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Indexing the rent

Question

I am a landlady and rent out my apartment for €850.
I know that due to low interest rates, rents have not been indexed for a few years.
If I want to index my rent for the first time for my tenent who has been there for a few years, how do I do it?
Thanks

sn

To calculate the new rent go the following link https://huurcalculator.statbel.fgov.be/NI/indicators/cpi/rent_nl.asp

The rent is usually indexed every year and at 850 it is about 15 a month.

Nov 26, 2018 22:49
J

Remember, you can backdate the indexation, but only for up to 3 months.

Nov 26, 2018 23:34
anon

Also remember that you can't just index whenever you want, you can only apply indexation to the rent at the renewal date of the contract (or up to three months later).

Nov 27, 2018 12:15
michele

918,57 EUR that's the amount I get.
SN how did you arrive at €15 increase?
Thanks anyway for the very clear advice from everyone.

Nov 27, 2018 21:59
anon

MICHELE - no idea how you did your calculation, but the indexation rate is something around 2%, so the maximum you could increase is around €17.

Your number looks much more like what you should be getting if you had indexed the rent annually for the past 3-4 years. You can't do that. If you have decided not to index in previous years that's your tough luck.

Nov 28, 2018 09:44
RPPKN

Anon, what you are saying is not correct.

"you can only apply indexation to the rent at the renewal date of the contract (or up to three months later)."

No, the landlord can apply the indexation on the renewal date or at any time after that. So if the landlord forgets the indexation, they can do it let's say ten months after the correct data. But they can only ask for backdated increased rent for 3 months max.

"Your number looks much more like what you should be getting if you had indexed the rent annually for the past 3-4 years. You can't do that. If you have decided not to index in previous years that's your tough luck."

Not correct. The landlord can decide not to index the rent for years and years, and then do the indexation, and it is always the latest index which applies. So if the indexation has not been done for many years, the rent increase can be quite significant. However this is perfectly legal. And as the backdated rent can only be asked for max three months, this kind of situation would be a real gift for the tenant. They have enjoyed a cheaper rent for many years.

Michelle does not say where the apartment is, and when it was rented, but I tested the calculator with an apartment in Brussels, lease signed in October 2014, and indeed the rent would increase from 850 EUR to 913,37 EUR in one go.

Nov 28, 2018 13:44
sn

Which amounts to an increase of about €15 per month per year.

Nov 28, 2018 15:30
michele

Thank you very much for having debated my question and for having come up with excellent answers!
Yes, I made a mistake by putting in 2013 instead of just the last year, 2017 for my calculation.
However, later, I realised the mistake and arrived at the correct calculation. l have now indexed the rent at 20€ .
My tenant has indeed got off cheaply without any backdating, not even the three legal months.
Thanks again to all of you.

Nov 28, 2018 21:50
kasseistamper

I don't think you have filled in the details correctly.
I have just run the program assuming that the rental agreement was originally signed in August 2013 and that the tenant moved in in November 2013 and that the apartment is in Brussels.
The rental which you are allowed to charge from November 2018 is €918.04.
The fact that you have not indexed the rent over the last 5 years does not mean that you are now only allowed to index it for one year. It only means that you cannot backdate the new rate for the past years.

Nov 29, 2018 11:06
R

"My tenant has indeed got off cheaply without any backdating, not even the three legal months".

It's not up to tenants to chase landlords and have their rent increased. You had the option of doing it or not doing it. You chose the second.
Sometimes I do not apply the annual increase since the indexation/inflation was rather low in the last few years, but i made sure my tenants were aware of the gesture. A happy (paying) tenant makes a happy landlord.

Nov 29, 2018 12:00