Can your landlord just raise the rent? Here’s what you need to know!

Have you ever received a letter from your landlord stating that your rent is going up? If so, you’ve probably wondered: “Is that even allowed?” What can you do as a tenant if the rent is suddenly adjusted, and what are the rules governing such an increase? Together with real estate advisor Charlotte Geyskens from Living Stone Real Estate in Leuven, we’ll dive deeper into this topic so you know exactly where you stand. 

Game rules: Can the rent just go up?

First of all: your landlord cannot simply raise the rent without cause. There are strict rules governing rent increases to ensure fairness. For example, there must be a written lease agreement signed by both you, the tenant, and the landlord. This agreement must specify certain key details, such as the rent amount, the term of the lease, and any associated costs. What is allowed? A rent review at specific times.

The key to a rent increase: indexation

The landlord can index the rent, which means that the rent can be adjusted each year based on inflation and the rising cost of living. This is the most common way to increase an existing rent and ensures that the rent remains in line with general price increases in the economy. But how exactly does this work, when is it allowed, and what are the rules? We’ll explain it step by step!

What is rent indexation?

Rent indexation means that rent can be adjusted annually based on inflation and the rising cost of living. This ensures that rent remains in line with general price increases in the economy. Although this means your rent may increase slightly each year, it is done according to a legally established system, keeping the process transparent and predictable.

When can indexing be performed? 

The rent may be adjusted annually on the anniversary of the lease agreement’s effective date . The landlord must notify the tenant of this in writing. If this is not done, the rent cannot be adjusted retroactively. The adjustment can therefore only take effect from the date of notification.

Health Index vs. Consumer Price Index: What's the Difference, and Which One Should You Use? 

Rent adjustments are always based on the health index, not the general consumer price index. The health index is an adjusted version of the consumer price index that excludes, among other things, the prices of tobacco, alcohol, and gasoline. This makes the index more relevant and fairer for both tenants and landlords.

Is a negative index also possible, and who is responsible for submitting the report? 

Although it is rare, indexation can also result in a decrease , meaning that the rent goes down. In that case, the landlord must also notify the tenant in writing that the rent is being reduced. Therefore, it is not only a right to increase the rent, but also an obligation to reduce it if the index indicates that a decrease is warranted.

How can you calculate the indexation yourself? 

Want to make sure the rent increase is correct? You can easily calculate the adjustment yourself using the FPS Economy rent calculator . This tool helps you calculate the correct rent based on the health index. You can find the calculator via the following link: FPS Economy Rent Calculator

By correctly calculating and verifying the indexation, you can avoid surprises and know exactly what to expect in terms of rent adjustments.

There are also other ways in which a landlord can raise the rent. Let’s take a look at them.

Raising the rent: when is it actually allowed?

The landlord cannot simply raise the rent, but may do so only if certain conditions are met. This is done through a rent review, and there are specific circumstances under which this is permitted:

1. New developments in the neighborhood

Imagine you live in a quiet neighborhood that, well, isn’t exactly the city’s hottest spot. But suddenly, the area is changing: new shops, trendy cafés, a cool park, and a renovated square. The neighborhood is getting trendy! This can affect the value of your home. If the value of your home increases by at least 20% as a result, your landlord is allowed to raise the rent. Ouch, that might be a tough pill to swallow, but it’s a valid reason!

2. Home improvements

You might live in an older apartment, but suddenly it happens: your landlord starts renovation work. Maybe your home is getting a new kitchen, a modern bathroom, or the stairwell is being refurbished. If the improvements increase the rental value by at least 10%, then the landlord is allowed to raise the rent. But be careful! This does not apply to work that is purely aimed at complying with safety and health standards. In that case, it is not really an improvement, but rather maintenance.

3. Energy-saving measures

Since January 2019, the rent may also increase if the landlord has carried out energy-saving renovations. These could include, for example, a new heating system or solar panels. If your landlord does this, they may increase the rent, but only if the value of the property has increased by at least 10% as a result of these improvements. As a landlord, you must provide an appraisal report, invoices, or comparable rent prices to objectively demonstrate that the property value has increased by at least 10% due to the improvements. 

If you are unable to reach an agreement, the court may still approve a higher rent if the value of the rental property has increased by 10% as a result of the renovations. 

In practice, the court is unlikely to grant such a request in the cases described above. Therefore, there must be a very clear improvement in circumstances. 

What should you do if your rent goes up?

What if you receive that unexpected letter from your landlord? There’s no need to panic, but you do need to know your rights. If you disagree with the rent increase, you have the right to object . You don’t have to agree to the increase! If you can’t reach an agreement with your landlord, they can even go to small claims court to enforce the increase.

Be sure to do your research and seek legal advice if necessary. A lawyer or a tenants' association can help you determine whether the rent increase is indeed justified.

Landlords can’t just raise the rent on a whim; there are certain conditions that must be met. Always check your lease agreement and stay informed about rent adjustments. Questions about renting or letting? Feel free to drop by the real estate agency near you. We’re happy to help!