Checklist: things to consider before renting out your property

What are the key elements to consider before renting out your Luxembourg property? Here’s a useful checklist to make sure that you don’t miss any of the major aspects related to the property itself, setting the rent, choosing the tenant, and managing the property.

Ensure the property is in good repair

• • General condition. Check the general condition of the property and its amenities (plumbing, electricity, heating).
  • Compliance with legal requirements. Ensure that the property meets safety standards (e.g. escape routes, smoke detectors, etc.) and health requirements (no damp).
  • Energy. Obtain the energy performance certificate (EPC) to inform tenants of the property’s energy consumption.
  • Improvements. Carry out repairs or improvements to enhance the property.
  • Furnished or unfurnished. Decide whether you want to rent out the property furnished or unfurnished and fit it out in line with market preferences.

If renovation work is required, it must be carried out before renting out the property.

Setting the rent

• • Rental agreement. Draw up a clear agreement detailing the rent, payment terms and charges.
  • Market research. Compare rents in the sector to fix a competitive price, within the legal limits.
  • Service charges. Determine which charges are included in the rent (water, electricity, heating, etc.) and the payment terms for advances.

Choose the tenants

• • Selection criteria. Set clear selection criteria (creditworthiness, job and type of employment contract, domestic animals, etc.) that comply with anti-discrimination laws.
  • Tenant file. Ask candidates to provide a full file (payslips, identity documents, references) and ask about their previous rental experience.
  • Visit the property. Organise visits to meet the candidates in person. You can combine several visits in order to show that your property is highly sought after.

Advertise the property rental

• • Estate agents. It’s up to you whether you choose to work with a professional.
  • Adverts. Draft an attractive advert with high-quality photos.
  • Publication. Publish the advert on property platforms, social networks and forums. Indicate the location, surface area, number of bedrooms and amenities of the property in the advert, as well as the rent.
  • Transparency. Inform potential tenants of any relevant information about the state of the property, including any drawbacks or issues – at the latest, during the visit.

Administrative and legal management

• • Lease. Draw up a lease that complies with Luxembourg laws.
  • Security deposit. Set the amount of the security deposit (at least two months of rent) and determine the terms for the return of the deposit.
  • Non-owner-occupied insurance. Although this is not a legal requirement, you can take out this type of insurance to protect against any risks related to the rental.

Tenant relations

• • Communication. Establish clear and open lines of communication from the start.
  • Be responsive. Be available to respond to tenants’ questions and worries.
  • Maintenance. Draw up a plan for regular maintenance of the property during the rental period.

Tax aspects

• • Declaring your rental income. Find out what your tax obligations are in connection with rental income.
  • Tax deductions. Find out about tax-deductible expenses (work, insurance, etc.).

Use this checklist as a guide to ensure that you have covered all key steps before putting your property up for rental. Check out other myLIFE articles to find out more about the obligations of the landlord and the tenant under a rental agreement.