2024 is a year of many changes in the housing market. As of July 1, 2024, the new Permanent Rental Contracts Act offers better protection for tenants by imposing very strict rules on temporary rental contracts. In addition, the Affordable Rent Act will also come into effect on July 1, 2024. This law regulates rental prices in the so-called mid-rental segment.
With all the new rules, is it still possible to rent out your apartment to expats? Certainly! But it is important to keep the new legislation in mind.
We list the details of the new rules for you below. The two changes with most impact are:
- 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 are effective from July 1, 2024.
Temporary rental contracts – the situation until July 1, 2024:
Until July 1, 2024 a temporary rental contract could be concluded for a maximum of 24 months. This was ideal if you wanted to be sure that you would have access to your house, studio or apartment again after the lease contract expired. Because this caused a lot of uncertainty for tenants, the law was amended. Temporary rental contracts concluded before July 1 remain valid for the term stated in the contract. However, after the contract expires, or when a tenant leaves, it is not possible to enter into a new temporary contact.
Temporary rental contracts – the situation from July 1, 2024:
As of July 1, it is no longer possible to offer temporary rental contracts in the vast majority of cases. In the new situation, renting is possible via a permanent lease or a so-called interim rental contract. The latter contract is intended for landlords who stay abroad for a certain period of time for study, work or travel 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?’
Do you want to rent out your property under the new rules? 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
The expansion of the home valuation system via the Affordable Rent Act has been in the news frequently the past year. On June 25, 2024, the Senate approved this bill. The new law has been effective from July 1, 2024. For landlords, it means that they must take new rules into account when renting out their property.
2024 brings new rules for property rental!
Home valuation system – the situation until July 1, 2024:
Points are awarded to properties through the home valuation system. Until July 1, 2024, properties with a maximum of 143 points could only be rented out as social housing. Above this point limit, the property could be rented out in the private sector and the requested rental price was unregulated.
Home valuation system – the situation from July 1, 2024:
Through the Affordable Rent Act, the points system will be expanded from 144 to 186 points (equal to €1,157.95 per month, price level 2024). This expansion limits the rental price of the so-called ‘mid-rental segment’. In concrete terms, it means that properties with a points total of 144 to 186 are 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 are awarded has also changed. For example, the energy label of your property is 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 under the new rules? 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. This can 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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