Understanding Rent Increases: Social vs. Private Sector

Questioner

Good evening, I find the rent increase imposed/proposed to me by the landlord of my home to be on the high side. I also found this last year, but I accepted it then. I am now wondering whether I live in a social or private sector rental property. I thought I live in a private sector property, because I rent from a private individual. This does not have to be the case. At least if I do the test on the website of the Dutch government, the result is that I live in a social rental property. Different rules apply here, regarding rent increases than in the private sector. The rental contract states that the landlord can change the rent for the first time from 1-1-2018 and then annually by a percentage that is at most equal to the percentage legally permitted on the effective date of that change for residential space with a non-liberalized rent. The rental contract was entered into on April 1, 2016 and the rental price in the contract was €700 at the time. The landlord increased the rent by 4.3% as of 1 January 2018, bringing the monthly rent to €730.10, and the increase as of 1 January 2019 is 5.4%, bringing the monthly rent to €769.53. Is this correct? Kind regards and thank you very much for your response.

Lawyer

The rent of your home may increase by a maximum of 3.9% to 5.4% in 2018. The increase depends on your income in 2016 and only applies to social housing. Are you renting in the private sector? Then there is no maximum rent increase. Most landlords increase the rent as of 1 July. Income up to €41,056: 3.9% Was your household income €41,056 or less in 2016? Then the rent of your home may increase by no more than 3.9% (1.4% inflation 2017 +2.5 percentage points) since 1 January 2018. This applies to the rent increase as of 1 July 2018. Income above €41,056: 5.4% Was your household income €41,056 or more in 2016? And has none of the residents reached the AOW retirement age and does your household consist of a maximum of 3 people? Then the rent may increase by a maximum of 5.4% (1.4% inflation 2017 + 4.0 percentage points). Is your rent increasing by more than 3.9% (but a maximum of 5.4%)? Then your landlord must include a household declaration from the Tax Authorities with his rent increase proposal. This declaration must show that your household income in 2016 was higher than €41,056.

Questioner

Thanks for your response. However, to come to a correct conclusion I first have to determine whether I live in a social housing or in a private sector housing.

Lawyer

You rent a social housing unit. Your starting rent at the start of the lease (April 2016) was €700.00, while the rent liberalization limit in 2016 was €710.68.

Questioner

Thanks for your response. However, to come to a correct conclusion I first have to determine whether I live in a social housing or in a private sector housing.

Lawyer

You rent a social housing unit because the landlord adheres to the maximum legal rent increase.