From July 1 2023: the Good Landlord Act

In a tight housing market there are unfortunately landlords who bend the rules somewhat and are unconcerned about their tenants’ welfare. In our experience, this only applies to a tiny portion of landlords, but in the current political climate there was enough support to pass the Good Landlord Act. While we completely endorse the primary goal of the act, it’s painfully clear that policymakers have little notion of day-to-day practice on the rental market.

What will happen?

There’s still a relatively large amount that is unclear and not everything has been worked out in sufficient detail. However, the government’s basic aim in implementing this Good Landlord Act is to protect tenants against bad landlords. To this end, municipalities will be given far-reaching powers that can be divided into three instruments:

Seven general rules for being a good landlord
A municipal help and information desk
The option of introducing a licensing scheme

1. Seven general rules for being a good landlord

Protection against discrimination: Landlords and rental agents must be clear about how the selection process for tenants works and the grounds on which tenants are accepted or rejected. Update: The mandatory protocol that is part of this will come into effect on January 1, 2024.
Protection against intimidation: Landlords and rental agents must refrain from all forms of intimidation or threatening behaviour. This includes obvious forms of physical intimidation but also, for example, threats about not paying back deposits.
Deposit: The deposit may be a maximum of twice the basic rent. This only applies to tenancy agreements that enter into effect after the act has come into force. The deposit must be paid back within fourteen days of the tenancy agreement being terminated. In the event of any damage to the property or if any other amounts need to be deducted from the deposit, this term increases to thirty days. Weirdly, the ministry seems to have forgotten to implement a transitional arrangement, so this also applies to current rental agreements.
Duty of disclosure: Landlords and rental agents must notify tenants of:
- The tenant’s rights and obligations not set out in the tenancy agreement
- If a deposit is charged, the amount and how it will be returned at the end of the tenancy
- Contact details for a point of contact for matters relating to the rented property
- Contact details for the municipal help desk (effective January 1, 2024)
- If service fees are charged, a full breakdown of these fees must be provided annually
Requirement to put the agreement in writing: The tenancy agreement must be laid down in writing.
Service fees: The landlord only charges service fees permitted by law on top of the basic rent.
Ban on double mediation fees: Rental agents may not charge double mediation fees. The municipality can now enforce this.

2. A municipal help and information desk

It will be mandatory for municipalities to set up a help and information desk and for landlords to give their tenants the contact details. The help desk provides an accessible way to report bad landlords so that the municipality can act. Municipalities may impose fines or penalties for non-compliance.

VNG (association of Dutch municipalities) encourages municipalities to align the help desk with their rental teams. However, rental teams often defend tenants’ interests without considering landlords’ rights. The rental market would benefit from less polarisation and more connection.

3. The option of introducing a licensing scheme

Municipalities may designate areas where properties can only be let after obtaining a licence. The municipality must explain the reason for introducing a mandatory licence, for example if the quality of life in that area is under pressure. Bona fide landlords generally won’t be affected, as licences may only be refused for the four grounds set out in the act.

The municipality may also introduce a mandatory licence for rental to migrant workers applicable to the entire municipality.

In short: what you need to know and do as a landlord

Not everything has been clarified yet and much still needs to be worked out in detail.

Before 1 July 2023: Prepare for the legislation; in principle it only applies to tenancy agreements starting after 1 July (except the duty of disclosure).

After 1 July 2023:

Do not demand a deposit higher than twice the basic rent;
Provide mandatory information to tenants. For new agreements, include it in the contract as an appendix. Sitting tenants must be notified by 1 July 2024;
Rental agents and landlords conducting their own selection must have a written protocol describing tenant selection, unless rented privately off the open market.

Critical footnote

Rogue landlords and unacceptable rental practices need to be effectively addressed. Many good landlords will experience minor inconveniences under this legislation. It adds an administrative burden at a time when rental housing stock is already dwindling due to government measures. It’s questionable whether this genuinely helps tenants or landlords.

While protecting tenants is essential, experience shows some tenants bend the rules. Malicious tenants could use the municipal help desk to burden landlords with undeserved investigations. For legal equality, landlords should also be able to report tenants.

Compliance

Once the municipalities and courts iron out the details, this legislation should contribute to a better rental climate. It’s increasingly essential to turn to an expert when letting a property. The average landlord must navigate a labyrinth of rules and legislation just to provide housing in short supply.

Our employees are receiving additional training and we are adjusting our tenancy agreements to fully comply with this new legislation.

Geschreven door:

Tomas Lim | t.lim@interhouse.nl

Tomas has been a key member of the Interhouse team for many years now. He started out as a rental agent at Interhouse Sassenheim more than fifteen years ago. In the last few years there he was office manager and in this capacity came across many problems experienced by landlords. Since 2015 Tomas has been attached to Interhouse Nederland, the head office for all the Interhouse offices. In 2024 he is partner by Interhouse Nederland. He is responsible for the (continued) development of the franchise formulas and provides support to all the offices throughout the Netherlands. His practical experience and the fact that he has handled all the problems encountered by landlords in the various regions serve to make him one of the best-informed individuals in the industry. His practical knowledge and legal background mean that he is especially valuable to the Interhouse group and its business relations. Add to that his professional photography skills, as well as a feel for and knowledge of (online) marketing, and you have a clear idea of his motivation and experience.

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