Luxembourg Tenant Guide

LUXEMBOURG TENANT GUIDE

+ The landlord must provide the annual statement of all payments and make reconciliation. Common charges include heating, water/sewage, common area maintenance as well as regular common areas cleaning. What is covered under these additional charges may vary by property. Security Deposit: + Most landlords require a deposit of two to three months’ rent. The lease will state the amount and conditions of the security deposit. Note that at the end of the lease term, the tenant must return the property to the landlord in the same condition as when they moved-in or risk losing part of the security deposit. The Deposit Covers: + Outstanding rent payments + Most commonly in Luxembourg, a bank guarantee covering the deposit, in which case the bank will also require payslips or a deposit of the same amount or a guarantee from the employer. + A refundable deposit (caution or dépôt de garantie) is generally paid into an interest-bearing account in the tenant's name, which is remunerated at the minimum legal interest rate, published on a regular basis in the Official Gazette. This account requires authorisation from the landlord and the tenant before the money can be released. Please note that at the end of the lease and after the establishment of last account, the owner will return the rental guarantee to the tenant if he/she has no claims to make. If rents or charges have been outstanding, he can deduct the amount provided as collateral. HOUSEHOLD INSURANCE AND CERTIFICATES: The tenant is contractually required to have household and fire insurance covering the unit. Insurance for household contents is only required if the contents belong to the landlord. A copy of the certificate and any amendment may be required by the landlord at the signing of the rental agreement and may be requested at the rental renewal date. Property Move-in Inspection: One of the most important tasks when moving into a new apartment or house is to complete a detailed property condition inspection. The procedure varies, but in general, all problems and damages are listed on a form which is signed by both the tenant and the landlord. Most leases require the tenant to restore the property to ‘move-in’ condition, and it’s the inventory report which establishes that condition. Once the tenant moved in, s/he is responsible for all interior maintenance and decoration. When renting property, inspect the vacant house or apartment for damage or repairs that need to be made before moving in. You are also encouraged to take photographs of any potential areas of concern during the inspection. The list must be sent to the landlord for written confirmation, indicating when repairs or other work will be done. A lease may include a comprehensive cleaning clause, which contains the obligation of deep cleaning the entire home at the end of the lease or paying the monetary equivalent. TENANT AND LANDLORD OBLIGATIONS The Tenant: The tenant's obligations are as follows: + To pay the rent in full by the agreed date + To pay service charges: water, electricity, communal maintenance in an apartment + To use the property "appropriately" + Any damage caused to the property (beyond wear and tear) + Failure to pay service charges (in the apartment building) The deposit could take one of three possible forms: + A payment in cash with receipt.

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