First rental property: mistakes to avoid in Belgium
Buying your first buy-to-let property in Belgium? The 7 most common mistakes and how to avoid them. Guide for beginner landlords.
Mistake 1: underestimating additional costs
Julien bought his apartment for 195,000 EUR. His planned total budget: 210,000 EUR. His actual budget:
| Item | Planned budget | Actual cost |
|---|---|---|
| Purchase price | 195,000 EUR | 195,000 EUR |
| Registration fees (12.5%) | 15,000 EUR | 24,375 EUR |
| Notary fees | 0 EUR | 3,500 EUR |
| Compliance works | 0 EUR | 8,200 EUR |
| Basic furnishings (kitchen) | 0 EUR | 2,500 EUR |
| EPC + electrical certificate | 0 EUR | 600 EUR |
| Total | 210,000 EUR | 234,175 EUR |
Julien exceeded his budget by 24,175 EUR, i.e. +11.5%. This is a classic mistake: purchase costs in Belgium represent 14 to 16% of the price in Wallonia/Brussels.
For tax details, see our guide on notary fees for a rental property.
Mistake 2: poor tenant selection
Julien rented to the first person who applied, without thorough verification. Result: the tenant had 3 late payments in 6 months.
What he should have checked
- Income: minimum 3 times the rent in net income (payslips for the last 3 months)
- Employment contract: permanent contract or equivalent
- References: previous landlord’s contact details
- Identity: copy of the identity card
- Solvency: no record at the Central Credit Register (NBB)
What he is NOT entitled to ask for: criminal record extract, health status, family plans, orientation, religion.
For the complete procedure, see our guide on how to select a tenant.
Mistake 3: neglecting compliance
Julien did not have the electrical installation checked (mandatory in Flanders, recommended everywhere). He also did not carry out a detailed property inventory with photos.
Obligations BEFORE letting
| Obligation | Region | Cost |
|---|---|---|
| EPC certificate | All three Regions | 150-350 EUR |
| Electrical compliance | Flanders (mandatory), BXL/WAL (recommended) | 100-200 EUR |
| Smoke detectors | All three Regions | 20-50 EUR |
| Move-in property inventory | All three Regions | 0-350 EUR (with expert) |
| Lease registration | All three Regions | Free |
| Letting permit | Wallonia (small dwellings) | Free |
Without a detailed move-in property inventory, the tenant is presumed to have received the property in good condition. At move-out, you will not be able to claim for damage. Invest 200-350 EUR in a professional property inventory.
Mistake 4: ignoring taxation
Julien did not anticipate the tax impact of his investment:
- Cadastral income taxed in his personal income tax return
- Property tax annually (~1,000-1,500 EUR in Brussels for an apartment)
- Non-deductible charges (when letting to a private individual, only the 40% flat rate applies)
| Tax mistake | Consequence |
|---|---|
| Not declaring the property | Reassessment + surcharge 10-200% |
| Confusing indexed and non-indexed cadastral income | Double taxation |
| Not registering the lease | Fine + loss of protection |
| Not budgeting for property tax | Annual surprise of 1,000-1,500 EUR |
How to avoid these mistakes
Before buying
- Budget 15-20% in additional costs on top of the purchase price
- Calculate the net yield (not just gross)
- Run a tax simulation before signing the preliminary agreement
- Visit at least 10 properties before buying
Before letting
- Obtain all mandatory certificates (EPC, electrical)
- Carry out a professional property inventory with photos
- Select the tenant rigorously (income, references)
- Create your lease online compliant with your Region
During the rental
- Use a rental management software to track rent payments and deadlines
- React from the first late rent payment
- Maintain a precautionary reserve (equivalent to 3 months of rent)
- Take out landlord insurance
For more real-life experiences, see our case studies or the guide on rental property investment in Belgium.