When a rental property is put on the market

The curent tenant has the possibility to stay and even benefits from a pre-emptive right in the buying process, if he/she has been renting this property for more than 18 years.

If the rental contract was duly completed in writing, the new landlord cannot oppose to it and the contract must run its course until the end of its pre-determined duration. In the instance of an indefinite contract, he/she can only remove the tenant if he wants to move in himself/herself, if he/she wants to move a close relative in or if major renovation work has to take place. A 6 month notice from the landlord is requested.

When the landlord wants to exit the rental contract

This instance is strictly regulated so as to avoid any abuse; when the rental contract has an indefinite duration, the landlord can request the exit if only one of the 3 following reasons can be brought forward and justified:

  • The landlord or one of his/her closed relative wants to move in the rental property; he/she will need to elect it as his/her new domicile.
  • The landlord wants to refurbish the property to such extend that it would be impossible for the tenant to stay in.
  • The current tenant does not comply with the obligations stipulated by the terms of the lease.

The landlord must give 6 month notice.

When the tenant wants to exit the rental contract

If a contract is due to end on a specific date, the tenant is simply obliged to complete his/her duties until that date.

However if the contract is tacitly renewable and if the tenant does not want to stay on, a notification must be sent to the landlord ahead of the 3 months’ notice.

In the instance when the rental agreement is tacitly renewed year on year, the tenant is expected to comply his/her duties until the end of the current contract year regardless of the given notice.

Some landlords are more flexible and will accept an earlier exit provided that the tenant or the appointed estate agent is able to find a new tenant to take over the rental property. This does not mean that the new tenant will “finish off” the existing contract, usually a new one is drafted.

The so-called “clause diplomatique” is often included in the contract. It allows the tenant to leave the property earlier than the set date on the one condition that he/she is relocated to another branch of the company, outside of Luxembourg. It does not apply when changing employer or when being let go. The 3-month-notice rule still applies and if the tenant leaves before the notice is up, payments and obligations must still be met until the end of it.