05/10/18

The Walloon Region - Housing Reform

As a result of the 6th state reform, the regions are now responsible for residential leases. In this regard, a decree to integrate residential lease policy into Walloon law was adopted on 15 March 2018 and entered into force on 1 September 2018. The Walloon government has also issued model documents to be used for lease agreements, inventories of fixtures and co-tenancies as well as a non-exhaustive list of rental repairs.

The decree contains a number of new features regarding the lease of residential premises and primary residences. It also introduces new rules for co-tenancies and student leases. The rules apply to both new leases and those entered into before 1 September 2018.

Below we summarise the most important changes introduced by the Walloon decree.

General Provisions on Residential Leases

  • Extension of the legislation on residential leases to new types of movable property such as containers, yurts, huts, caravans to take into account changing attitudes and new forms of housing.
  • Mandatory use of a written agreement.
  • Minimum information to be provided in all leases.
  • Personal information listed in the decree can be requested by the lessor from the potential lessee (including the lessee's civil status and proof of the last three rent payments).
  • Mandatory fire insurance for the lessee.
  • Prohibition on subletting without the lessor's prior consent.
  • Obligation to draw up an inventory of fixtures at the start of the lease and the possibility to require one upon departure. The minimum requirements for the inventory are set out in the decree.

Lease of a Primary Residence 

  • For a nine-year lease, the decree harmonises the notice periods: three months for the lessee and six months for the lessor. 
  • The decree provides for the possibility to conclude a short-term lease of three years or less which can be extended twice provided the total duration does not exceed three years. The rent can be indexed if the lease agreement has been registered. Both parties may terminate the lease prematurely. For the lessee, this can be done with three months' prior notice and the payment of one month's rent to the lessor. The lessor can terminate the lease prematurely after the first year of the lease, with three months' notice and the payment of one month's rent to the lessee.
  • If the lessor does not register the lease agreement, the lessee may leave the leased premises without notice or compensation, by sending a formal notice to the lessor.

Co-Tenancy

  • Co-tenants are jointly liable for all obligations arising from the lease, namely the payment of rent and the security deposit and any possible damage to the property.
  • A co-tenant may be released from the lease if the co-tenant finds a replacement to fulfil his or her obligations and gives three months' notice. If the proposed replacement is not acceptable to the lessor, the co-tenant must pay compensation corresponding to three times his or her share of the monthly rent to the remaining co-tenants. 
  • The lessor may terminate the lease if at least half the initial co-tenants leave the premises.
  • Co-tenants must sign a co-tenancy agreement determining the main arrangements of the co-tenancy. The minimum information to be contained in the co-tenancy agreement is listed in the decree.
  • If a co-tenant uses the leased premises as his or her primary residence, with the express consent of all co-tenants and the lessor, the provisions on the lease of a primary residence and on co-tenancy will apply jointly, in addition to the general provisions on residential leases. Otherwise, only the provisions on co-tenancy and the general provisions on residential leases will apply.

Student Lease

  • A student must prove his or her status using specific forms and by certain deadlines in order to rely on the provisions relating to student leases. Otherwise, the general rules on residential leases or the provisions on the lease of a primary residence will apply, as the case may be.
  • In the case of a student lease, co-tenancy is not allowed.
  • The term of the lease is one year.
  • Until 15 March of a given year, the student may terminate the lease with two months' notice and the payment of three months' rent.
  • No payment is due if:

- the student has stopped his or her studies for whatsoever reason;

- the student terminates the lease by mutual consent with the lessor;

- the student is faced with the death of a parent or other person responsible for his or her financial support.

  • Possibility to sublet if the student is temporarily absent (on an exchange programme for example) with the express or presumed consent of the lessor.

Indicative Rent Scale

The Walloon government has established an indicative rent scale.

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