Landlord or tenant: what are my obligations?

Do you own a property that you want to rent out? Do you think you’ve found the ideal buy-to-let property? Before you rush in, bear in mind that any rental comes with obligations for both landlord and tenant. myLIFE guides you through the main rules to be followed when drawing up a lease.

Residential property rentals are subject to a contract between the landlord and tenant: the rental lease. This applies to homes let to private individuals. Both landlord and tenant have to meet certain requirements set out in the Civil Code. It’s better to know what they are from the outset to avoid any nasty surprises.

Mutual obligations

Draw up the lease in duplicate at least

The lease must be drawn up in writing. Things were different in the past but oral agreements no longer have any legal value. Whether you’re the landlord or tenant, make sure there are enough copies and that the chosen wording includes:

• • the lease term;
  • termination conditions (with or without notice);
  • the share of rental costs (fuel, general maintenance, small repairs and property taxes);
  • any changes that the tenant may make while staying;
  • the amount of the rent and frequency of payment. There may be a supplement for furnished properties.

This is where it’s important to remember that the landlord and tenant are free to agree the length and terms of the lease in accordance with applicable legislation.

The landlord and tenant are free to agree the length and terms of the lease in accordance with applicable legislation.

Carry out an inspection and produce a written report signed by both parties

If the lease requires the tenant to pay a security deposit (maximum two months of rent), then the parties must take the time to draw up, sign and date a property inspection report: the inventory This must be drawn up by the time the tenant gets the keys to the property.

The inventory may be referred to if there are any problems or disagreements over the state of the property, not just during occupancy but also, especially, when the tenant leaves. This document should mention all damage visible during the visit. Photos or videos should be taken to back up any comments if necessary. Don’t skip this task as the lease contains a clause stating that the tenant has taken over the premises in good condition. Any damage must therefore be flagged.

Inspect the property on leaving

At the end of the lease, the landlord and tenant carry out a final inspection and list any damage incurred during the rental. This is mandatory if a security deposit has been paid, as its contents determine whether or not the tenant gets back any or all of their money.

The landlord’s obligations

Through the rental lease, you as a landlord promise to provide the tenant with a home in exchange for a rent. Other than this basic principle, there are several requirements.

Pay all property taxes and rates

You are responsible for paying all taxes and rates directly linked to the property. These include land tax as well as insurance (fire and civil liability) and administration fees. Make sure that everything is in order before you rent out your property.

As landlord, you can insist on payment of a security deposit, the amount of which is limited to two months of rent.

Establish the terms of the security deposit

As landlord, you can insist on payment of a security deposit, the amount of which is limited to two months of rent. This is intended to guarantee the payment of rent and charges, and cover any damage to the property. The security deposit may take different forms.

Carry out major repairs

It is your job to carry out major repairs made necessary by wear-and-tear or force majeure (e.g. flooding). These repairs cover the roof, heating, flooring, wallpaper, bathrooms and piping. A tenant who has to carry out minor emergency repairs can ask you to reimburse them.

Provide an annual breakdown of charges

Make sure you send the tenant an annual breakdown of charges as well as receipts and any bills for prepaid expenses, so that you can justify any costs payable by your tenant. Bear in mind that this breakdown includes costs already incurred and those to be deducted from future monthly rental payments.

Return the deposit at the end of the lease

After the final calculation, return the deposit to the tenant if you do not have any complaints when the keys are handed back. 50% must be returned within a month. The remainder should be repaid within one month of payment of all remaining charges. If there are unpaid rent or charges, then these will be deducted from the deposit.

The tenant’s obligations

All tenants also have duties throughout their occupancy of the home.

Pay the rent and other charges

In exchange for living in the property, you have to pay a rent and other charges each month.

• • Cost of maintaining the home and any communal areas (lift, garden/courtyard, etc.)
  • Local levies (bins, sewers)
  • Rates for water, gas, electricity, heating, etc.

Contact the landlord or you local authority to find out the amounts.

Leave the premises as you found them

When signing the lease, you promise to leave the premises in their original condition. This is where the initial inspection, listing all existing damage, comes in handy. If you have caused any damage during your stay, you will have to carry out repairs before giving back the keys. A distinction should be made between normal wear-and-tear and real damage.

Minor repairs that do not result from normal wear-and-tear or force majeure are charged to the tenant.

Carry out minor repairs

Minor repairs that do not result from normal wear-and-tear or force majeure are charged to you: fixing a lock, replacing light bulbs, cleaning windows, etc. Remember to have the chimney swept if there is one.

Give notice that you will not be renewing the lease

A written lease states the duration of the property rental. If you do not wish to renew the lease or if you have to leave the property for whatever reason, then you must inform the landlord of your decision within the specified time frame. This notice period is generally three months, but you will have to check the lease. Unless notice is given, the lease will be tacitly renewed.

Renting a property requires careful planning. Whether you’re the landlord or tenant, you have to meet certain obligations to make the process a success.