Managing a rental property in co-ownership: rights, decisions and disputes

Co-ownership of rental property in Belgium

Co-ownership is the legal situation in which several people jointly own the same property, without each person’s share being physically delineated. It is a common situation in Belgium, particularly after an inheritance or a joint purchase.

Managing a rental property in co-ownership poses specific challenges: every decision must be agreed upon, income and charges shared, and disagreements can quickly block management. According to Belgian notaries, nearly 40% of inheritance-related co-ownerships generate conflicts within the first five years.

This guide covers the rules applicable since the reform of property law that came into force on 1 September 2021 (Book 3 of the Civil Code). To fully understand your obligations as a landlord, it is essential to master this legal framework.

Day-to-day management of the rented property

The three categories of acts

The Civil Code distinguishes three types of acts according to their importance:

Who signs the lease?

In principle, all co-owners must sign the lease agreement. However, a written mandate can be given to one of them to manage the rental on behalf of all. This mandate must be sufficiently precise regarding its scope (conclusion of the lease, setting the rent, claims management).

Collecting rent

It is advisable to open a joint bank account dedicated to the co-ownership. Rents are paid into it, and charges (property tax, insurance, repairs) are debited. The balance is distributed proportionally to each share.

The co-ownership agreement: an indispensable tool

Why draft one?

Without an agreement, the default legal rules apply, which leaves room for many grey areas. The co-ownership agreement establishes clear rules between co-owners and prevents conflicts.

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A well-drafted co-ownership agreement should include:

• The exact distribution of each co-owner’s shares
• The appointment of a manager (and the extent of their powers)
• Decision-making procedures (majorities, consultations)
• The distribution of rental income and charges
• Rules for major works
• Exit conditions (right of pre-emption between co-owners)
• The duration of the agreement (maximum 5 years, renewable)

Formalities

The agreement must be drawn up by notarial deed if it relates to real property. It is recorded at the Legal Security Office (formerly the Mortgage Registry) to be enforceable against third parties.

Taxation and rental income in co-ownership

Property tax

The property tax is addressed to all co-owners jointly. In practice, a single notice is sent. It is up to the co-owners to distribute the amount among themselves according to their shares.

Income tax

Each co-owner declares in their personal tax return the share of the cadastral income (CI) that corresponds to them, proportionally to their share in the co-ownership. Since the reform, the declaration is made via Part 1 of the form, Section III (property income).

For more on property taxation, see our guide on declaring rental income.

Conflicts between co-owners: how to resolve them?

Common deadlocks

The most frequent disagreements concern:

• The rent amount or the choice of tenant
• Carrying out renovation works (EPC, roof, heating)
• A co-owner’s wish to sell their share
• Unequal distribution of management (one person does all the work)

Available remedies

Mediation is the first option to consider. An accredited mediator can help the parties reach an agreement without going to court. If that fails:

1. Provisional administrator: the justice of the peace can appoint an administrator to manage the property in case of deadlock (art. 3.70 of the Civil Code)
2. Amicable partition: the co-owners agree to sell the property or buy out the others’ shares
3. Judicial partition: as a last resort, the court orders the public sale of the property

Impact on the tenant

The tenant whose lease is duly registered is protected. In case of sale, the buyer takes over the lease on the same terms. The tenant cannot be evicted due to a conflict between co-owners.

Practical advice for a harmonious co-ownership

Managing a rental property in co-ownership can work well if the rules of the game are clear from the start. Here are the essential points:

• Draft a notarised co-ownership agreement from the time of purchase or inheritance
• Appoint a single manager as the tenant’s point of contact
• Open a dedicated account for the property’s financial flows
• Keep transparent accounts accessible to all co-owners
• Include an exit clause (right of pre-emption, buyout terms)

A rental management tool can greatly facilitate tracking rents, charges and documents, especially when several owners need access to information. Whatever the situation, always prioritise communication and written formalisation of agreements.