Affordable Rent Act in the Netherlands: What It Means
The Affordable Rent Act came into effect on July 1, 2024, aiming to make rent more affordable across the Netherlands. If you are a tenant or landlord, you can learn more about how this new law impacts you at the Affordable Rent Act website.
New Rules and Tenant Rights
The law introduces several new rules:
- Rental Protection: Tenants now have stronger legal protection. Previously, tenants had to enforce maximum rent prices themselves, which was not always feasible. Starting January 1, 2025, municipalities can intervene if landlords charge excessive rents.
- Rent Reductions: The Act will lead to an average rent reduction of €190 for 300,000 homes.
- Points System: Rental properties are evaluated using a points system based on factors such as size, amenities, and energy efficiency. Calculate your rental points here if you live in a separate household and here if you rent a room.
- Permanent Rental Contract: The government has also decided that all rental contracts should be permanent, apart from in a few special situations. This means landlords can no longer give tenants two-year contracts without a very good reason, and stops them from hiking rents enormously – or telling you to leave – every time a two-year contract ends.
The law stipulates that the modernised housing valuation system (WWS) applies to mid-range rental properties up to and including 186 points. To start, you'll need to determine the appropriate rental value of your property. In the Netherlands, this is calculated using a points system. Points are awarded based on various factors including the size of the property, its official value, available amenities, luxury features, energy efficiency, and outdoor space. You can check the official value (WOZ waarde) of your home here.
Using a handy tool to estimate the points for your property, if it scores 143 points or fewer, the maximum rent you should be paying is €880, excluding service costs. Should you be paying more, you have the right to request a reduction. Properties with a score between 144 and 186 points fall into the middle-market rental category, where a rent cap is also enforced. For properties scoring over 186 points, they are classified as part of the free sector, allowing landlords to set the rent at their discretion.
If you already have a contract but the rent is too high?
- Check Stichting Woon Guidelines for rental rules and tenant rights.
- Talk to Your Landlord: Start by discussing a rent reduction directly with your landlord. If necessary, they might arrange for a formal assessment.
- Contact the Rent Tribunal: If you cannot reach an agreement, you can take your case to the Huurcommissie (Rent Tribunal), which will review your rental points and determine the appropriate rent.
- Report to Local Authorities: Starting January 1, 2025, local authorities can fine landlords who do not comply with the rules. Check your local authority’s hotline for more information.