Tenancy Law; the changes in 2025

In recent years, there have been significant changes in tenancy law, leading to a broader debate about the responsibilities of landlords and tenants. 2025 is the year in which landlords must adapt to new legislation that will further change the rental climate. After the introduction of the Good Landlordship Act, the Fixed Tenancy Contracts Act, and the Affordable Rent Act, there will be further steps and new changes in 2025 that could impact landlords. This article provides an overview of the key changes that landlords need to be aware of.

Rent Increases and Rent Limits in 2025

The permitted rent increases for 2025 are set at a maximum of 5% for social housing, 7.7% for mid-market rental, and 4.1% for the private sector. There is considerable political debate, particularly in the mid-market segment, and this may lead to a reduction in the percentage or additional measures to mitigate the impact of the increase. Landlords should closely monitor political developments, as changes may occur that could affect their rent policies.

Rent price limits have also been re-established for 2025. Properties within the social sector have a maximum rent of €900.07 with 143 points. In the mid-market sector, properties can have a maximum of 186 points, with a rent limit of €1,184.82. Properties in the private sector have at least 187 points, and there is no maximum rent limit.

Stricter Enforcement of the Affordable Rent Act

With the introduction of the Affordable Rent Act in July 2024, municipalities have gained more powers to regulate rent prices. Starting from January 1, 2025, they can take action against landlords who charge excessively high rents or implement unlawful rent increases. Municipalities can impose fines and other sanctions if landlords do not comply with the rules.

Key Changes:

• From July 1, 2025, the transition period ends for landlords of social housing who charge rents higher than allowed. From that point, they must apply the maximum rent according to the WWS (Rent Point System), and municipalities can enforce this.

• Landlords must add a points calculation to new rental agreements starting January 1, 2025. It is not mandatory to use the Huurcommissie (Rent Tribunal) points system, but the system must meet legal requirements for transparency and traceability. 123Wonen uses special software that also indicates potential areas for improvement. The points calculation must be attached to the rental agreements and stored in the system, so that it can be semi-automated during annual rent increases.

• Tenants can, starting July 1, 2025, appeal to the Huurcommissie to enforce a rent reduction. For example, if a rent for a high-segment property is applied, while the points calculation shows it should fall under the mid-segment.

Issues with the Huurcommissie? Rent regulations are often interpreted in favor of the tenant. Do not immediately accept a ruling from the Huurcommissie! If a legal procedure is started within 8 weeks of the ruling, the Cantonal Court will review the case, overriding the decision of the Huurcommissie. We typically prevent this, sometimes by presenting the tenant with a draft summons and negotiating a reasonable settlement. However, if necessary, the legal department of 123Wonen can assist in handling the procedure.

Changes in Service Charge Rules

Starting in 2025, the rules around VAT and service charges will change. Landlords must determine whether service charges are considered independent VAT-taxed services or supplementary costs under the rent VAT rules. This depends on factors such as the use of individual meters and billing based on actual consumption.

The Service Charge Decree, expected to be introduced in 2025, will clarify matters, such as a list of permitted service charges, fixed calculation formulas, and the requirement that service charges be passed on proportionally and without profit. Landlords must adjust their rental agreements and administration accordingly and may need to consult legal or tax specialists.

Possible Changes in Sustainability Requirements and Energy Performance of Properties

There is an increasing focus on sustainability and energy performance in housing. In recent years, there has been a clear shift towards energy-saving measures and making properties more sustainable.

Landlords must ensure their properties comply with energy-efficiency requirements. Often, with minimal investment, some steps can be taken to improve energy labels, such as better insulation, solar panels, and heat pumps. Investors may also receive subsidies for heat pumps.

Under the energy label methodology, the annual yield from solar panels is deducted directly from the energy consumption, even though most solar energy is produced when it's not needed.

If cavity wall insulation is difficult due to the need to insulate the entire complex, consider the option of interior insulation. Even a 2 cm insulating board can significantly reduce the cold from the wall. Such a thickness also means no need to adjust window frames.

123Wonen rental agents can advise you on how to obtain a more favorable energy label; there are many options.

Trend: Solar panels mounted on balconies! Be sure to check with the VVE (Homeowners’ Association).

Reform of Room Rentals and Housing for Migrant Workers

Room rentals (hospitaverhuur) are becoming increasingly popular in the Netherlands, especially among young people and students. A legal change is being worked on to make it easier for landlords to enter into rental agreements based on room rentals, with more protection for both landlords and tenants. The proposal aims to remove barriers that mortgage lenders face when approving room rentals. This should increase the number of landlords willing to accept this form of rental.

Additionally, significant changes are coming for housing migrant workers. The government is working on the introduction of the Price-Quality System (PKS), which will improve the quality and transparency of housing for migrant workers. This system, effective from January 1, 2025, will require landlords housing migrant workers to meet higher quality standards. The PKS applies to members of the General Bond of Temporary Employment Agencies (ABU) and the Dutch Federation of Employment Agencies (NBBU), but it may also become relevant to other landlords of migrant workers in the future.

What Does This Mean for Landlords?

The changes in tenancy law for 2025 are extensive and will have a significant impact on the practice of landlords. To avoid fines or sanctions, it is important for landlords and rental agents to:

• Keep rent increases within the allowed percentages.
• Ensure the correct points calculation is carried out for rental properties and included in new rental agreements.
• Correctly implement the VAT rules for service charges and ensure rental agreements align with the new requirements.
• Stay informed about developments in room rentals and new policies for migrant worker housing.

With the implementation of these changes, it is crucial for landlords to take timely action in some cases. This can help avoid legal and financial risks. Since many of these changes have legal and fiscal implications, landlords are advised to stay well-informed. By proactively addressing these changes, landlords can comply with the laws and regulations of 2025 and continue to manage their properties effectively while achieving good returns on their investments.

What to Do in Case of Conflict

Given the complexity of the new tenancy legislation and the pressure on the rental market, conflicts may arise between landlords and tenants. It is crucial to have a good conflict prevention strategy and know how to respond in legal disputes.

Ensure clear, well-drafted rental agreements and communicate transparently with tenants about their rights and obligations. This can help prevent misunderstandings and disputes. If a conflict arises, it is advisable to seek legal advice and consult the Huurcommissie or the court, depending on the situation. Lawyers can assist in enforcing rights and resolving disputes without further escalation.

For general questions, contact your local 123Wonen office. For legal questions, you can email Jurist@123Wonen.nl.