Affordable Rent Law: the key points summarized
The Points System (WWS) is on the verge of undergoing significant changes, with direct implications for landlords in the Netherlands. The Affordable Rent Bill is now awaiting approval from the Senate and, upon approval, is likely to come into effect as early as July 1, 2024. An accurate calculation of the maximum rent price will be essential under the new scoring system. Here are the key points landlords need to consider:
1.Introduction of middle-rental sector:
With the introduction of the middle-rent sector, the Dutch rental market is undergoing a significant change. The crucial liberalization threshold shifts to 187 points, meaning that properties with a score of 187 or higher fall into the liberalized rental sector.
The new categories:
• Social sector (up to 140 punten)
• Middle-rent sector (141 - 186 points)
• Free sector (from 187 punten)
Only in the last category are there no maximum rent prices, and market forces come into play.
2. Enforcement of points system(WWS)
• Points calculation report at the start of rental agreement
With the Affordable Rent Bill, it will now be mandatory to provide tenants with a point calculation report at the start of a lease agreement.
• Ban on excessive rental prices
Landlords will be required to adhere to the WWS system. Tenants can report to the rental committee if they believe they are paying a rent price that does not conform to the points system. This can result in fines for landlords and mandatory rent reductions.
3. Energy performance:
Landlords are encouraged to make properties more sustainable by awarding deduction points for lower energy labels (E, F, and G) and extra points for good labels (A and higher). This makes a well-insulated property more valuable to potential tenants. Assessment of the property takes place at the start of the rental agreement. If no energy label is available, the point allocation is based on the year of construction. This change emphasizes the importance of a valid energy label at the start of the lease. Although it provides landlords with more clarity and control over energy performance, it is important to ensure a valid label to avoid potential costs and a lower rent price.
What now?
To understand the impact of these changes and respond effectively, it is crucial for landlords to prepare thoroughly. Here are some steps landlords can take:
1. Recalculate the maximum rental price
Use the new calculation model to determine the maximum rental price according to the proposed changes. This provides insight into possible adjustments.
Extate Housing can also perform this point calculation for you. Our experts will provide a personalized report and clearly outline any areas for improvement. Interested? Contact us via the contact form!
2. Focus on sustainability
Consider investments in sustainability to earn extra points and increase the value of the property.
3. Stay informed:
Monitor the progress of legislation and ensure you are aware of any adjustments or additional information.
By taking proactive steps and carefully implementing these changes, landlords can adapt to the evolving landscape of rent determination and regulation in the Netherlands.