The Dutch Senate has voted in favour of the Affordable Rent Act. The new piece of legislation is meant to regulate rent prices in the middle and social housing sectors in the Netherlands, and will be implemented from July 1, 2024.
Dutch rent regulation law to use points system
The Dutch Affordable Rent Act will use points to grade rental properties to determine the maximum rent a landlord can charge. Rent control will apply to Dutch houses worth 186 points or less under new tenancy agreements. This should be the case for approximately 90 percent of rentals in the Netherlands.
Rental properties are awarded points based on the official WOZ value, number and size of rooms, design of the kitchen, toilet and bathroom, energy efficiency and outdoor space. A rental home graded with a maximum of 186 points can cost no more than 1.157,95 euros per month, while properties that are worth less than 143 points will be categorised under social housing.
Tenants in social housing should not pay rents of over 880 euros per month, and if they are currently paying more they can request a lower rent no matter how long they have been in residence. Properties that are worth more than 186 points are considered part of the free sector where landlords can charge what they wish.
The new law will play a role in all new rental agreements signed from July 1, as well as some older contracts. Landlords are required to inform both new and existing tenants about how many points the property is worth and have until January 2025 to do this.
New rental properties can charge premium on rent
This year, rent for social housing can increase by a maximum of 5,8 percent while housing worth over 143 points can experience rent hikes of at most 5,5 percent. This can only be done once a year.
However, developers who begin construction of new rental properties before 2028 will be allowed to charge a 10 percent premium on top of these official rent increases for 20 years.
All you need to know about the Dutch Affordable Rent Act
With the new Dutch rent controls coming into effect on July 1, here’s what you need to know about renting a property in the Netherlands:
How to check how much a rental home is worth
If you want to know the maximum rent you have to pay for a rental home, you can do a rental price check on the Rental Tribunal (Huurcommissie) website. Based on the size, value, amenities, energy efficiency and outdoor areas of the property, a total number of points will be provided with a maximum rental price associated with it.
How to check how much rent a room in a shared house or apartment is worth
To determine whether you live in a non-self-contained property ask yourself the following questions:
- Do you have your own front entrance to the rental property?
- Do you have a private toilet, kitchen and bathroom?
If you answered no to these questions, the rental home falls under different rules. The maximum rent you should pay is determined by the WOZ value, surface area of your room(s), surface area of shared spaces and total number of residents. Using all this information, you can determine how much rent you should pay on the Huurcommissie website.
How does the Affordable Rent Act affect current rental contracts?
If you are already living in a rental property, there are two possible outcomes depending on how many points the home is worth:
- A property worth 143 points or less: you should be paying a maximum rent price of 880 euros. If you are paying more then you may be entitled to lower rent and should discuss this with your landlord.
- A property worth more than 143 points: you must continue paying the rent price you agreed on with your landlord when you signed the rental contract. However, if you moved in less than six months ago, you can ask for a reduction if the rent is higher than the points system determines.
How does the Rent Act affect a new rental contract signed on or after July 1?
Due to the quick turnaround between the rent regulation law being passed and put into effect, landlords have until January 1, 2025, to tell tenants how many points the home is worth. Therefore, if you sign a new rental contract on or after July 1, they have until this date to evaluate the property and inform you of the results.
From next year, if you find a rental home and sign a new rental contract, the landlord must provide a tally of the points so that you can see how much rent the property is worth. This is to encourage discussions before contract signings and prevent legal conflicts.
What to do if your rent is too high
If you find out that you are paying a higher rent than the property is worth, it is best to discuss this with your landlord. A formal assessment company may need to be called in to perform a detailed check of the property to determine the points the property is worth accurately.
If you and your landlord cannot come to an agreement, you can take your case to the Huurcommissie. The landlord will have to abide by the findings of the rent tribunal and reduce your rent to the legal maximum.
What is the normal length of a rental contract in the Netherlands?
Previously, temporary rental contracts were allowed for up to two years (independent residences / self-contained) or five years (dependent residences). However, with the Affordable Rent Act, the government has also decided that all new rental contracts should be permanent. This means two-year contracts are no longer allowed without very good reason and landlords are prevented from hiking up rents every two years.
Affordable Rent Act to benefit international workers in bigger cities
Tenants living in the most expensive Dutch cities when it comes to rent should see the most benefits. Cities such as Amsterdam, where landlords often charge exorbitant rental prices for small apartments, will likely fall under rent controls in new tenancy agreements.