The new rent and lease law will come into effect on 1 August following its passage by the Chamber of Deputies just before the summer recess on 10 July.
The revised law introduces several key changes. Agency fees will now be split equally between tenants and landlords, whereas previously, tenants were responsible for the full amount. Additionally, tenants will only need to provide a security deposit equivalent to a maximum of two months' rent, reduced from three months.
New provisions also outline how security deposits should be returned when moving out. For example, landlords are required to refund half of the deposit within a month if no significant damage is reported.
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.
Contrary to the initial proposal by former Minister of Housing Henri Kox, the updated law does not include a new rent cap, though this may be addressed in future legislation.
Current Housing Minister Claude Meisch has indicated plans to introduce a new draft bill by the end of June next year and described this reform's passage as "a small step towards modernisation and tenant protection."
The legal text underwent extensive revisions following a negative opinion from the Council of State and includes a total of three series of amendments. These changes reflect a political commitment to address the ongoing challenges in the housing market more effectively.
Under the new law, all rental contracts must be in writing and comply with specific legal requirements. Contracts must also specify that rent does not exceed 5% of the invested capital. Additionally, the law establishes a legal framework for shared flats.
