Rental deposit in Wallonia: the checklist to avoid end-of-lease pitfalls

The end of a lease is often the most delicate moment in the landlord-tenant relationship. This is where misunderstandings accumulate, tensions arise, and — too frequently — mistakes are made on both sides. The rental deposit — the sum intended to cover any tenant default — concentrates a significant proportion of these disputes. The Walloon Decree of 15 March 2018, which came into force on 1 September 2018 and was amended in 2023, governs this matter precisely. A tour of an indispensable security, and the method for releasing it safely.

1. The three forms of rental deposit

Article 62 of the Walloon Decree on residential leases provides for three distinct mechanisms. An essential point that is often overlooked: the choice belongs to the tenant, not the landlord. Furthermore, since the amending decree of 19 May 2023, which came into force on 1 June 2023, the cap is uniformly set at two months' rent, regardless of which form is chosen.

a) The individual account in the tenant's name

The tenant pays the amount into a bank account opened exclusively in their name. This account earns interest which belongs to the tenant. The deposit may only be released on the basis of written agreement by both parties or a decision of the juge de paix (justice of the peace) (Art. 62, §1).

The landlord cannot under any circumstances make a unilateral deduction: such an action, even where the damage is real and quantified, is unlawful in form and exposes the landlord to immediate repayment with interest.

Important point: if the deposit was placed in an account belonging to the landlord, the tenant may claim the interest on the deposit at the end of the lease.

b) The bank guarantee

The bank stands as guarantor for the tenant, up to a maximum of two months' rent (since June 2023). This arrangement allows the tenant to build up the deposit progressively. The release follows the same strict rules: amicable agreement or a copy of a court decision. A landlord wishing to assert their rights must send a reasoned claim to the financial institution, with supporting documents.

c) The CPAS and financial institution guarantee

This third route, arising from a standard contract between a CPAS (public social welfare centre) and a financial institution, is designed to facilitate housing access for lower-income households. The CPAS concludes a contract with the financial institution and then pays the rental deposit amount. For the landlord, it is often the CPAS that becomes their primary contact on this matter.

2. The inspection: the indispensable foundation

Article 27, paragraph 1 of the Decree requires the parties to draw up a detailed entry inspection, jointly and at shared cost (if any). It must be annexed to the lease and registered with it.

Without an inspection, there is no recourse

Without this inspection, Article 28, paragraph 1 establishes a strict presumption: the tenant is deemed to have received the property in the state it is found to be in at the end of the lease. In other words, without an entry inspection, the landlord loses all recourse for damage.

The exit inspection

The exit inspection (Art. 27, §4) may be requested by either party. If the tenant refuses, the landlord is well advised to file a petition with the juge de paix (ideally before the keys are handed back). The justice of the peace then appoints an expert.

What cannot be claimed

The comparison between the entry and exit inspections can only target damage attributable to the tenant. Under Article 28, paragraph 2, the tenant must return the property in the state in which they received it, except for what has been lost or deteriorated through age or force majeure. The following are necessarily excluded from any claim:

Normal wear resulting from appropriate and reasonable use of the property
Age-related deterioration of fittings, assessed according to their normal lifespan
Rental repairs caused solely by wear and tear, which remain the landlord's responsibility (Art. 8 of the Decree)

Focus: the Walloon wear-and-tear grid (2024)

In February 2024, the Walloon Government approved an indicative wear-and-tear grid, drawn up by the Centre d'études en habitat durable de Wallonie (CEHD). It covers 40 categories of work grouped into five areas (heating, electrics, joinery, floor and wall coverings, sanitary fittings) and proposes, for each, a theoretical lifespan and an annual depreciation rate.

It is essential to understand the scope of this tool: it is an indicative, non-binding grid. The juge de paix retains a sovereign power of assessment. The grid cuts both ways:

It allows genuine damage to be objectively assessed
It also provides the tenant with an argument to challenge disproportionate claims

Used correctly, it can in fact legitimise and secure a partial deduction from the deposit.

3. Releasing the deposit: act promptly

The Walloon Decree of 15 March 2018 sets no precise legal deadline beyond which the deposit must be fully returned. Article 62 simply organises two routes: amicable agreement between the parties, or a decision of the juge de paix.

It is therefore the justice of the peace who, in the event of a dispute, assesses whether the landlord acted within a reasonable time given the circumstances.

This absence of a legal deadline does not mean the landlord can delay indefinitely. Several reasons call for prompt action:

The tenant may file with the juge de paix for the deposit's release. A silent landlord needlessly prolongs the dispute and risks additional costs
Quotes and invoices must be assembled and quantified carefully: vague or late-filed claims are regularly reduced by the courts
A registered letter sent promptly to the tenant, listing the damage items, formalises the landlord's claim and avoids any ambiguity

Watch out: post-departure addresses

Where the tenant leaves no forwarding address, the landlord is well advised to keep proof of all steps taken. In the absence of amicable agreement, filing with the juge de paix remains the only legal route.

4. Amicable settlement or court proceedings?

Article 62 of the Decree is clear: the deposit is released either by written agreement signed by both parties or by production of a decision of the juge de paix. There is no other legal route.

Prefer negotiation

In practice, amicable negotiation remains the preferred solution:

It is faster (days or weeks rather than months)
It is less costly (no court fees or lawyer)
It preserves the relationship between the parties — important if a new tenancy follows quickly

Court proceedings

The juge de paix of the jurisdiction where the property is located is competent. They have wide discretionary powers. They may:

Reduce the amounts claimed
Take account of wear and tear, the duration of occupation, and the quality of the inspection
Order the tenant to pay compensation for damage exceeding the deposit

Critical watchpoint: no unilateral deduction

Any contractual clause in the lease authorising the landlord to deduct unilaterally from the deposit at the end of the lease is deemed unwritten. This nullity applies even if the clause was freely agreed to. A landlord who acts contrary to this rule faces immediate repayment of the deducted sum and a costs order.

5. In conclusion

The rental deposit is a very useful mechanism, carefully regulated by Articles 27, 28, and 62 of the Walloon Decree of 15 March 2018. It is not an automatic right of the landlord: it requires:

A rigorous inspection at entry and exit
An honest assessment of genuine damage, carefully distinguishing between tenant-caused damage and age-related deterioration
Compliance with the legal routes for release (written agreement or court decision)

The 2024 indicative wear-and-tear grid is a useful tool, provided it is used with discernment. The absence of a legal refund deadline does not excuse dilatory or disorganised conduct. In case of dispute, the juge de paix is the only recourse.