Changes in Dutch Rental Law in 2024

In 2024, the Netherlands introduced significant changes to housing laws, particularly through the introduction of the "Affordable Rent Act" and the "Fixed Rental Contracts Act". Here's an overview of the key changes and their implications for tenants and landlords:

In 2024, the Netherlands introduced significant changes to housing laws, particularly through the introduction of the "Affordable Rent Act" and the "Fixed Rental Contracts Act". These two acts are additional to the in 2023 introduced 'Landlords Good Practice Act'. Here's an overview of the key changes and their implications for tenants and landlords:

Affordable Rent Act

This law targets the regulation of rental prices in the mid-segment housing market. Homes with a point total of up to 186 according to the Housing Valuation System (WWS) are now capped at approximately €1,157.95 per month in rent. This aims to provide access to affordable rental housing for middle-income earners. It is expected that this will reduce the rental prices of over 300,000 homes by an average of €190, making about 113,000 rental homes affordable again.

Impact on Homestay Rental and House Sharing

In homestay rental and house sharing, which involves non-independent living spaces, these areas are also subject to the point system but fall under the Housing Valuation System for Non-Independent Living Spaces (WWSO). Students sharing a house who previously overpaid may benefit from this regulation as their rents might become more realistic. For most room rental landlords, little will change since most already adhere to the WWSO. To find out the maximum rent you can ask for your space, you can do a rent price check for non-independent living spaces.

Have you rented out a room or space in your house in 2024 and want to know what the impact is on your 2024 tax return? In this blog, you will find information about homestay rentals and taxes.

Fixed Rental Contracts Act

Since July 1, 2024, it has become standard to only offer rental contracts for an indefinite period, providing tenants with greater security about their living situation. However, there are exceptions for specific groups, such as students and urgent housing seekers, who can still receive a temporary rental contract for a maximum of two years.

Impact on Homestay Rental and House Sharing

If you rent out a room in the dwelling where you live, this falls under room rental. In these cases, the first 9 months of the indefinite contract act as a trial period. This means that as a room rental landlord, you can terminate the rental period without reason during this period. This is still possible after the introduction of the Fixed Rental Contracts Act. Note, however, that you cannot combine a temporary contract and a contract with a 9-month trial period with the same tenant. After one of these two contracts, the tenant has the right to a contract for an indefinite period. For more information or personal advice, sign up with Hospi Housing and schedule a free intake.

Maximum Rent Increase in the Regulated Sector

For 2024, the maximum rent increase in the regulated sector has been set at 5.8%, linked to wage development rather than inflation. This ensures that tenants receive a rent increase in line with their income growth. For tenants at housing associations, the average maximum rent increase has been set at 5.3%, to improve the affordability of rents for people with lower incomes.

Impact on Homestay Rental and House Sharing

In the Netherlands, a landlord is typically allowed to increase the rent once a year. However, if the rental agreement ends within one year, for example, due to a contract being terminated within a nine-month trial period, then a rent increase is not permitted. For contracts that last longer than one year, rent increases are possible under certain conditions.

Landlord Good Practice Act

In 2023, the Good Landlordship Act came into force, and on January 1, 2024, some additional provisions were implemented. This law provides landlords clarity on what is permissible and offers tenants extra protection. These rules include:

• Security deposit may be a maximum of 2 months' basic rent.
• Rental agreement must be recorded in writing.
• Rights and duties of the tenant must be received by the tenant in writing.
• Service charges can only be passed on if they have actually been incurred. The tenant receives an annual statement.
• Intimidation and discrimination are prohibited and can be reported by the tenant to the municipality.
• From January 1, 2025, a calculation of the rent must be added to the rental contract.

Municipalities are responsible for enforcing these rules and have set up a reporting center. Some municipalities also require a permit.

Impact on hosts and homestay rental

The Good Landlordship Act applies to all landlords, including hosts and guest families. However, municipalities may choose to differentiate in enforcement between regular landlords and homestay landlords. Thus, Hospi Housing continues to advocate for keeping homestay rental permit-free to keep the threshold for new homestay landlords as low as possible and to create as much additional living space as possible.

Safer for the tenant, easier for the host

These legislative changes aim to make renting more affordable and provide tenants with greater security. At Hospi Housing, we believe it's important to protect tenants well. Additionally, we advocate at the ministry and local level for fewer rules on room rental and house sharing. Rules currently form the biggest obstacle for people starting room rental. This is unfortunate and limits potential. More room landlords = more rooms. We will continue to work hard for this.

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