4 Advices to individuals for renting real estate in Luxembourg
Renting a home in Luxembourg between individuals is not something to be done lightly. If you own a property, before you put it up for rent or place an ad for a tenant, you need to make sure that you have covered all the bases. Our advice!
A home with or without furniture?
After purchasing a rental property in Luxembourg, investors have the option to rent it unfurnished or fully furnished. If you want to maximize your money, renting a fully furnished home is a great option to consider. In addition to increasing your rent, you can deduct the cost of any new furnishings from your rental income during its useful life.
However, a bare apartment is the best option for a long-term rental between individuals in your Luxembourg real estate project. This way, you can attract the type of long-term tenants you want: secure people who can bring their own furniture and who don't plan to move out for at least a few years.
Energy efficiency certification?
When you buy a house in Luxembourg, you receive a EPC (Energy Performance Certificate) which proves its energy efficiency. This certificate remains active for a full decade. If you have exceeded this period, you cannot even consider renting out your property again without a new inspection.
This diagnosis will entail a minimal cost, but compliance with the regulations still requires the rental. Indeed, the tenant should have access to it at any time in order to realize the energy efficiency of the building.
What is the monthly cost of an apartment in Luxembourg for individuals?
After making a financial commitment in Luxembourg City, renting requires careful consideration of the optimal rental rate. The actual limits of these rents are imposed by the government. There are a number of factors that go into determining the maximum monthly rent for an unfurnished apartment.
- The monthly rent cannot be more than 5% of the total amount spent on the unit.
- The rent is set in part by the cost of living and in part by the age of the building.
Invest some time in researching comparable rental properties. You can also seek advice from a real estate agency if you are having difficulty with this process.
What to include in the ad, and how to select potential tenants?
Finally, if you want to find good tenants for your Luxembourg real estate rental operation, you should publish an ad in a newspaper or online. Don't forget to highlight the apartment by including as many photos and details as possible in the main text.
Make sure that the people applying to rent your home are serious and have good credit by carefully reviewing their profiles. If the idea of doing all this work is too much for you, a real estate agency is there to take care of it.