Co-tenancy as an investment strategy in Belgium
Investing in co-tenancy in Belgium: superior yield, management, adapted lease, taxation and mistakes to avoid for this profitable rental strategy.
Why co-tenancy pays more
Co-tenancy is one of the most profitable strategies in Belgian rental investment. The principle is simple: rent a property by the room rather than to a single household.
| Criterion | Standard letting | Co-tenancy |
|---|---|---|
| Monthly rent (3 bed.) | EUR 900 | EUR 1,350 (3 x 450) |
| Gross yield (property at 180,000) | 6.0 % | 9.0 % |
| Tenant profile | Families, couples | Students, young professionals |
| Turnover | Low | High |
| Management | Simple | More active |
University cities (Brussels, Louvain-la-Neuve, Liege, Ghent) offer the best markets for co-tenancy. See our guide where to invest in Brussels for promising neighbourhoods.
The co-tenancy lease in Belgium
The legal framework varies by region. In Brussels, the housing lease ordinance provides a specific regime for co-tenancy since 2018.
Single lease vs individual leases
| Option | Landlord advantage | Disadvantage |
|---|---|---|
| Single lease + joint liability | If one tenant defaults, the others are liable | Complex replacement |
| Individual leases | Independent management per room | No joint liability |
The co-tenancy lease must include a co-tenancy pact defining the allocation of charges and house rules. The rental deposit is individual per tenant.
Managing a co-tenancy day to day
Turnover: the main challenge
Co-tenants stay on average 12 to 18 months. Each departure involves a partial inventory of fixtures, the release of the deposit and the search for a replacement.
Optimising management
A rental management software is essential for tracking multiple tenants, automating rent reminders and managing move-ins and move-outs. Charges in co-tenancy are generally managed on a flat-rate basis for simplicity.
Taxation
Co-tenancy does not trigger a different tax regime for the landlord. Taxation remains based on the cadastral income if all tenants are natural persons.
Verdict: co-tenancy as an investment strategy
Co-tenancy offers a significantly higher yield than standard letting, provided you accept more active management. It is an ideal strategy for investors in university cities who are ready to manage turnover.
Create your co-tenancy lease online and consult the rental investment guide to explore other strategies.