Some time ago, we told you about the rental deposit and what it entailed. In this article, we will focus on online rental deposits and compare them with the so-called “traditional” method.
First of all, here is a reminder of the basics.
What is a rental deposit?
As the famous saying goes, ‘prevention is better than cure’, which is why rental deposits exist in the property sector.
This is a sum of money that the tenant places as a “deposit” in a blocked account for the entire duration of the tenancy. This amount will be used as compensation for any rental damage at the end of the tenancy agreement.
A rental deposit is not a legal obligation, but the landlord has the right to request one. For this reason, if the landlord wishes to request one, it must be stipulated in the tenancy agreement.
How do you set up a rental deposit?
The traditional method involves setting up the rental deposit by paying the amount into a blocked bank account.
However, times are changing, and it is now also possible to do this via the MyMinfin website. This is the FPS Finance platform, and it is free!
The procedure through banks is very often tedious and time-consuming, whereas the MyMinfin method is much quicker and easier. The deposit is set up almost as soon as the agreement is signed.
To do this, the tenant must initiate the process on the FPS Finance platform by entering all the required information.
What happens at the end of the tenancy agreement?
At the end of the tenancy agreement, there are two possible scenarios:
- both parties agree and have signed a written agreement: in this case, all or part of the blocked amount will be returned to the tenant. If any damage has been reported, the landlord may request that the relevant amount be withheld via their MyMinfin account. They must also provide the amount and their bank details, and the sum due will be paid with the tenant’s agreement.
- the two parties do not agree: the amount remains blocked until an agreement is reached or a ruling is issued by the justice of the peace.
Just one small drawback
The only drawback of using the MyMinfin platform rather than a bank is that no interest is earned on the rental deposit. Using a bank will give you a low interest rate, but at least it is there.
Would you like to find out more? MyMinfin platform: https://eservices.minfin.fgov.be/myminfin-web/
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