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What the law now calls a colocation
The law of 23 July 2024 added a specific framework for colocation to the 2006 law on residential leases. A colocation is a situation in which several people rent the same dwelling together under a single lease, and share at least one room or space, typically the kitchen, the living room or a bathroom.
Two points in that definition matter in practice. First, it is one lease covering the whole dwelling, signed by all the flatmates, rather than a collection of separate room contracts. Second, the framework does not apply to married couples or registered partners, who are treated as a single household.
A room let on its own, with its own lease, in a house where the owner lets other rooms separately, is a different arrangement. Many furnished rooms in Luxembourg City are let that way. Before you sign, ask which of the two you are being offered, because the rights and obligations are not the same.
The colocation pact is now mandatory
The most visible change is the pacte de colocation, a written agreement between the flatmates that sits alongside the lease. The law lists what it must organise, and the list reads like a summary of every argument that has ever happened in a shared kitchen:
- how the rent and the shared charges are divided between the flatmates;
- an inventory of the furniture, stating who owns what;
- who holds the contracts for services such as electricity or internet;
- how a new flatmate is admitted and how a departure is handled;
- how the deposit is built up and how it is paid back.
It is tempting to treat the pact as paperwork. It is actually your best protection. When a flatmate leaves owing their share of the electricity bill, or takes the sofa that three people paid for, the pact is the document that settles the question without a dispute.
A practical tip. Keep the pact short and specific. Name the amounts, name the owner of each large item of furniture, and state which bank account the shared costs are paid from. Vague wording such as "costs will be shared fairly" helps nobody.
Joint liability: what it means in euros
The reform makes the flatmates jointly liable towards the landlord. In plain terms, if one person stops paying their share of the rent, the landlord can ask the others for the full amount. The landlord does not have to chase the person who is in arrears.
This is the single most important thing to understand before joining a colocation. You are not only answering for your own room; you are answering for the whole rent. Choosing your flatmates, or at least knowing who they are, therefore matters more than the size of your room.
It also explains why many landlords ask each flatmate for the same documents: proof of income, an employment contract, identification. From the landlord's point of view, the file is only as strong as its weakest member.
Leaving before the others
The old uncertainty was always about departures. The law now sets out a clear procedure for a flatmate who wants to leave while the others stay.
- The departing flatmate gives three months' notice, sent at the same time to the landlord and to the other flatmates.
- They must actively look for a replacement. Official guidance describes an "active and sufficient search", for example publishing an advertisement in two media carrying Luxembourg property listings within fifteen days.
- Their obligations end either when an amendment to the lease is signed with the incoming flatmate, or at the end of the notice period if they can show they searched properly for a replacement.
If more than half of the flatmates give notice within the same three-month window, the landlord may terminate the whole lease, also with three months' notice. That protects the landlord from being left with a half-empty flat, and it is worth keeping in mind if several of you are on short postings that end at the same time.
The deposit in a shared flat
The general rules on deposits apply to colocation too. Since August 2024 the deposit is capped at two months' rent, and half of it must be returned within one month of the keys being handed back if the exit inventory matches the entry inventory. We cover the details, and the penalty for late repayment, in our guide to security deposits in Luxembourg.
What is specific to a colocation is who paid what. If the deposit was built up by four people and one of them leaves, the pact should say whether the incoming flatmate buys out the leaver's share, or whether the leaver waits until the end of the whole lease. Leaving that question open is the most common source of friction we see.
An inventory at each change of occupant also helps. The Housing Ministry's guidance mentions intermediate inventories when a co-occupant leaves, so that damage in the leaver's room is attributed to them and not to the person arriving.
Rent and furnished supplements
A colocation does not escape the general rent rules. The annual rent for the dwelling as a whole cannot exceed 5% of the capital invested in it, and a furnished dwelling may carry a supplement linked to the value of the furniture. We explain how that ceiling is calculated in our article on the 5% rent cap.
In practice, the split of the total rent between rooms is a matter for the flatmates and the pact. A larger room with a private bathroom usually carries a larger share. The law does not impose a formula; it asks you to write down the one you agree on.
Before you sign: a short checklist
- Ask whether you are signing a colocation lease for the whole dwelling or a lease for one room.
- Read the lease and the pact together, and make sure the pact is signed by everyone on the lease.
- Check how the deposit is held and who contributed what.
- Ask how many flatmates there are, how long they intend to stay, and when their contracts end.
- Agree in writing how utility contracts are split and who is the account holder.
- Arrange an entry inventory that covers both your room and the shared spaces.
Our take
The 2024 framework is good news for tenants and for landlords. It turns informal arrangements into something predictable, and it gives a departing flatmate a way out that does not depend on the goodwill of everyone else.
The trade-off is joint liability, and it deserves respect. A colocation works when the people in it are reliable and the pact is clear. If you are arriving in Luxembourg alone and do not yet know anyone, a room let on its own lease can be the simpler first step, with a colocation later once you know who you would like to live with. Our current rooms show both kinds of arrangement, and we are happy to explain the difference on any listing.
Sources
This article explains the general framework of Luxembourg residential lease law and is not a substitute for legal advice on your individual contract. For official procedures and current forms, consult guichet.lu or your commune.
