When and how do you manage an unpaid rent situation.jpg

The prospect of receiving a late payment or no payment at all is one of the biggest concerns of any landlord considering renting out their property. Firstly, this type of legal dispute can be avoided by implementing a number of good practices. In addition, if you do not pay your rent and you are several months in arrears, your landlord has the right to take legal action to recover the money.

## If you want to avoid eviction, pay your rent on time

Even before a lease is signed, a landlord can reduce the likelihood of rent being paid late or not at all by putting certain preventive measures in place. Specifically, a responsible tenant profile should be favored at all times. To this end, landlords should not rent to just anyone without first seeing proof of income and rental history. Don't hesitate to ask for these things from anyone who asks to rent from you. This way, you can ensure that they are able to meet their current lease and have a stable source of money for future payments.

It is also possible to take out insurance to protect against financial loss in the event that tenants fail to pay their rent. Until the situation returns to normal, companies can actually compensate you for the rent. For example, if the defaulting tenant continues to occupy the property without paying the bill, this can compensate for the loss of income suffered throughout the legal process.

Prompt action and communication with the tenant to find out the reasons for the late payment of rent would help to resolve the situation. Sometimes the problem can be resolved quickly and amicably. But if the tenant still does not cooperate, you may have to take legal action to recover the rent.

## If my tenant does not pay the rent, how do I take legal action?

To take legal action, you need to file a petition with the local Justice of the Peace (the one in Luxembourg, Esch-sur-Alzette or Diekirch, depending on the location of the accommodation).

Upon receipt of the petition, the clerk will issue a written summons to each party. The tenant will be considered to be "in default" if he or she does not appear in court on the day indicated. The hearing on the motion to dismiss will be delayed if he or she does show up.

But it is important to remember that the Justice of the Peace can always issue urgent warrants if necessary. It is not out of the question for him to request an expert opinion or to institute a temporary rent.

Once the judgement has been rendered, the landlord can proceed with a wage garnishment to recover any arrears of payment, bearing in mind the possibility of seizing the tenant's property. A judge may order an eviction if he or she determines that the current circumstances do not allow the lease to continue.

Since this is a petition-based procedure, there is no need to hire a bailiff or lawyer, and the cost is therefore low. Landlords usually only need to budget for the cost of copies of supporting documents, the cost of transport and accommodation at the hearings, and sending notices to tenants by registered post.

When and how do you manage an unpaid rent situation?

All you need to know about the security deposit for tenants.jpg

Most landlords require a security deposit, often called a rental deposit, from a new tenant before they will even consider signing a lease with them. This initial deposit serves as a guarantee to the landlord and can be claimed in the event of late payment of rent or eviction of the tenant due to property damage. Please tell me how much this deposit is. As a tenant, what are your responsibilities and privileges? What to do in case of a dispute? Find out more here.

## The maximum amount is equal to three months rent

Luxembourg law does not require landlords to demand a rental guarantee before a new tenant moves in. However, this practice is frequent, almost systemic.

However, the maximum amount of a rental guarantee must be respected in cases where such a guarantee is required. The ceiling is set at three times the amount of monthly rent that landlords can charge in the territory. For example, if your monthly rent is €500, your security deposit cannot exceed €1,500.

## How do I get the money for the down payment?

Once you have moved in, there are a host of new costs that await you. Given the difficulty you have in controlling your costs, it seems logical that this rent guarantee is a bad idea. You can rest easy knowing that there are options to reduce the financial impact of this payment.

If you need help finding financing for a rent guarantee, you can contact the Department of Housing's Housing Assistance Division. If you do not qualify for this benefit (you cannot own or usurp another property, you must rent the property as your primary residence, you must have a deposit agreement with a financial institution, and your income cannot exceed the limits), you will not be able to finance the rental guarantee on your own.

Another option that may work for everyone is to use a bank guarantee. Rather than actually paying the rent, the tenant asks the bank to temporarily hold the funds. Depending on the terms of the lease (in the case of a "first demand" guarantee), landlords may sometimes have the authority to withdraw the rent from the tenant's bank account without the tenant's consent.

The rental guarantee is a new option that has recently entered the Luxembourg market. After receiving payment of a premium, an insurance company or mutual insurance company issues a rental guarantee.

