Annual maximum rent increase 2024
"For tenants in homestay rooms, the rent may be increased annually. Until May 2024, a maximum rent increase of 5.5% applies."
"A landlord may, in principle, increase the rent once a year. If the lease ends within 1 year, for example, because you have a contract where the rent is terminated within the 9-month trial period, then a rent increase cannot occur. For contracts longer than 1 year, a rent increase is an option under certain conditions. You can read about these conditions in this blog.
Rent increase in the free sector 2024
The government distinguishes between the rent increase for housing associations and for the free sector. Note: the rules for the free sector apply to homestay rooms. The fact that the landlady herself rents from a housing association does not mean that the rules for housing associations apply.
From May 2021 until May 1, 2024, a maximum rent increase of 5.5% applies. This is intended to protect tenants against large rent increases. The rent increase may not exceed this maximum and may only be implemented once a year. Additionally, the following conditions apply:
- The rent increase must be agreed upon in the contract.
- The lease cannot be terminated if the rent increase is not agreed upon.
- A new contract with the same tenant and a higher rent cannot be concluded.
- The rent increase must not exceed the maximum rent as determined in the point system.
The landlord is not required to announce the rent increase at a fixed time to the tenant. The landlord may increase the rent throughout the year, but the fixed date for the increase is July 1. If a lease agreement starts before July 1, the first increase may take place on July 1.
Maximum rent increase after May 1, 2024
It is not yet known what the maximum rent increase after May 1, 2024, will be. Minister De Jonge is currently working on a proposal to impose a maximum rent increase until May 1, 2027. Without an extension, there will be no maximum rent increase after May 1, 2024.
The homestay room has been refurbished
Note: if the homestay room or the rented part of the house has been improved by the landlord or owner, the rent may be increased above the maximum of 5.5%. However, the landlord or owner must have obtained the tenant's consent beforehand for making the improvements.
Costs for gas, water, electricity, and other expenses
The maximum annual rent increase relates to the basic rent. This means it excludes gas, water, electricity, internet, services, and other costs. These costs should be separately included in the lease agreement and are a prepayment. If these costs turn out to be higher, the landlord may send a supplementary invoice. The tenant has the right to request a breakdown of the costs and to receive a refund if it turns out that the costs were lower.
Rent increase for housing associations
Housing associations may increase the rent by an average of 5.3%. This increase equals the average wage increase in 2023. For tenants of a housing association property, this means that their income increases on average more than the rent. This is part of a package of measures to keep rents affordable. If you rent from a housing association and want to know more about the effects on your own rent, read this news article about the maximum rent increase in the regulated sector.
Announcement of rent increase
The landlord must announce the rent increase in writing and inform the tenant at least 2 months before it takes effect. You can find various templates online for this purpose. If you write the letter yourself, make sure that at least the following information is included:
- Current rent
- Percentage of rent increase
- New rent
- Start date of the new rent
- How the tenant can object
- Deadline for the tenant to object
Tenant objection
As a tenant, you can object to the rent increase. For example, if the increase was not announced in time or if the rent exceeds the maximum rent as determined in the point system of the rent tribunal. Objections can be made up to 4 months after the rent increase. Here you can find an example letter of objection to a rent increase.
Difference between rental protection and rent price protection
'In the first 9 months, the tenant has no rental rights.' If you have entered into an indefinite contract with a trial period of 9 months with your tenant, you may be familiar with this provision. The tenant does not have rental protection during this period, and you can terminate the rent during this period without giving a reason.
However, the tenant does have rent price protection during this period. This means that during this period, the point system for calculating the rent is in force, the tenant has the option to involve the Rent Tribunal, and a maximum rent increase applies.
Good agreements and trust
This blog has focused a lot on rules and procedures. These rules are intended to prevent conflicts and for situations where you cannot resolve them together. In an ideal situation, you will have little to do with them. Ensure that you make good agreements and communicate well with each other. This creates a tenant-landlord relationship in which trust and good communication prevail, and you avoid unpleasant situations or conflicts.
Can't you figure it out together? If you have found a match through Hospi Housing and have signed a contract, you can contact us for free assistance and advice throughout the entire rental period.
Not yet a host at Hospi Housing, but interested in renting out without worries and safely? Sign up for free.
This article is for informational purposes only and does not constitute legal or financial advice. Contact a lawyer or tax advisor for legal or financial advice.
Want to know more? Check out our blogs on:
- Calculating the correct rent
- Choosing the right lease agreement
- Is room rental tax-free in your situation?
Are you not yet a host at Hospi Housing and first need more information? Sign up and schedule a free intake where we will help and provide you with personal advice."