If you want to rent out your property, there are laws and regulations that you have to comply with. If you don’t, there can be serious consequences. But what exactly are the rules and regulations of renting out your property to an expat?
- An important part of this has to do with the Dutch laws that are meant to protect tenants. If you only want to rent out your property temporarily, it is important to take this into account and choose the right rental contract.
- If you put your home on the market for rental it is also important to know the rules regarding rental amounts and rent increases.
- In addition, there are a number of other rules and regulations that apply to the property itself. Below we will discuss all this in more detail.
Rent protection
In the Netherlands, a tenant is in many cases entitled to rent protection. This means that a landlord cannot just evict a tenant. A major fear among property owners is that they will no longer be able to get a tenant out of their house or apartment, while they would like to use it again after a certain period. With temporary rent, a tenant enjoys limited rental protection. However the rules for temporary rent have been tightened as of July 1, 2024.
Temporary rental
Until July 1, 2024 the general rule was that a landlord could grant a temporary rental contract once with a minimum duration of 6 months and a maximum duration of 2 years. However from July 1, 2024 onwards temporary rental has been severely restricted and is only permitted in specific cases. Do you want to know more about these exceptions? Read more about the new rules in the blog ‘What is the best rental contract for my property’.
Pay close attention though. If you use a fixed-term agreement it expires automatically, but as a landlord you must remind your tenant in a timely manner of the end date of the contract, namely 1 to 3 months before the end date. If you do not do this, the contract will automatically change into a rental contract for an indefinite period. As a landlord, you may not terminate a rental agreement earlier than the date stated therein. However, in such a temporary rental situation, the tenant only has a notice period of maximum 1 calendar month.
Interim rental
In addition to the temporary rental contract, there is an option for so-called interim rental. This is intended for landlords who stay abroad for a predetermined period. Initially, a fixed duration for the agreement is agreed between 6 months and 2 years. During this period, the rent cannot be canceled on either side. After this initial period, it is possible to extend the agreement with a mutually agreed term. During this extension of the rental period, the tenant has a notice period of 1 month, for the landlord this is a minimum of 3 months.
The possibility for interim rental will continue to exist, even with the arrival of the new legislation. Would you like to know more about the new legislation that will apply as of July 1, 2024? Read more about these new rules in the blog ‘New Rules for Rental Property 2024’.
Would you like to know more about the rental contracts that we use? Read more in the blog ‘What is the best rental contract for my property’. Looking for personal advise? Contact us or
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What rental price can I ask for my property?
Rental price protection for tenants in the social sector has existed in the Netherlands for a long time. A points system determines what the maximum rent for a rental property should be. Properties with a rent below this limit (143 home valuation points, equal to a rent of €879.66 in 2024) fall under the social rental system. Within this system, tenants enjoy rental price protection. This means that a tenant can approach the Rental Committee to have assessed whether the monthly rent they pay is too high. If, after calculation, this appears to be the case, the landlord is obliged to reduce the rent.
Make sure you know the rules when renting out your property!
Mid-rental sector
As of July 1, 2024, the points system has been expanded from 143 to 186 points (equal to €1,157.95 per month, 2024 price level) through the Affordable Rent Act. This also limits the rental price of the so-called ‘mid-rental segment’. In concrete terms, this means that properties with a points total of 144 to 186 points are also subject to a regulated rental price. Does your home fall into that category? Then this will most likely have a major influence on the rental price of your property.
Private sector rentals
Properties with 187 points or more according to the property valuation system are eligible for rental in the private sector. At the moment, rents above this liberalization limit are not regulated. So of course it is important to make sure that your property has sufficient points. After signing the rental contract, tenants can have the property tested by the Rental Committee. If, after calculation, it turns out that the property belongs to the regulated part of the market according to the property valuation system, a tenant can still force a lower rent. In addition, the new law states that municipalities have the authority to enforce appropriate rents from 1 January 1, 2025 onwards. If necessary, they can even impose fines.
Rent increases: how often and how much?
According to the rules, the rent of a home may be increased no more than once a year, whereby the rent may not exceed the previously discussed maximum rent (in the case of the regulated part of the market). In the private sector, too, the rent may only be increased once a year. The tenant must be informed of this at least 1 month in advance. There are a number of exceptions to the annual increase:
-on July 1, the rent may be increased, even if the lease is less than a year old.
-If the house has been significantly improved, an additional rent increase may be implemented.
-if there were more than 12 months between the previous rent increases, for example because a rent increase was announced too late, the rent may still be increased again in July.
Rules and regulations for rent increases in the private sector?
The ‘Act on Maximizing Rent Price Increases in Liberalized Rental Agreements’ states that the permitted rent increase in the private sector till 2029 is linked to inflation (+ 1 percentage point) if this is lower than wage development. This percentage is determined annually.
Inflation was lower at 4.5% last year, so the permitted annual rent increase for 2024 is a maximum of 5.5% in the private sector.
Energy label – necessary for renting out your property
Landlords are obliged to make an energy label available to the tenant when renting out. Your home may already have a valid energy label. If not, you can request this from an energy advisor.
Regulation for renting out: Smoke detectors
Since 1 July 2022, smoke detectors are mandatory in both existing and new homes. The owner or lessor is responsible for installing the smoke detectors. Tenants do have to cooperate in both the installation, inspection and, if necessary, replacement of the batteries of the smoke detectors present. Read more about this subject in our blog ‘Are smoke detectors mandatory?’
Want to know more?
Do you have any questions about the rules regarding renting out your home? Or do you want to schedule an intake interview? Feel free to contact us or read more about the way we work.
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