LUXEMBOURG – The government announced Friday a redesign of the calculation of the device that allows tenants to limit fees when taking a new home.

Renting a home usually generates a lot of costs for tenants.

They must pay the first rent (often high in Luxembourg), any agency fees and a guarantee required by the owner, which can reach up to three months of rent free of charge.

To limit these costs, the Council of Government decided to review the method of calculation on the rental guarantee, to make this state device accessible to a larger number, said Friday the Ministry of Housing.

The income threshold to be eligible for this guarantee will be lowered to 2 900 euros per month for a single person.

The bar will be higher if it is a couple and a little higher if there are children in the household. In addition, the tenant must prove that he has a regular income for three months (against six previously).

Finally, the State will guarantee rents representing up to 40% of household income.

The maximum guarantee remains unchanged For example, “a couple with two children can apply for financing a rental guarantee until a net income of 6,090.15 euros (against 4,710.94 euros today) for rent up to 2 436.06 euros (against 1,612.28 euros), “the ministry calculated. The criteria of health and hygiene were updated, in order to “make the owners more responsible”.

If a municipality requires the closure of a dwelling, the owner or operator will have to relocate the persons concerned at his expense for three months.

The rental guarantee allows tenants who have difficulty paying the security required by the owner to seek state assistance.

The latter pays for it and the tenant reimburses by depositing regular savings into an account.

The maximum guarantee will remain fixed at three months’ rent, the Government not proposing any change on this point. “A deposit of three months is not often requested in practice, we preferred to act on another lever,” says a spokesman for the Ministry of Housing.

The new measures will be effective “before the end of the legislature”, the authorities hoping even before the summer holidays.

(L’Essentiel 23.02.2018)