Common Law Lease in Belgium: Flexibility, Differences and Key Points to Watch

What is a common law lease?

A common law lease is a rental agreement used for properties not intended as a primary residence. It is often used for:

• secondary residences,

• garages or parking spaces,

• offices or professional spaces.

Unlike a residential lease, a tenant cannot declare the property as their official main residence. This lease is governed by the general rules of the Belgian Civil Code, giving the parties a high level of contractual freedom.

Differences between a common law lease and a residential lease

A strict framework for residential leases

A residential lease is tightly regulated. In Brussels, it falls under the Brussels Housing Code, while in Wallonia it is governed by the Decree on Residential Leases. These laws impose strict rules on:

• lease duration,

• termination procedures,

• rent indexation.

The parties cannot freely modify these legal requirements, as the law aims to protect tenants.

Greater flexibility with a common law lease

In contrast, a common law lease is not subject to these constraints. The landlord and tenant can freely agree on:

• the lease duration (short or long term),

• termination terms (notice periods, potential penalties),

• how rent will be indexed,

• and how to divide charges and maintenance responsibilities.

This makes it particularly well-suited for office rentals, commercial spaces or secondary use properties.

The benefits and limits of contractual freedom

What a common law lease allows

With a common law lease, both parties can include specific clauses, such as:

• a progressive rent, increasing year by year,

• the option to terminate at any time with only a short notice (for example, one month),

• having charges or maintenance entirely borne by the tenant.

This flexibility is a strong advantage to tailor the contract to the exact needs of each party.

The importance of a clear, balanced contract

However, this freedom also means there is no legal safety net like there is for primary residence leases. If the contract is vague or incomplete, disputes can become hard to resolve. It is therefore crucial to carefully draft the lease, anticipating possible scenarios.

Key points to include in a common law lease

To ensure legal security and avoid unpleasant surprises, a common law lease should clearly set out:

• the duration of the contract,

• termination conditions and notice periods,

• the rental guarantee (amount, blocked account details),

• how the rent will be indexed,

• lease registration, mandatory within two months of signing in Belgium,

• the intended use of the premises (office, garage, etc.),

• tenant insurance obligations,

• a detailed inventory report at move-in and move-out,

• and how charges and repairs are divided.

Conclusion: flexibility requires vigilance

The common law lease in Belgium is appealing thanks to its flexibility and the ability to precisely adapt the contract terms to the realities of each rental. But this freedom also demands greater responsibility.Without the protective framework of residential leases, the quality of the contract is the only safeguard against future disputes. It is therefore strongly recommended to draft a clear, balanced and thorough lease, or to have it drawn up by a professional.

FAQ about common law leases in Belgium

What is the difference between a common law lease and a residential lease ?

A residential lease is strictly regulated and offers tenants strong protection (minimum durations, mandatory notice rules, capped indexation). A common law lease allows parties almost complete freedom to set the duration, rent amount, termination terms, and other obligations.

Can you rent a property under a common law lease to live in it ?

No. A common law lease does not allow the tenant to declare it as their primary residence. If they wish to do so, a specific residential lease must be signed, otherwise the courts could reclassify the contract.

What clauses should a common law lease include ?

It is essential to clearly state:

• the lease duration,

• notice and termination terms,

• rental guarantee details,

• rent indexation,

• intended use of the property,

• insurance requirements,

• detailed inventory,

• how charges and repairs are split.

Is registering a common law lease mandatory in Belgium ?

Yes. Lease registration is mandatory in Belgium, even for common law leases. It must be done within two months of signing to be enforceable against third parties.

Who can help me draft a secure common law lease ?

A lawyer specializing in real estate or an experienced real estate agent like Mesh-immo can draft a clear, balanced lease that aligns with your interests and complies with Belgian legal practices.

Common law lease