Rental charges settlement: the landlord’s annual obligation
In Belgium, when rental charges are paid as monthly provisions, the landlord is legally required to produce a detailed annual settlement. This document summarises all actual expenses incurred for the property — heating, water, common area maintenance, lift — and compares them with the advances paid by the tenant to determine the balance to be paid or refunded.
The transparency obligation is enshrined in all three Belgian regional legislations. In Brussels, the Brussels Housing Code (ordinance of 27 July 2017) requires a detailed statement at least once a year. In Wallonia, the decree of 15 March 2018 requires the same frequency, with an obligation to provide supporting documents on simple request. In Flanders, the Woninghuurdecreet of 9 November 2018 contains equivalent provisions. Non-compliance exposes the landlord to consequences: the tenant can refer the matter to the justice of the peace to demand production of the settlement and, if necessary, obtain suspension of future provisions payments.
What must the annual settlement contain?
A compliant charges settlement must include the following elements:
- The period covered: generally from 1 January to 31 December, or aligned with the co-ownership’s accounting year
- The breakdown by expense item: water, heating, common area electricity, cleaning, lift, green spaces, taxes
- The total of actual charges for the period
- The total provisions paid by the tenant
- The balance: additional payment due or overpayment to be refunded
| Settlement element | Mandatory? | Note |
|---|---|---|
| Period covered | Yes | Start and end dates |
| Breakdown by item | Yes | Each category of charge |
| Actual total amount | Yes | Sum of effective expenses |
| Provisions paid | Yes | Total of tenant’s advances |
| Credit/debit balance | Yes | Difference to pay or refund |
| Supporting documents | On request | Invoices, meter readings, building manager minutes |
The landlord must also make available to the tenant the supporting documents: energy supplier invoices, meter readings, co-ownership building manager settlements, maintenance contracts. The tenant can consult them on site or request copies. Consult our page on the allocation of charges to find out which items are recoverable.
Deadlines and frequency
The settlement must be produced at least once a year. In practice, the timing often depends on when the co-ownership building manager’s settlement is received:
- Co-ownership: the building manager generally closes the accounts at the end of the calendar year and sends the settlement to co-owners within 2 to 3 months
- Landlord to tenant: the landlord then has a reasonable period to pass on the settlement to the tenant, approximately 1 to 2 months after receipt
- Typical total timeframe: the tenant receives their settlement between March and June of the following year
Balance regularisation:
- If the tenant owes an additional payment, the landlord grants a reasonable payment period (15 to 30 days)
- If the landlord must refund an overpayment, they must do so within the same period
- The landlord can propose an adjustment to future provisions to better match actual charges
At the end of the lease, the final settlement must be produced at the latest within the months following the end of the tenancy. If the building manager’s settlement is not yet available, the landlord can retain part of the rental deposit pending it, provided the lease expressly allows for this.
Disputing a charges settlement
A tenant who believes the settlement is inaccurate or that certain charges are not attributable to them has several remedies:
- Amicable request: write to the landlord requesting explanations and missing supporting documents
- Verification of items: compare the settlement with the recoverable charges stipulated in the lease and the list of common charges admitted under Belgian law
- Conciliation: in case of persistent disagreement, request a free conciliation from the justice of the peace
- Legal action: refer the matter to the justice of the peace with jurisdiction over the property’s location
The most frequent grounds for dispute are:
- Inclusion of non-recoverable charges (reserve fund, building manager fees, major works)
- Absence of detailed breakdown by item
- Error in the allocation key (co-ownership shares)
- Excessive delay in sending the settlement
- Refusal to provide supporting documents
The justice of the peace can order the landlord to produce all supporting documents and, if appropriate, reduce the amount of disputed charges or order the landlord to refund the overpayment.