Starting July 1st 2024, landlords are allowed to raise the basic-rent again. This means that most tenants will be sent a rent increase proposal around this time of year. As a tenant, how do you check if this is done according to the rules?
First of all, there is a distinction between the social sector and the free sector. Do you doubt whether your rental agreement falls under the social sector or the free sector? Then you can easily check this via this webpage of the Rijksoverheid.
In short, you rent in the social sector if you rent a non-self-contained accommodation, or when the basic rent is below the liberalization threshold of €879,66.
Social Sector
If you rent in the social sector, then as of July 1st 2024, your landlord may increase the rent by:
- A maximum of 5.8% (for a basic-rent that is €300 or more)
- A maximum of €25.00 (for a basic-rent of less than €300).
This applies to independent living accommodation and is not income dependent. For room rentals, the permitted rent increase this year is also 5.8% of the basic-rent.
If you rent independent living space and have a higher income, your landlord may propose a higher rent increase.
For a single-person household, the income in that case must exceed €52,753. For a multiple-person household, the income must exceed €61,046.
Objection
When can you object to a rent increase in the social sector?
- This is possible, for example, when you pay an ”all-in rent,” as the basic-rent is now unknown. The rent increase cannot be ‘checked’ in this case. Your landlord must first split your all-in rent into basic-rent and service costs.
- When the rent increase is higher than the maximum rent increase.
- When the rent is higher due to the rent increase than the maximum rent. This is the maximum rent based on the point system.
- The rent increase proposal contains errors. The basic-rent is shown incorrectly or the proposal contains an incorrect starting-date for your new rent. This is because the proposal must have been made known to you at least two months before the effective date.
- You have already asked the Rent Commission to lower your rent based on defects, or the rent has already been lowered based on defects. If the defects are not known to the Rent Commission, then the defects cannot provide grounds for objection to the rent increase.
- In addition, there must be 12 months between rent increases. But this has some exceptions.
- The first year of your rent. For example, you sign the rental-agreement in December, your landlord then does not have to wait until December next year to do the rent increase and may just do it in July.
- There was more than 12 months between the previous two rent increases.
- When the landlord has improved the property.
Always address the objection initially to the landlord. Should the landlord take a different view and disagree with your objection? Then you as a tenant can start a procedure with the Huurcommissie. The Huurcommissie then tests whether the rent increase is in accordance with the regulations. There are two possible outcomes:
- The rent increase is reasonable, so the rent increase goes into effect from the effective date, with retroactive effect. Also, the cost of the procedure is borne by the tenant, this is 25 euros.
- The rent increase is not reasonable, the proposed rent increase does not go through. The Huurcommissie can also propose a reasonable rent increase in this case. This must then also include a percentage and effective date.
Free sector
Different rules apply to rent increases in the free sector.
For rental properties in the free sector, the basic-rent may be increased by a maximum of 5.5% from January 1st 2024.
When is the landlord allowed to raise my rent?
- There is nothing in your rental contract about an annual rent increase. Your landlord may not propose a rent increase in this case.
- Your rental contract states a percentage that is lower or equal to 5.5%, in this case your landlord may increase the rent by the percentage stated in the contract.
- Your rental contract states a percentage higher than 5.5%. Then your landlord must stick to the 5.5%. He may not propose a higher rent increase.
Objection
Even if you rent in the free sector, you can object to the Huurcommissie. However, this is a lot more difficult than for the social sector.
You can only object to a proposed rent increase in the free sector if your landlord increases the rent by more than 5.5%, if a lower percentage is contractually agreed upon or if nothing is contractually agreed upon at all.
- Does the annual rent increase turn out to be correct? Then the higher rent goes into effect from the effective date of the rent increase, retroactively.
- Is the rent increase not correct? Then the Huurcommissie will determine the correct rent. The ruling states the percentage by which the rent may be increased and the date on which the rent increase takes effect.
Conclusion
Do you have doubts about the proposed rent increase? Always check first whether you are renting in the social- or free sector. Furthermore, we at Steunpunt Huren Groningen always advise you to first talk to your landlord before going to the Huurcommissie.
If anything is unclear or if you need help with any of the steps? Then fill in the contact form and ask us. We are happy to help.
