Rent increase

A rent increase is the annual or interim adjustment of the rent. For residential accommodation the scope is limited by statute; for business premises the contract in principle determines what is permitted.

Legal basis

For regulated housing Article 7:248 of the Dutch Civil Code applies: rent can in principle be increased once every twelve months, by a proposal made at least two months before the effective date and meeting formal requirements. Maximum percentages are set annually by ministerial regulation. The tenant can object to the landlord and, if the landlord persists, refer the dispute to the Rent Tribunal. Since the Affordable Rent Act of 1 July 2024 the mid-market segment up to and including 186 points also falls within this protection. In the liberalised sector the contractual indexation clause applies, limited by the Act on maximising rent increases for liberalised tenancies, which ties increases to inflation or wage development plus a margin. For business premises contractual indexation applies, usually based on the consumer price index, alongside the possibility of rent review for retail premises.

How it works in practice

A valid proposal states the current and proposed rent, the percentage, the effective date and how to object. If any of those is missing the proposal is invalid and the increase does not take effect. An increase following home improvements is subject to separate rules, including agreement from a majority of tenants for a complex-wide approach.

Where it goes wrong

Landlords send the proposal late or without the required particulars. A second error is indexation in the liberalised sector exceeding the statutory maximum. Third, tenants let the period for applying to the Rent Tribunal lapse.