You should read the lease carefully before signing it and, if you have doubts or questions about any of the terms, have them translated or explained to you.
A lease will identify the property you’re renting, including both the street address and the apartment (either by number or location). If there are additional rooms or privileges included in the basic rental, such as access to a laundry room, garage, parking space or storage facilities, these should be noted in the lease. If you’re renting a semi-furnished or partially equipped unit, this should also be noted, along with an indication of what equipment or fittings are included.
A lease will indicate the amount of your monthly rent, the date it is to be paid and possibly the method of payment (many landlords require you to set up a standing order with your bank), plus any penalties for late payment. It should also include details of annual rent increases, which are usually indexed, as well as the procedure for increasing the rent above this amount. In addition to your rent, you’ll be required to pay an estimated monthly amount for.
Your lease should also include the amount and conditions of the damage deposit. When you move out, you’ll be expected to return the house or apartment to the condition it was in when you took over; if you fail to do so, the landlord can use your deposit to cover the cost of making any necessary repairs. The deposit will usually be held until the last common charges have been determined and settled, so it can be a year or more after you leave before you receive your deposit refund!
Most landlords require a deposit of one to three months’ rent. If possible, you should arrange to have this money held in an interest-bearing account, usually a blocked account that requires authorisation from both you and the landlord before the funds can be released. Some landlords will accept a bank guarantee for the amount of the deposit. You can arrange this through your bank, usually for a small annual fee. Beware of landlords who attempt to include a clause requiring you to return the property to ‘perfect’ condition rather than to the condition in which you received it. If you agree to such a clause, you could be faced with major renovation costs to cover previous tenants’ wear and tear as well as your own.
Other terms and conditions that may appear in the lease include notice periods and penalties for breaking the lease. Tenants’ rights are extremely well protected under most standard leases in Luxembourg. Evicting a tenant, even one who has caused considerable problems, is a process that can take months or even years, and the circumstances under which a landlord may evict a tenant are severely limited. In most cases, he must give a long notice period and pay you substantial penalties (which doesn’t mean you should make a habit of getting yourself evicted from rented accommodation!). For this reason, most landlords insist on verifying your employment, residence and income details before accepting you as a tenant. If you want to terminate the lease, there are standard notice periods and procedures to follow, and sometimes penalties to be paid. It has become common practice to include a so-called ‘diplomatic clause’ in the standard lease form. This permits you to terminate your lease at 30 days’ notice if you have to move owing to your employment, i.e. you’re transferred at short notice or you change jobs.
A standard rental contract in Luxembourg is written for a fixed term of three years. If you’re on a shorter assignment, you can ask for a one or two-year lease or have a diplomatic clause inserted into the standard lease agreement. You’re usually required to give three months’ written notice to break or terminate a lease. With a diplomatic clause, you can shorten this to a month, but your move must be related to your employment, i.e. either a change of job or a transfer. Apart from the basic rent, you must pay a monthly contribution towards common charges (often even if you’re renting a detached house).
Tenants in Luxembourg are often subject to weekly or monthly cleaning duties if the building has no concierge or superintendent to take care of common areas.
This article is an extract from Living and Working in Holland, Belgium & Luxembourg.