Can a landlord ask for a three-month deposit?
No — the rental deposit is capped at two months of rent, charges excluded, for every lease signed since 1 August 2024 (law of 23 July 2024). Three months remains lawful only for leases signed before that date. The myth: "three months' deposit is standard in Luxembourg" — that was true until 31 July 2024, and countless agency pages and blogs still print the old figure. The second myth is the more expensive one: "whoever hires the agent pays the agent". Also wrong: since 1 August 2024 agency fees are split 50/50 between landlord and tenant, no matter who instructed the agency, and any clause to the contrary is void.
📋 The rules
- Ceiling: two months of rent, charges excluded, for any residential lease concluded since 1 August 2024.
- Refund in two stages: half within one month at most of the keys being handed back; the balance no later than one month after the service-charge statement is received, or after the annual accounts are approved by the co-owners' meeting.
- Late-refund penalty: after formal notice by registered letter with acknowledgement of receipt, the amount still owed is increased by 10% of the monthly rent for every month started in arrears.
- Agency fees: for any lease concluded since 1 August 2024 they are split 50/50 by law — regardless of who instructed the agency. Any clause to the contrary is void and of no effect.
- Inventory of fixtures: if the landlord asks for a deposit, a joint inventory must be signed no later than the day you move in; without it, the deposit cannot be used to cover damage.
🔓 Exceptions
- Leases signed before 1 August 2024: a three-month deposit remains valid and does not have to be amended (transitional provision). Earlier leases, written or verbal, remain valid.
- The 10%-per-month penalty is not owed where the failure to refund is the tenant's own doing — no bank details given, or a move abroad without leaving an address.
- A landlord can never impose a cash deposit: several forms exist (first-demand bank guarantee, bank surety, transfer, cash, the State rental guarantee, deposit insurance) and the choice belongs to the tenant.
⚠️ Penalties & fines
The direct cost is 10% of the monthly rent for every month of delay in refunding, once formal notice has been served. The knock-on costs bite harder. A clause loading the whole agency fee onto the tenant is void: he can claim half of it back. A lease concluded since 1 August 2024 must be in writing on pain of nullity and must state the deposit amount. With no entry inventory, the landlord loses the right to charge for damage and must refund in full. And the tenant goes to the justice of the peace by simple application — no lawyer needed.
📎 Official sources
- Guichet.lu · official state portal (home page) — tenancy pages: rental guarantee and agency fees →
- Logement.lu · Ministry of Housing (home page) — tenancy FAQ →
- ULC · Luxembourg consumers' union (home page) — "The new tenancy law: significant changes" →
❓ Frequently asked
My lease dates from 2022 and requires three months: is it illegal?
No, leases signed before 1 August 2024 keep their three-month deposit. The reduction to two months applies only to leases concluded from that date onwards, with no retroactive effect.
Is the deposit calculated on rent including charges?
No, the two-month ceiling is calculated on the rent excluding charges. Advance payments towards service charges are not part of the basis for the rental guarantee.
My landlord will not return the deposit: what can I do?
Send formal notice by registered letter with acknowledgement of receipt: from then on the sum still owed increases by 10% of the monthly rent for every month of delay started. You can then apply to the justice of the peace by simple application.
The agency is charging me the full commission: is that legal?
No, for any lease concluded since 1 August 2024 agency fees are shared equally between landlord and tenant. Any clause to the contrary is void, and the half you overpaid can be reclaimed.
Can the landlord insist on a cash deposit?
No, he cannot impose the form of the guarantee; cash can only come at the tenant's initiative. Several forms coexist, including a bank guarantee, a transfer and the State rental guarantee.
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