Luxembourg Rental Reform 2024: What Changed for Flatshare Tenants and Why It Matters Before You Sign

Every week, in Luxembourg expat groups and forums, the same questions appear. "Is it normal for the landlord to ask three months' deposit?" Or: "Do I really have to pay the full agency fee myself?"

Since August 2024, the answer to both is no.

Luxembourg passed a significant rental law reform in July 2024 — the most substantial update to its residential tenancy legislation since 2006. The Loi du 23 juillet 2024 modifies the 2006 Housing Tenancies Act and the Civil Code, introducing concrete changes that directly affect anyone renting a room in Luxembourg in a shared flat.

The problem is that most tenants who arrived after August 2024 don't know this law exists. Many landlords are still using pre-reform contracts. Some agencies haven't updated their fee structures. And the people signing leases — often freshly arrived expats navigating the market under time pressure — are accepting conditions that are no longer legally enforceable.

At Roomie-Radar, we see this repeatedly. People accepting three-month deposits, paying full agency fees, signing agreements without a pacte de colocation — simply because nobody told them the rules had changed.

This article is that explanation.

What the 2024 Luxembourg rental reform changes for flatshare tenants

The Loi du 23 juillet 2024 introduces four main changes directly relevant to anyone renting a room in a Luxembourg colocation:

1. The maximum deposit drops from three to two months

Before the reform, landlords could demand up to three months' rent as a security deposit. Since 1 August 2024, the legal maximum is two months' rent excluding service charges. If you signed a contract after that date and paid three months, you have the right to claim the excess back.

2. Agency fees are now split 50/50

Historically in Luxembourg, the tenant paid 100% of real estate agency fees — equivalent to one month's rent plus 17% VAT. Since the reform, these costs are split equally between landlord and tenant. On a room at €750/month, this means a saving of approximately €437 in entry costs.

3. Shared flats now have their own legal framework: the pacte de colocation

This is the most significant change for anyone in a shared flat in Luxembourg. The law introduces, for the first time, a specific legal regime for colocation — which previously had no independent legal category.

The pacte de colocation is a written agreement signed by all co-tenants between themselves. It doesn't replace the rental contract with the landlord — it's a separate document governing the relationship between flatmates. It must include: how rent is split, house rules, the procedure for a co-tenant's departure, and the designation of the colocataire référent.

4. The colocataire référent: what it means and why it matters

The reform introduces the concept of the colocataire référent: a designated co-tenant who acts as the main point of contact with the landlord. They centralise communication, receive official notices, and are the primary contact if something goes wrong.

This is not a bureaucratic label. In practice, being the colocataire référent means legal exposure: if a co-tenant defaults and the landlord can't reach them, the référent is who gets the notification. If that's going to be you, negotiate that this responsibility is acknowledged in the pacte. If it's not going to be you, make sure the pacte states this explicitly.

Joint liability between co-tenants: the most critical point of the reform

The 2024 reform retains the principle of joint liability between co-tenants towards the landlord. This means that if one of your flatmates doesn't pay their share of the rent, the landlord can claim the full amount — including the defaulting tenant's share — from any other co-tenant.

Many of our users don't know this when they sign. What the reform does improve is the exit procedure: a co-tenant who wants to leave before the lease ends now has a clear legal path.

The departure procedure under the new law:

Simultaneous written notification to the landlord and co-tenants by registered letter, with three months' notice. An active obligation to find a replacement co-tenant during that period. Both the remaining co-tenants and the landlord can propose replacement candidates. If the departing co-tenant hasn't found a replacement by the end of their notice period, they must demonstrate that they carried out an active and sufficient search.

This procedure matters because it eliminates the ambiguity that existed before the reform. Previously, a co-tenant who wanted to leave mid-lease had no defined mechanism — they might end up paying indefinitely or negotiating without any legal framework to fall back on.

The Rental Deposit in Luxembourg: How to Pay It, Protect It, and Get It Back Without Losing a Cent

What the reform does not change: important caveats

The 2024 reform is a genuine step forward. But it has limits worth understanding before you rely on it.

It doesn't apply automatically to all colocation arrangements. It applies when contracts are formalised under this new framework — and many landlords in Luxembourg are still using pre-reform templates. In practice, the theoretical framework of the reform is sound, but landlord compliance remains low.

Joint liability between co-tenants remains the default. The reform doesn't eliminate joint liability. It introduces the pacte de colocation as a mechanism to manage it internally — but the landlord can still pursue any co-tenant for the full rent in case of default.

Domiciliation remains a right, not a concession. In Luxembourg, anyone residing in the country has both the right and the legal obligation to register at their commune of residence. A landlord cannot prohibit domiciliation. If a listing states that registration is not possible, this is a significant warning sign — legally and practically. Official guidance is available at guichet.lu.

What the reform means for landlords renting out rooms

If you're a landlord renting rooms in Luxembourg, the reform affects you in three direct ways.

