Luxembourg Rentals: What You Need Know Before Signing a Contract?

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Once you have decided which house or apartment to rent, finalizing a lease or rental contract is your next step. You should read and understand the agreement thoroughly before signing it. If you have some questions or doubts about any of the terms, you can ask a professional to explain it or translate it to you.


Essentials Facts Rental Contract Should Contain

The essential details enumerated below should be included in your rental contract:

Address and Additional Rooms

The contract will identify the property you are renting, which includes both the apartment and the street address. If some additional privileges or rooms are included in your rentals like a laundry room, parking space, storage facilities, or garage, they should be written in the lease. For a semi-furnished apartment, this should be noted and indicated in the contract.

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Monthly Rent

The amount of your monthly rent should be written on the contract. And also, the date you need to pay for it, payment method, and even the penalties for late payment. It should clearly state the details of an annual rent increase. You are required to pay some monthly due, and it should be indicated on the lease contract.

Damage Deposit

Also indicated on the contract is the damage deposit. The amount and conditions should be written in the lease. In case you move out, you will be expected to return the apartment or house in good condition or the same way you took it. If you are not able to do so, your deposit can be used to cover the cost of needed repairs.

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The deposit will be used until there are no other charges, and everything is settled. Therefore, it may take you a year or more after you leave the apartment before you can get your deposit back.

Three Months Deposit

The landlord will ask a deposit of one to three month’s rent. If possible, you should arrange with the owner that this money should be held in an interest-bearing account. It is a blocked account that needs authorization from you and the landlord before releasing the funds.

The bank also accepts a bank guarantee. You can talk to your bank, and it may require you to pay for a small annual fee. Be careful about landlords who will try to include a clause that requires you to return the apartment or house to perfect condition instead of the same condition when you received it. If you agree, you might be asked to make a major renovation, and that includes all the wear and tear from the past.


Other Terms and Conditions

Other information that may be included in the contract includes the penalties and periods for breaking the lease. It is important in Luxembourg that the tenant’s rights are protected. Asking a tenant to vacate the house because they are causing serious problems is a process that usually takes months or sometimes years.


The grounds for evicting a tenant should be specified in the contract. Most of the rental contract in Luxembourg has three years of the fixed-term agreement. You can request a year or two-year lease if you are on a shorter assignment.

It is best to talk to a lawyer before you rent an apartment in Luxembourg and sign the contract. There are some terms and statements that you might not be able to understand, so it is best to have an expert around.