In Belgium

The charges provision is the most common system for paying service charges. The tenant pays an estimated monthly amount on top of rent, and an annual charges statement reconciles the difference.

This differs from the flat rate: with a flat rate, the amount is final with no reconciliation. With provisions, the annual adjustment ensures fair cost distribution.

The amount is set in the lease based on estimated annual charges. The landlord typically bases it on the previous year’s expenses.

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Good to know
The landlord should set realistic provisions. Too low leads to a large year-end supplement (unpleasant surprise for the tenant). Too high unnecessarily ties up the tenant’s money.

Practical example

Lara rents a studio in Mons for 550 EUR/month rent plus 80 EUR/month provisions (960 EUR/year). Year-end statement shows actual charges of 1,050 EUR. Lara pays a 90 EUR supplement. Provisions adjusted to 90 EUR/month for the next year.

Key considerations

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Warning
The landlord cannot unilaterally change the provision amount during the year. Adjustment can only occur after the annual statement or by mutual agreement.