Many landlords run into the same question. Rental income is falling behind while maintenance costs, taxes and other expenses keep rising. It is natural, then, to consider whether a property might be better off rented in the private sector. But when is that actually allowed? And can you simply convert a regulated rental property to the private sector?
The short answer: no, usually not during an ongoing tenancy. Your options are limited as long as the current tenant is living in the property. That said, there are routes that can lead from regulated rent to the private sector over time. This blog explains what the rules are, where the opportunities lie and where landlords often go wrong.
The basics first: when is a property regulated and when is it not?
Whether a property falls under regulated rent or in the private sector depends on the residential property valuation system, known in Dutch as the woningwaarderingsstelsel (WWS). This points-based system assesses the quality of a property based on factors including floor area, facilities such as kitchen and bathroom, the municipal property value (WOZ), the energy label and the condition of the property.
Only when a property reaches a sufficient number of points at the relevant moment can private sector rental become possible. That means it is not just the rent you want to charge that matters — what counts above all is the legal classification of the property at the time the tenancy begins.
This is a crucial point: you cannot convert an existing regulated tenancy agreement to the private sector later on simply because the market has changed or the property has risen in value.
During an ongoing tenancy: almost no room to manoeuvre
If a tenant is living in the property under a regulated contract, you cannot unilaterally raise the rent to a private sector level. The tenant has both security of tenure and rent price protection. That is precisely the essence of regulated rental.
Many landlords believe that switching is possible once the market value of the property has risen, the municipal property value has increased or the property has been improved. But those circumstances are almost never sufficient on their own to convert an existing regulated tenancy into a private sector contract.
Agreements with the tenant: less straightforward than it seems
It is sometimes assumed that landlord and tenant can simply agree together that the property will henceforth fall in the private sector. In theory that is conceivable, but in practice it is rarely a legally safe route. Residential rental law contains a great deal of mandatory regulation designed to protect tenants.
That means not every agreement is automatically valid, even if both parties appear to consent. If an agreement effectively results in the tenant losing protection to which they are entitled, that agreement can later be set aside. For landlords, this is therefore generally not a sensible route to take without proper legal review beforehand.
The most realistic route: re-letting after the tenant leaves
For most landlords, the real opportunity only arises when the property becomes vacant. Once the tenant leaves, you can reassess at the point of re-letting which segment the property falls into. At that moment the relevant questions are: how many points does the property currently score, does that place it in regulated rent, the mid-market segment or the private sector, and what starting rent can you legally agree?
For many landlords this is the natural turning point. Not during the existing tenancy, but at the moment a new tenant comes into view.
Asking a higher rent is not a solution
This is a common mistake. Some landlords simply put a higher rent in the contract and assume the property therefore falls in the private sector. But if the property does not qualify for private sector rental under the points system, the tenant can later challenge the rent. It will then be brought back down to the regulated level, potentially with repayment obligations.
The practical lesson is simple: first establish whether the property may be rented freely, then set the rent.
Improving the property: often the smartest preparation
If your aim is to move to the private sector over time, it can be worthwhile to make targeted improvements to the property. Not every investment helps, but some changes can genuinely add points. Think of sustainability upgrades and a better energy label, renovating the kitchen or bathroom, structural quality improvements, or better facilities and finishes.
Cosmetic work is usually not enough. The improvements need to be ones that actually count within the points system. That is why it makes sense to have a points assessment carried out first and only invest afterwards. That way you know whether a renovation will genuinely push you over the threshold, or whether you would be spending money without any legal benefit.
Temporary contracts are not a way out
Some landlords hope that by using temporary tenancy agreements they can gain more control over when the property becomes vacant. But temporary contracts have been strongly restricted since 2024. In many cases the starting point is now that a tenant receives an open-ended contract. Anyone who tries to create more flexibility through a temporary arrangement runs the risk that the tenant turns out to have full security of tenure regardless. As a strategy for moving from regulated rent to the private sector, temporary rental is rarely reliable.
Do not forget the mid-market segment
The rental market no longer consists only of regulated rent and the private sector. The middle segment is playing an increasingly important role. A property that looks economically attractive for the private sector may still fall under more restrictive rent rules legally. That is why, when re-letting, it is not enough to simply ask whether private sector rental is possible. You also need to check whether the property may belong in the mid-market segment.
Practical step-by-step plan
Want to know as a landlord whether your property can move to the private sector? Work through the following steps in order. Start by mapping the current rental situation: the type of contract, when the tenancy started, the current rent and the tenant’s position. Then have an up-to-date points assessment carried out — not on instinct, but concretely and with proper underpinning. Next, assess whether the property could be de-regulated at the point of re-letting. After that, investigate which improvements would add extra points and carry out a cost-benefit analysis. Only set the rent after legal review, and have contracts and strategy assessed by a specialist in advance.
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 property becomes vacant and you re-let. That is when you can assess whether the property qualifies for a different segment on the basis of its points score and whether investments are worthwhile.
Moving from regulated rent to the private sector is not a switch you can simply flip. It is a strategic moment that calls for a solid points assessment, an understanding of the current rental rules, realistic planning and sometimes upfront investment. Landlords who prepare well avoid disputes later on and make better-informed decisions about returns and rental strategy.
Want to know whether your property could qualify for private sector rental when you re-let? Start by having the points score and legal rental position properly assessed. It is precisely at that intersection that many mistakes are made in practice, and a thorough review beforehand can prevent a great deal of financial risk.
