Permissible Service Costs According to Tenancy Legislation
Which service costs are legally permitted? Explanation of permitted and prohibited items with reference to the Tenancy Act and Rent Tribunal standards.
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Arslan AdvocatenLegal Editorial
1 min leestijd
Not all costs may be passed on to tenants as service costs. According to the Tenancy Act (article 7:257 BW), they must be reasonable and market-conformant. Permitted are advances for maintenance, cleaning, lift and garden maintenance in complexes. Prohibited are income-replacement costs such as vacancy or non-payment. Energy costs for common areas yes, but not for individual meters. Insurance premiums only if they are landlord-specific. Management costs may amount to a maximum of 15-20% of the total service costs, depending on complex size. The settlement must be specified per category with invoices. Tenants may not bear costs for structural maintenance that falls under major repairs. Check whether costs are spread over tenants in proportion to surface area or consumption. In case of excess of advance payment, the law requires repayment within six weeks. Improper pass-through may lead to rent reduction. The Rent Tribunal tests against standards from industry agreements. Ensure insight into the tenancy agreement: which costs have been agreed? This prevents disputes and ensures you only pay what is lawful. (202 words)