer affects the termination date. This change provides greater flexibility for both parties.

The landlord may terminate the contract at the end of the lease for 3 reasons (while respecting the required 3- or 6-months’ notice period):

1. Personal need for the property, either for themselves, for a parent, or relative up to the third degree;
2. The tenant fails to meet their obligations (e.g. non-payment of rent, property damage);
3. Other serious and legitimate reasons, such as the need to carry out major work that makes the tenant's continued occupation impossible.

Please note: in the event of serious misconduct by the tenant (e.g. non-payment of rent), the landlord may ask the Magistrate's Court to terminate the lease with immediate effect. However, it will be necessary to prove serious misconduct by the tenant.

The landlord can ask the judge to terminate the lease with immediate effect if the tenant is at fault. There is no need for the landlord to give any notice, or to wait until the next expiry date of the contract. In this case, the lease is not terminated, but cancelled. To obtain judicial termination, the landlord submits a simple petition to the Magistrate’s Court in the jurisdiction where the rented property is located.

Alternatively, the landlord may invoke the tenant's misconduct as a serious and legitimate reason for standard termination, while respecting the applicable notice period.

No, the future sale of the property by the landlord does not constitute a serious and legitimate reason for termination.

Yes, the lease can be terminated by mutual agreement between the landlord and the tenant. The parties can agree on terms and conditions, such as the deadline for vacating the premises, the date for the inventory of fixtures and key handover, the rental deposit, etc.

Yes, if a diplomatic clause is included in the rental agreement. Otherwise, an amicable agreement with the landlord is required, which may involve assisting in finding a new tenant or contributing to search costs.

The legal notice period for terminating a rental agreement is 3 months unless the lease specifies a longer period.

However, if the landlord invokes personal need as the reason for termination, the notice period must be at least 6 months.

If nothing is stipulated in the rental agreement, termination may be communicated by various means (e-mail or verbal notice). However, it is strongly recommended to use a registered letter to avoid problems of proof in the event of a dispute.

The letter must include a clear and unambiguous statement of why the landlord is terminating the lease to determine if the reason is legally valid.

If the landlord is cancelling for personal reasons, the letter of cancellation must:

• be in writing;
• contain a clear and unambiguous statement of reasons;
• be accompanied, if necessary, by supporting documents (such as conversion plans or proof that the person requiring the accommodation is a family member up to the  3^rd degree)
• be sent to the tenant by registered letter with acknowledgement of receipt;
• include the text of paragraph 3 of article 12 of the amended law of 21 September 2006 on residential leases, under penalty of nullity.

A new landlord, who wishes to invoke personal reasons, must send a letter of termination to the tenant within 3 months of the date of the notarial deed acquisition to benefit from shorter eviction deadlines.

If the landlord uses a reason for termination that is proven false or illegal, the tenant can file a claim for damages before the Magistrate's Court.

If the reason is deemed fraudulent (i.e., a deceptive tactic to mislead the tenant), the tenant is entitled to damages of at least one year’s rent, as stipulated by law.