Rent revision after renovations: conditions and calculating the increase
A landlord who carries out improvement works in a rented property can, under certain conditions, request a rent increase. This mechanism, provided for by Belgian regional legislation, aims to encourage investment in the rental stock by allowing the landlord to pass on part of the renovation costs to the rent, provided that the works constitute a genuine improvement for the tenant.
Unlike the standard revision linked to market conditions, the revision after renovations can occur outside the end of a three-year period, making it an attractive lever for the investor-landlord. The issue is particularly topical in the context of EPC renovation obligations in the Brussels Region: insulation works and window frame replacement improve the property’s energy certificate, potentially allow a rent increase and simultaneously reduce the tenant’s heating charges.
Specific conditions for revision after renovations
For improvement works to justify a rent revision, several conditions must be met:
1. Nature of the works
The works must constitute a genuine improvement to the property, not a simple repair or like-for-like replacement. The distinction between improvement works and maintenance works is fundamental.
2. Financed by the landlord
The works must have been carried out and financed by the landlord. Works performed by the tenant do not justify a rent increase by the landlord.
3. Agreement of the tenant or court decision
The tenant’s agreement on the increase is sought as a priority. Failing that, the landlord can refer the matter to the justice of the peace to have the new rent determined.
4. Proportionality
The rent increase must be proportional to the improvement made. It cannot exceed what is justified by the increase in rental value.
| Condition | Detail | Verification |
|---|---|---|
| Nature | Improvement, not maintenance | Invoices + description of works |
| Financing | By the landlord | Invoices in the landlord’s name |
| Minimum cost | Varies by region | Total invoices |
| Agreement | Tenant or judge | Lease addendum or judgment |
| Proportionality | Proportional increase | Expertise or indicative grid |
Types of works: improvement vs maintenance
The distinction between improvement works (justifying a revision) and maintenance works (not justifying a revision) is crucial:
Improvement works (revision possible):
- Installation of a new fitted kitchen (where there was none or replacement with a significantly superior model)
- Complete bathroom renovation (new shower, bathtub, tiling, sanitary fixtures)
- Replacement of single-glazed windows with double or triple glazing
- Installation of central heating (replacing electric convectors)
- Roof, wall or floor insulation
- Creation of a terrace or balcony
- Conversion of an additional room (attic, cellar)
- Installation of a mechanical ventilation system
Maintenance works (no revision):
- Replacement of a broken boiler with an equivalent model
- Replacement of a tap or mixer
- Interior repainting
- Roof leak repair
- Replacement of worn floor coverings
- Electrical installation compliance work
Borderline cases:
| Works | Improvement? | Comment |
|---|---|---|
| Replacement of standard boiler with condensing boiler | Yes (if significant EPC gain) | Energy improvement can be valued |
| Replacement of worn kitchen with equivalent new one | No | Like-for-like replacement |
| Addition of solar panels | Yes | Reduction in tenant’s charges |
| Lift replacement | No | Replacement of existing equipment |
| Creation of a bicycle storage room | Yes | New facility |
To assess the impact of works on the rent, the landlord can refer to the indicative rent grid of Brussels, which takes into account the property’s condition and EPC.
Procedure and documentation to provide
Step 1: Carrying out the works
The landlord informs the tenant of the planned works and has them carried out. If the works require access to the dwelling, a schedule is agreed with the tenant. Major works may justify a temporary rent reduction for their duration.
Step 2: Building the file
The landlord gathers the supporting documents:
- Invoices from contractors and materials suppliers
- Photos before and after the works
- Certificates (new EPC, electrical or gas compliance certificate)
- Quotations and contracts with companies
- Planning permission (if required for the works)
Step 3: Proposal to the tenant
The landlord proposes a new rent to the tenant by registered post, enclosing:
- The detailed breakdown of works carried out
- The improvement made to the property (description, photos, new EPC)
- The proposed new rent and its justification
Step 4: Negotiation or referral to the judge
| Scenario | Outcome |
|---|---|
| The tenant agrees | Signing of a lease addendum setting the new rent |
| The tenant negotiates | Exchange and compromise on an intermediate amount |
| The tenant refuses | Referral to the justice of the peace to determine the rent |
Indicative calculation of the increase:
The most common method is to amortise the cost of works over the remaining lease duration:
- Total cost of works: 15,000 EUR
- Remaining lease duration: 6 years (72 months)
- Monthly amortisation: 15,000 / 72 = 208 EUR
- Reasonable rent increase: 50 to 70% of the amortisation = 100 to 150 EUR/month
This calculation is indicative. The justice of the peace may apply different reasoning, notably based on the effective increase in rental value rather than the cost of works.
Before undertaking works, assess their impact on the rent and rental charges (insulation works reduce heating charges, which benefits the tenant and further justifies the increase in base rent).