How to fix the price of a property to rent in Luxembourg ?
It is not always easy for new landlords to find a balance between a fair and profitable rent for their tenants. There are many factors to consider in order to set the right rental price for a property in Luxembourg. All the elements that will help you think about it are here.
Follow the rent regulations in Luxembourg
You should check the legal limit before renting out your property in Luxembourg City. Legislation passed on September 21, 2006 regulates residential leases.
For example, if you rent your apartment without any furniture, the monthly rent you charge must be less than five percent of the total amount you spent on the property. This amount is calculated by multiplying the initial investment by 0.05% and then dividing it by 12 (for the 12 months of the year).
Adjusting the rent based on the size of the unit
In reality, smart investors in Luxembourg realize that square footage is not the only aspect that matters when setting rental rates. In fact, if everything else is equal in terms of location and amenities, a larger apartment will rent for more. However, the final cost depends on a number of factors.
Knowing local prices
When looking for a place to rent in Luxembourg, location is one of the most important factors to consider. Apartments near the city of Luxembourg, for example, can command a high price because the area is highly sought after. Cappellen-Mersch and its surroundings are another great location.
However, Esch-sur-Alzette and the North Canton remain less desirable because of their greater isolation. For example, rents in Luxembourg City are much lower than in this area.
It's essential to look closely at the foundation of your home
Once you've decided on the area and size of your new apartment, you can consult a real estate agent in Luxembourg who specializes in rentals.
He or she will be able to advise you on the best ways to increase the rental value of your apartment, for example by installing a fully equipped kitchen, including a parking space, connecting the living room to a nice balcony or using authentic materials such as parquet flooring.
However, in the world of modern apartments, where people are looking for quality services, things like low ceilings, rooms that are a bit small to accommodate a double bed, poorly equipped kitchens and the lack of electric shutters can be a drawback. Common area features (elevator, lobby decor, keypad, etc.) can work in your favor or against you, depending on the circumstances.