## When will my security deposit be returned to me after I move out?

In most cases, the full amount of the security deposit paid to move into an apartment will be returned. However, once you have returned the keys, your landlord will close the books and may deduct from the security deposit any charges such as utility adjustments or repairs discovered during an inventory of the property upon your departure.

If you and your former landlord can't agree on the security deposit, try discussing it first. However, if you want to avoid going to court, there are mediation systems available.

All you need to know about the security deposit for tenants

What are the rules for terminating a lease.jpg

The manner in which a lease is terminated depends on the type of agreement and the status of the party seeking to cancel it. In a lease with no fixed end date, the tenant may vacate the premises by giving two or three months' notice. Termination of the lease by the landlord is only possible for cause. In this case, there are very specific guidelines on how the request must be made and how much notice must be given.

## When can the landlord legally terminate the lease?

If the tenant is at fault, the landlord has the right to terminate the lease without notice; this is called "settlement" rather than "termination". This action must be accompanied by legal action; if a justice of the peace determines that there has been a breach of contract, the agreement will be dissolved. A judge may require a notice period even if no agreement was originally reached. The length of this period is left to the discretion of the judge.

However, it appears that eviction on substantial and real grounds is conceivable even in the case of a trustworthy tenant. This option is used, for example, when important maintenance work must be done but no one can safely reside there at the same time.

Finally, it is important to note that open-ended leases still allow for termination for personal reasons, but only with six months' notice. This justification is used when the purchaser plans to live in the unit permanently or temporarily, for example when taking in family.

## Cancelling a Lease: Procedures to Follow

If you want to terminate your lease for any reason, the process is the same and requires complete seriousness. To begin with, a formal letter of termination must be given to the tenant; it is not enough to send an email or make a phone call. You must use a delivery confirmation service to send it. This letter must provide an explanation of your decision and the rationale for it. Put your sincerity in writing if asked.

Finally, be sure to provide a reference to the relevant section of Article 12, paragraph 3 of the Law of September 21, 2006, which states that a lease may be terminated for personal reasons. By invoking this justification without citing the applicable law, you risk having your letter declared null and void, which would only further delay the procedure.

The tenant has the right to ask the Justice of the Peace for an extension of time after being informed of your decision. The hearing will be notified to all interested parties and will take place no later than one year after the original expiry date. If the tenant does not comply and remains in the unit after the expiration of the time limits, the judge may request a forced eviction.

It is important to consider all facilities when ending the lease, even if the process is rushed or if the agreement to end the lease was reached informally. Finally, don't forget to return the security deposit on time.

What are the rules for terminating a lease?

Real estate sales our tips for getting started on the right foot.jpg

Selling real estate is a major life event and should be treated as such. Don't embark on such a project without a clear idea of the end result you want to achieve; instead, plan ahead. For a more nuanced approach, look at the sale more calmly, with confidence, before using a real estate agency. This will help you avoid being caught off guard by certain issues.

## Has the optimal moment for selling arrived?

When we talk about the "right time to sell", we are referring to these two crucial elements:

- Depending on how you see things,
- Current market conditions

For starters, a life-changing event usually prompts the seller to put their home on the market (marriage, divorce, birth, death, job transfer, etc.) Therefore, the principal sees it as a logical option. But if you're not quite ready to sell yet, you have options. Not everyone has the financial means to maintain a second home, so renting may be an attractive option. If you're not sure what to do, consult a real estate agency for advice.

If current market conditions are favorable for a sale, the agency can also let you know. Due to factors such as changing mortgage interest rates, the passage of time and rising or falling wages, sometimes of year are more favorable than others for investing in real estate. Getting in at the right time can help you get a better deal.

## Is it possible to sell the house under these conditions?

If you have decided to sell, you need to assess whether or not the current condition of your home will encourage buyers. A few inexpensive updates, such as repainting the walls white to increase the brightness inside, removing decorative accessories that are too personal, de-cluttering the living areas, redoing tile grouting that has worn out over time, etc. can increase the likelihood that more people will be interested in your property.

At this stage, the real estate agent is once again invaluable. When he comes to give you an estimate, he will be alert to anything that might turn off potential buyers. Once they're done, they'll give you advice on how to improve the appeal of your home despite its minor flaws.

