Rent Reduction After Completion of Renovation Works

After the completion of a large-scale renovation under the 70% regulation, tenants are entitled to a rent reduction if the works result in a decrease in property value or defects. Article 7:243 of the Dutch Civil Code (BW) stipulates that judicial assessment of the quality improvement may lead to an adjustment of the rent. If the renovation fails to deliver promised energy savings, such as insufficient improvement of the Energy Performance Certificate (EPC), tenants may demand a reduction of up to 40% of the investment costs. The Rent Tribunal calculates this based on the 'Housing Valuation System' (woningwaarderingstabel). Practical examples show that post-renovation leaks or inferior insulation have led to successful claims resulting in a 10-25% reduction. Tenants must provide measurements and initiate proceedings within a reasonable timeframe. Landlords risk fines for non-compliance. This can be combined with the Good Landlordship Act to apply additional pressure.