Great news! Last week, the Dutch House of Representatives passed the Affordable Rent Act, aiming to prevent renters from paying exorbitantly high rents.
This means that starting July 1, 2024, rent for more than 300,000 homes in the Netherlands will be reduced.
Typically, rents will only decrease when a new tenant moves in, but current tenants can still ask for a rent reduction, reports NU.nl. Here’s how. 👇
Determine your maximum rent
The Netherlands has a point system and calculator (available in English) to determine the maximum rent a home can have based on factors like square metres, the presence of a kitchen, garden, or shower, the energy label, and the value of the house.
READ MORE | Renting in the Netherlands? Here’s why you might be spectacularly overpaying
There are two main types of rental housing in the Netherlands: social housing, with up to 142 point and rental limits of €879 per month, and free-sector housing, where landlords can determine the price they want to charge for a room, house, or apartment.
However, thanks to the Affordable Housing Act, rental homes with up to 186 points and a rent of €1,123 will also soon receive a maximum rent.
@dutchreview Its been three months 🥲 #fyp #fypシ゚viral #dutch #dutchreview #nederland #netherlands #renting #landlords #expatlife #housing ♬ original sound – DutchReview
Rent reductions for current tenants
As Mathijs ten Broeke of Woonbond tells NU.nl, the new rental law could benefit around 163,000 current tenants.
READ MORE | Renting in the Netherlands? These changes will affect you in 2024
The question lies in whether you’ll get a rent reduction this year or next:
- If your home is worth less than 142 points and you pay less than €879 but more than what your home is worth, the landlord must reduce the rent to the limit by July 2024.
- If your home is worth less than 142 points but you pay more than €879 based on a free-sector contract, your landlord will have to adjust your rent within a year. You can expect a rent reduction by July 2025.
Rent reduction for new tenants
For the remaining 157,000 homes with point totals between 142 and 186, rent reductions will only apply once new tenants move in.
That means if you belong to that group and pay too much rent, you’ll only receive the full rent reduction if you move to a similar property.
READ MORE | 9 kooky things about renting in the Netherlands
On the bright side, you could still receive a rent reduction, says Ten Broeke, as “the new rental law allows you to enter discussions with your landlord.”
“Your landlord has no interest in you moving because of the high rent. He wants certainty of income […], and the new tenant will pay less. So if you now pay €200 too much per month, you may be able to get a partial rent reduction.”
Will you be able to apply for a rent reduction in the Netherlands? Tell us in the comments!
What about the capital Tax government charges to the landlord?
Lets say a house with a WOZ value of 500.000€
Capital tax = (6,17% x 500.000€) x 32% = 9.872€ (823€ per month)
Lets imagine that landlord also has to pay for a mortgage 1.177€ per month
Full monthly cost for the landlord = 2.000€ per month
If you cap his rental income to 1.156€, He will be making a monthly loss of -844€
This whole new regulation will kill the rental market, it is nonsense, and very cynical to raise taxes on one hand and pretend that landlords have to lower their rental income at the same time, that is an expropriation and a bankruptcy for hundreds of thousands of landlords.
Social justice? No, comunism.
Why is tennant supposed to pay your mortgage in full for you? You want to own an appreciating asset for free?
Carlos, you forgot to add monthly service cost to VvE paid by owner, it is additionally 200-300E/month. 🙂
Yes, they are communists. 🙂
And additionally there is an erfpacht at least in Amsterdam. It must be paid by the owner too.