The Affordable Rent Act effective per July 1, 2024

On June 25, 2024, the Senate also approved the Affordable Rent Act, making the law effective July 1, 2024. Tenants can appeal to the law from its entry into force. In a previous article, we already discussed – after the House of Representatives agreed to the bill on April 25, 2024 – the intended changes and possible consequences. This article briefly explains the Affordable Rent Act and discusses the changes made by the Senate.

In brief: the Affordable Rent Act

The Affordable Rent Act aims to protect tenants from excessive rents. The law introduces a new point system in which (more) rental properties are given a capped rent based on points for living area, amenities, WOZ value and energy efficiency, among other things. Thus, the law ensures that landlords charge a rent that matches the quality of the property.

Before the law took effect, two categories of rental housing existed: social rent and free sector rent. For leases concluded in 2024, the (liberalization) limit was around 880 euros. After the law took effect, there are three rental sectors: social rent (up to 143 points), medium rent (from 144 to 186 points) and free sector (187 points or higher). By expanding the point system, homes up to 186 points now also have a capped rent, which is about 1,100 euros.

New rental contracts as of July 1, 2024

As of July 1, the Affordable Rent Act applies to newly concluded rental contracts. This means that landlords are obliged to adhere to the maximum rent calculated using the point system. Through the Rent Check of the Rent Commission, it is easy to calculate the number of points of a rental property.

Submission of point system at commencement of lease as of January 1, 2025

The first change made by the Senate relates to the submission of a scoring system at the start of a new lease. The obligation for landlords to enclose a score has been postponed by the Upper House to January 1, 2025. This involves a point count based on the modernized housing valuation system. This serves transparency so that the tenant knows what the maximum rent for the property is.

Enforcement by municipalities as of January 1, 2025

The second change made by the Senate relates to enforcement through the municipality. Enforcement by municipalities of the new rules has also been postponed to January 1, 2025. From that date, municipalities will be allowed to enforce if a landlord fails to comply with the new rules. So landlords need not fear receiving a fine sooner, but it is wise to chart the number of points and thus the maximum rent of a property before then.

Questions?

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