The Chamber of Deputies voted on Wednesday to approve the reform of the 2006 rent and lease bill. This will impact security deposits and agency costs.
The reform was approved by both the majority and opposition parties, except for the Left Party (Déi Lénk) which abstained.
The reform implements a number of changes proposed by former Green Party Housing Minister Henri Kox. However, his planned changes to the rent cap were scrapped. Although not permanently, as the government parties approved a motion by the Luxembourg Socialist Workers' Party (LSAP) and the Green Party (déi gréng) to present new draft legislation in the Chamber of Deputies by the end of June 2025.
Minister of Housing Claude Meisch described the reform's passage as "a small step towards modernisation and tenant protection."
Under the reform, the costs of agencies will now be shared between tenants and landlords, a departure from previous policy where tenants bore these costs alone.
Additionally, the rental guarantee, often referred to as the deposit, has been reduced from a maximum of three months rent to two months. Clear guidelines are now in place for the return of this deposit upon lease termination, requiring landlords to refund half within one month if no significant damages are identified.
The reform also provides a legal framework for co-rentals or shared apartments, and mandates that all rental agreements must be documented in writing, rendering verbal contracts legally invalid.
