Terminating a tenancy to renovate: what investors really need to know in 2026

In property investment, renovation is often the lever that changes everything. It can reposition a property, increase its value, allow rents to be reviewed or prepare it for resale under favourable conditions. But it is also one of the areas where mistakes are most costly. Not only because of the works themselves, but because of the legal framework surrounding them. In Belgium, a residential tenancy can be terminated to carry out major works. This is possible, but strictly regulated, and the rules vary depending on the Region, the type of tenancy and, above all, whether a single unit or an entire building is being renovated.

The general framework: renovating is possible, but subject to conditions

Termination for renovation works is not unrestricted. It rests on three pillars. Firstly, the works must be substantial. Secondly, the timing of the termination must comply with the law. Finally, the works must be carried out within the required time limits. If any of these conditions is not met, the tenant may claim compensation of up to eighteen months’ rent. It is this risk that makes renovation a strategic decision rather than merely a technical matter.

The financial threshold: three years’ rent, not a rough estimate

For a termination to be valid, the works must amount to at least three years’ net indexed rent. The calculation is based on the indexed rent at the time of termination. VAT and finishes (flooring, painting, etc.) are included. However, grants and subsidies must be deducted, as the calculation is based on the cost actually borne by the landlord. This point is often poorly anticipated, even though it determines the robustness of the project.

The timetable: the detail that can make or break a case

Timing is just as important as the budget. For a nine-year tenancy, termination is only possible at the end of a three-year period, with six months’ notice. Once the tenant has left, the works must begin within six months and be completed within twenty-four months. If these deadlines are not met, compensation may become payable, even if the works have been carried out.
Short-term tenancies of three years or less are common in investment properties, particularly in Brussels. However, they are highly restrictive if the aim is to renovate quickly. A short-term tenancy cannot be terminated early for renovation works, even by a new owner. In principle, it continues until its expiry date, unless an amicable agreement is reached with the tenant. For an investor, this means that a property may be legally tied up for several months or longer if this issue was not factored into the audit from the outset.

A single dwelling or an entire building: two approaches, two strategies

For a single dwelling, the framework is at its strictest. The three-year period must be observed, the threshold of three years’ rent must be met, the project must be substantiated and the works must be carried out within the required time limits. There is little room for manoeuvre, and mistakes come at a high price.
For an entire building, the approach is different. In Brussels and Wallonia, a more flexible regime exists to facilitate comprehensive renovations. Subject to certain conditions, it is possible to vacate several dwellings at the same time, even if the tenancy dates are not aligned, provided that the project is coherent across the building as a whole. This is a powerful means of genuinely transforming an asset, but it requires robust documentation, a clear project and strict adherence to deadlines.

What investors need to know

The same common mistakes occur repeatedly: buying on the assumption that renovation can begin immediately, underestimating the minimum works budget, overlooking the timetable, improvising the termination documentation or confusing the rules for a single dwelling with those for an entire building. The result is projects being held up for one to three years, or substantial compensation becoming payable.

In reality, renovation is not merely a building project. It is a strategy that must be considered from a legal, financial and technical perspective and, above all, before the acquisition. This is why, at J&J Properties, analysing tenancies and the available termination options forms an integral part of the assessment of every investment project. Because a well-managed renovation does not merely create value; it changes the entire trajectory of an investment.