Rental Market Flow Act in Delft

Rental Market Flow Act in Delft

The Rental Market Flow Act is a major legislative amendment that makes the rental market in the Netherlands, including Delft, fairer and more accessible. It imposes stricter limits on temporary rental agreements, more clearly separates rental sectors, and addresses excessive rents. The aim is to improve market flow, making it easier for first-time renters in Delft to find housing and easing pressure on the local market from the growing student population and commuters.

What does the Rental Market Flow Act mean for Delft?

This act, part of the Good Landlordship Act, took effect on 1 July 2023 and amends the Dutch Civil Code (DCC) to tackle rental market issues. It restricts temporary contracts, more sharply defines the mid- and free sectors, and protects tenants in Delft against exorbitant rents and unfair practices. Landlords face more regulations, while renters in the historic city center or near TU Delft enjoy stronger safeguards against uncertainty.

The act responds to the housing crisis in areas like Delft, where affordable rentals are scarce due to demand from students and young professionals. By limiting temporary contracts, the government prevents prolonged insecurity and pressure on social housing. This article builds on our overview of temporary rental agreements and highlights the impact for residents of Delft.

Legal basis

The act is codified in Book 7 of the Dutch Civil Code, articles 7:232 to 7:271 DCC. Key changes include:

• Article 7:232(1) DCC: Temporary contracts only in exceptional cases such as vacancy or renovation. Indefinite contracts are the default, unless there is compelling interest.
• Article 7:249 DCC: Free sector for rents above €1,123 (2024), but only if income exceeds 1.2 times the social minimum.
• Article 7:268 DCC: Landlords must apply for a permit from the Municipality of Delft for room rentals, with fines for illegal subletting.

The Financial Supervision Act (FSA) is amended to prevent misuse of housing benefits. The Rent Tribunal conducts stricter rent assessments under article 7:247 DCC, which is relevant for Delft residents with disputes.

Transitional provisions

Existing contracts before 1 July 2023 are subject to transitional rules: they continue until expiry, but extensions follow the new rules. This minimizes disruptions in Delft but requires landlords to adapt quickly.

Practical examples for Delft

Suppose you are a first-time renter in Delft leasing an apartment near the city center for €1,200 per month. Previously, the landlord could offer a two-year temporary contract. Now, they must prove the temporary nature, such as demolition plans; otherwise, you get an indefinite contract with eviction protection via the District Court of The Hague.

Another scenario: a family with a mid-level income (€45,000 per year) seeks a €900 rent property in Delft. This falls under the regulated sector (up to €808 in 2024), but for 'mid-range rent' (€808 to €1,123), prices may be higher. Tenants can challenge this at the Rent Tribunal or seek advice from the Delft Legal Aid Office on lowering the rent.

For landlords: someone renting out rooms in a Delft canal house must obtain a permit from the Municipality of Delft. Failure to do so risks fines up to €21,750, similar to prior enforcement against illegal rentals in the city.

Rights and obligations of tenants and landlords in Delft

Tenants' rights:

• Automatic conversion to indefinite contract unless temporariness is proven.
• Option for rent review via the Rent Tribunal if the price is unreasonably high.
• Protection against income or family status discrimination in housing allocation.

Tenants' obligations:

• Disclose income when applying for mid-range rentals.
• No subletting without landlord's approval.
• Carry out minor repairs for maintenance.

Landlords' rights:

• Free pricing in the free sector, as long as market-conform.
• Termination for non-payment or nuisance, subject to District Court of The Hague review.
• Rent reduction for investments in sustainable upgrades.

Landlords' obligations:

• Use of a statutory standard contract.
• Annual service charge overview.
• Registration in the landlord registry if owning more than 50 properties.

These rules balance the market, but disputes in Delft often end up with the subdistrict court or the Delft Legal Aid Office for free advice.

Comparison of rental sectors

Frequently asked questions