Going forward, real estate agency commissions will be equally split, 50/50, between the landlord and the tenant.
The “luxury housing” category, which allowed landlords to avoid the rent cap based on 5% of the invested capital, will be abolished.
The maximum amount for the rental deposit will be reduced from three to two months’ rent. Additionally, a procedure for the return of the deposit with specific terms and penalties for non-compliance will be introduced.
Rent increases will be limited to 10% every two years, replacing the current annual one-third rule. For furnished rentals, an additional rent for the furniture can be requested.
All rental agreements must be in writing and include mandatory provisions. For example, the contract must state that the rent complies with the legal annual cap of 5% of the invested capital.
The new law introduces specific provisions for shared housing, establishing a “single shared tenancy agreement” between tenants and the landlord. The roommates will also need to formalize a shared housing pact to manage communal living.
When a roommate wishes to leave before the lease ends, they must notify the landlord and roommates with three months' notice, using a registered letter. The departing roommate is required to find a replacement or prove they made sufficient efforts to do so.
These new measures aim to modernize and balance rental rules in Luxembourg, offering more protection and clarity for tenants while maintaining fair conditions for landlords. The Ministry of Housing hopes that these changes will improve the rental market and make housing more accessible for everyone.
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