Housing rental law in the Netherlands is in flux

What can landlords and tenants of living spaces expect this year from changing housing rental law in the Netherlands? There are a few key items for both parties to take note of in 2024.

1. Tenancy Protection Orphans Act – effective 01 January 2024
   
   The Orphan Rental Protection Act gives children (between 16 and 28 years old) the right to continue the rental contract of a deceased parent. This was not previously the case, because children did not necessarily have a sustainable shared household with their parents. As a starting point, this cohabitation is finite.
   
   
2. Rent maximization law for liberalized rental contracts – effective until 01 May 2024, with a possible extension to 01 May 2027
   
   Since 01 May 2021, annual rent increases for liberalized rental agreements have been capped for a period of three years. The Rent Capping Act for Liberalized Rental Contracts is temporary and will expire on 01 May 2024. There is a proposal to extend the law until 01 May 2027.
   
   The Rent Capping Act in combination with the Housing Rental Prices Implementation Act states that rents for liberalized rental agreements may be increased by a maximum of 5.5% starting 01 January 2024, and by a maximum of 5.8% starting 01 July 2025. Corporations may increase rents by a maximum of 5.3% in 2024.
   
   
3. Good Landlordship Act – mandatory provision of information on existing rent before 01 July 2024
   
   The Good Landlordship Act came into effect last year on 01 July 2023. The Good Landlordship Act contains rules on how the landlord should behave towards the tenant. The aim is to combat unwanted rental practices. This includes the obligation to provide certain information, a written record of the rental agreement, and a maximum payment of two months' rental deposit. Supervision is carried out by the mayor and city council members of the local municipality.
   
   For new rental agreements, the information referred to in the law must be provided in writing before entering into the rental agreement. For existing rental agreements, the landlord has, in principle, until 01 July 2024 to provide the information.
   
   
4. Fixed Rental Contracts Act – scheduled to come into effect on 01 July 2024
   
   Since 01 July 2016, it has been possible to enter into temporary rental contracts for residential space, which could expire by operation of law (no rental protection). When this new law comes into effect, temporary rental contracts for residential spaces will become a thing of the past. There will be an exception for certain target groups, but an indefinite rental period will become the norm again. The law is expected to come into force on 01 July 2024.
   
   
5. Affordable Rent Act – scheduled to come into effect on 01 July 2024
   
   The government wants to make mid-range rentals more affordable. This bill states that the home valuation system will also apply to mid-range rental properties up to 186 points (equivalent to a rental price of approximately EUR 1,200 per month). The new legislation will ensure that homes move from the private sector to the mid-rental segment. The Senate and House of Representatives still need to discuss the new law, but the planned date for the Act to come into force is 01 July 2024.

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Joost Donkersloot works at TK in Leiden as a senior attorney at law specialising in real estate. He is also a member of the GGI Real Estate Practice Group. Within real estate he focuses on rent law and apartment rights. In addition, he specialises in the leisure business. He is also a member of TK DACH, the firm’s German desk.