How much does it cost to rent out an apartment?
Belgium's rental market has long been dominated by apartments. But how much does it actually cost to rent out an apartment? We take a closer look so you can set the right rent.
Renting out an apartment is often easier said than done. In most cases, you rent primarily to earn income from your property. However, renting also comes with costs. Some expenses must be incurred before you can let the property, while others remain your responsibility as the owner once it is tenanted. We guide you through the entire rental process and give you a clear picture of all costs.
Mandatory costs before renting out an apartment
To begin with, you need to get your apartment ready to rent. There are mandatory and optional costs here, giving you some control over how much extra you invest.
An important mandatory cost when renting out an apartment is the energy performance certificate, or EPC certificate. This is , and as the owner you can be fined if you do not have a valid certificate. The price for having an EPC certificate drawn up depends on your property. You can and schedule an inspection via the OCB website. Finally, bear in mind that an EPC certificate is valid for ten years. That is also why SNDQ's software sends you a notification when the expiry date is approaching.
This second cost is in theory not mandatory, but by now you need to invest in it to rent out your apartment. We are talking about visibility for prospective tenants on . You can hand everything over to an estate agent or place a listing yourself on sites such as Immoweb. For just a few dozen euros per month you can already publish a listing, whereas an estate agent will cost several hundred euros. How quickly your property is let depends on supply and demand from potential tenants in that area. Letting your property faster is always better, because an empty property earns you nothing. So do not hesitate to invest enough to find tenants quickly.
It is also advisable to draw up a property condition report and have it registered. The can vary depending on whether you prepare it yourself or have an external party do it.
Optional costs before renting out an apartment
There are also renovation and refurbishment costs. These costs will affect the rent and the interest of potential tenants. So think carefully about this investment. Are the original white walls no longer quite so white, and are there cracks here and there in the floor? In that case, a trip to the DIY store may be in order. With a few hundred euros for paint, brushes, filler and putty knives, you can spruce things up. If that lets you raise the rent by €25, the investment pays for itself quickly.
Recurring (mandatory) costs while renting out
Once your apartment is let, the largest costs are behind you. However, do not forget that as the owner you are still responsible for certain mandatory costs, whether recurring or not.
First of all, there is . Because you are the owner, you must pay this cost annually. Moreover, it is prohibited by law to pass this cost on (even partially) to the tenant.
Secondly, there are the costs of the property manager. These depend on the type of property manager and the size of the co-ownership association. Do you have a voluntary property manager? Then the costs will be limited and mainly consist of administrative expenses such as stamps, ink cartridges, and so on. With a professional property manager, costs can be higher. Under the Flemish Rental Decree of 2019, you can pass on 34% of these costs to the tenant. They are usually included in the fixed monthly charges payable on top of the rent.
Third, we briefly mention the of your property. This naturally increases once you let it, and that amount is added to your standard income. As we all know: when your income rises, so do your taxes. Some consider this a cost, while others simply see it as part of the taxes you were already paying. Either way, you may not pass these extra costs on to the tenant.
Finally, in an apartment you must account for the co-ownership association's reserve fund. This fund is used when repairs or renovations are needed to common parts, so that owners do not suddenly have to pay a large sum. A reserve fund is not mandatory, but bear in mind that this type of cost must still be paid by you as the owner.
Possible costs while renting out
Finally, there are the maintenance costs for your apartment. Depending on the maintenance required, you may be able to pass these costs on to the tenant. When the built-in oven in the kitchen breaks down due to age and wear, the new built-in oven and any installation costs are your responsibility. The mandatory inspection of the gas boiler, however, can be charged to the tenant.
Overview of costs when renting out an apartment
Below you will find a table with an overview of all costs:
To get a clear picture of how much you earn net from your apartment, SNDQ offers comprehensive software to . Upload invoices, assign expenses or income to one or more properties, and our software automatically creates an overview per week, month, year or a period of your choice. That way you know exactly how much you earn from your apartment.
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