Unexpected rent increase: What are your rights and rules?

Receiving a message about a rent increase causes unrest for many tenants, especially when the increase is significant or unexpected. In today's housing market, where living costs are rising, it's essential to know that a landlord cannot simply adjust the price as they see fit. Indeed, Dutch legislation offers strong protection to tenants to prevent arbitrariness and excessive increases.

Whether a rent increase is legally valid depends on various factors: the type of rental contract, the sector in which you rent (social or free sector) and the period when the increase is announced. When confronted with a proposal that feels unreasonable, it is important not to agree immediately, but to review the legal frameworks first.

The maximum rent increase in the free sector

Previously, tenants in the free sector (liberalized rent) were less protected, but that has changed. For several years, there has been a legal maximum for the annual rent increase in the free sector.

• The calculation: The maximum increase is linked to inflation (consumer price index) plus 1 percentage point, or wage development plus 1 percentage point. The lower of these two values is the legal maximum.
• Annual restriction: The landlord may only increase the rent once every twelve months. An interim, second increase within the same year is not allowed, unless there is home improvement (such as sustainability).
• Rental prices: If the new rental price is no longer commensurate with the quality of the home, you can in certain cases call in the rent committee for a review, although this is subject to strict conditions in the free sector than in the case of social rent.

Rules for social housing

In the social sector, the rules are even stricter. Each year, the government determines the maximum percentage of rents allowed to increase.

Income-related rent increase

Housing corporations and private landlords in the social sector are allowed to make a larger increase for tenants with higher incomes. This is intended to prevent “crooked living”. For this purpose, the tax authorities provide the landlord with an income statement, without mentioning the exact amount of your income.

The notice period

For a regular rent increase in the social sector, you must receive the proposal in writing at least two months before the increase takes effect. Are you receiving the message too late? Then the start date will be postponed.

Rent increase after home improvement

There is an important distinction between annual indexation and a rent increase due to renovation or sustainability. If the landlord invests in things that increase home comfort or lower energy costs, such as solar panels, insulation or a new luxury kitchen, an additional rent increase may be requested.

• Reasonableness: The increase must be in a reasonable proportion to the costs incurred and the savings for the tenant.
• Consent: For major improvements, the landlord usually requires the tenant's consent. You don't have to agree to a 'luxury' renovation that makes rent unaffordable, but you shouldn't simply block necessary maintenance or reasonable sustainability.

What to do in case of an incorrect proposal?

If you receive a proposal that exceeds the legal maximum, or if the deadlines have not been met, you have several options.

1. File a written objection: Respond in writing (by email or registered letter) to the landlord. State clearly on what grounds you do not agree with the increase.
2. Keep paying rent (the old price): If you file a timely and well-founded objection, you can continue to pay the old rental price until there is a ruling or a new proposal. Note: only do this if you are sure of your business, to prevent payment delays.
3. Enable the Rent Commission: If you and the landlord can't figure it out, you can ask the Rent Committee to assess the rent increase. They make a binding statement about the reasonableness of the proposal.
4. Check the flaws: In the social sector, a rent increase can sometimes be blocked if there are serious maintenance defects in the home that have previously been formally reported but have not been resolved.

Unexpected increase in service costs

Sometimes the bare rent does not rise, but the advance payment for the service costs unexpectedly. Although the landlord may increase the deposit if the actual costs (such as energy) increase, this should always be based on a realistic assessment. At the end of the year, the landlord must present a full final bill. Does it appear that you paid too much? Then the landlord must refund the difference. The service costs should never be a 'disguised' rent increase that makes the landlord profit.

Rent increase under control: Know the rules and your terms

A rent increase should never come as a surprise. The law prescribes clear deadlines and maximum percentages that protect you against arbitrariness. Whether you rent in the free sector or socially, always check that the percentage is in line with that year's national guidelines and that the announcement has been sent on time. By taking a critical look at the structure of your housing costs and, in case of doubt, filing an objection immediately, you avoid paying too much unnecessarily.