In 2024, new rules for property rental will apply and a lot will change in the housing market. The new Permanent Rental Contracts Act will offer better protection for tenants by imposing very strict rules on temporary rental contracts. In addition, the Affordable Rent Act may come into effect, which would regulate rental prices in the mid-rental segment.
With all the new rules, will it still be possible to rent your apartment to expats? Certainly! But it is important to keep a close eye on the new legislation. Which new rules will actually take effect in 2024 and when remains unclear for the time being. Below we list the status of the new legislation for you. The two changes with most impact are:
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- Prohibition of temporary rental contracts (by Fixed Rental Contracts Act).
- Expansion of the home valuation system (by the Affordable Rent Act)
Property Rental New Rules 2024: Ban on temporary rental contracts
In November 2023, the chamber approved the Fixed Rental Contracts Act, which prohibits the use of temporary rental contracts for homes (with some exceptions). The new rules will most likely come into effect on July 1, 2024.
Temporary rental contracts – the current situation:
A temporary rental contract can currently be concluded for a maximum of 24 months. Ideal if you want to be sure that you will have access again to your house, studio or apartment after the lease ends. At the same time this brings a lot of uncertainty for tenants. Hence the new legislation that will change this in favor of tenants.
Temporary rental contracts – the new situation:
If the new law does indeed come into effect (in July 2024), it will no longer be possible to offer temporary rental contracts. Renting is still possible via a permanent lease or a so-called interim rental contract. The latter contract is intended for landlords who live abroad for a certain period of time for study or work purposes and return to their home afterwards. Are you not planning to move back into the property for a longer period of time after the rental period ends? Then this contract is unfortunately not suitable for you. Would you like to know more about the different rental contracts? Read the blog ‘What is the best rental contract for my property?’
It is important to realize that until the new law actually comes into effect (probably July 1, 2024), the current rental rules will still apply. Until then, it is possible to conclude a temporary rental contract for (maximum) two years with a tenant.
Do you want to rent out your property after the rules come into effect? Then renting to expats is a good idea. They normally stay in the Netherlands for a fixed period of time, after which they leave for the next living/working location. You don’t have control over the exact duration of the rental, but at least you are (almost) certain that you will not be stuck with tenants until who knows when. Would you like to know more about how we select the right expat for your home? Contact us and we will tell you more about it!
Property Rental New Rules 2024: Adjustment of the home valuation system
This past year the expansion of the home valuation system has also been in the news frequently.
2024 – new rules for property rental are on its way!
Home valuation system – the current situation:
Points are awarded to properties through the home valuation system. In the current market, properties with a maximum of 145 points may only be rented out as social housing. Above this amount, the property may be rented out in the private sector and the requested rental price is of your own choice.
Through the Affordable Rent Act, the points system will be expanded from 145 to 186 points (equal to €1,123,- 2024 price level). The bill was presented in an amended form on February 6, 2024 and will soon be discussed by the House of Representatives. Only time will tell whether there is indeed sufficient support for the proposal. It looks like it’s going to be a tight vote. The future of the the home valuation system and its changes are therefore very uncertain.
Home valuation system – the (possible) new situation
If the adjustment of the system is indeed agreed upon, the points limit will be stretched. The systeem will then also regulate the so-called ‘mid-rental segment’. In concrete terms, it means that properties with a total of 145 to 186 points will also be subject to a regulated rental price. Does your home fall into that category? Then it will (significantly) impact the rental price you can ask for your property.
In addition to the expansion of the system, the way points will be awarded will also change. For example, the energy label of your property will be more important. In the new situation, properties will be awarded extra points for a high energy label. A low label means points will be deducted. In addition, an outdoor space, for example, is also given more weight in awarding points.
Do you want to rent out your home in 2024? Then it is very important to look at the number of points that your property currently earns. Is this number less than 187 points? Then it is worth taking a closer look at the options for increasing the number of points for your property. For example, by improving the energy label or making adjustments to the property. Sometimes relatively simple changes result in a large number of extra points being awarded. It could very well have a big impact on the rental price you are allowed to ask for your house or apartment.
Other rules for renting out your property
Are you curious about what other rules and legislation you will have to deal with if you want to rent out your home? Read it in the blog ‘Rules and regulations of renting out your property to expats’. Would you rather get some personal advice? Contact us and we will do our best to answer all your questions.
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