Rent Increase: Statutory Limits in Westland

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Rent Increase: Statutory Limits and Your Rights

A rent increase is an important change in your tenancy agreement, but not every increase is permitted. In the Netherlands, there are strict rules that determine when and by how much your rent may be increased. These rules are laid down in the Rent Allowance Act and the Tenancy Act. As a tenant, you have rights and can challenge an increase if it does not meet the statutory requirements. In this article, we explain what the limits are, how often an increase may occur, and what you can do if you disagree with the increase.

What is a Statutory Rent Increase?

A statutory rent increase is an increase in the rent price that may only take place if it complies with the rules of the Tenancy Act and the Rent Allowance Act. These rules apply to tenants who have a tenancy agreement for a dwelling that they use as their principal residence. Not all rent increases are statutorily permitted – it depends on the type of dwelling and the circumstances.

When May the Landlord Increase the Rent?

The landlord may only increase the rent if:

The increase takes place once every three years (for rental dwellings in the private sector).
The increase is not higher than the statutory maximum increase (see below).
The landlord gives at least three months' written notice of the increase.
The increase is properly motivated (for example, due to inflation, cost increases, or improvements to the dwelling).

These rules do not apply to social housing (for example, from housing associations), where the rent increase is often determined by the Rent Tribunal and is not bound by the above rules.

What is the Maximum Statutory Rent Increase?

Since 2023, the maximum statutory rent increase has been set at 4% per year. This applies to rental dwellings in the private sector. The landlord may therefore not increase by more than 4%, unless the rent was already higher than the reference rent (the rent that is customary on the rental market for comparable dwellings).

Overview of Rent Increases per Year
Year	Maximum Increase (Private Sector)	Remark
2020	1.5%	Temporarily reduced due to the corona crisis
2021	1.5%	Temporarily reduced due to the corona crisis
2022	2%	Increased to 2% due to inflation
2023	4%	Back to the maximum
2024	4%	No change (as of 2024)

Important: If your rent is already higher than the reference rent, the landlord may increase the rent to the level of the reference rent. This is also called adjustment to the market. The reference rent is determined annually by the Statistics Netherlands (CBS) and the Rent Tribunal.

How Often May the Rent Be Increased?

In the private sector, the rent may be increased once every three years. This means that if the rent was increased last year, the landlord may not implement a new increase for another three years. This rule does not apply to social housing.

When Does the Rent Increase Not Apply?

There are exceptions where the statutory rules for rent increases do not apply:

Social housing: For dwellings from housing associations, the rent is often determined by the Rent Tribunal and the increase is not bound by the 4% rule.
New tenants: If you are renting a new dwelling, the landlord may immediately adjust the rent to the reference rent or market value.
Improvements to the dwelling: If the landlord makes significant improvements (for example, a new kitchen or bathroom), the rent may be increased to cover these costs.
Tenancy agreements with a fixed rent: For some agreements (for example, student rentals) ```