## Is this real estate agency reputable and reliable?

Some people prefer to sell to other people privately, but this is not advisable because the administrative procedures are very complicated. It is important to choose a reputable agency that you can work with, so make sure they are experts in their field before you hire them. For peace of mind, it's a good idea to get recommendations from people you trust (including using word of mouth) and/or weigh your options by comparing and contrasting potential candidates.

If you want someone to help you through the sales process, it is best to hire a professional. With their help, you'll have all the legal documents in order, your home will be in the best possible shape to sell quickly for the best price, and you won't have to worry about a thing.

Keep in mind that people don't always choose the agencies that offer the highest quote, but rather those that base their reputation on fair pricing. As an added bonus, they are experts in your case and can point you in the right direction with any questions you may have.

Real estate sales: tips for getting started on the right foot

How to protect your property with different types of shutters.jpg

Roller or swing shutters can prevent unwanted visitors and the elements from entering your property. The beauty of the building would suffer without them. In order to choose the best approach, it is helpful to quickly compare the many options.

## A wide variety of opening types

### The most classic type of shutter, the swinging shutter

Unlike other types of shutters, swinging shutters have two panels instead of one. These are the tried and true, no-frills models that have proven themselves time and time again. They add to the appeal of the home and are aesthetically pleasing. Shutters can be modified to meet local building ordinance requirements and are available in a variety of materials such as PVC, aluminum or wood, with or without louvers.

### The most practical type: roller shutters

The versatility of roller shutters is one of their most attractive features. They can be operated from inside the house, which is especially convenient in stormy weather or in areas prone to natural disasters. To open and close the window with the flick of a finger, motorization is a convenient option. When it comes to energy-efficient homes, this is a must.

A manual crank is included in case there is a power outage and you need to close the blinds. The most popular choice among technophiles is motorized roller shades. By using a home automation system in conjunction with motorization, you can set a schedule for opening and closing the blinds. If you connect your system to the internet, you can easily manage things remotely using your phone.

## Advanced technologies or proven techniques

### Durable, proven wood

Wood has stood the test of time and continues to win the hearts of those who appreciate classic design, even as other modern materials have become more popular. Its versatility and ability to adapt to local tastes make it a popular element in any home. But there is still the issue of maintenance, which should be done at least once every two to three years to keep the material in good condition and extend its useful life.

Wood, when properly cared for, is strong and durable, and its maintenance requires no special skills and is within the reach of the most inexperienced do-it-yourselfer. Wooden shutters can be purchased in an almost endless array of species, colors and finishes, and these options come with a wide range of prices. Wood is impeccable in every respect when it comes to its thermal and acoustic characteristics.

### PVC shutters at low prices

Those who are not experienced do-it-yourselfers will appreciate PVC because it is inexpensive and requires little maintenance. In terms of thermal insulation, PVC shutters work admirably. Some modification is possible, but not as much as with wood shutters, and the range of work is limited.

### Aluminum, a strong and reliable metal

The aesthetics of aluminum match the design of today's homes. It's the material you can use without worrying, because it lasts a long time and resists all weather conditions, corrosion and break-in attempts. It is virtually maintenance free and is available in a wide variety of colors, making it a great option for customization. It would be the perfect material, appealing to even the most discerning buyers, if not for its poorer acoustic and thermal characteristics and higher price compared to PVC and wood, respectively.

How to protect your property with different types of shutters?

How to choose your doors among the many models available.jpg

Doors are available in a wide range of styles, so it should be possible to choose one that meets your needs and preferences. There are many options because of the wide variety of opening mechanisms, designs and materials available. You will therefore make your decision based on aesthetic and functional considerations.

## Opening systems

### The most popular door model: the swing door

The single or double leaf swing door swings open vertically. The door can be opened in any direction, as long as it does not impede pedestrian traffic and is in harmony with the rest of the room's design. This type of door can only be installed if there is at least one meter of space on each side. For this reason, it is a bulky model that has difficulty fitting into small spaces. Studio owners should turn to folding or sliding models.

### Pivot door, new ideas prevail

Similar to a swing door, but with a hinge on one side or in the middle instead, a pivot door allows for easier opening and closing. As a custom project, this type of door will cost more than a standard door, so it's important to plan accordingly if you want to make an impact on your guests.

