Understanding the different types of lease

A lease is an agreement between an owner, known as the lessor or landlord, and a tenant for the use of a property in return for the payment of rent.

Since 2017, lease agreements have fallen within the competence of the regions, so each region is free to set its own rules for residential leases. In the Brussels-Capital Region, these rules are set out in the Housing Code, and have been in force since 1 January 2018.

In this article, OP looks at the different types of lease and their characteristics.

The different forms of lease

There are three main categories of lease for which there are very specific rules:

1. The main residence lease
2. The commercial lease
3. The lease under ordinary law

In addition, there is another, rarer, type of lease, the rural lease.

The main residence lease

The main residence lease is a type of rental lease whose provisions apply as soon as the tenant uses the rented building as his/her main residence.

The leased property may be immovable or movable. A caravan, for example, can be the subject of a main residence lease.

The commercial lease

The commercial lease is a rental agreement for a building or part of a building that the parties have agreed will be mainly used by the tenant or by a sub-tenant to operate a retail business or craft activity in direct contact with the public.

The term of a commercial lease is nine years. However, the tenant may, at the end of each three-year period, terminate the lease subject to the provision of six months’ notice by registered letter.

The rural lease

The rural lease, also known as the ‘farm lease’, is a rental agreement for one or more buildings that the parties have agreed will be used mainly for the tenant’s farming activity, excluding forestry.

‘Farming’ in this context means the production of agricultural produce intended primarily for sale. Like that of the commercial lease, the term of a rural lease is at least and by default nine years.

Two new leases appear on the scene: the student lease and the joint tenancy

Since 1 January 2018, there have been two new additions to the lease family: the student lease and the joint tenancy lease.

The student lease

The student lease is perfectly suited to student life, because it takes account of typical events such as:

• An internship in another city or country
• An Erasmus stay
• The need to retake exams
• A change of course
• etc.

Consequently, the maximum term of a student lease is 12 months, renewable for periods of one year. In addition, the student can terminate his/her lease at any time, subject to the provision of two months’ notice. However, the same is not true for the landlord, who must provide three months’ notice and wait until the end of the lease term.

Finally, in order to sign this type of lease, the student must show the landlord an application for or proof of enrolment in a higher education institution.

The joint tenancy lease

A joint tenancy lease is a rental agreement with at least two tenants. To be really watertight, a joint tenancy lease now involves two elements: the joint tenancy lease itself and a house-share agreement.

First, the lease agreement entered into between the landlord and the joint tenants stipulates that the joint tenants are jointly and severally liable vis-à-vis the landlord as well as setting out various specific terms. The parties must indicate their agreement to the application of this regime.

Second, in the house-share agreement the joint tenants formalise the practical arrangements of their communal life. This document makes the joint tenants aware of their rights and obligations, but also increases each tenant’s legal security while improving their collective organisation.

Strictly speaking, there are no set rules about what is included in the house-share agreement.

However, it is recommended that it should contain the following information:

• The requirement to draw up an interim inventory if a joint tenant leaves early
• The definition of everyone’s responsibilities (cleaning, putting out the rubbish, collecting the post, etc.)
• The formula by which the rent is divided between the joint tenants
• Who will pay the maintenance and repair costs
• A list of furniture and its provenance
• Points concerning the rental deposit and the payment of insurance, including fire insurance (arranged in the name of one or more joint tenants, the formation of an internal kitty).

However, the joint tenants are free to also arrange other aspects of their cohabitation, such as the organisation of daily tasks, the presence of pets or musical instruments, etc.

Finally, if one of the joint tenants wishes to leave, the joint tenancy lease states that two months’ notice must be provided, without the payment of compensation, on condition that a new joint tenant is found who is accepted by the group or that an active and adequate effort has been made to find a new joint tenant.

OP’s leases

Whatever your rental plans, OP has the right lease for you!

With OP, you will have a choice between three types of lease: residential, commercial and office. Drawn up by lawyers (in French and Dutch) and used throughout Belgium, OP leases have become models of their kind. Each lease explicitly defines the rights and duties of each party, while fairly defending the interests of both.

How can you obtain them?

You can order the lease of your choice online, on our website. The lease will be posted to you promptly. However, you can also obtain OP leases from the best points of sale in your area. You will find a list of points of sale on our website.

Would you like more information about leases in the Brussels-Capital Region?

OP will be happy to answer all your questions about the lease reform in the Brussels-Capital Region. Feel free to contact us via our online form.

In addition, the Brussels-Capital Region has published several leaflets on the subject, which can be found at logement.brussels. You will also find useful documents there such as a model inventory and an indicative rent table.