Flat fee vs on-account charges: advantages and disadvantages
Detailed comparison between flat fee and on-account service charges in Belgium: advantages, disadvantages, and worked examples for each method.
Detailed comparison: flat fee vs on-account
| Criterion | Flat fee | On-account |
|---|---|---|
| Definition | Fixed definitive amount | Advances with annual statement |
| Adjustment | Impossible (except amendment) | Annual (statement) |
| Supporting documents | None | Mandatory |
| Risk of rising charges | Landlord | Tenant |
| Risk of falling charges | Tenant | Landlord (refund) |
| Transparency | Low | Full |
| Management | Simple | More demanding |
| Disputes | Rare | More frequent (statement) |
The choice between flat fee and on-account is set in the lease and cannot be changed during the lease without mutual agreement.
Worked examples
Scenario: apartment in co-ownership, variable charges
| Year | Actual charges | On-account paid | Balance | Flat fee (fixed) | Flat fee gap |
|---|---|---|---|---|---|
| 2024 | 2,400 EUR | 2,400 EUR | 0 | 2,400 EUR | 0 |
| 2025 | 2,800 EUR | 2,400 EUR | -400 EUR | 2,400 EUR | -400 EUR |
| 2026 | 3,200 EUR | 2,800 EUR | -400 EUR | 2,400 EUR | -800 EUR |
With on-account payments, the landlord adjusts each year. With a flat fee, the landlord absorbs the increase: over 3 years, a loss of 1,200 EUR.
Scenario: detached house, stable charges
| Year | Actual charges | On-account | Flat fee |
|---|---|---|---|
| 2024 | 1,200 EUR | 1,200 EUR | 1,200 EUR |
| 2025 | 1,250 EUR | 1,200 EUR | 1,200 EUR |
| 2026 | 1,300 EUR | 1,250 EUR | 1,200 EUR |
For stable charges, the flat fee is suitable: small gap, simplified management.
How to choose the right mode
| Situation | Recommended mode | Reason |
|---|---|---|
| Co-ownership | On-account | Variable and unpredictable charges |
| Detached house | Flat fee | Stable and predictable charges |
| Collective heating | On-account | Strong variation depending on the winter |
| Low charges (< 100 EUR/month) | Flat fee | Simplicity |
| High charges (> 200 EUR/month) | On-account | Fairness |
[!tip] Practical tip If in doubt, opt for on-account payments. The annual statement protects both parties and avoids surprises. A rental management software automates the calculation.
Recommendation
The flat fee suits simple situations (house, low charges). On-account payments are fairer and more protective for both parties in complex situations (co-ownership, high charges).
Specify the mode in your lease online and manage charges with a rental management software. See the service charges calculation for accurate estimates.
Frequently asked questions
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No, the flat fee is a fixed amount for the entire duration of the lease. It can only be changed with the written agreement of both parties (addendum). This is a risk for the landlord if charges increase significantly.
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Yes, if the flat fee is manifestly disproportionate to the actual charges, the tenant can apply to the justice of the peace to have it reclassified as on-account payments (which would entitle a refund).
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On-account payments are the most common method, especially in co-ownerships where charges fluctuate. The flat fee is more common for individual houses or small rentals with predictable charges.