### Save a lot of space with a sliding door

Sliding doors are both aesthetically pleasing and discreet, making them perfect for small spaces. Unlike a swinging door, it creates a large opening and frees up the entire room. Both sliding and overlay systems can be installed. These are two completely different styles. The overhead door is discreet and tasteful. When closed, it almost disappears into the wall. When open, it disappears entirely into the casing. Planning the installation at the time of wall construction can save time and money. The sliding door track is highlighted by the surface installation. This is a fantastic accent, and is especially well suited to industrial-themed rooms.

### Folding doors are both space and cost efficient.

Folding or expandable doors, usually constructed of wood, are practical for apartments with limited space. They can be installed in no time as they are mounted on a track that is screwed to the ceiling and fold up like an accordion. Although it is most often used as a closet door in the kitchen or bathroom, it is not prohibited to use it in any part of the house.

## Materials used

### Always popular, wood is a timeless commodity

Wooden doors are widely used in interiors and can be interpreted in a dizzying array of styles, colors and species, resulting in an almost limitless number of aesthetic outcomes. Wooden doors are a great option because they offer excellent thermal and acoustic insulation, both of which are important to any given room.

### Glass doors, to meet all expectations

Glass doors, which can be colored, frosted or reflective, offer the benefits of natural light while maintaining a degree of privacy. When making your choice, keep in mind the durability of glass and its ability to withstand impact. Doors that combine glass and wood or glass and aluminum come in a wide range of designs, just like wood doors. Glass doors attract fingerprints and require regular cleaning from the chore bored and the perfectionist.

How to choose your doors among the many models available?

The window openings with adaptable geometry.jpg

The window has several opening mechanisms (tilt and turn, sliding, fixed) to meet a wide variety of needs. Find the one that suits your needs while being aesthetically pleasing.

## The classic casement window

You're used to seeing this type of window, which has two huge casements that open widely inward. This model is the standard, found in virtually every home. Despite its versatility, this window is quite large. You need a space large enough to accommodate its massive opening radius. Otherwise, opt for a sliding model that is easier to conceal.

## Clever double act with the tilt-and-turn window

The standard type, with its two-way access, is by far the most popular option. The space can be ventilated not only by the traditional vertical opening system, but also by a tilt-and-turn opening, the "bellows," which extends only a few inches in height. This style of window is commonly used in kitchens, as it not only allows fresh air to enter the space, but also disperses odors and harmful gases that can accumulate in this area.

## Significant space savings are achieved with the sliding window

An opening like this works wonderfully with modern furniture. It features a lot of glass, so a lot of natural light can enter the space. Sliding windows, compared to standard casement windows, save a lot of space, which is an added benefit. These features are sure to be of interest to city dwellers who, with limited living space, are always looking for ways to make the most of the space they have. It's not just the kitchen and bathroom that can benefit from sliding models; the living room, bedroom and even the office can also benefit.

## The fixed window, a needs-based model

Let's assume that there is no need for such an opening mechanism. Fixed windows do not open and are simply a panel of glass with no additional accessories. Where would you place such devices? The way you think about it could be. While not the most popular design, it can be modified to meet specific requirements, such as in rooms without exterior access or those on the first floor that are never used. However, the fixed window offers the same primary benefits as other windows, such as natural light and a view of the outdoors, even if it cannot be opened.

## French doors are a particularly beautiful large format option

French doors, sometimes called large tilt-and-turn windows, are a variation on the standard casement window. With these doors installed in the main living areas, the patio and garden can be considered an extension of the house on warm days. The patio door is an important design element, as it provides easy access to the balcony or garden and makes the home more functional and enjoyable to use. Choose a sliding patio door if you need a large opening.

The window: openings with adaptable geometry

How to read and analyze the plan for your new home.jpg

When you buy a home before it is completed, you have the opportunity to choose many details, from furnishings to flooring, and you can move right into your new home without having to worry about renovations. However, potential homeowners often have a hard time visualizing themselves in their home during the construction period; here are some suggestions to help you better understand the floor plan of your house or apartment.

## Discover the information contained in the title block

The title block contains crucial information about your project, but it often goes unnoticed by novices because of its location in the margins of the plan. Even if you have no idea what a "floor plan" is, it is essential to have one, as it shows the location of your property in the building in relation to other apartments, the street and outdoor spaces. This allows you to anticipate any disturbances that may occur.

