A solid lease is the cornerstone of a trouble-free rental relationship. In Belgium, there are strict legal requirements for rental agreements, depending on the type of rental: private residential rental, commercial rental or common law. In this article, we go over the essential elements of a lease and the most common mistakes that lead to conflicts afterwards.
What types of leases exist in Belgium?
- Residential rental agreement: regulated by the Flemish, Walloon or Brussels Residential Tenancy Decree (depending on the region). The tenant uses the property as a principal residence.
- Commercial lease: regulated by the Trade Leases Act of 1951. The property is used for carrying on a trade or craft business.
- Rent common law: for all other types of rentals (garages, vacation homes, offices) that are not covered by any specific legislation.
Required disclosures in a lease
A valid lease contains at least the following elements:
- Identity of landlord and tenant;
- Accurate description of the leased property;
- Start date and duration of the lease;
- The monthly rent amount and the indexation clause;
- The amount and modalities of the rental guarantee;
- The energy performance of the property (EPC certificate);
- Reference to place description (required at start).
Duration and termination of the rental agreement
Residential leases in the Brussels Capital Region are in principle subject to a duration of nine years. Shorter contracts (of 3 years or less) are only valid under strict conditions. Both landlord and tenant can terminate the lease subject to the legal notice periods. Early termination may result in the payment of a notice fee.
The rent guarantee
The rental guarantee may not exceed two months' rent (for residential rentals in the Brussels Region). The rental deposit must be paid into an escrow account in the name of the tenant, or by means of a bank guarantee. Any other modality is legally void. At the end of the lease, the landlord cannot simply withhold the deposit: he must take it to court or get the tenant's written agreement.
Site description: indispensable
A detailed location description at the beginning and at the end of the lease is essential to avoid conflicts. Without a location description, the tenant is presumed to have received the property in good condition and must return it in the same condition. This can lead to unjustified deductions from the rental deposit. Always have the location description prepared by a licensed surveyor.
Commercial lease: special rules
The Commercial Lease Law gives the trader strong protection: the base period is nine years with a right to three renewals. The tenant is also entitled to one lease renewal (four times) and can claim a eviction fee of at least one year's rent if the landlord refuses the lease renewal without a valid reason. These are complex rights that an attorney can assert.
Help with drafting or disputing a lease?
Novex Lawyers drafts customized leases for landlords and tenants, advises in disputes over lease evictions, site descriptions, lease renewals and terminations, and acts before the justice of the peace or the court of first instance. Contact us for an initial discussion.
Also read: Rental property in Belgium: rights of the landlord | Neighbor dispute and neighbor nuisance in Belgium