Banks guarantee to advance tenants' sureties

30th October 2008, Comments 0 comments

Belgian banks intend to advance the amount tenants need to pay to their landlord as a surety in order to be able to rent accommodation.

30 October 2008

Belgian banks intend to advance the amount tenants need to pay to their landlord as a surety in order to be able to rent accommodation. This requirement is included in current legislation regarding rented accommodation, but on Tuesday it emerged that many banks and landlords are not applying the legislation properly.

The new tenancy law gives tenants two options. Either the tenant can deposit two months rent onto a special bank account where the money is blocked for the duration of the tenancy.

Another possibility is that the bank advances the cash and that the tenant pays it off in instalments. Under this system the surety amounts to three months rent.

A recent survey showed that many banks were not sticking to the letter of the law. Marina De Moerlooze of the banking association Febelfin says that banks now intend to apply the law from now on:

Clients experiencing problems can alert a special helpline.

Tenants who wish their bank to advance the surety will have to get their wages transferred directly to an account at the bank though.

The banks are not entirely happy with the present situation. They are not able to check whether tenants are in debt and will be able to repay the surety.

(flandersnews.be/Expatica)

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