Rental Market Flow Act in Amsterdam

Rental Market Flow Act in Amsterdam

The Rental Market Flow Act is a major legislative change designed to make the rental market in the Netherlands, and particularly in Amsterdam, fairer and more accessible. Amid the severe housing shortage in the capital, this act introduces stricter rules for temporary leases, clear boundaries between rental sectors, and measures to curb excessive rents. The aim is to promote tenant mobility, helping Amsterdam residents – especially first-time renters – find affordable homes more easily and restoring balance to the overheated market.

What is the Rental Market Flow Act for Amsterdam residents?

The Rental Market Flow Act, part of the Good Landlordship Act, took effect on 1 July 2023 and amends the Dutch Civil Code (DCC). It addresses key issues on Amsterdam's rental market, where demand is sky-high due to population growth and tourism. Core elements include limits on temporary contracts, a clear divide between mid-range and private sectors, and protections against unfair renting practices. Landlords in Amsterdam face greater responsibilities, while tenants gain stronger safeguards against uncertainty. For advice, contact the Legal Aid Office Amsterdam.

This act responds to Amsterdam's acute housing crisis, where affordable rentals are scarce. By regulating temporary contracts, the government prevents tenants from lingering in uncertainty and eases pressure on social housing. This article ties into our overview of temporary lease rules and highlights its local market impact.

Legal basis in Amsterdam

The act is enshrined in Book 7 of the Dutch Civil Code, Articles 7:232 to 7:271 DCC. Key changes relevant to Amsterdam include:

• Article 7:232(1) DCC: Temporary leases are permitted only in cases like vacancy or renovation. In Amsterdam, with its many renovation projects, indefinite leases become the norm unless compelling reasons are proven.
• Article 7:249 DCC: Private sector rentals above €1,123 (2024) apply income criteria: tenants must earn more than 1.2 times the social minimum – vital in a city with high income inequality.
• Article 7:268 DCC: Landlords must meet stricter standards, such as obtaining a permit for room rentals from the Municipality of Amsterdam, with fines for illegal subletting.

The act also amends the Financial Supervision Act (FSA) to curb housing allowance abuse. The Rent Assessment Committee plays a bigger role in rent checks under Article 7:247 DCC, which generates many disputes in Amsterdam.

Transitional provisions for existing leases

For ongoing leases in Amsterdam, transitional rules apply: temporary agreements predating 1 July 2023 run their course, but extensions must comply with the new rules. This minimizes market disruption while prompting landlords to adapt quickly.

Practical examples in Amsterdam

Suppose you're a first-time renter in Amsterdam leasing an apartment in De Pijp for €1,200 a month. Previously, a landlord could offer a two-year temporary lease, but now they must justify its temporariness, such as demolition plans under urban renewal. Otherwise, you get an indefinite lease with eviction protection via the District Court of Amsterdam.

Another scenario: a family earning €45,000 mid-income seeks a €900 home in Oud-Zuid. This falls in the regulated sector (up to €808 in 2024), but 'mid-range rent' (€808–€1,123) allows higher prices. Tenants can challenge this with the Rent Assessment Committee or Legal Aid Office Amsterdam for a rent reduction.

For landlords: an investor renting rooms in the Jordaan needs a permit from the Municipality of Amsterdam. Non-compliance risks fines up to €21,750, as seen in prior illegal Airbnb cases.

Rights and obligations of tenants and landlords in Amsterdam

Tenants' rights:

• Automatic conversion to indefinite term unless temporariness is proven.
• Option for rent review by the Rent Assessment Committee if unreasonably high.
• Protection against income or origin discrimination in allocations, backed by local anti-discrimination agencies.

Tenants' obligations:

• Disclose income transparently for mid-range rental applications.
• No subletting without landlord consent.
• Contribute to minor maintenance, per Amsterdam rental rules.

Landlords' rights:

• Free pricing in the private sector, if market-conform in Amsterdam.
• Termination for non-payment or nuisance, subject to District Court of Amsterdam review.
• Deduct sustainability costs, relevant for energy-efficient city homes.

Landlords' obligations:

• Use a statutory standard lease agreement.
• Provide annual service charge statements.
• Register in the landlord registry if owning over 50 properties.

These rules foster balance but often lead to cases at the District Court of Amsterdam's subdistrict court.

Comparison of rental sectors in Amsterdam

FAQs for Amsterdam