Why the Affordable Rent Act?
The core of the law is rent regulation. The hope is that the law will prevent excessive rent increases without seriously disrupting the (rental) housing market. This is pursued through stricter rules for maximum rents that landlords are allowed to charge.
Point system rents
The rent (increase) cap is based on a point system. The number of points a rental property has is determined by various circumstances, including the number of square meters, the energy label and the amenities present. The new rules only apply to rental homes up to 186 points (maximum rental price of €1,157.95). As of 187 points, it is still considered a free-sector house. It means that as of July 1, 2024, the point system also applies to the so-called "middle rental" category, namely rental houses with 144 to 186 points. For these rental properties, the law applies only to leases entered into on or after July 1, 2024. Landlords must adhere to the maximum rent from then on.
For rental properties with less than 144 points (maximum rent of €879.66), the new law may also affect existing contracts. If the rent does not correspond to the number of points, a tenant can demand a reduction in the rent. However, there is a transition period. Tenants will not be able to go to the rent assessment committee for a lower rent until July 1, 2025. For newly built homes, some exceptions will apply as a result of which a 10% surcharge on the rent is possible.
Transparent rental rates
In addition, landlords must now be more transparent about the structure of the rent for the rental property they rent out. Tenants must be informed about the grounds on which their rents have been calculated. Among other things, it will become mandatory to attach the point number of a rental property to the rental agreement. It will also become possible for municipalities to impose fines on landlords if they do not comply with the rules regarding the maximum rent. However, landlords need not fear receiving a fine anytime soon. There will be no enforcement until January 1, 2025, at the earliest.
Fixed lease law
In addition to the Affordable Rent Act, the Fixed Rental Contracts Act (Wvh) will also take effect on July 1, 2024. The Fixed Leases Act results in temporary leases being possible only in specific circumstances regulated by law. This will make permanent leases the norm again.
What will change in practice?
It is expected that the enactment of both laws will result in tenants being more likely to go to the Rent Commission. This will increase the likelihood that landlords will have to answer to the rent commission. For this reason, it is essential that landlords prepare properly and take the appropriate steps to comply with all laws and regulations. In practice, it will have to be seen whether private landlords will now start selling homes in the middle rental segment en masse. The final word on these laws has not yet been spoken, but it is in any case a fact that something is going to change in the (rental) practice.
