One-Year Rental Agreement: Rights, Obligations and Pitfalls

A one-year rental agreement looks convenient at first glance: flexible for both tenant and landlord, and ideal if you are not yet sure how long you want to stay. Legally, this type of contract falls under short-term tenancy agreements. That means: a maximum total duration of three years, with specific rules on renewal, termination and termination fees. In this guide, we explain in plain language what a one-year rental agreement actually involves, when it makes sense and which pitfalls are best avoided.

What is a short-term tenancy agreement?

In Belgium, there are three main types of residential tenancy (primary residence):

• Short-term tenancy: total duration three years maximum (including any renewals). A one-year contract falls into this category.
• Standard nine-year tenancy: if the contract states "9 years" or says nothing at all, the nine-year regime applies.
• Tenancy longer than nine years or lifetime tenancy: exceptional cases, explicitly agreed as such.

A one-year rental agreement is therefore a short-term tenancy: it contains a clear start date and end date, and the total duration - including any renewal(s) - may not exceed three years.

One-year rental agreement: what are the implications?

A one-year rental agreement:

• gives both parties more flexibility than a nine-year tenancy;
• in principle ends automatically on the end date, if neither party takes any action before that date;
• can - within certain limits - be renewed, but not indefinitely.

An important distinction: with a short-term tenancy, the underlying principle is that you are only committing yourself for that limited period. The legislature intended this as a solution for situations involving temporary needs - expats, temporary assignments, a trial period in a new city, and so on.

Can a one-year rental agreement be renewed?

Yes, a one-year rental agreement can be renewed, but limits apply:

• The total duration of all contracts combined (original contract plus renewal(s)) may never exceed three years.
• In Flanders, a short-term tenancy may only be renewed once under the same conditions, as long as it stays within the three-year limit.
• In practice, you typically see arrangements such as:
  • 1 year + 1 year (total: 2 years);
  • 1 year + 2 years (total: 3 years).

Bear in mind: if renewal or extension takes you beyond three years in total, the contract is automatically treated as a nine-year tenancy, with the corresponding termination rules.

How does a one-year rental agreement end?

With a one-year rental agreement, there are three possible scenarios:

1. The contract simply expires on the end date
   • In principle, the agreement ends automatically on the agreed end date.
   • Often the contract nonetheless includes a notice period (for example, three months before the end date).
   • If nothing is agreed and no action is taken, there can be consequences (see scenario 3).
2. Timely renewal or reconduction
   • Landlord and tenant can, before the end date, agree to conclude a new contract (for example, another year) or to extend the existing one.
   • This must be done in writing.
   • The total duration may not exceed three years.
3. You remain after the end date without any new agreement
   • If the tenant stays in the property and the landlord raises no objection, the short-term tenancy can automatically convert into a nine-year tenancy.
   • You then fall under the rules applicable to nine-year tenancies (with different notice periods and compensation).
   • It is therefore important for both parties to decide well in advance: renew, end the tenancy or convert it.

Terminating a one-year rental agreement

With a short-term tenancy, the rules are stricter than for a nine-year contract: the agreement is intended to run its full course. Nevertheless, options do exist.

Termination by the tenant

• In many cases, the tenant can terminate the contract early, but:
  • a notice period applies (for example three months, often set out in the contract);
  • a termination fee (compensation) is usually due, the amount of which depends on when you leave.
• For short-term tenancies, this fee is generally lower than for nine-year contracts, but the exact rules and amounts depend on the applicable legislation and the contractual clauses.

Important: if you leave before the end date without following the proper procedure, you risk a higher compensation payment. Always check the termination clauses in your contract.

Termination by the landlord

• Under a one-year rental agreement (short-term tenancy), the landlord generally has no right to terminate early, except in very exceptional circumstances (non-payment, serious breach of contract, etc., through the courts).
• This is an important protection for the tenant: during that year, you cannot normally be evicted as long as you fulfil your obligations.

Advantages and disadvantages of a one-year rental agreement

Advantages for the tenant

• You are not immediately locked in for nine years.
• Convenient if you are not yet sure whether the neighbourhood, job or relationship will last.
• Useful for temporary assignments, studies or short-term projects.

Disadvantages for the tenant

• Less long-term security: the landlord is not obliged to renew.
• After one year, you may be forced to move if the landlord has other plans.
• If you want to leave early, a termination fee may apply - which can be a significant burden under a short contract.

Advantages for the landlord

• More flexibility: after one year, the landlord can decide not to renew, move in themselves or rent to someone else.
• Ideal for properties where the landlord is not sure whether they want to rent them out or sell in the longer term.

Disadvantages for the landlord

• Less stability in rental income.
• Higher risk of vacancy and additional costs due to frequent tenant changes.

What should you look out for in a one-year rental agreement?

Whether you are a tenant or a landlord, check at least the following points in a one-year rental agreement:

• Duration and dates: exact start and end dates.
• Indexation: can the rent be indexed annually?
• Notice period and termination fee: what happens if you (the tenant) or the landlord want to end the agreement early?
• Renewal: does the contract contain anything about renewal or extension?
• Property inspection report: is a detailed report drawn up when moving in (required by law, protects both parties)?
• Registration: the landlord must have the contract registered within two months; failure to do so has consequences (for example, more flexible termination rights for the tenant).

When is a one-year rental agreement a good idea?

A one-year rental agreement is particularly suitable:

• for tenants who are living somewhere temporarily: expats, interns, people on a trial period;
• if you want to try out a city or neighbourhood for a year before putting down roots;
• for landlords who may want to sell, renovate or occupy their property themselves in the short term.

For those who are primarily looking for stability - a family with school-age children, a longer-term work commitment, and so on - a nine-year tenancy is often the more peaceful option.

In summary

A one-year rental agreement is a short-term contract that offers considerable flexibility but is subject to specific rules. It ends in principle on the end date, can be renewed within set limits and converts automatically into a nine-year tenancy if you remain without concluding a new agreement. Both tenant and landlord are well advised to decide well before the end date whether they wish to continue or to bring the tenancy to an end, and to set out notice periods and any fees clearly in the contract. That way, a flexible rental year need not lead to unpleasant surprises down the line.