The rental deposit: what is it?

There is a great deal of conflicting information about rental deposits, so what is the actual position? Let us look at what you can require as a landlord.

First of all, you should be aware that there are three types of deposit in Belgium:

• the blocked account: you deposit a sum of money into an account opened in your name.

• the bank guarantee: the bank guarantees the full amount to your landlord, and you gradually repay this sum.

• the CPAS guarantee: this organisation covers the sum of money to be blocked.

How much can you request?

In Flanders, the new decree provides for a deposit equivalent to three months’ rent (except for students, for whom it is two months’ rent).
In Brussels and Wallonia, the amount of the deposit varies depending on the type.
For a deposit held in a blocked account, you may request a maximum of two months’ rent.
Bank and CPAS guarantees may amount to three months’ rent.

When can you request it?

Should you require your tenant to pay the rental deposit before moving into the property? As a general rule, keep the golden rule in mind: first the deposit, and only then the keys.
In practice, this can sometimes be more difficult. Indeed, the obligation to provide a rental deposit is contractual rather than statutory, which means that there is no law stating that the tenancy agreement is conditional upon payment of a rental deposit. However, to avoid any disputes or misunderstandings, it is preferable to include a clause in the agreement along the following lines:

‘Subject to the Tenant complying with and fulfilling all their contractual obligations, the Landlord shall let to the Tenant the property described as follows: xxxxx
This tenancy agreement shall take effect on xxxxx.
However, the accommodation shall only be made available to the tenant or tenants subject to the following conditions:
– Joint completion of the check-in inventory (Article x)
– Provision of the rental deposit (Article x)
– Payment of the first month’s rent (Article x)
– Proof that the insurance contract has been signed (Article x)’

Gilles TIJTGAT, holder of degrees in law and criminology from UCL, www.pim.be, 1 June 2017.

If you have any other questions, please do not hesitate to contact us. J&J Management specialises in property management!

Source:
businessdatabase
Indicator
pim