25/9/24

New Reform of the Residential Lease in Brussels: Towards Greater Tenant Protection?

On April 4, 2024, the Brussels-Capital Region adopted a new law introducing significant changes to the Brussels Housing Code.

These reforms, effective from November 1, 2024, aim to solidify the right to housing, significantly strengthening tenant protections and imposing new responsibilities on landlords. 

Here is an overview of the main changes.

1. Removal of Clauses Prohibiting Domiciliation and Pets

Any clause prohibiting the tenant from registering their domicile at the rented property is now deemed void.

Similarly, any clause outright banning the possession of pets is now considered void. However, the landlord can, on the basis of "reasonable grounds," limit or condition the possession of pets, especially if there are risks of nuisance or based on the configuration of the property.

This measure grants tenants more freedom while considering legitimate needs to protect the rented property and the neighbourhood.

2. Suspension of Eviction Notice Effects in Case of Tenant Complaint to the DIRL

The Regional Housing Inspection Directorate (DIRL) is authorized to inspect all occupied homes in the Brussels region for compliance with health, safety, and equipment standards.

One of the most notable innovations is the protection of tenants who have filed a complaint with the DIRL. Upon filing such a complaint, any eviction notice by the landlord is suspended until the competent official makes a decision. This suspension ensures that the tenant can remain in their home until the authorities confirm whether the property complies with habitability standards, offering increased protection against premature evictions if the property is non-compliant.

To prevent unreasonable or frivolous complaints, the landlord can voluntarily request a certificate of compliance from the DIRL before renting out the property. This way, any subsequent eviction notice cannot be nullified by the tenant.

3. Relocation Costs Covered by the Landlord

If the lease is dissolved due to a violation of habitability standards, the judge may now require the landlord to cover the tenant's relocation costs. These may include evacuation, furniture transportation, moving into a new home, and even the difference between the old and new rent for a period of up to 18 months.

This new measure serves as a significant deterrent for landlords who fail to comply with habitability standards.

4. Tenant’s Right to Give Shorter Notice

When a landlord issues a notice to terminate the lease, the tenant now has the option to give a counter-notice of one month at any time.

This allows the tenant to leave the premises more quickly and better organize their departure in the face of lease termination initiated by the landlord.

5. Smoothing Rent Increases and Limiting Increases for Short-Term Leases

A landlord who ends a short-term lease, either prematurely or at its expiration, cannot increase the initial rent (set in the first contract) for any subsequent lease over a nine-year period. This measure applies to all successive short-term contracts, providing stability for tenants. It is important to note that legal indexations are not affected by this restriction.

To make this provision practicable, the Brussels legislator has stipulated that the landlord must now inform the new tenant, during the pre-contractual phase, of the amount and date of the last rent paid by the previous tenant under the previous short-term lease.

6. New Penalty for Expulsion Without Enforceable Title by the Landlord

A landlord who evicts a tenant without first obtaining an enforceable title is now liable to pay the former tenant compensation equivalent to eighteen months’ rent.

A landlord who deliberately and wrongfully obstructs the tenant's access to their home may also be liable to the tenant for compensation of up to eighteen months’ rent.

7. Mandatory Fire and Water Damage Insurance

Unless otherwise stipulated in the lease agreement, the tenant is now required to take out fire and water damage insurance.

The tenant will have to provide proof of insurance before moving in.

 If the tenant fails to comply with this obligation, the landlord can subscribe to the mandatory insurance and subsequently pass the cost on to the tenant.

8. Reformation of the Rental Guarantee

The rental guarantee is now limited to a maximum amount equivalent to two months’ rent.

The tenant now has the option to choose the form of the rental guarantee from the following five methods:

  • An individualized bank account opened in the tenant’s name
  • A bank guarantee resulting from a standard contract between a CPAS (Public Welfare Centre) and a financial institution
  • A bank guarantee with a financial institution, allowing the tenant to gradually build up the guarantee
  • A real security with a financial institution in the tenant’s name
  • A personal guarantee.

The major innovation here is that the tenant can now impose a personal guarantee, for example, by involving a trusted third party.

This obviously places the landlord in a delicate situation, as the insolvency risks of a personal guarantor are generally much higher compared to those of a conventional bank

Conclusions: Many New Responsibilities for Brussels Landlords

With this new reform coming into force on November 1, 2024, property owners will need to be extra vigilant. Between the suspension of eviction notices in the case of complaints to the DIRL, the coverage of relocation costs in the event of uninhabitability, restrictions on rent increases for successive short-term leases, and the rental guarantee in the form of a personal guarantee, there is no doubt that managing rental properties will become more complex.

However, proactive measures by landlords, such as requesting a DIRL compliance certificate, will significantly reduce the risks.

In any case, both landlords and tenants will need to quickly adapt to this new regulatory framework, which emphasizes tenant protection and the importance of the safety, health, and equipment standards imposed by the Brussels Region.

Proactive and efficient attention will help avoid costly disputes and maintain harmonious relationships between landlords and tenants.

Vanbelle Law Boutique offers its expertise to help you anticipate all your rental risks and stay fully compliant with the new legal requirements in this area. With us, you can ensure peace of mind in managing your real estate and maintaining harmonious relations between landlords and tenants.
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