5 points to check before signing your residential lease

Before signing a lease, you need to check a few things. Here are 5 important points to check.

1. Duration of the residential lease

Before you start packing, it's essential to take the time to carefully read the rental agreement you're about to sign. One of the crucial points to examine is the duration of the contract. Most leases are drawn up for a period of 3 years. However, it's important to note that if no term is specified, the contract will automatically be for 9 years.

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What about lease termination?

Have you found the apartment of your dreams? In the rental contract, you'll find details of the notice period. If you sign up for a period of 3 years or less, unless otherwise specified, you will not be able to terminate the contract before it expires. On the other hand, if you sign a 9-year contract, you can terminate it by giving 3 months' notice.

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What is the 3-6-9 contract?

A lease with a duration of more than 3 years is considered a long-term contract, which implies the same conditions as a 9-year contract. This is known as a 3-6-9 contract. If you leave during the first year, you'll have to pay compensation equal to 3 months' rent. If you leave during the second year, the indemnity will be 2 months' rent. Finally, if you leave in the third year, you'll have to pay 1 month's rent as compensation.

After the third year, no compensation in lieu of notice is due, but you still have to give 3 months' notice. It's a good idea to terminate your lease by registered letter. The notice period begins on the first day of the following month.

If it is the landlord who decides to terminate the lease before the official date, he will have to pay you compensation equivalent to 9 months' rent (after 3 years) or 6 months' rent (after 6 years), unless he needs to occupy the property himself or carry out renovation work.

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2. Rent and charges

Before signing a lease, it's crucial to check the rent carefully. The lease should include the following information:

• Rent and service charges: Make sure that the rent is in line with what you negotiated.
• Rent payment terms (for example, on the 15th of each month).
• Terms and conditions of service charge payment (prepayments and regularization or lump-sum payments).

In certain high-demand areas, such as Brussels, the landlord is required to include the reference rent in the lease.

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3. The warranty

Before you move into your new apartment, you'll probably have to sign a rental guarantee contract. At the end of the lease, the landlord will reimburse you the amount of this guarantee if you have left the apartment in good condition. Although not legally required, there are two ways in which you can be asked to sign a rental guarantee contract:

• Deposit of the full amount into an escrow account in your name: In this case, the guarantee cannot exceed two months' rent and the money will be released only after the landlord has signed.
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• Bank guarantee: The bank advances the full amount of the guarantee and you repay it gradually over a maximum period of 3 years. Here, the amount of the guarantee cannot exceed three months' rent.

It's important to discuss with the landlord which method is best for you, and to state this in the lease contract. In any case, it's crucial never to pay the rental guarantee in cash or by transfer to the landlord's account.

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4. Inventory

The inventory of fixtures is a mandatory step, just like the lease contract, and must be registered with the commune. Before signing, it's essential to go through every room in the property, leaving no stone unturned: floors, walls, ceilings, doors, windows, plumbing, household appliances, etc.

Any defects that existed before you moved in should be recorded in the inventory of fixtures, so that you are not charged for them when you check out. It's also a good idea to take photos to provide additional evidence in the event of a dispute. If you wish, you can also agree with the landlord to hire an expert to carry out the inventory of fixtures on your behalf. The costs associated with this option are usually around €150, shared equally between you and the landlord.

5. Home insurance

When you rent a property, the landlord insures the building against natural disasters or property damage. However, this insurance does not cover damage you may cause as a tenant. That's why you need to take out an insurance policy called "responsabilité civile locative" (RC locative). In Wallonia and Flanders, this insurance is compulsory for all tenants. In Brussels, you are not obliged to take out this insurance, unless specified in your lease contract. So it's important to check whether your landlord requires it before you move in. Even if it isn't compulsory, it's strongly recommended that you take out rental liability insurance, because as a tenant, you're obliged to return the property in the same condition. For example, if you cause a fire while trying out a new cookie recipe, all repair costs will be your responsibility if you don't have tenant's liability insurance.