In Belgium

The management mandate is the contract by which a landlord delegates the management of their rental property to a professional. In Belgium, it is governed by general mandate law (articles 1984 et seq. of the Civil Code). The agent — usually a real estate agency or a property management company — acts in the name and on behalf of the landlord.

The mandate must be written and clearly specify:

  • Authorised acts: letting, rent collection, reminders, indexation, works coordination, representation in conciliation
  • Duration: fixed (1 year renewable) or indefinite (with notice period for termination)
  • Remuneration: ongoing management fees (% of rent) + one-off charges (letting, inventory)
  • Limitations: maximum amount for works without prior approval, prohibition of certain acts

How it works

Signing. The landlord and agent sign the contract. The agent typically receives a copy of the lease, the tenant’s details and access to the rental guarantee account.

Ongoing management. The agent collects rent into an escrow account, issues rent receipts, carries out annual indexation, sends reminders for late payments and prepares service charge statements.

Reporting. The agent regularly provides an account statement to the landlord. Online management platforms often offer a real-time dashboard.

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Good to know
The management mandate does not transfer ownership or legal responsibility. The landlord remains the lessor in the legal sense. If the agent commits a fault, the landlord may be held liable towards the tenant.

Practical example

Laurent owns 4 apartments in Liege and decides to entrust their management to an agency. The mandate provides for: ongoing management at 6% of annual rent, letting fee of one month’s rent, works authorised up to 500 EUR without prior approval, quarterly reporting.

The agency collects rent into an escrow account and transfers the amounts to Laurent monthly, net of fees. For a rent of 800 EUR/month, Laurent receives 800 - (800 x 6% / 12) = 796 EUR net per month.

Key considerations

Hidden fees. Some mandates include additional charges not included in the management percentage: letting fees, inventory fees, reminder fees, termination fees. Read the contract carefully before signing.

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Warning
An overly broad mandate gives the agent the power to sign leases, commission costly works or terminate contracts without your approval. Always limit the agent’s powers to strictly necessary acts.