Agency fees are no longer fully borne by the tenant: 50% is now your cost. This changes the profitability calculation if you were using agencies regularly to find tenants.

The two-month deposit cap is a legal limit, not a negotiating target. A landlord asking for two months on a room in Bonnevoie will attract fewer candidates than one asking for one. The shared room market in Luxembourg is competitive from the landlord's side too.

The pacte de colocation gives you something you didn't have before: a legal framework to manage a co-tenant's departure without breaking the entire contract. If one of your tenants leaves, the three-month notice procedure with an active replacement search is your protection against sudden vacancy.

At Roomie-Radar, landlords with verified listings reach qualified users — tenants with complete profiles who have passed our verification process. That reduces the uncertainty the reform tries to address through legal mechanisms, but which in practice is better resolved by knowing your tenant from the start.

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Conclusion

Luxembourg's 2024 rental reform protects colocation tenants in concrete ways: lower deposits, lower entry costs, a legal exit path. But it only works if you know it exists.

What we see at Roomie-Radar is that most expats arriving in Luxembourg with a new contract don't know these rights until after they've already signed under conditions that don't reflect current law. Information is the first layer of protection.

If you're looking for a room for rent in Luxembourg in a shared flat, start with verified listings at roomie-radar.com. If you're a landlord looking to update your rental conditions to reflect the new law, roomie-radar.com/rooms is where to start. Using Roomie-Radar is free.

FAQ 📊

1. When did the Luxembourg rental reform come into force?

The Law of 23 July 2024 amending the 2006 Housing Tenancies Act came into force on 1 August 2024. It applies to all rental contracts signed from that date onwards. Contracts signed before this date are not automatically subject to the new deposit limits or the colocation regime, though other provisions of the law may apply.

2. Is the pacte de colocation mandatory in Luxembourg?

The 2024 reform introduces the pacte de colocation as part of the new legal framework for shared flats. However, legal analysis published after the law came into force notes that the regime doesn't apply automatically to all colocation arrangements — it depends on whether the contract is formally structured under this new framework. In practice, many room-rental contracts in Luxembourg don't yet include a formal pacte de colocation. As a tenant, it's advisable to request one: it protects you from unmanaged joint liability and gives you a clear exit mechanism.

3. Can I claim back money if my landlord asked for three months' deposit after August 2024?

Yes. For contracts signed from 1 August 2024 onwards, the legal deposit cap is two months' rent excluding service charges. If you signed after that date and paid three months, you have the right to claim the excess back. Information on how to raise a formal claim is available at guichet.lu.

4. Who pays agency fees in Luxembourg since the reform?

Since 1 August 2024, agency fees are split 50/50 between landlord and tenant. Before the reform, tenants paid 100% — equivalent to one month's rent plus 17% VAT. On a room at €750/month, this represents a saving of approximately €437 in entry costs for the tenant.

5. What is the colocataire référent and do I have to be one?

The colocataire référent is the co-tenant designated in the pacte de colocation as the main point of contact with the landlord. They receive official notices and centralise communications. There's no rule about who it must be — co-tenants decide between themselves. It's important to understand the legal exposure this role carries before accepting it, and to ensure the pacte de colocation clearly defines the consequences for the référent in case of default or dispute.

6. What happens if a co-tenant wants to leave before the lease ends?

The 2024 reform establishes a specific procedure: the departing co-tenant must give three months' notice simultaneously to the landlord and remaining co-tenants by registered letter. They have an active obligation to find a replacement during that period. The landlord and remaining co-tenants can also propose candidates. If no replacement is found, the departing tenant must demonstrate they carried out an active and sufficient search.

7. Does the reform protect tenants from joint liability?

The 2024 reform does not eliminate joint liability between co-tenants towards the landlord. The landlord can still claim the full rent from any co-tenant in case of another's default. What the reform does introduce is the pacte de colocation as a mechanism to manage that liability internally — defining who pays what and how responsibilities are distributed among co-tenants.

8. Where can I find the official text of the Luxembourg rental reform?

The official text of the Loi du 23 juillet 2024 and associated guidance are available at gouvernement.lu. Practical information on tenant and landlord rights and obligations is at guichet.lu, the Luxembourg government's official portal for administrative procedures and legislation.

9. Does Roomie-Radar list rooms with contracts compliant with the new law?

Roomie-Radar publishes verified listings of rooms for rent in Luxembourg in shared flats. The contract is always a direct agreement between landlord and tenant — Roomie-Radar doesn't draft or review contracts. That said, verified listings come from landlords with a platform track record and candidates are quality leads with complete profiles, which supports a more transparent rental relationship from the start. Using Roomie-Radar is free.

10. Does the reform apply to co-living spaces in Luxembourg?

The 2024 reform is primarily designed for classic colocation — multiple tenants in a flat with a direct contract with the landlord. Co-living spaces in Luxembourg that operate under a services model (contract with the operator rather than the property owner) may fall outside the scope of this law. For questions about a specific situation, consult guichet.lu or a Luxembourg tenancy lawyer.