Reinier advises national and international companies
reinier.russell@russell.nl +31 20 301 55 55Manon specializes in corporate litigation and corporate law in general.
manon.hoekstra@russell.nl +31 20 301 55 55From 1 July 2024, the Affordable Rent Act came into force. Some additional provisions came into force on 1 January 2025. What obligations must landlords now comply with?
As of 1 July 2024, the Affordable Rent Act (the “ARA”; Dutch: Wet betaalbare huur) entered into force. This means that tenants can now rely on this law. The ARA now regulates rents in the midmarket segment and makes rents therefore more affordable for middle-income tenants. It also sets a maximum rent of 186 points (€ 1,157 per month) for all new leases signed on or after 1 July 2024. This has made it illegal for landlords to rent out properties at a higher rent than allowed under the housing rating system.
If a tenant rents a property in the private rental sector, it is a deregulated rental. The ARA does not apply to rental properties in the private rental sector. However, a tenant in the private rental sector can still apply for a rent reduction if
In this situation, a one-year transition period applies and the deregulated rent can be reduced from 1 July 2025 on. In most cases, the tenant will then have to reapply to the Rent Assessment Committee.
Following the entry into force of the ARA, both landlords and tenants filed a number of cases with the Rent Assessment Committee. A number of these cases have since been decided by the Rent Assessment Committee. In several cases, the Rent Assessment Committee found the rent to be unreasonable and reduced the rent of the property. In other cases, the Rent Assessment Committee allowed rent increases because they did not deviate from the set percentages.
Finally, we have seen that the Rent Assessment Committee found that some properties rented in the private rental sector, but belonging to the social sector according to the housing valuation system, were charged a rent that was not reasonable. The Rent Assessment Committee said that it could not reduce the rent at this stage, as this exception will apply as of 1 July 2025. The tenant must also ask the landlord for a rent reduction before applying to the Rent Assessment Committee. However, the Rent Assessment Committee has emphasized that the tenant in question can reapply for a rent reduction before 1 July 2025. There is also the possibility for the tenant to ask the court for a decision.
As of 1 January 2025, a number of additional legal provisions will come into force that relate to the rental and letting of housing. Firstly, from 1 January 2025, municipalities will be able to enforce compliance with the ARA. If a landlord charges an excessive rent for a property covered by the ARA, he can be fined.
As of 1 January 2025, landlords will be required to provide a copy of the points score based on the housing rating system with all new tenancies. Landlords will also be required to do this if the points score indicates that the property could be rented out in the private rental market. This additional obligation on landlords has been created to provide greater clarity for both tenants and landlords.
As of 1 January 2025, it will no longer be possible to apply for the One-time income-related rent reduction regulation that applied to people with housing association properties. This also means that it will no longer be possible to apply to the Rent Assessment Committee for a one-off rent reduction. The One-time income-related rent reduction regulation ran from 1 March 2023 to 31 December 2024. Only in a few cases will it be possible for tenants to apply for this regulation in 2025.
Finally, the Affordable Rent Act sets a cap on rent increases for mid-range properties. This cap is based on the level of the CLA wage index.
From 1 January 2025, the rent ceilings for the social, intermediate and private sectors will be re-indexed. In 2025, rents can be increased as follows:
Do you, as a landlord, have questions about how to bring your leases in line with the current developments and which other aspects you need to consider? Do not hesitate to contact one of our lawyers.
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