The terms ‘shared housing’, ‘furnished rooms’, ‘co-living’ and ‘home sharing’ are often used interchangeably, even though they refer to different legal, urban planning, technical and regulatory realities.
Understanding the difference between these concepts is essential, as it will have implications for the necessary permits, fire safety requirements and the practical possibilities for converting the property.
1. Shared housing
In Luxembourg, the legal status of shared tenancies has been enshrined in law since the Act of 23 July 2024 on residential tenancies. A shared tenancy is a property occupied jointly by several people, who sign a single tenancy agreement, a shared tenancy agreement, and are jointly and severally liable to the landlord.
There is no change in the use of the property. Technical requirements remain limited (e.g. no need for fire doors, no second access point required, etc.), as it is assumed that the rooms are not locked and that all occupants have access to the whole house.
Housemates must register with the municipality, providing a joint tenancy agreement that lists their names; the local council is aware of the number of bedrooms and the permitted number of occupants.
2. Furnished rooms
Each occupant rents a room individually, under a separate tenancy agreement. The local authority classifies this as furnished rooms, which may result in a change of use, stricter fire safety requirements, parking restrictions and specific technical regulations. Technical compliance becomes a key consideration.
The necessary steps must be taken to change the use of the property; the rooms must be declared to the local authorities (some local authorities provide a declaration form in the form of a questionnaire, as is the case in Leudelange or Niederanven, for example).
Tenants must register with the local authorities, presenting their tenancy agreement, which must specify the number of the room they are occupying.
3. Home sharing with the owner
The owner continues to live in the property whilst letting out part of it (a floor, a bedroom) and sharing certain areas (the hallway, the stairwell, and possibly the kitchen and bathroom, depending on the layout of the house).
In this case, the technical constraints remain limited; the building is still considered a single-family home by the municipality.
Tenants must register with the municipality as members of the landlord’s household. They will need to complete the accommodation certificate form, which is available on the council’s website.
4. Co-living
The concept of co-living is similar to that of furnished rooms, except that the rooms often have an en-suite bathroom and related services (such as laundry and community events) may be provided. Co-living is aimed primarily at self-employed people who are looking for a living space with services and an all-inclusive rent.
Depending on the circumstances, a property may be compliant when used for shared housing, but not when rented out as individual furnished rooms — or it may require certain alterations to become compliant.
In Luxembourg, setting up a shared living arrangement requires navigating three levels of regulation: tenancy law (the 2024 Act), health and safety standards (the 2019 Grand-Ducal Regulation) and local planning regulations (PAG, PAP, building regulations), which vary from one municipality to another, as municipalities are more or less supportive of shared housing.
In Luxembourg, before embarking on a shared housing project, the real question isn’t “What if I rented out a few rooms?” but rather: “What type of shared housing can this property actually accommodate in a compliant and viable way?”
Do you have a plan to share your property portfolio and generate rental income? MyColoc can help you get a clear picture of the situation and put your plan into action.
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