The property condition report is an essential document

In Belgium is the preparation of a site description, an official document that establishes the condition of a property, crucial prior to its occupancy by a new tenant. This document, made mandatory by the Civil Code since September 2018 in all Belgian regions, functions as an annex to the lease. For owners, complying with this rule is essential to avoid conflicts with tenants and protect against any damage caused by the tenant.

Property condition reports in practice

What does a property condition report include?

A site description accurately describes the condition of a property to be leased, such as a house, apartment, studio, garage or parking lot. It allows the tenant to verify that the property has been properly maintained and that there will be no undue deductions from the rental deposit for pre-existing damage. For the owner, it serves as proof that the property is returned to its original condition. This makes the site description a legal piece of evidence in disputes between the contracting parties.

The place-making process involves two distinct phases:

• Site description upon arrival: This document is prepared and signed by both tenant and landlord at the start of the rental period. It describes in detail the condition of the property prior to occupancy. To be valid, the place description on arrival must be made before the effective date of the lease. However, for contracts longer than one year, the owner has up to one month after the tenant moves in. Prompt formatting ensures the reliability and accuracy of the document.
• Site description on departure: After termination of the lease, the owner prepares a site description on departure. This compares the current condition of the property with the original condition at the start of the lease. Upon signing the contract, the tenant is required to return the property in the condition received. This document helps identify damage or wear and tear that occurred during the rental period. If applicable, repair costs may be recovered from the tenant, often through the rental deposit.

Procedures and content of the property condition report

The site description should be a very accurate representation of the condition of each room within the property. All components, such as walls, floors, windows, household appliances, showers and sinks, are described in detail.

There is no prescribed official form for a site description; the owner may prepare it himself. However, using a template or engaging a specialist is recommended to ensure completeness and accurately record damage.

Required information to ensure the validity and legal usefulness of the document includes:

• Place description on arrival:
• Date of formatting
• Identity and signatures of both parties (landlord/tenant)
• Address and detailed property description
• Condition of all components of the property
• State of materials present such as furniture and household appliances
• Meter readings (gas, water, electricity)
• Presence of mandatory fire alarms
• Number of keys handed over
• Place description on departure:
• Date of formatting
• Identity and signatures of both parties
• Information about the lease (duration, destination)
• Description of any damage found
• Meter readings (gas, water, electricity)

Both parties should add the text “read and approved” with their signatures on both the site description upon arrival and departure.

Who prepares the property condition report and what are the costs?

The owner can prepare the site plan himself (amicable site plan), which is free of charge. However, this requires time and effort, so some owners prefer to hire an expert. The tenant also has the option of hiring an expert, in which case the costs are at their own expense. By engaging a third party, the owner relieves himself of responsibility and ensures that all relevant information is included.

The cost of a site survey by an expert varies depending on the specialist and the type of property (e.g., kot, house, studio, apartment, prestigious property). In Belgium, prices for this are generally between 70 and 500 euros. It is always advisable to ask for a quote before outsourcing this task. The site survey on departure is charged separately and is not included in that on arrival.

By default, the cost of a site survey by an expert is shared between the owner and the tenant. These additional costs should be included in the lease to avoid surprises for the tenant.

Liability for damages and disputes

When preparing the place description upon departure, the owner (or surveyor) should determine any damage to the property. Here it is crucial to distinguish between damage caused by the tenant’s negligence and normal wear and tear.

• Normal Wear :

Traces of normal wear and tear cannot be recovered from the tenant. The owner bears the cost of repairs to elements damaged by natural use and passage of time. Examples include paint, wallpaper, carpeting, hardware, pipes, faucets, radiators, ventilation systems, intercoms and household appliances. These repairs must be made before the property is re-rented.

• Damages At the Tenant’s Charge :

If the site description upon departure shows damage caused by the tenant, the tenant may be held liable for repair costs. The damage must be accurately described in the document and supported by photographs so that a comparison with the site description upon arrival is possible. The cost of needed repairs can then be estimated. The damage attributable to the tenant must be the result of abnormal use, negligence or carelessness.

What to do in the event of a dispute?

If the owner and tenant do not agree on the content of the place description upon departure, the document should not be signed. Such situations are less likely to occur if a neutral professional is involved. If no agreement is reached, the matter can be submitted to the justice of the peace. This may appoint an expert to assess the situation and make an objective judgment. On this basis, the justice of the peace decides on the release of the rental deposit in favor of the owner or the tenant. The justice of the peace shall take into account normal wear and tear and the original condition at the start of the lease in determining the amount needed for repairs, possibly with the involvement of an estimator. With the consent of the justice of the peace, the bank may transfer part or all of the rental deposit to the owner. If the damage is due to normal wear and tear, the justice of the peace may require the release of the deposit in favor of the tenant.

Registration of the property condition report

Although place registration is mandatory in all Belgian regions, the rules regarding its registration differ somewhat:

• Brussels :

In the Brussels-Capital Region, the registration of the place description on both arrival and departure is mandatory. The document must be made within one month of the start of the lease and can be registered at the same time as the lease or later. If the registration of the lease is payable, this also applies to the place description if it is registered later.

• Wallonia :

In the Walloon Region, registration of the place description upon arrival is mandatory if it is attached to the rental contract. If it is not attached, subsequent registration is not mandatory. However, it is still essential to always record the arrival inventory when renting. There is no registration requirement for the place description on departure.

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Source reference:

[1] Civil Code (Belgium). Articles 1730 and 1731: The Legal Obligation and the Presumption of Good Standing. [2] Academic Legal Journal (Belgium). The Evidential Value of the Site Description in Rental Damage Disputes. [3] Royal Federation of Belgian Notaries (notaris.be). The Formalities and Time of Preparation of Site Description. [4] Rent legislation (Flemish, Walloon or Brussels Region). Regional Cost Sharing Provisions and Site Description Requirements. [5] Real Estate Sector Report. The Financial Impact of the Lack of a Site Description at End of Tenancy. [6] Federal Public Service Economy (FPS Economy). Information on the Rights and Duties of Tenants and Landlords Regarding Damages. [7] Specialized Law Firm in Rental Law. Analysis of Jurisprudence: Criteria for Acceptable Wear versus Rent Damage. [8] Flemish Agency for Innovation & Entrepreneurship (VLAIO). Practical Guide for Entrepreneurs: Place description at Commercial Lease. [9] Property Management Organization. Best Practices for Digital Place Descriptions and Photo Documentation. [10] Software Industry Insight. The Role of Specialized Software in Standardizing and Capturing Site Description. [11] Common Rental Law (Federal Legislation). The Legal Consequences of Late or Failure to Prepare the Site Description.

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