A BEGINNERS GUIDE TO DUTCH RENTAL POLICY

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For years, the Dutch rental market has been in crisis. Demand has far exceeded supply, driving up rents and giving rise to dishonest business practices and unfair contracts. Tenants have frequently found themselves in precarious situations, facing unreasonable conditions for securing housing. In response to these ongoing issues, the Dutch Senate recently passed the Affordable Rent Act. This new legislation aims to protect tenants by regulating rent prices in both the mid-range and social housing sectors across the Netherlands. The details of this important change will be discussed below.

 

THE OLD SYSTEM

The Affordable Rent Act is designed to protect tenants from excessively high rents. A key feature of the law is the introduction of a new point system, which caps rent prices based on factors such as living space, amenities, WOZ value (property valuation), and energy efficiency, among others. This ensures that rent prices align with the quality of the property being rented.

Prior to this law, the Dutch rental market was divided into two categories: social housing and free-market rentals. Social housing was intended for individuals with lower incomes, with the Rent Liberalisation Threshold (Huurliberalisatiegrens) determining whether a property qualified as social housing. In 2023, this threshold was set at €808.06. Housing that wasn’t self-contained, such as individual rooms in a shared house, also fell under social housing rules, though this did not apply to full-time students, PhD candidates, or international students.

On the other hand, free-market rentals operated under a more liberalised system. In this sector, both tenants and landlords had greater freedom to negotiate rental terms, with no maximum rent, no cap on annual rent increases, and no point system in place. This lack of regulation created a significant imbalance, allowing landlords to take advantage of tenants by charging inflated rents, especially in high-demand areas.

The Affordable Rent Act aims to correct these disparities, offering stronger protections for tenants across the board.

 

THE NEW SYSTEM

The Affordable Rent Act introduces a significant change to how rental prices are regulated in the Netherlands. Under the new law, rental properties are now classified into three categories: social housing, mid-range housing (Middenhuur), and free-sector housing, all based on a point system called the Woningwaarderingsstelsel (WWS). This point system is designed to ensure that rental prices are more closely aligned with the quality of the property, preventing landlords from overcharging tenants.

Here is how this impacts you as a tenant:

Social Housing: if the property scored 143 points or less, it is classified as social housing. The rent of these properties is capped, and as of July 2023, the maximum base rent is €879.66 per month. If you’re currently renting a social housing property and paying more than this amount, you have the right to request a reduction in rent.

Mid-Range Housing (Middenhuur): Properties that score between 144 and 186 points fall into the regulated mid-range housing sector. For contracts signed on or after July 1, 2024, the maximum rent is €1,157.95 per month. The law ensures that the rent reflects the quality of the property, preventing landlords from charging excessive amounts for mid-range properties.

Free Sector Housing: Homes that score 187 points or more are classified as free-sector properties. In this category, landlords have the freedom to set the rent without a maximum limit. However, it’s still essential for tenants to understand the point total of their property, as overcharging can be disputed, and rents can be adjusted if they don’t meet the required point threshold.

Still a bit confused? Here is a video in Dutch from BNN Vara explain how the point system works.

WHAT DOES THIS MEAN FOR YOU?

If you suspect that your rent is too high, you have the right to challenge it through the rent reduction procedure with the huurcommissie (Rent Tribunal). This process allows you to have your rent reassessed to ensure it complies with the maximum allowed rent based on the new point system. Here’s what you need to know about how and when to take action:

Time Limits for Challenging Rent

There are different time limits to starting this procedure depending on the type of rental contract you have. For a temporary contract (up to two years in an individual apartment) you can start the rent reduction procedure up 6 months after your contract ends. For a permanent contract or temporary contract for shared housing, you have up to 6 months from the start date of your contract to begin the procedure.

After these timeframes, you will no longer be able to contest the initial rent. However, you can still request a rent adjustment if the quality of your living conditions has deteriorated due to things like broken fixtures or appliances.

How to Calculate Your Points

To calculate your points you can use the Rent Commission’s Rent Check. This tool lets you determine the maximum allowable rent based on your property’s features. On the form you can find the maximum rent for independent properties, non-independent properties such as rooms and caravans.  You can calculate this here –  Huurprijscheck | Huurcommissie helpt | Huurcommissie

Once you’ve calculated the points, if the rent you’re paying exceeds the legal maximum, you can request a rent reduction. You need to request your landlord for a reduction first. If they refuse, you can request a rent reduction by submitting a formal procedure to the Huurcommissie for €25. If the Rent Commission rules in your favour, your rent will be lowered to the legal limit.

How to Start The Rent Reduction Procedure

To request a rent reduction, you can log in toMijnHuurcommissie and fill out the online form titled “Huurverlaging op grond van punten”. This form allows you to ask the Rent Commission to assess and determine the correct rental price based on your property’s points. If you encounter any difficulties while filling out the online form, you can reach out for assistance by calling 088 – 1 600 300 or by using their contactform on the website.

For a step-by-step guide on how to challenge your rent, you can also watch this video which explains the process in Dutch.

 

ROUND UP

Overall, The Affordable Rent Act is a game-changer for renters in the Netherlands. With the new point system, your rent now has to match the quality of your home. If you’re paying too much, you’ve got the tools to challenge it through the Rent Commission. Whether you’re in social, mid-range, or free-sector housing, understanding your rights and using the Rent Check can save you money. This law is all about fairness and transparency, so don’t get stuck overpaying. Know your points, know your rights, and make sure your rent is right!

 

Written by Layla Ussuman

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