Rental Market Flow Act in Westland

Rental Market Flow Act in Westland

The Rental Market Flow Act is a key legislative amendment designed to make the rental market in the Netherlands, including Westland, fairer and more accessible. It introduces stricter rules for temporary rental agreements, draws a clearer distinction between rental sectors, and tackles excessive rents. The aim is to encourage turnover so that first-time renters in Westland can more easily find homes and the local market faces less pressure from high demand in this horticultural region.

What is the Rental Market Flow Act?

The Rental Market Flow Act, part of the Good Landlordship Act, took effect on 1 July 2023. It amends the Dutch Civil Code (DCC) to address rental market issues, particularly in areas like Westland where seasonal greenhouse work creates significant demand for temporary housing. Key elements include limits on temporary contracts, a sharper divide between mid-range and liberalized sectors, and protections for tenants against unfair practices and high rents. Landlords face more regulations, while tenants in Westland gain better safeguards against uncertainty, such as with temporary jobs in horticulture.

This legislation responds to the housing shortage in the Netherlands, where demand for affordable rentals in Westland far exceeds supply due to regional growth. By restricting temporary contracts, the government prevents tenants from lingering in uncertainty and eases the burden on social housing. This article builds on our overview of temporary rental agreements and highlights the impact in Westland, where the Municipality of Westland plays an active role in housing policy.

Legal basis

The Act is codified in Book 7 of the Dutch Civil Code, Articles 7:232 to 7:271 DCC. Key changes include:

• Article 7:232(1) DCC: Temporary rental agreements are permitted only in specific cases, such as vacancy or renovation. In Westland, with its many temporary jobs, indefinite-term contracts are the rule unless there is a compelling reason, like seasonal greenhouse work.
• Article 7:249 DCC: Liberalized sector properties qualify if basic rent exceeds €1,123 (2024) and income is more than 1.2 times the social minimum – relevant for mid-range incomes in Westland's horticulture sector.
• Article 7:268 DCC: Landlords must meet stricter requirements, such as obtaining a permit for room rentals from the Municipality of Westland, with fines for illegal subletting.

The Act also amends the Financial Supervision Act (FSA) to curb misuse of housing benefits. The Rent Assessment Committee conducts stricter rent reviews (Article 7:247 DCC), and Westland residents can seek advice from the Legal Aid Office Westland.

Transitional provisions

Existing contracts before 1 July 2023 are governed by transitional rules: they continue until expiry, but renewals must comply with the new rules. This minimizes disruption in Westland but requires landlords to adapt quickly, for example, for temporary housing of seasonal workers.

Practical examples

Suppose you are a first-time renter in Naaldwijk, Westland, leasing an apartment for €1,100 per month. Before the Act, the landlord could offer a two-year temporary contract. Now, they must justify its temporary nature, such as demolition plans; otherwise, it becomes an indefinite-term contract with eviction protection via the District Court Westland.

Another scenario: a family with a mid-range income (€45,000 annually) in Monster seeks a €900 rental. This falls in the regulated sector (up to €808 in 2024), but for 'mid-range rentals' (€808–€1,123), prices may be higher. Tenants can challenge this with the Rent Assessment Committee or Legal Aid Office Westland for a lower rent.

For landlords: an investor renting rooms to seasonal workers in 's-Gravenzande must apply for a permit from the Municipality of Westland. Failure to do so risks fines up to €21,750 per violation, similar to prior cases of illegal rentals in the region.

Rights and obligations of tenants and landlords

Tenant rights:

• Automatic conversion to indefinite term unless temporariness is proven.
• Right to rent review by the Rent Assessment Committee if the price is too high.
• Protection against income or origin-based discrimination in allocations, with support from the Legal Aid Office Westland.

Tenant obligations:

• Transparency on income when applying for mid-range rentals.
• No subletting without landlord consent.
• Contribution to minor maintenance, as in Westland rentals.

Landlord rights:

• Free pricing in the liberalized sector, provided it is market-conform in Westland.
• Termination for non-payment or nuisance, subject to District Court Westland review.
• Deduction of sustainability costs, useful for energy-efficient greenhouse housing.

Landlord obligations:

• Use of a standard contract compliant with the Act.
• Annual service charge overview.
• Registration in the landlord registry if owning more than 50 properties.

These rules balance the market, but disputes in Westland often end up before the District Court Westland's sub-district judge.

Comparison of rental sectors

Frequently asked questions