New Rent Control Rules in the Netherlands: What You Need to Know
Major changes coming to the Dutch rental market from July 1
Starting from July 1, the Netherlands will be implementing new rules that extend rent controls to approximately 90% of the rental market. This legislation, which is designed to address the soaring rents issue, impacts tenants, new renters, and landlords alike.
In the Netherlands, rent prices are determined using a points system that considers the size, amenities, energy efficiency, and official value of a property. The Huurcommissie, or House Committee, offers a tool to help estimate the points for your rental home.
- Properties with 143 points or less: Maximum rent is €880. If you are paying more, you may be entitled to a reduction.
- Properties with 144 to 186 points: These are middle market rentals with a maximum rent of €1,157. If you are paying more, you can seek a reduction.
- Properties with over 186 points: These are considered free sector rentals, where landlords can set their own prices.
Points are awarded based on factors like the number of bedrooms, the luxury of the bathroom, the energy label, and outdoor space.
What to Do if Your Rent Is Too High
If your rent exceeds the cap based on the points system, you should:
1. Talk to Your Landlord: Request a rent reduction based on the new rules.
2. Seek a Formal Assessment: Your landlord may hire a company to re-evaluate the points for your property.
3. Approach the Huurcommissie: If no agreement is reached, the House Committee can mediate and enforce the appropriate rent. Their decision is binding.
4. Report to Local Authorities: From January 1, 2025, municipalities can fine landlords who do not comply with the rules.
New Contracts and Tenant Rights
Landlords are now required to disclose property details when signing new rental contracts, starting from July 1. Tenants moving into properties with fewer than 186 points can challenge excessive rents. Landlords have until January 1, 2025, to comply fully with the requirement to inform tenants of the points.
Municipalities will enforce the new system starting January 1, 2025. Landlords who do not comply can face fines. Tenants can report non-compliance to local authorities, which will conduct investigations and enforce penalties where necessary.
Benefits for Tenants
- Permanent Contracts: The new law aims to make all rental contracts permanent, reducing landlords' ability to issue short-term two-year contracts that can lead to frequent rent hikes or evictions.
- Rent Stability: Rent increases are capped at 5.8% for social housing and 5.5% for properties worth over 143 points. This measure is intended to protect tenants from steep annual increases.
Landlord Adjustments
While the law seeks to protect tenants, landlords may find it less profitable to invest in rental properties, potentially leading to a reduction in available rental housing. Some landlords may sell their properties rather than comply with the new regulations. However, this could also improve the quality of rental properties as landlords invest in meeting higher standards to increase their properties' points and allowable rent.
Special Considerations for Shared Accommodations
If you live in a shared accommodation without a private entrance, specific regulations apply. Rooms must be leased under individual contracts and are subject to social housing regulations. You can assess the points allocated to your room using the house committee site. If your rent exceeds the stipulated maximum, it is advisable to discuss the issue with your landlord initially.
Tenants should stay informed about their rights and check their property’s points to ensure they are paying fair rent under the new rules. As the new system rolls out, both tenants and landlords will need to adapt to ensure compliance and benefit from the changes.