Before communicating around your property to find a tenant (writing ads, making appointments for visits, etc.), you should ask yourself some essential questions enabling to rent according to the rules. Without really knowing the subtleties of the real estate world, how to determine the amount of rent? To avoid any dispute and respect the owner’s duties, how to proceed? Here are the main elements of reflection that will precede your rental!
Determining the price: a mandatory analysis of competition
Whatever the type of rental you are betting on (house, apartment, studio, furnished student accommodation), you should look at similar announcements, in order to get an idea of the best price. But to establish a place on the rental market, this first initiative will not suffice.
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In order to clarify your knowledge, find out about the context in which you are renting: is the supply lower than the demand (tension) or higher (tendency to vacant housing)? In the first case, the rent may naturally be higher than in the second case. If possible, start your study early enough to find out how the market is developing, whether rents are rising, falling or stagnating.
Note that if you overvalue your rent, your tenant may refer the matter to the City Rent Commission after 6 months of occupancy. On the other hand, if the rent is too low, you may finally want to increase it, thus running the risk of having to find an amicable solution with the Rental Board (otherwise, you will have to go to the Justice of the Peace).
Finally, do not forget that Luxembourg law governs rents: they can increase every 2 years, but this increase must not exceed 5% of the capital initially spent on the purchase.
Charges: what the owner is responsible for
In addition to the rent, you invoice the tenant for charges. You can only impute the expenses incurred in the Tenant’s favour. In practice, you must always be able to justify the amount of expenses (invoices, receipts, etc.).
The owner assumes the costs related to the organization of the general assembly, the preparation of financial statements, the energy passport, the property tax and the invoices for major renovation (facades, change of boilers, etc.).
On the other hand, the tenant pays for the usual energy consumption and repairs.
The owner’s obligations: energy performance, lease and inventory
It is impossible to rent a dwelling without a valid energy performance certificate. This document, at the time of its issue, is valid for 10 years. If you have already exceeded this deadline, you must contact a certified expert in order demand a new one at your own expense. Indeed, the energy class of the dwelling is one of the mandatory criteria to be mentioned on the announcements.
“The energy class of the dwelling is one of the mandatory criteria to be mentioned on the advertisements. ”
At the same time, equip yourself with all the necessary documents for a rental: the lease and the inventory of fixtures remain the main essentials. While you can easily find inventory grids on the web, writing the lease requires more know-how (standard models do not always meet the specificities of housing). Ask an agency to prepare the contract for you, so that you can be better protected in the event of disagreement.
Generally speaking, few landlords start renting their property alone, because this operation remains difficult for a private individual. Do not hesitate to contact an agency to rent in compliance with the law, but also to delegate the management of the property and avoid various administrative problems (repairs, unpaid bills, rental vacancies, etc.).