A compass rose, showing the orientation of the rooms and the path of the sun, is also located in this enclosed space. Formalities such as property type (T1, T2, T3, etc.), area (for houses) or surface area (for commercial lots) will reflect your previous choices (names created by developers, which vary in usage and do not meet any specific standard).

## Important Abbreviations to Remember for Facilities

Each apartment floor plan will include two- or three-letter acronyms designating the rooms for the major household and electronic equipment you will use on a regular basis. The best-known examples are those that designate the most common appliances:

- For the dishwasher, LV
- For the washing machine, LL.
- For the refrigerator, RF 
- For cooking, CU 

You can expect some work to be done before you move in to adapt the apartment to your needs; for example, if the location of the washing machine does not suit you, you can plan to install a water inlet and outlet elsewhere.
In addition, there are additional indicators that refer more simply to specific locations:

- SDE: for shower room with shower
- SDB : for bathroom with bathtub
- DGT : for clearance
- PL: for closet

A window door (designated by PF), roller shutters (designated by VR), and a privacy screen (designated by PV) are all indicated by these abbreviations. The presence of the electrical panel is indicated by the letters "TE" in the last step.

## Plan your apartment move with ease by following these tips!

It is possible that you still have doubts about the plan of your house or apartment, even if you have understood the meaning of each aspect. Do not hesitate to contact the developer of the property for more information.

Depending on the specifics, various solutions are possible. For example, some service providers are beginning to incorporate virtual reality into their offerings so that their clients can visualize their finished home and make material choices before construction (paint colors, window frames, etc.). If possible, it is recommended that you visit a model home with a sales agent so that you can relate the experience to the project at hand.

How to read and analyze the plan for your new home? 

How about a furnished or unfurnished rental.jpg

While in some countries an owner may see a tax benefit from renting out an unfurnished property rather than a fully furnished one, in Luxembourg the owner sees no such benefit. Whether or not the decision to equip your rental property will affect your taxes, it is still important to consider. The following advice will assist you in making the best decision possible.

## Taxes are the same whether you rent an empty house or a fully furnished apartment

Rental income (rent received during the fiscal year) is reported (and subject to the same taxation) in the same way for both "empty" and furnished properties. The tax burden, however, can be mitigated by deducting depreciation from the owner's overall income. An investor in a fully furnished apartment may deduct the cost of the furnishings over a short period of time in order to lower their taxable income. The tax implications of this question should not guide your thinking; rather, you should consider the needs of the people who will be living in the property to determine whether or not it is necessary to equip the property.

_"Consideration of this matter should not be motivated by tax considerations”._

## Consider the market before furnishing (or not) your rental property

Now that you're a landlord, you need to figure out if the people who might be interested in your rental property are students. New graduates? Those with kids? Who are these people? Are the people here generally wealthy or more modest?

To put it more concretely, if you live in a studio or two-room apartment near public transportation and schools that caters to a young and student public, it is in your best interest to furnish your apartment so that it is more appealing to that demographic. These consumers rarely have the time or money to buy new furniture and appliances, so they will appreciate renting a studio where all they need to do is bring their own belongings.

However, once you reach 3-, 4-, or 5-bedroom homes or your demographic shifts to adults with established careers, empty homes remain in demand. A family that is already well-furnished may have trouble relocating to a furnished home because it will likely not want to get rid of any of its belongings.

_“For a family that has everything they need, moving into a furnished apartment can be a disaster”._

## Which, renting out an empty or furnished property, yields the highest rate of return?

To begin, the monthly cost of a fully furnished apartment is typically higher than the monthly cost of an identically equipped and unfurnished home (surface area, services, neighborhood, etc.). Spending more money up front on furnishings for the rooms will result in higher earnings in the end.

Nonetheless, keep in mind that upkeep expenses can make a significant impact. There is significantly more turnover in furnished apartments as opposed to unoccupied ones. Tenants come and go from rental properties, and they aren't always the most careful with the tools. Overall, you run the risk of higher maintenance costs to keep the apartment in good condition, as well as more time and effort spent on the hunt for new lease signers.

In the end, the purpose and size of your lodging will dictate whether you opt for an empty or furnished rental (it is easier to furnish a studio than 5 rooms). For optimal decision-making, you should first ascertain the rental demand for your property type.

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