The Affordable Rent Act: Important Information for Landlords

The Affordable Rent Act came into effect on Monday. The legal details are complex, and even the Public Housing website still contains errors. Here you will find an overview of the most important changes, including provisions from the Good Landlord Act and rules for permanent contracts.

1. Application of the Affordable Rent Act

The Affordable Rent Act applies to all landlords with a second home, regardless of the reason for ownership. This means the law also applies to homes purchased for retirement or children, without a mortgage. The law is mandatory, meaning the Rent Assessment Committee can intervene in the event of violations.

2. Rent Regulation: Three Segments

There are three rental price segments:

• Social housing: up to 143 points, rent up to €892.08
• Mid-market rent: 144-186 points, rent between €898.62 and €1165.81
• Private sector: from 187 points, rent freely determined

Landlords are responsible for the correct number of points. Mistakes can lead to fines and rent reductions. On our website, you will find a link to a government Excel file with the maximum rents per point.

3. Current Contracts and Transitional Arrangement

• Immediate reduction: With 143 points or less, the tenant can immediately request a rent reduction.
• Transitional Arrangement until July 1, 2025: For properties with 143 points or less, rented at a private sector price.
• Mid-range Rent: With 144-186 points, the mandatory price only applies to new contracts.
• Private Sector: With 187 points or more, no maximum rents apply.
• Room Rental: The new WWSO is immediately binding; prices can only be reduced.
• House Sharers: The concept is changing to room rental; details are still unclear.

4. End of Temporary Contracts

As of July 1, no new temporary contracts may be concluded, with some exceptions such as for students, urgent housing seekers, and tenants undergoing renovations. Other forms of temporary rentals, such as interim rentals and short-stay rentals, remain possible.

5. Required Documents for a Rental Agreement

According to the Dutch Landlord and Tenant Act (Wet goed landlordschap), the rental agreement must be in writing, including a deposit of up to twice the basic rent and a breakdown of service charges. Annexes to the contract include:

• WWS points system: Mandatory in the rental agreement, with explicit calculation and a contact point for objections.
• Energy label: Mandatory for the rental of self-contained housing. Labels from before 2017 are often invalid.

6. Friends contracts and Room rentals

Rentals to three or more people are considered room rentals. Renting a home to two people is considered an independent household. For three or more people, a shared household must be demonstrated.

7. Modernization of the WWS (Dutch Housing Act)

The government is introducing changes that are often detrimental to property owners. Points for sustainability and outdoor space are being added, but points for monuments and protected cityscapes are being eliminated. A surcharge of 35% will be added to the rent for listed buildings and 5% for protected cityscapes.

8. Rental Permits

In some municipalities, a rental permit is required, with a maximum (social) rent linked to the permit.

9. Mandatory Written Rejection

Landlords must inform all rejected applicants in writing why they were rejected, to prevent discrimination.

10. Termination of the Lease

As of July 1st, only fixed-term leases are legally valid. The lease can only be terminated according to specific rules: three to one month before the end of the lease.

For more information and assistance with complying with these new regulations, please visit our website beleggingspanden-financiering.nl.