Landlords that Rotsvast works with are known to be professional and reliable. The government wants to tackle abuses with a new Good Letting Law and has introduced specific rules for this purpose that describe how good landlords and letting agents should behave. Which new rental rules apply to landlords and rental agents can be read in this article.

General rules of good landlordism:

The Good Landlord Act means:

  • Countering discrimination with anti-discrimination measures;
  • Countering harassment;
  • Require a maximum of 2 months of bare rent as a security deposit;
  • The lease must be in writing;
  • Inform the tenant in writing of their rights and obligations, security deposit, service charges, contact information for the manager and hotline for undesirable landlord behavior;
  • Draft and implement written policies to combat housing discrimination.

Landlords should ensure a clear and transparent selection process. Objective selection criteria should be used and communicated when advertising the property. Rejection of prospective tenants must be justified.

Application of the Good Landlord Act:

The Good Landlord Act with these new rules will likely take effect July 1, 2023. The rules mainly apply to new leases after the law is introduced. A transition period of 1 year applies to existing leases. A shorter period applies for rentals to labor migrants. Municipalities can introduce the licensing requirement for current rental agreements earlier with a transition period of at least 6 months.

Municipal Rental Ordinance:

At the local level, a municipality can establish a rental ordinance. This means that a permit is required for certain categories of housing in certain neighborhoods. As a landlord, you must apply for a permit in a timely manner, and it may contain additional conditions, such as rules on rent.

Security deposit:

The security deposit in leases is limited to a maximum of two times the bare rent. The security deposit may only be used for rent arrears, unpaid service charges or damage to the property caused by the tenant. The landlord must provide a detailed statement of settlements within a specified period of time.

Sanctions:

The municipality must enforce this law and can impose measures such as a penalty, administrative coercion, revocation of the rental license or fine up to €90,000.00. For repeated violations, the property may be taken into administration by the municipality.

Rules for rental intermediaries:

Rental intermediaries must comply with the new Good Landlord Act. They must inform the tenant in writing about rights and obligations, deposit, service charges, manager and hotline for undesirable landlord behavior. Mediation fees may not be charged. A procedure to prevent discrimination must be established and employees must be aware of it.

New rules for renting to migrant workers:

Additional rules apply to landlords renting accommodation to labor migrants (which includes expats from the EU), such as definition of "labor migrant" and application of the law. Additional rules for renting to labor migrants, such as separate rental agreements and written information in an understandable language.

Permit requirement for rental to migrant workers:

Municipalities can establish a permit requirement for renting to labor migrants, with possible conditions such as rules for good landlordism, separate bedrooms and adequate facilities. Existing accommodations for labor migrants have a 3-year transition period.

Penalty for excessive rent:

Landlords can be fined if they charge excessive rents, provided there is a permit with a maximum rent.

Enforcement and sanctions:

The Board of Mayor and Aldermen can take enforcement action with a penalty payment, fine or occupancy of the property. Fines may be up to a maximum of €90,000.00. Penalty decisions are made public.

Rental permit requirement:

Municipalities can institute a rental permit with specific requirements, such as no violation of regulations, no enforcement in the past 8 years, no occupancy and no negative Bibob test. If the permit is denied, the municipality can take control of the property.

Management of the property by the municipality:

As a sanction, the municipality can take over the management of the property, with the landlord no longer allowed to carry out management activities. The municipality can hire an external manager and pass on the rental income after deducting expenses. Termination of management is possible after convincing rental plan.

Municipalities with rental ordinance:

Some municipalities, such as Rotterdam, The Hague and Leiden, have announced rental ordinances. Further details are not yet known.