Since early August, agency fees are now meant to be shared between landlords and tenants. However, The Left (déi Lénk) party says the new law has met with teething issues.
Agencies are said to be trying to charge tenants in other ways, for example, using inventory fees. RTL queried the claims with a number of involved authorities.
The Ministry of Housing has also been made aware of issues in the initial phase of implementing the new law, says minister Claude Meisch.
"We have been informed by some tenants that the fees and commissions required for signing a rental contract have been divided, and are not unilaterally on the side of the tenant. It appears the message has not yet reached all parties, whether tenants, landlords or agencies. Therefore, as a ministry we will continue to spread information and raise awareness. We need to encourage all parties to report any instances of non-compliance with the law to us, and to the consumer protection authority."
Paolo Madureira, the new president of the Luxembourg Real Estate Chamber, warned against creating a general sense of suspicion.
"The agencies are not cheating, they are applying the law that has just been passed. Some advertisements have not been updated online, however. But as we know, August was a month of collective leave, many agencies were partially closed. We believe these ads are now being corrected for September."
However, Jean-Michel Campanella, president of the rental protection association (Mieterschutz), said this excuse was invalid.
"I can't think of many laws where people say, oh, sorry, I'll do it when I have time, when I get back from holiday, or whenever I'm ready in a few months. A law is valid as soon as it comes into force."
The Real Estate Chamber has issued a reminder to agencies regarding the new law's provisions, while the Ministry is also working on further information campaigns.
New rent and lease law took effect on 1 August
The revised law introduced several key changes. Agency fees are now to be split equally between tenants and landlords, whereas tenants were previously 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.
