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 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 rental will soon be tightened. Most likely this will be as of July 1, 2024.
Temporary rental
Under the current rules, a landlord can grant a temporary rental contract once with a minimum duration of 6 months and a maximum duration of 2 years. However, on November 7, 2023, the Dutch Chamber approved the new Fixed Rental Contracts Act. By this act temporary rental will be severely restricted and will only be permitted under a number of conditions. It is still not known when this new law will come into effect, but most likely it will be on July 1, 2024. Read more about the new rules in the blog ‘New Rules for Rental Property 2024’
Until this new law comes into effect, the old rules still apply. Until then, you can still offer a temporary rental contract, as long as the contract commences before the new rules enter into force. With a temporary contract , a tenant has no real rental protection upon expiry of the contract.
Pay close attention though. A fixed-term agreement 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 (for example) 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 (usually with a number of exceptions that allow earlier return to the property, also known as the so-called diplomatic clause). This of course offers more security to you as a landlord, but sometimes also makes it more difficult to find a tenant. After this initial period, it is possible to extend once more with an 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 regulation for interim rental will be expanded in the new Fixed Rental Contracts Act. It means that in the future an interim rental contract can be used in a number of situations other than temporary stay abroad. 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 all more in the blog ‘All about the different types of contracts’. Looking for personal advise? Contact us or
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What rental price can I ask for my property?
In the Netherlands there is rent protection for tenants in the social sector. A points system determines what the maximum rent should be for a rental property. Properties with a rent below the liberalization limit (145 property valuation points, equal to a rent of € 879.66 in 2024) fall under the social rental system. Within this system, tenants enjoy rent 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 what rules and regulations apply!
Private sector rentals
Properties with 146 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. During the first 6 months after signing the rental contract, tenants can have the property tested by the Rent Assessment Committee. If, after calculation, it turns out that the property belongs to the social sector according to the property valuation system, a tenant can still force a lower rent.
Mid-rental sector
In addition, the cabinet is currently also working on curbing the rents of properties in the so-called mid-rental sector through the Affordable Rent Act. This measure is meant to make rental housing for middle incomes more affordable. The announced plans mention the introduction of rent protection for rents up to a maximum of €1,123,-.
On February 6, 2024, the law was presented to the House of Representatives in an amended form. However it remains to be seen if there is sufficient support for the plans to become reality. And if there is enough support? Then the aim is to have the new rules come into effect from July 1, 2024.
If your property falls in the mid-rental segment according to the scoring, it is of course important to keep a close eye on developments.
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 2 months 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 until May 1, 2024 is linked to inflation (+ 1 percentage point) if this is lower than wage development. Inflation was lower at 4.5% last year, so the permitted annual rent increase from January 1, 2024 is a maximum of 5.5% in the private sector.
Minister De Jonge is currently working on a bill to extend the limitation of rent increases in the private sector until May 1, 2027.
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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