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Accommodation in Luxembourg

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How to find the ideal accommodation in Luxembourg? What are the related procedures? Find out in this article.

When moving to any foreign country, finding accommodation becomes a major concern. So if you intend to move to Luxembourg and settle there, you should know how to proceed to find accommodation there and what are the rental market's features. In general, it can be quite difficult to find accommodation in the country due to the scarcity of offers, especially in the capital city where the demand is quite high. Moreover, rent prices have recently increased in urban areas.

Therefore, you are advised to start your accommodation search well in advance by setting out specific criteria regarding your accommodation. Indeed, make sure to determine whether the chosen accommodation is located close to your workplace and to other essential services and facilities such as schools, accessibility to public transport and roads, etc. Note, moreover, that rent prices also depend on the neighborhood you have chosen, especially in Luxembourg City.

Accommodation search

Internet will undeniably be your best tool during your housing search in Luxembourg. Indeed, you can browse offers on general and specialized websites, and even on online local newspapers. You can also register with a real estate agency to have more chances of finding accommodation according to your criteria. Note, however, that you will have to pay agency fees that are equal to one month's rent, along with a 17% value added tax (VAT).

On the other hand, relocation agencies also provide accommodation facilities upon request. These even take care of all the formalities on your behalf provided you specify your criteria (proximity to schools, your place of work, and other facilities).

Lease

The lease contract can be concluded between the owner and the tenant either orally or in writing. But you are strongly advised to insist on a written lease contract so as to ensure a quality relationship between both parties. There is no specific form regarding lease contracts, but in general, it should contain the following details:

  • the lease term
  • termination provisions (whether a notice is needed or not)
  • any changes allowed during your occupancy
  • rent price and payment deadlines
  • rental charges.

The lease contract is automatically renewed at the end of the agreed period. Therefore, if you do not wish to extend the lease on its due date, you are required to give a prior notice to the owner, as specified in the lease contract. As regards the oral lease agreement, it has an indefinite duration.

Formalities

You are required to pay a bond or guarantee to the owner on signing the lease contract. The amount shall not exceed the equivalent of three months rent. It can be paid in cash to the landlord. It can as well be a bank guarantee or a rental guarantee. The guarantee will be refunded to you on vacating the housing unit, unless it is claimed by the owner in case of damage to the property.

Once this formality has been accomplished, you are advised to carry out an inventory along with the owner, or by both parties' representatives. It is recommended that you conduct an inventory on vacating the premises also.

 Good to know:

In case the owner request for a rental deposit before letting the premises, a written and contradictory appraisal becomes mandatory before you start occupying the housing unit. Legally, the end of lease inventory is not compulsory.

Rent and charges

In accordance with Luxembourg laws, the maximum amount of rent cannot exceed 5% of the amount invested in the building by the owner. The rent price will be indicated in the lease contract and may be adjusted every two years. However, if the lease provides for a value clause (change in rent price according to the cost of living index, for example), the clause of rent review every two years is set aside as from the first term according to the date when payment was requested to the tenant.

Finally, rental expenses, such as energy consumption, maintenance of the housing and common areas, minor repairs and taxes, etc., are the tenant's responsibility. Water, heating/gas bills, electricity, sewer, garbage, cleaning of the central heating system, on the other hand, as well as property tax and other types of taxes, will be the owner's responsibility. These are not included in the monthly rent.

 Useful links:

Expat.com – Housing in Luxembourg 
Observatoire de l'Habitat observatoire.ceps.lu
Ministry of Housing www.ml.public.lu
At Home www.athome.lu
Wortimmo www.wortimmo.lu
Immo Top www.immotop.lu
Habiter.lu www.habiter.lu

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See also

As an expatriate in Luxembourg, you are allowed to buy a property, whether it has already been built or it is in construction.
Esch-sur-Alzette is a developing and urbanized city providing a range of accommodation options for expatriates wishing to settle there.
Dudelange, one of Luxembourg's major cities, is very welcoming towards foreigners, thus providing a range of accommodation options.
If you wish to settle in Luxembourg City, you should know that rent prices are very high there, especially in the most popular neighborhoods.

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