Provisions or flat rate: what is the difference?

The lease must specify how charges are to be paid. Two systems coexist:

Provisions (advance payments): The tenant pays an estimated monthly amount covering their share of common charges. Once a year, the landlord prepares a settlement based on actual expenses. If the provisions exceed the expenses, the landlord reimburses the surplus. If they are insufficient, the tenant pays the difference.

Flat rate: The tenant pays a fixed monthly amount regardless of actual expenses. No settlement is prepared. The landlord bears the risk of underestimation, the tenant that of overestimation.

Remember

The system of provisions with annual settlement is recommended by Belgian law as it guarantees transparency. The landlord must be able to justify each item of the settlement with supporting documents.

Which charges are the tenant’s responsibility?

The allocation of charges between landlord and tenant is a frequently contested subject. In principle:

Tenant charges:

  • Water, gas, electricity for private areas
  • Routine maintenance of common areas (cleaning, lighting)
  • Lift (routine maintenance and consumption)
  • Waste collection
  • Minor repairs and maintenance

Landlord charges:

  • Property tax (precompte immobilier)
  • Building fire insurance
  • Major repairs (roof, facade, structure)
  • Replacement of obsolete installations (boiler, lift)
  • Management or syndic fees (unless otherwise agreed)

Common disputes and solutions

Late or missing settlement: A landlord who opts for provisions must provide an annual settlement. If they fail to do so, the tenant can demand the communication of supporting documents and suspend payment of provisions until the settlement is received.

Manifestly excessive flat rate: If the flat rate is disproportionate to the actual charges, the tenant can ask the Justice of the Peace to reduce it. The judge can also reclassify the flat rate as provisions.

Charges not provided for in the lease: The landlord cannot pass on charges that are not mentioned in the contract. Any charge attributable to the tenant must be identified in the lease or in an addendum signed by both parties.

Practical tip

Ask the landlord for the charge settlements from previous years before signing the lease. This will give you a realistic idea of the charge amounts and help avoid unpleasant surprises.