Service charges: on-account payments or flat fee in Belgium
On-account payments or flat fee for service charges in Belgium: differences, advantages, disadvantages, and which method to choose for your lease.
- 01 Comparison
- 02 On-account payments
- 03 Flat fee
- 04 Which mode to choose
On-account payments vs flat fee comparison
| Criterion | On-account | Flat fee |
|---|---|---|
| Monthly amount | Estimated advance | Fixed definitive amount |
| Annual statement | Mandatory | None |
| Supporting documents | Mandatory | None |
| Risk of underestimation | Tenant pays the difference | Landlord bears it |
| Risk of overestimation | Refund to tenant | Landlord keeps the surplus |
| Management | More demanding | Simpler |
| Transparency | Full | Limited |
The choice is set in the lease and cannot be changed during the lease without both parties’ agreement.
On-account service charges
How it works
The tenant pays a monthly advance (on-account) in addition to the rent. At year-end, the landlord draws up a statement comparing the advances paid to the actual charges.
| Situation | Consequence |
|---|---|
| On-account > actual charges | Refund to the tenant |
| On-account < actual charges | Supplement payable by the tenant |
| On-account = actual charges | No adjustment |
Landlord’s obligations
- Provide a detailed annual statement
- Make supporting documents available (invoices, records)
- Refund any surplus within a reasonable time
- Adjust the on-account amounts if the gap is significant
How to set the on-account amount
Base it on the actual charges from the previous year. The service charges calculation must be accurate to avoid unpleasant surprises.
Flat fee service charges
How it works
The flat fee is a fixed monthly amount covering all recoverable charges. No annual statement is required.
Advantages
| Advantage | Detail |
|---|---|
| Simplicity | No statement, no supporting documents |
| Predictability | Amount known in advance for both parties |
| Fewer disputes | No challenge on the statement |
Disadvantages
The landlord bears the risk of rising charges (energy, water). If the flat fee is too low, the landlord loses money. If too high, the tenant pays more than the actual charges with no remedy.
[!important] Legal point The flat fee must correspond to the estimated actual charges. A manifestly inflated flat fee may be challenged by the tenant as a disguised rent increase.
Which mode to choose
| Situation | Recommended mode |
|---|---|
| Apartment in a co-ownership (variable charges) | On-account |
| Detached house (predictable charges) | Flat fee |
| Landlord seeking simplicity | Flat fee |
| Tenant seeking transparency | On-account |
A rental management software simplifies on-account management by automating the annual statement. Create your lease online with the appropriate charges mode.
Frequently asked questions
-
On-account payments are monthly advances settled annually: if the actual charges are lower, the landlord refunds the difference; if higher, the tenant pays the shortfall. The flat fee is a fixed definitive amount, with no statement or refund.
-
The flat fee is simpler (no annual statement or supporting documents) but the landlord bears the risk of underestimation. On-account payments are fairer but require rigorous bookkeeping and a mandatory annual statement.
-
No, the invoicing method is set in the lease and can only be changed with the written agreement of both parties (addendum). Switching from one to the other is not possible unilaterally.