Rental Market Flow Act in Tilburg
The Rental Market Flow Act is a major legislative change that makes the rental market in the Netherlands, including Tilburg, fairer and more accessible. It imposes stricter conditions on temporary rental agreements, more clearly defines boundaries between rental sectors, and addresses excessive rents. The aim is to promote turnover, enabling first-time renters in Tilburg to more easily find affordable housing and easing pressure on the local market.
What does the Rental Market Flow Act mean for Tilburg?
This act, also known as 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 focuses on limiting temporary contracts, better delineating mid-range and private sector rentals, and protecting tenants from exorbitant rents and unfair practices. For landlords in Tilburg, this means additional responsibilities, while tenants gain greater security. In Tilburg, where demand for housing is high due to the growing student population and commuters, this act helps relieve the social housing sector.
The act responds to the national housing crisis, but locally in Tilburg the need is acute due to the limited supply of affordable rentals. By restricting temporary contracts, the government prevents prolonged uncertainty for tenants and overburdening of the social sector. This article ties into our overview of rules for temporary rental agreements and highlights the impact on the Tilburg market.
Legal basis
The act is codified in Book 7 of the Dutch Civil Code, specifically Articles 7:232 to 7:271 DCC. Key changes include:
- Article 7:232(1) DCC: Temporary rental agreements are only permitted in cases such as vacancy or renovation. Otherwise, an indefinite-term contract applies, unless a compelling interest is demonstrated.
- Article 7:249 DCC: For the private sector, income criteria apply: rentals above €1,123 base rent (2024) qualify, provided income exceeds 1.2 times the social minimum.
- Article 7:268 DCC: Landlords must meet stricter requirements, such as obtaining a permit for room rentals from the Municipality of Tilburg and facing fines for illegal subletting.
The Financial Supervision Act (FSA) is amended to prevent misuse of housing benefits. The Rent Assessment Committee plays a larger role in checking rents, pursuant to Article 7:247 DCC. In Tilburg, you can seek advice from the Legal Aid Office Tilburg.
Transitional provisions
For existing contracts before 1 July 2023, transitional provisions apply: these may expire, but extensions must comply with the new rules. This minimizes disruptions but requires landlords in Tilburg to adapt quickly.
Practical examples for Tilburg
Suppose you are a first-time renter in Tilburg leasing an apartment on Heuvelstraat for €1,200 per month. Before the act, the landlord could offer a two-year temporary contract. Now, they must prove the temporary nature, such as due to demolition plans. Otherwise, you get an indefinite contract with eviction protection via the District Court of Zeeland-West-Brabant in Breda.
Another case: a family with a mid-range income (€45,000 per year) seeks a €900 rent in the Het Zand neighborhood. Under the new rules, this falls into the regulated sector (up to €808 in 2024), but for 'mid-range rent' (between €808 and €1,123), prices may be higher. Tenants can challenge this with the Rent Assessment Committee for a lower rent.
For landlords: an investor with multiple rooms in Tilburg must apply for a permit from the Municipality of Tilburg. Without it, fines of up to €21,750 per violation loom, similar to prior cases of illegal rentals in the region.
Rights and obligations of tenants and landlords in Tilburg
Rights of tenants:
- Automatic conversion to indefinite term, unless temporariness is justified.
- Option for rent review by the Rent Assessment Committee if rates are too high.
- Protection against income or origin discrimination in housing allocation.
Obligations of tenants:
- Provide transparency on income for mid-range rental applications.
- No subletting without permission.
- Contribute to minor maintenance and repairs.
Rights of landlords:
- Free pricing in the private sector, as long as market-conform.
- Termination for non-payment or nuisance, subject to review by the district court in Breda.
- Discount on rent increases for sustainability investments.
- Use of a statutory standard contract.
- Provide annual overview of service charges.
- Registration in the landlord register if more than 50 properties.
Obligations of landlords:
These rules balance the market, but disputes in Tilburg often end up at the District Court of Zeeland-West-Brabant. The Legal Aid Office Tilburg offers free initial assistance.
Comparison of rental sectors
| Sector | Rent threshold (2024) | Regulation | Example in Tilburg |
|---|---|---|---|
| Social housing | Up to €808 | Max. points system, review by Rent Assessment Committee | Apartment from a housing association in Besterd |
| Mid-range rent | €808 - €1,123 | Limited increases, income-based | Private home for mid-income earners in Krul |
| Private sector | Above €1,123 | Free pricing, no benefits | Luxury studio near Spoorzone |
Frequently asked questions
Can I extend my temporary rental agreement in Tilburg after 1 July 2023?
No, extensions are only possible under new exceptions, such as vacancy or seasonal work. Otherwise, it becomes indefinite. Consult the Rent Assessment Committee or Legal Aid Office Tilburg for personal advice.