In Brussels, restrictions on indexing related to the PEB (Energy Performance Certificate) rating of a property have been lifted as of October 14, 2023.
Since October 14, 2022, the rules were as follows:
PEB categories A, B, C, or D could be indexed at 100%, PEB category E could be indexed at 50%, PEB categories F, G, and unknown could no longer be indexed.
These regulations were active until October 13, 2023. After this date, properties with poor PEB ratings are again eligible for full indexing. However, Brussels has decided to implement a new calculation method to prevent property owners from recovering the lost indexing over a year.
Thus, the rents of properties with a PEB label E, F, or G can now be indexed again, but according to an adapted formula with a correction factor. This correction factor will vary depending on the PEB of the property and the anniversary date of the lease.
Discover how Smovin simplifies the indexing of your rents by automating the calculation and notifying the tenant.
How to Calculate Rent Indexing in Brussels
To calculate rent indexing in Brussels, the base rent (excluding charges) and the health index are taken into account.
The starting index in Brussels corresponds to the index of the month preceding the signing date of the lease agreement.
The new index corresponds to the index of the month preceding the anniversary date of the lease.
Note, if the property does not have a PEB certificate, rent indexing is not possible.
PEB A, B, C, and D in Brussels
New Rent = (Base Rent x New Index) / Base Index
Example
The base rent amount is 500 euros
The lease was signed in December 2021 and started in January 2022, the starting index (November 2021) is 115.20
The new index (December 2022) is 127.89
The calculation is as follows:
(500€ x 127.89) / 115.20 = 555.078125€
Therefore, the new rent requested from the tenant will be 555.08 euros per month excluding charges.
PEB E, F, G
If the property’s PEB label is E, F, or G, rent indexing is again possible since October 14, 2023. However, the indexed rent must be calculated using an adapted formula with a correction factor.
This adapted formula must be applied if:
The lease took effect before October 14, 2022, The PEB label of the property is E, F, or G, The housing is rented on the public or private market These characteristics were also subject to the indexing limitation during the 12 months.
PEB E and Lease Anniversary Date Between January 1, 2023, and October 13, 2023
For housing with a PEB E and a lease anniversary date between January 1, 2023, and October 13, 2023, the simplified correction factor is as follows: 0.5 x [(2022 index + 2023 index) / 2023 index]
When Can a Lease be Indexed in Brussels?
In Brussels, as in other regions, rent can be indexed at each anniversary of the lease, i.e., once a year maximum, from the first anniversary of the lease.
For a landlord to index the rent of their property, they must comply with the legislation. This means that the lease must be registered and a PEB certificate provided to the tenant.
The tenant is not required to spontaneously index their rent, even if this is indicated in the lease agreement.
It is the landlord’s responsibility to make the request in writing to the tenant by indicating the calculation, the new amount, and the date from which the tenant must adjust their rent.
Given that the new index usually only comes out 2-3 days before the end of the month, it is often too late for the tenant to make adjustments for the coming month.
The landlord may then ask the tenant to pay the supplement for the month from which the rent is indexed if the tenant has already made the payment.
If the landlord forgets to index the rent, they can request a rectification of the rents by adding the indexing up to 3 months backward. It is not legal to go beyond these 3 months.
How to Ensure You Never Forget to Index Your Rents?
With tools like Smovin, you’ll receive an alert as soon as it’s possible to index one of your contracts.
The tool will perform the calculations for you, taking into account various criteria such as the region in which the property is located, the energy performance of the building (PEB), and the type of lease, in accordance with the prevailing legislation.
Smovin also offers you the possibility to inform the tenant via email, postal mail, or registered letter.
All communications are pre-drafted and automated, minimizing the risk of forgetting to index a rent or making calculation errors.
You have the option to choose complete automation of the indexing and notification to your tenants each year, freeing you from any concerns on this matter.
- Please note, if the property is located in Brussels with a PEB E label, our indexer will only calculate the indexing from October 14, 2023, and will not consider the possibility of retroactive indexing.
