You usually cannot move a regulated rental home to the private sector during an ongoing tenancy: the tenant keeps both security of tenure and rent protection. The realistic moment is when the home is re-let, and even then it only works if the home scores enough points under the housing valuation system; the rent you would like to charge does not decide the segment.
Below we explain how the segment of a home is determined, why an ongoing tenancy leaves little room, why a higher rent in the contract is not a solution, how improvements can help, and which steps you can take as a landlord.
When is a home regulated, and when is it not?
The segment follows from the points the home scores under the housing valuation system (woningwaarderingsstelsel, WWS). Since the Affordable Rent Act (Wet betaalbare huur) the system covers both the low and the middle segment, so fewer homes fall in the free sector.
The WWS scores the quality of a home on the basis of factors such as floor area, facilities like the kitchen and bathroom, the WOZ value (the municipal property valuation), the energy label and other quality features. For 2026 the thresholds are:
- Low (social) segment: up to 143 points, with a maximum basic rent of 932.93 euros a month.
- Middle segment: 144 to 186 points, with a maximum basic rent of 1,228.07 euros a month.
- Free sector: 187 points or more; there is no maximum rent.
The Affordable Rent Act applies to new tenancy agreements concluded on or after 1 July 2024 for homes up to 186 points. For homes up to 143 points, the maximum rent also applies to existing contracts: if the rent is higher than the points allow, the landlord must lower it. Since 1 January 2025 municipalities can also fine landlords who do not comply, and landlords must state the points score when the tenancy begins.
A crucial point: what counts is the legal classification of the home at the start of the tenancy. You cannot convert an existing regulated tenancy into a free-sector tenancy later simply because the market has changed or the home has become more valuable.
What can you do during an ongoing tenancy?
Very little. While the tenant lives in the home under a regulated contract, you cannot unilaterally raise the rent to a free-sector level; the tenant has security of tenure and rent protection.
Many landlords believe a switch is possible once the market value or the WOZ value has risen, or once the home has been improved. Those circumstances are almost never sufficient on their own to turn an existing regulated tenancy into a free-sector contract. Rent increases during the tenancy remain subject to the statutory maximums for the segment. For 2026 the government has set, among others, a maximum increase of 6.1% for the middle segment and 4.4% for the free sector.
Agreements with the tenant are less straightforward than they seem
It is sometimes assumed that landlord and tenant can simply agree that the home will from now on fall in the free sector. In practice that is rarely a legally safe route. Residential tenancy law contains many mandatory rules that protect the tenant.
Not every agreement is valid, even if both parties seem to agree. If an agreement in effect deprives the tenant of protection he or she is entitled to, it can be set aside later. For landlords this is therefore not a sensible route without a legal review in advance.
What is the most realistic route?
Re-letting after the tenant leaves. At that moment you can reassess which segment the home falls into, on the basis of its current points score.
For most landlords, the real opportunity arises only when the home becomes vacant. The questions then are: how many points does the home score now, does that place it in the low segment, the middle segment or the free sector, and what starting rent may you legally agree? For many landlords this is the natural turning point: not during the existing tenancy, but when a new tenant comes into view.
Why is asking a higher rent not a solution?
Because the points decide the segment, not the rent in the contract. A rent that is too high can be challenged and reduced to the maximum that applies.
This is a common mistake. Some landlords simply put a higher rent in the contract and assume the home therefore falls in the free sector. If the home does not qualify under the points system, the tenant can ask the Rent Tribunal (Huurcommissie) to assess the rent, and the rent can be brought back to the maximum for the segment, possibly with repayment of what was paid too much. The practical lesson is simple: first establish in which segment the home falls, then set the rent.
Can improving the home help?
Often, yes. Targeted improvements can add WWS points and so change the segment in which the home can be let at the next tenancy.
Not every investment helps, but some changes add points. Think of sustainability measures that improve the energy label, a new kitchen or bathroom, and better facilities and finishes. Cosmetic work is usually not enough: the improvement must count in the points system.
That is why it makes sense to have a points assessment carried out first and to invest only afterwards. You then know whether a renovation will actually take the home over the threshold, or whether you would spend money without any legal benefit.
Temporary contracts are not a way out
Some landlords hope to gain control over when the home becomes vacant by using temporary tenancy agreements. Since the Act on permanent tenancy agreements (Wet vaste huurcontracten) entered into force on 1 July 2024, new temporary contracts are only allowed for specific groups of tenants and for at most two years; the permanent contract is the norm. A landlord who tries to create flexibility through a temporary contract that does not meet the conditions runs the risk that the tenant turns out to have full security of tenure. As a strategy for moving to the free sector, temporary letting is rarely reliable.
Why should you not forget the middle segment?
Because a home that seems attractive for the free sector may legally still fall in the middle segment, with a maximum rent. When re-letting, check both thresholds.
The rental market no longer consists only of social rent and the free sector. A home that scores between 144 and 186 points is let in the middle segment, where the Affordable Rent Act sets a maximum rent. When re-letting, it is therefore not enough to ask whether free-sector letting is possible; you must also check whether the home belongs in the middle segment.
Example: a landlord re-lets a flat that scores 170 points after a renovation with a new energy label. The flat has left the low segment, but it has not reached the free sector: the rent may not exceed the maximum that applies to 170 points.
What is a practical step-by-step plan?
Work through the following steps in this order. That prevents you from setting a rent that does not hold up.
- Map the current rental situation: the type of contract, when the tenancy started, the current rent and the tenant’s position.
- Have an up-to-date points assessment carried out, concretely and with proper supporting evidence.
- Assess in which segment the home could be let at the next tenancy.
- Investigate which improvements would add points, and make a cost-benefit analysis.
- Set the rent only after a legal review, and have contracts and strategy checked in advance.
In summary
- The segment of a rental home depends on its WWS points, not on the rent you agree.
- For 2026: up to 143 points is the low segment, 144 to 186 points the middle segment, and 187 points or more the free sector.
- During an ongoing regulated tenancy you cannot move the home to the free sector, and agreements with the tenant to that effect are risky.
- The realistic moment is re-letting, possibly after targeted improvements that add points.
- Temporary contracts are only allowed for specific groups since 1 July 2024 and are no way out.
Frequently asked questions
Can I raise the rent to a free-sector level if the market value has risen?
No. During an ongoing tenancy the statutory rules on rent increases for the segment apply. A higher market or WOZ value does not by itself change the segment of an existing tenancy.
Does a better energy label help?
It can. The energy label is one of the factors in the points system, so sustainability measures can add points. Have the effect calculated before you invest.
What happens if I let the home at a rent that is too high?
The tenant can ask the Rent Tribunal to assess the rent. If the rent exceeds the maximum for the points score, it can be reduced, possibly with repayment. Municipalities can also impose fines on landlords who do not comply with the rules.
What does this mean for you in practice?
As a landlord, your options during an ongoing tenancy are limited. The best opportunities arise when the home becomes vacant and you re-let it: then you can assess on the basis of the points score whether the home qualifies for a different segment and whether investments are worthwhile. Moving from regulated rent to the free sector is not a switch you can simply flip; it requires a solid points assessment, knowledge of the current rental rules and realistic planning. Landlords who prepare well avoid disputes and make better decisions about returns. Unsure where you stand? Tell us about your situation. We will let you know your options within one working day.
How Law & More can help you with this is explained on our tenancy lawyer page.
