Affordable Rent Law Act

With the introduction of the Affordable Rent Act on 1 July 2024, new rules and opportunities have been established to make renting out your property attractive and straightforward.

Below, we briefly explain what the Affordable Rent Act entails, how the points system works, the practical implications, and how you can rent out your property in the deregulated sector.

Why an Affordable Rent Act?

The Affordable Rent Act aims to protect tenants by ensuring that the rent of a property aligns with its quality.

This is achieved by regulating a significant portion of the rental market, particularly properties in the mid-range rental segment. The Act introduces stricter rules for landlords and expands rent price protection.

Landlords are required to provide the points calculation for the property to the tenant for new tenancy agreements (from 1 January 2025). This ensures transparency and certainty for both parties.

How does the points system work?

The rent of a property is determined using the WWS (Housing Valuation System) points system, based on the quality and characteristics of the property. Factors considered include:

• The surface area of the property;
• Energy efficiency (based on the energy label);
• The WOZ value of the property;
• Amenities, such as the type of kitchen, bathroom, insulation, etc.

Properties with up to 187 points fall under regulated rent and have a maximum rent price. Properties with up to 147 points fall within the social housing segment, and those between 147 and 187 points fall within the mid-range rental segment, both of which are subject to rent price protection.

Properties with 187 points or more belong to the deregulated sector, where no maximum rent price applies, giving you as a landlord the freedom to set the rent.

Practical implications:

The Affordable Rent Act has several implications for landlords:

• Lower rent prices in the regulated segment:
• For properties with 186 points or fewer, a maximum rent price applies, which will significantly limit rental income.
• Greater transparency:
• Landlords must share the points calculation with new tenancy agreements.
• Opportunities in the deregulated sector:
• Properties with 187 points or more are exempt from regulation, allowing you to charge a market-based rent.

While regulation may lead to lower rent prices for some properties, it also presents opportunities.

Demand for deregulated sector properties remains high, especially in urban areas, and with the right approach, you can position your property in this segment.

Opportunities in the deregulated sector

Renting out your property in the deregulated sector offers significant advantages:

• No maximum rent price: You can charge a rent that aligns with market demand, leading to higher returns.
• Flexibility: In the deregulated sector, you have more freedom in drafting tenancy agreements and determining rent increases.
• High demand: There is consistent demand for deregulated sector properties across the Netherlands, ensuring stable rental opportunities.

How can your property qualify for the deregulated sector?

To rent out your property in the deregulated sector (187 points or more), you can invest in improvements that increase the points tally.

Consider:

• Energy-saving measures: Improve the energy label by installing insulation, double glazing, or an efficient boiler.
• Renovations: Modernise the kitchen, bathroom, or other amenities to enhance the property’s quality.
• Surface area expansion: Consider an extension or dormer window to increase the living space.

Our specialized rental agency can assist with a points calculation and provide advice on the most cost-effective improvements.

We know the market and can help make your property attractive for the deregulated sector.

Why choose for EHR?

As a reputable rental agency with over 30 years of experience, we offer:

• Expert advice:
  We assist with calculating your property’s points and advise on improvements to qualify for the deregulated sector.
• Market knowledge:
  We understand the demand for deregulated sector properties and help you set an optimal rent price.
• Comprehensive service:
  From finding reliable tenants to drafting appropriate tenancy agreements, screening prospective tenants, conducting check-ins, and arranging inspections, we handle everything.
• Transparency:
  We ensure you comply with all Affordable Rent Act regulations, allowing you to rent out your property with confidence.

As an experienced rental agency, we are ready to guide you through this process, ensuring you fully benefit from the opportunities in the deregulated sector.

Team EHR