© 2016 Dwellworks
Page 34
Discovering Luxembourg
Housing
Home Finding
The majority of people live in the south of the country, known as the
Gutland
. In this region,
25 percent of the people (including most expats) live in Luxembourg City or the surrounding
area. Rental prices are on the rise and availability is limited. The center of the city is the
most expensive, with prices declining the farther you go toward the suburbs. Most
apartments are unfurnished, though furnished places may be available for an additional
monthly premium. Rentals typically include a cellar for storage and a communal laundry
room (
blanchisserie
) with a spot for your washing machine and dryer.
Outside of the city, it is common to have a garage or parking space as well. Unfortunately for
pet owners, the majority of landlords will not accept pets. Most properties are rented out by
estate agents, although there are some weekly magazines and internet sites where people
advertise independently. Most estate agents are closed on weekends so house hunting is
usually confined to weekdays until 5PM.Keeping all these details in mind will help you
successfully find a new home.
Understanding the Rental Contract
Lease duration
Parties are free to establish the duration of the lease. They can choose between indefinite
and fixed duration. When the period of the contract ends, it is automatically renewed for one
more year unless the landlord and the tenant agree differently. It is usually required to give
three months’ written notice to break or terminate a lease. It has become common practice
to include a so-called ‘diplomatic clause’ in the standard lease form. This permits to
terminate the lease with sufficient notice, if the tenant has to transfer for work before the
lease expiration date. If the diplomatic clause is not included, and the tenant terminates the
lease prior to fixed term, the tenant is responsible for all payment through the term of the
lease or until another tenant is secured by the landlord.
Monthly Rent
The lease indicates the monthly rent amount, the payment due date and method of payment.
It may be required to set up a standing payment order with the bank. The landlord has the
right to increase the amount of monthly rent amount every two years.
In addition to your rent, you’ll typically be required to pay an estimated monthly contribution
towards common charges, even if you’re renting a detached house. Common charges
typically add 10 to 20 per cent to the base rent. At the end of the year, 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
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
move-in or risk losing part of the security deposit.