In Belgium

The bank guarantee is the second formula of rental guarantee provided by regional legislation. It allows the tenant who does not have sufficient savings to gradually build their guarantee, while the bank guarantees the landlord from day one.

The amount can reach 3 months’ rent (vs 2 for the security deposit). The tenant rebuilds over a maximum of 3 years through interest-free monthly instalments.

The bank is legally required to offer this option if the tenant holds a current account with them.

How it works

Request. The tenant visits their bank with the signed lease and requests a bank guarantee. The bank cannot refuse.

Bank commitment. The bank guarantees the full amount to the landlord from day one. The landlord receives a bank guarantee certificate.

Reconstitution. The tenant pays monthly instalments. On an 800 EUR/month rent with a 2,400 EUR guarantee (3 months), instalments are approximately 67 EUR/month over 36 months.

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Good to know
The bank cannot refuse to constitute a bank guarantee if the tenant holds a current account. It is a legal obligation. In case of refusal, the tenant can appeal to the banking ombudsman.

Practical example

Yasmine, a young worker in Brussels, signs a lease for 850 EUR/month. She does not have 1,700 EUR savings for a standard deposit. She opts for the bank guarantee: her bank guarantees 2,550 EUR (3 months) and Yasmine repays 70.83 EUR/month over 36 months, on top of her rent.

Key considerations

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Warning
If the tenant stops repaying the bank instalments, this does not affect the landlord’s guarantee — the bank remains committed for the full amount. However, the tenant incurs a debt to their bank.