May the deposit in Amsterdam be indexed?
Yes, in Amsterdam the deposit may be adjusted annually to inflation pursuant to article 7:249 of the Dutch Civil Code (BW), provided this is explicitly included in the lease agreement for a rental property in the city. This follows the consumer price index (CPI) of the CBS, which is particularly relevant in the Amsterdam rental market with high rents and scarcity for landlords in neighborhoods such as De Pijp or the Jordaan.
Calculation method for Amsterdam tenants
Formula: New deposit = Old deposit × (New CPI / Old CPI). Example specific to Amsterdam: For a deposit of €1500 (typical for an apartment with €1200 monthly rent), CPI increase from 120 to 125, the new deposit becomes €1562.50. Note the stricter control by the Amsterdam Rent Team on unfair adjustments.
Procedure for adjustment in Amsterdam
- Send timely written notice with detailed calculation, ideally before 1 July for the new rental year, in accordance with local practices.
- Tenant pays the difference; landlord deposits it into a blocked account at an Amsterdam bank such as ING or ABN AMRO.
- Upon termination of the lease, the deposit is refunded at the adjusted amount, minus any damage after inspection by the landlord.
Disputes and limits in the Amsterdam rental market
The deposit in Amsterdam may never exceed two times the monthly rent (statutory maximum under the Civil Code). In case of exceedance, the tenant can demand a reduction via the Rent Committee or the Amsterdam Legal Aid Office. The municipality of Amsterdam and the Woonbond strictly review indexations, especially for free sector properties in Centrum or Oud-Zuid, to prevent exploitative practices.