Finding a rental property
High demand means finding a rental home can be difficult. Here are a few tips to guide you through Luxembourg’s rental market, your rights, and the rent subsidies available
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In Luxembourg, supply of housing is low but demand high.
If you're relocating from abroad and unsure of how long you'll stay, then renting a property is probably your best option. This guide takes you through finding a place and signing a contract.
Good to know before you rent
Rental subsidy
The government recently revised the subsidy for rent and you might qualify for between €200-400 a month in rental subsidy. A single person earning up to €3.126,83 will get a subsidy of €200, a couple on €4.800,49 will receive €360 a month and a family with three children or more can receive up to €400 depending on their income. You can find a table listing the income brackets here, although you may qualify for a slightly lower subsidy than the maximum, so it's worth checking.
To qualify for the subsidy you must be legally residing in Luxembourg, have a regular income, and your rent must be more than 25% of your monthly income. You should have a signed lease, and the rental should be your main and permanent residence (you should not have another accommodation).
Legal changes for renters and landlords
It's not law yet, as it still must be debated in parliament, but a draft bill has set up a number of laws to tackle issues for renters.
The government also introduced income tax benefits to landlords with empty properties. Some 1,200 signed up to the GSL scheme in 2022, which works with 39 social welfare agencies such as The Red Cross. Renters benefit from prices 30-40% below market value, and landlords receive 50% tax exemption on income (this exemption is set to rise to 75%). In 2022, 1,177 apartments were rented out under this scheme.
Deciding on a location
Work and school locations are the two biggest influencers in deciding where you should rent. Whilst public transport is free in Luxembourg, journey times can quadruple during rush hour making even short commutes time-consuming.
Check out schools locations and bus/train timetable routes. Generally speaking, city locations tend to favour apartments whilst the suburbs have a greater number of houses with gardens.
Gasperich a popular neighbourhood of Luxembourg City Photo: LW archive
Check out schools locations and bus/train timetable routes. Generally speaking, city locations tend to favour apartments whilst the suburbs have a greater number of houses with gardens.
Budget will be a big factor in your location. The average monthly rental cost in the city for a one-bedroom apartment is €1,600 and for a three-bedroom dwelling it's €4,000. Prices are generally cheaper in the south and east of the country. The Housing Observatory lists the latest rental price trends here.
You can find more about the areas in Luxembourg from our In the Neighbourhood series.
Estate agents
Because it’s a landlords' market, you’ll find you’re chasing estate agents. If you’re coming from overseas for a pre-visit, you can line up house viewings in one day. Expect estate agents to find properties at the top end of your budget.
Remember that notice periods can be 2-3 months, so start your property search in plenty of time. Many estate agencies specialise in specific localities, so if you know where you want to live, register with them (you can use the sites below which aggregate other agency adverts).
Beyond estate agencies, private rentals are posted on www.wortimmo.lu, which is also an aggregator site. Don’t forget to ask around at work, someone might be moving or renting their property.
Estate agencies will expect a month’s rent plus VAT in fees. There are also options for flatshares, houseshares and furnished apartments in addition to student accommodation. You can find out more about temporary accommodation and short-term lets here.
The online estate agencies are a good place to start your rental search:
www.home.editus.lu/en (for a list of smaller agencies)
www.myspace.lu/ (for furnished apartments)
www.vaubanfort.lu/ (flatshare inclusive rentals)
www.luxfriends.eu/en/ (house share)
www.erasmusu.com/en/ (student accommodation)
You can also find places to rent on social media, including Marketplace.
If you want someone to manage an international move for you, including finding a home, schools, and more, you can try the relocation agencies LuxRelo and European Relocation Services.
Are utilities included?
Unfurnished rentals do not usually include gas (or oil), electricity, telephone, broadband, rubbish collection, and water rates, but some city apartments may include these in the rental price. Apartment and house shares will often offer all-inclusive rates and provide furnishings including a TV.
