Sir, – Having lived in Belgium for over 20 years, I can attest to the fact that landlords there receive very generous tax breaks. However, this comes with very clearly defined obligations on their part for the protection of their tenants.
The same standardised and comprehensive lease agreement document is used throughout the country. Lease durations are for three, six or nine years. If for some exceptional reason the tenant needs to leave before the end of the first three-year lease, they must pay a three-month rent equivalent penalty, two months for a break during the second year and one month’s rent equivalent if they leave during the third year. After the first three years the tenancy continues up to nine years, unless the tenant decides to end it penalty free.
The lease agreement clearly specifies a standard mathematical formula for any rent variations. The index can change (usually by a very small percentage) and is published daily in the national newspapers. Landlords are fully entitled to increase the rent based on this calculation but in my experience they keep to the agreed rent at the signing of the lease, at least for each three-year tranche. All lease agreements must be registered by law.
There is a rigorous, written entry inspection (état des lieux) with the estate agent/owner before the keys are handed over and a similar inspection at the end of the lease. Tenants in my experience are extremely careful about their responsibilities in this regard and maintain the property in a respectful manner. The three months of rent equivalent guarantee can either be endorsed by the tenant’s bank or the tenant lodges it in an escrow account with the landlord. The guarantee is not released to either party at the end of the tenure until after the exit inspection and both parties are in agreement.
In summary, the system works extremely well, particularly in Brussels, where there is a constant influx of tenants who reside there for work purposes. Tenants have a very important security of tenure and landlords receive the generous tax breaks. If, in Ireland, generous tax breaks are to be accorded to landlords, they must be accompanied with clearly defined obligations on their part for the protection of the tenant. – Yours, etc,
ALISON FERGUSSON,
Stillorgan,
Co Dublin.