As of January 1, 2019, a landlord is allowed to ask for three months’ rent deposit under the new Flemish Housing Decree. Previously, a maximum two-month rent guarantee was allowed. To ensure that poorer tenants can also cough up that rent guarantee, an anonymous and interest-free rent guarantee loan will be introduced at the same time. Both points were established in the new Flemish Housing Decree.
Flemish Housing Decree
The new Flemish Housing Decree aims to bring together the interests of tenants and landlords as well as possible. For the tenant, security of tenure is important, while the landlord wants return. With the increase of the rental guarantee from two to three months, the landlord reduces the risk of rental damage or non-payment. Along the other hand, a higher rent guarantee also means a higher threshold for poorer tenants. This is why the government is introducing a rent guarantee loan.
Rent Guarantee Loan
The rent guarantee loan is anonymous and interest-free and gives income-impaired tenants the opportunity to enter into a rental agreement with a private tenant, which promotes access to the private rental market. The loan must be applied for at the Flemish Housing Fund. To apply for the rent guarantee loan, the applicant must meet some conditions. For example, he/she may not own real estate and must meet the income requirements for modest rent. In principle, the tenant must repay the loan in 2 years, but that period is extendable by 6 months. Curious about all the provisions since 2019? Read the full new Flemish Housing Rent Decree. Planning to (re)rent?