Utilities are not usually included in a non-furnished rental Photo: Shutterstock
Unfurnished rentals do not usually include gas (or oil), electricity, telephone, broadband, rubbish collection, and water rates, but some city apartments may include these in the rental price. Apartment and house shares will often offer all-inclusive rates and provide furnishings including a TV.
Many properties will list energy ratings and you can ask the current tenants what the utilities cost. Expect to add a couple of hundred a month to your rental costs for these if you rent a house. For more information on getting your utilities switched on, read our article Need a connection?
Things to know before you sign
In addition to utilities you may have responsibility for other elements of the property. Contracts can include servicing the boiler, sweeping out chimneys and maintenance of the garden.
Contrat de bail à loyer (rental contract)
Contracts vary, but generally the standard is 1-2 years with a diplomatic clause. Be aware, that you literally have to leave the country to invoke this. It is getting easier to secure one-year contracts but specify this with the estate agent.
If your rental property includes some utilities, the landlord has the right to reconcile costs at the end of the year and it is not unheard of for people to receive quite hefty gas and electricity reconciliation bills.
Equally, repairs can sometimes take landlords an eon to conduct, so consider adding a clause that states the landlord must repair essentials such as heating, the dishwasher or oven within a maximum time limit.
Guichet.lu has details on entering a rental agreement here.
Dépôt de garantie (deposit or bond)
A refundable deposit is usually required in cash or more commonly via a bank guarantee, which is paid into an account in the tenant’s name, but requires authorisation from both parties for money to be released.
A deposit cannot exceed 3 month’s rent.
Tenants leaving a property in good condition should receive half of their deposit within a month, with the remainder paid after the annual account settlement of common charges. If a landlord deems the property not to be in good condition (above fair wear and tear), they must provide proof within the first month the property is vacated, or face a late fee fine of up to 10% of the monthly rent. Charges for furniture are also limited, and there are clear rules on responsibilities for flat sharing known as Wunngesmeinschaften.
Etats des lieux (inventory)
Before or on the day you move in, your landlord or the agent will go through a rental inventory with you, listing everything included in the property and the state of this. It might be extra stress, but be careful to go through this a room at a time, as you might find you are charged for damage that you didn’t make when you leave the property.
This is also a useful time to check you know how the oven, dishwasher heating, hot water etc work. Gardening equipment such as lawnmowers, and washing machines, light fittings and curtains are usually not included in the rental.
You will both sign the Etats des Lieux and when you leave your rental property you will both need to sign this again to release deposit funds. For details on the rental inventory from guichet.lu click here.
Insurance
You will be contractually required to have household and fire insurance covering the building, and insurance to cover contents supplied by the landlord such as a fully equipped kitchen.
Consider adding parquet floors to the insurance. You will obviously want to ensure your own contents too. The main insurers in Luxembourg are LaLux, Foyer, Bâloise and AXA and Allianz.
You can find at all you need to know about insurance in Luxembourg here.
Ongoing tenancy
If you have a problem with any of the equipment provided ie heating, dishwasher, oven, you should be able to call the estate agent or landlord directly to fix these.
Most contracts state that the property must be left in the condition you rented it. If your children have left sticky handprints all over the paintwork or scratched the parquet flooring, expect to be charged for these to be redecorated or repaired.
Giving notice
Notice on a rental property must be given usually 3 months before the end of the contract in writing and sent by registered post. Check your contract for the stipulated notice. Those sharing a flat or subletting a room in a house share might have different terms and should check with the company or person from whom they rent.
The landlord has the right to show prospective tenants the property in the final three months if you have given notice. If you want to leave early and can find a tenant who is acceptable to the landlord, you might be able to circumvent the contract. The landlord also has the right to give notice on a property if s/he intends to sell it.
Guichet.lu has information on terminating a lease here. For details of what to do in a conflict, for financial aid and other rental matters click here.
