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Since the August 2024 reform of the lease law, the deposit is capped at two months' rent and agency fees are shared. Here is what every tenant should know before signing.
Luxembourg's rental market is tight and expensive, but tenants are well protected. The amended law of 21 September 2006 on residential leases, revised by the law of 22 July 2024 (in force since 1 August 2024), regulates the contract, the deposit and the fees.
| Topic | Rule |
|---|---|
| Contract | The lease must be in writing |
| Rental guarantee (deposit) | Capped at 2 months' rent (previously 3) |
| Agency fees | Split half-half between landlord and tenant when the agency is instructed by the landlord |
| Rent | Capped by reference to the capital invested in the dwelling; abusive clauses prohibited |
| Charges | Only actual charges may be billed, with a statement |
| Flat-sharing | Specific legal framework (colocation pact, regulated joint liability) |
The landlord cannot raise the rent freely: adjustments are regulated and spaced out. Major repairs are the owner's responsibility, routine maintenance the tenant's. On leaving, a joint check-out inventory conditions the return of the deposit; in case of unjustified withholding, first send a written formal notice.
Each commune has a rent commission competent for rent disputes. For other disputes (deposit, termination, repairs), the justice of the peace is competent, with a procedure accessible without a lawyer. Neutral information is available on logement.public.lu and guichet.public.lu.
Most residential leases are concluded for a fixed term with renewal, or for an indefinite term. The tenant may terminate with three months' notice by registered letter, unless the contract is more favourable. The landlord, on the other hand, may only give notice on grounds limited by law - personal need, serious and legitimate reasons - and within strict deadlines; if the dwelling is sold, the lease continues with the new owner. An irregular notice has no effect: never leave the premises under mere verbal pressure from the landlord.
