In Belgium

The flat rate is the alternative to charge provisions. The fundamental difference: with provisions, an annual statement reconciles amounts; with the flat rate, the amount is final — no statement, no reconciliation.

The flat rate is simpler to manage but carries risk for the landlord: if actual charges increase significantly (energy price rise, co-ownership works), they cannot claim the difference. Conversely, the tenant cannot request a refund if charges decrease.

The choice must be clearly stated in the lease. Without specification, case law tends to consider the amounts as provisions (with statement obligation).

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Warning
A landlord who chooses a flat rate cannot later switch to provisions during the lease and demand a statement or supplement. The flat-rate amount is fixed for the entire duration.

Practical example

A landlord sets a flat rate of 120 EUR/month for charges. Year one, actual charges are 1,200 EUR (= the annual flat rate). Year two, charges rise to 1,550 EUR due to energy prices. The landlord absorbs the 350 EUR difference — that is the flat rate risk.