Renting a house or appartment - what about the rental deposit?
You wish to rent a house or appartment as a primary residence, find the ideal place and are financially able to pay the monthly rent, but then the landlord reminds you of the obligation to pay the rent deposit in full.
This can be a heavy burden to bear, especially on top of the first month's rent. The maximum rent guarantee has been increased from two to three months of rent since the entry into force of the Flemish Housing Decree (valid for leases concluded after 1 January 2019). This rent guarantee combined with the first month's rent can therefore quickly add up to a large amount.
For the landlord, this obviously makes up a necessary security to cover himself against the insolvency of his future tenant in case of possible claims or problems. Both parties thus benefit from a smooth handling of this stumbling block.
4 ways to pay rent deposit
The rent deposit is equal to three months of rent and serves to cover possible rental damage or rent arrears. There are four different ways to pay the rent deposit:
- You can choose to pay the rent deposit in a sum of money. In this case, you should place the amount in a blocked bank account in your name as tenant (= individualised account).
- Or you may choose, in your name as a tenant, to place a collateral security deposit with a financial institution.
- You can opt to seek help from the CPAS, if you qualify. The CPAS will then enter into an agreement with a bank for the amount of the rent deposit.
- The last option is a personal guarantee as a form of rent deposit. This is only possible with the landlord's consent. A natural or legal person will act as guarantor for the amount of the rental guarantee. This guarantee does not continue if a new rental agreement is concluded or if it is terminated.
It is not possible to deviate from or combine the above options. Moreover, it is always the tenant himself who chooses the way in which he wishes to make the rent guarantee available to the landlord.
If you find it difficult to collect the three months of rent for the rent guarantee, you can apply to the Flemish Housing Fund for an interest-free rent guarantee loan.
At the end of the lease, if the tenant has fulfilled his obligations, he will get back the rent guarantee (including interest).
If there should be damage or the tenant has been in arrears in paying the rent, the landlord can invoke the rent guarantee to compensate for the financial loss he has suffered as a result.
Attention: Brussels and Wallonia Region
A different regulation applies in Brussels, where the Flemish Housing Decree applies to residential rental agreements until 1 January 2018. For residential leases concluded after this date, the Brussels Housing Code applies.
In Wallonia, things are regulated even differently, there the Flemish Housing Rental Act applied until 1 September 2018 and from then on the rules of the Walloon Housing Rental Decree apply to all rental contracts, including those already in progress.
If so, please do not hesitate to contact us!
Should you as a tenant experience problems or as a landlord have questions on how to obtain your rental guarantee, or in general wish further information on the above.