Rent Price Protection and Indexation in Practice

The Dutch Rent Act (Article 7:247 of the Dutch Civil Code) protects tenants against excessive rental prices. The liberalisation threshold for 2024 is set at €879.66; properties below this threshold are subject to a points-based system. Landlords may annually index rent by a maximum of 5.3% (2024), provided this is announced in writing. Exceeding this limit renders the indexation void. Tenants can lodge an objection with the Rent Tribunal within four months. For income-dependent rent (social housing sector), Article 7:250 of the Dutch Civil Code applies. Consequences include the repayment of excess amounts with interest. For example, excessively high service charges (capped at €5.50/m²) are treated separately. Tips: verify the WOZ value and energy label for points calculation. For new rentals, the price must not exceed what is considered 'reasonable,' assessed based on luxury and location. Disputes: the Rent Tribunal provides binding advice, followed by the subdistrict court if necessary. Indexation clauses without a statutory cap are deemed unfair (Article 6:236 of the Dutch Civil Code). Tenants with low incomes may apply for rent allowance via the Tax and Customs Administration. Landlords should avoid sanctions by providing transparent specifications. Recent legislative amendments (Housing Act) prohibit the misuse of landlord levies. This legal framework balances interests and prevents exploitative rent practices. Document everything for evidentiary purposes.